BY VICTORIA ONU, ABUJA
Over two years after Dangote Fertilizer Ltd made applications to the Federal Government for tax relief through the pioneer status incentives, the request has not been granted.
Apart from Dangote, about 167 other applications from companies operating in various sectors of the economy are still awaiting the approval of the Federal Government.
The pioneer status is an incentive from the Federal Government which exempts companies from basic income tax.
The incentive is also known as tax holiday and it is generally regarded as an industrial measure aimed at stimulating investments into the economy.
This means the companies with pioneer status do not have to pay tax for a certain period of time allowing the companies to get established. This tax exemption can be full or partial.
The products or companies suitable for this pioneer status are industries or products that do not already exist in the country; the existing industry does not meet the required needs or fulfil expected goals; and any industry or product for which there is a favourable prospect of development.
An analysis of the third quarter pioneer status incentive report released by the Nigeria Investment Promotion Commission showed a total of 168 applications are still pending approval for the incentives.
For instance, Dangote Fertiliser Ltd applied for the incentives on October 15, 2019, and the application, according to the NIPC, is still “awaiting technical committee decision.”
Sunshine Hotel applied on January 1, 2018 and its application is “awaiting management consideration.
Similarly, China Civil Engineering Construction Corporation Nigeria Ltd which applied for tax holidays on November 19, 2019, has just been informed that more “additional information is required” from the company.
Some of the other companies with pending applications are Max Air Limited, Stallion Motors Limited, Caverton Helicopter Limited , Global Independent Connect Limited, Jesmond Valley Company Ltd, Agro Mall Discovery & Extension Limited, Red Star Oil and Gas Limited, APL Electric Company Limited, Italy Ceramic Company Limited, North South Gurara Energy Company Limited, Dangote Coal Mines Limited and Coscharis Farms Limited.
There is also Kings Flour Mill Limited, Sifax Shipping ICT Limited, West Africa Steel Processing and Export Company Limited, Emzor Pharmaceutical Industries Limited, Friesland Campina Wamco Nigeria Plc, Mikano International Limited, Seven-Up Bottling Company Limited, Crown Flour Mills Limited, Olam Hatcheries Limited and Afam Power Plc.
However, the Federal Government approved 16 companies in principle for income tax relief under the pioneer status incentives.
“As of 30 September 2021, 35 companies were still enjoying the PSI, 168 applications are still pending and no application was abandoned,” the report said.
It listed the 16 new beneficiary companies to include; Locodove Ventures Limited Lagos, Checkers Africa Limited, Lagos, A. A. Ibrahim & Company Limited Kano, Premium Agro Chemicals Limited Lagos, Palazzo Versace Hotel & Suites Limited FCT, Jigawa Rice Limited Jigawa, Kainuwa Rice Limited, Bauchi and Rain Oil Limited Lagos.
Others are Pedestal Hospitality and Allied Services Limited Imo, Etsako Cement Company Limited, Edo, Gidan Bailu Cement Company, Limited, Sokoto, Wammako Cement Company, Sokoto, Mangal Industries Limited Kogi, Okra Technologies Limited Lagos, Eastern Plains Integrated Farms Limited Anambra, Smart Meters Limited Kaduna, Lafarge Africa Plc Cross Rivers, Unicane Industries Limited Kogi and Confluence Metals Fabrication Company Limited, Kogi.
The NIPC also revealed that PSI was fully granted to three companies – Belanova Apartment and Suites Limited FCT, Al-Wabel Rice Mill Limited Kano and JMG Nigeria Limited Lagos.
Some of the industries in the PSI list are into mining, software development, processing and preservation of meat/poultry products, oil and gas, among others.
