The Federal Government has disclosed that 107 companies invested a total of N2.53tn into the Nigerian economy before qualifying for their tax exemption approvals.
The companies made these investments across key sectors and committed to creating jobs for Nigerians—both major requirements for getting the three-year tax holiday under the Pioneer Status Incentive (PSI) scheme.
This was revealed in the latest PSI quarterly report by the Nigerian Investment Promotion Commission (NIPC), obtained by our correspondent on Wednesday.
The report showed that the firms operate in industries like manufacturing, solid minerals, pharmaceuticals, ICT, trade, construction, waste management, power, gas supply, tourism, and infrastructure.
Most of the companies secured their approvals in 2022, with their exemptions set to end in 2025. However, some newer companies recently got approvals that will last until 2027.
Further breakdown of the report showed that:
- 89 new PSI applications were received,
- 213 applications are still pending,
- 34 companies got approvals in principle,
- 14 firms received extensions of their tax holidays till 2027,
- and 30 companies are seeking renewal of their incentives.
Some major beneficiaries include Dangote Fertilisers (N635.28bn investment), Greenville LNG Company Limited (N162.50bn), Gidan Bailu Cement (N215.53bn), Etsako Cement (N200bn), and O2O Network Limited (N115.56bn).
Other firms like Mikano International (N36.70bn), Jigawa Rice Limited (N2.45bn), Rain Oil Limited, Villextra Technologies (N930m), Green Recycling Industries (N5.12bn), and Flex Films Africa (N37.21bn) also made significant contributions.
Additional beneficiaries include H&W Rice Company (N9.66bn), Ocean & Cargo Terminal Services (N17.70bn), Sifax Marine Limited (N276m), and Alef Recycling Company (N6.96bn), among others.
The Pioneer Status Incentive is offered under the Industrial Development Income Tax Act and exempts companies from income tax for three years (sometimes renewable), aimed at boosting investments in industries not already widespread in Nigeria.
However, the PSI scheme has faced criticism due to the huge loss in government revenue. Reports suggest that the country has lost an estimated N8tn through tax waivers.
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, noted that the incentive system has “a lot of loopholes,” making it difficult for the government to gain real economic benefits from the tax credits it grants.
