The Federal Government of Nigeria (FGN) has published an official gazette ("the Gazette") of the current list of pioneer in dustries and products ("the List") approved by the Federal Executive Council ("the FEC") in August 2017.
The Gazette embodies the first update to the List since March 2006. The List contains the activities which are qualified for the Pioneer Status Incentive, a tax holiday which grants company income tax relief for a preliminary period of 3 years, renewable for an additional period of two (2) years. In addition to income tax holiday, pioneer status confers other advantages, like exclusion of dividends from withholding tax during the period pioneer status is effective.
The List as published in the Gazette consists of 99 pioneer industries (which include the existing pioneer industries and 27 new industries approved by the FEC in August 2017) in the following economic sectors:
- Construction
- Agriculture
- Trade
- Manufacturing
- Financial Services
- Professional Services
- Waste Management
- Information and Communications
- Electricity and Gas Supply
- Mining and Quarrying 11.Administrative Services
The List also contains a number of deletions i.e. "clinker and cement" as qualifying products effective from 1st August 2020.
Click here for the full gazette
First published in Aluko & Oyebode Insights
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.