The Federal Government has revealed that the 107 business organizations that were exempted from taxes collectively invested N2.53tn into the Nigerian economy before the exemptions were approved.
The businesses invested huge amounts across several key sectors of the economy while also promising to guarantee job creation for Nigerian citizens, both of which are important prerequisites for qualifying for the three-year tax exemption granted by the Federal government.
According to the latest Pioneer Status Incentive quarterly reports presented by the Nigerian Investment Promotion Commission, the total investments made by the 107 companies amounted to N2.53 trillion during the year.
Confirming that the firms are active in critical sectors like manufacturing, pharmaceuticals, information and communication, trade, construction, waste management, and electricity, the commission said that the quarterly PSI report showed that 89 more companies have asked to be given a break from taxes, 213 remain pending, 34 already have approved applications, while 14 companies saw their incentive extended until 2027.
The organizations currently enjoying the tax-free benefits include Dangote Fertilisers with an investment of N635.28bn and staff strength of 1,189, Mikano International Limited invested N36.703bn, Jigawa Rice Limited (N2.45bn), JMG Nigeria Limited (N5.67bn), Rain Oil Limited, Okpella Cement Plc, Greenville Liquified Natural Gas Company Limited (N162.50bn), Gidan Bailu Cement Company Limited (N215.533bn), Auxano Solar Nigeria Limited (N4.88bn), AP LPG Limited (N20.63bn), Karma Agric Feeds and Foods Limited (N4.81bn), Agrira West Africa Limited (N42.79bn) and Etsako Cement Company Limited (N200bn).
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, however, revealed that the pioneer status incentives come with various loopholes that make it hard for the FG to fully benefit from the tax credit it gives away.
He concluded by pointing out that the pioneer status also complicates things for the government when they try to quantify revenue forgone, and for investors when they attempt to assess the value of the incentive, leading to a lack of transparency between both parties.
Folami David is a dynamic journalist who views the world through an analytical lens, translating complex narratives across multiple industries into compelling stories. With an insatiable appetite for information and a keen eye for emerging trends, Folami specializes in uncovering the interconnections between technology, business, culture, and society.
