The Federal Government has approved tax waivers for 107 companies, including major players such as Dangote Group and Mikano International Limited, under its Pioneer Status Incentive (PSI) scheme. The move, aimed at spurring investment and driving economic growth, was confirmed in the latest report by the Nigerian Investment Promotion Commission (NIPC).
According to the NIPC’s fourth-quarter 2023 PSI report, the 107 companies that benefited from the initiative collectively invested over ₦2.49 trillion across various sectors of the Nigerian economy. These sectors include manufacturing, agriculture, solid minerals, pharmaceuticals, information and communication, energy, trade, and infrastructure.
Among the beneficiaries are prominent firms such as Dangote Fertilizer Limited, Mikano International, Sinotrucks West Africa Limited, JMG Nigeria Limited, Okpella Cement Plc, Rain Oil Limited, and African Foundries Limited. Others include Greenville LNG, Jigawa Rice Limited, Masters Liquefied Gas Company Limited, GZ Transport and Logistics, Kunoch Hotels Limited, and Medlog Logistics.
The Pioneer Status Incentive, governed by the Industrial Development Income Tax Relief Act, offers eligible companies a tax holiday on corporate income tax for an initial period of three years, with the possibility of extension for one or two more years. The policy is designed to attract investments in sectors identified as crucial to Nigeria’s economic development.
The report also noted a surge in PSI beneficiaries, rising from 83 companies in the first quarter of 2023 to 107 by the year’s end, reflecting growing private-sector interest in the scheme.
However, the tax incentive policy has sparked debate over its long-term fiscal implications. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, recently disclosed that Nigeria loses as much as ₦6 trillion annually to tax incentives and waivers. He stressed the need for a more transparent and accountable framework to ensure the country derives maximum value from such concessions.
Despite the concerns, the government maintains that the tax waivers are crucial in enhancing the competitiveness of local industries, attracting foreign direct investment, and fostering job creation at a time when Nigeria is facing multiple economic pressures.
