EXCLUSIVE: Nigerian govt clarifies 27 businesses to enjoy tax break under pioneer status

His Excellency Vice President Prof. Yemi Osinbajo with Chief of Staff to the President, Mallam Abba Kyari shortly before the commencement of the FEC Meeting at the Council Chambers, State House, Abuja. 3rd May 2017. NOVO ISIORO.
His Excellency Vice President Prof. Yemi Osinbajo with Chief of Staff to the President, Mallam Abba Kyari shortly before the commencement of the FEC Meeting at the Council Chambers, State House, Abuja. 3rd May 2017. NOVO ISIORO.

The federal government on Monday gave clarifications on businesses that would qualify to enjoy pioneer status under the additional 27 new industries and products approved last week by the Executive Council of the Federation, FEC.

The Executive Secretary, Nigeria Investment Promotion Council, NIPC, Yewande Sadiku, told PREMUM TIMES in an exclusive interview in Abuja that companies that would enjoy pioneer status were only those that ventured to invest in industries that were either non-existent at all, or the country did not have sufficient presence for its economic development.

“Pioneer status does not relate to only new industries or entrants to the economy,” Ms. Sadiku noted. “Under the new arrangement, what the law provides for is different from the ordinary English definition of pioneer, but the legal definition.

While the English definition refers to a business first venture into a new area of operation, the Executive Secretary explained that the legal definition was where the country did not even have an industry at all, or did not have sufficient presence for its economic development.

In trying to encourage the establishment or growth of the industry and the economy, she said government decided to look at its priority sectors in the Nigerian Industrial Revolution Plan, NIRP, and the Economic Recovery and Growth Plan, ERGP, by promoting the 27 industries and products in the approved status document.

Ms. Sadiku said businesses that have existed for several years in a particular sector may not enjoy the pioneer status, except such companies ventured into a brand-new line of business covered under the list of 27 new industries and products.

“For instances, big companies, like JUMIA, who have established themselves in the e-commerce business sector as well as those in the music industry would not enjoy tax exemption by the government under the new regime.

“The pioneer status actually applies to those involved in their first year of business or operations. Clearly those older than that would not benefit,” she explained.

The objective of government, she pointed out, was to attract more people to invest in those sectors that have no investments to contribute to the growth of the economy.

“Only people that have agreed to venture into those sectors that would enjoy the pioneer status, and not those that have been there for more than a year.

“In the music industry, those that have already been there for a while would not enjoy the pioneer status. Government is just trying to encourage new people to invest in those industries. An existing company will only benefit if they are starting a new line of business included in the list of 27,” she said.

The list of 27 industries and products published on Monday by the Federal Ministry of Industry, Trade and Investment in Abuja included mining and processing of coal; processing and preservation of meat/poultry and production of meat/poultry products; manufacture of starches and starch products; processing of cocoa; manufacture of animal feeds; tanning and dressing of leather, manufacture of leather footwear, luggage and handbags; manufacture of household and personal hygiene paper products and manufacture of paints, vanishes and printing ink.

Others included manufacture of plastic products (builders’ plastic ware) and moulds; manufacture of batteries and accumulators; manufacture of steam generators; manufacture of railway locomotives, wagons and rolling stock; manufacture of metal-forming machinery and machine tools, manufacture of machinery for metallurgy, manufacture of machinery for food and beverage processing; manufacture of machinery for textile, apparel and leather production; and manufacture of machinery for paper paperboard production.

Also included were, manufacture of plastics and rubber machinery; waste treatment, disposal and material recovery; e-commerce services; software development and publishing; motion picture, video and television programme production, distribution, exhibition and photography; music production, publishing and distribution; real estate investment vehicles under the Investments and Securities Act; mortgage backed securities under the Investments and Securities Act; and business process outsourcing.

The Minister of Information and Culture, Lai Mohammed, had earlier explained that the benefitting industries would enjoy corporate income tax breaks for a period.

Under the new application guidelines, information on the considerations for assessing new pioneer status and extension applications would be provided online.

Besides, the guidelines further outline the application processes and timelines as well as the obligations of beneficiaries.

The pioneer status grants companies making investments in qualifying industries and products a tax holiday from the payment of company income tax for an initial period of three years, with the possibility of an extension for one or two additional years.


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  • thusspokez

    While the English definition refers to a business first venture into a new area of operation, the Executive Secretary explained that the legal definition was where the country did not even have an industry at all, or did not have sufficient presence for its economic development.

    English definition…yada yada yada. The government needs to publish a list of requirements which any company claiming tax break must tick all the boxes or meet. What use is in defining who is a pioneer or not?

  • RAPE_on_Niger DELTA

    The Gbaramatu Kingdom is in the cradle of the Niger Delta, a swampy maze of creeks, mangroves, streams, estuaries, and
    rivers. It is a place of extremes – extreme pollution, extreme heat, and extreme poverty. Major international oil companies have been drilling and exploring this area since 1958. This is where Nigeria has realised billions of dollars from oil exports for decades.

    Mrs Okoromadu died without any real medical care.She had passed on five days beforeon January 9 as a septuagenarian. And her possessions at death were -.pretty basic: canoe paddles, brooms, an umbrella, plastic buckets, kitchenware, clothes, and other household items. [Juxtapose this with the property of IBB, Obasanjo, Danjuma, Sanusi Lamido Sanusi, Sultan of Sokoto who all have oil wells directly or by proxy.

    “We gave her treatment for fever because that’s the only treatment anyone living in this locality could get,” her grandson, Tare Popo tells PREMIUM TIMES….“They will only give you medicine for fever no matter what your illness may be.”…..When his grandmother became critically ill, Mr. Popo took her to the two drug stores in their village, Oporoza, but none of them was adequately equipped to attend to her. The next morning, he moved her into a canoe and paddled to the nearby village of Kurutie, bracing the winds of the Escravos River. But after two days, all efforts to save her there failed and they returned to Oporoza. The next morning, he found her curled up in bed, pale and still.

    • deri best

      The insults against the Ijaw Nation will continue unabated by the Fulanis and Yorubas ati the Apes in APC—Who sadly for us were hired to pen this satanic article for the Apes in APC—–and the drug addicts in Efcc——————Sadly the Yorubas and Fulanis ati their Ibo surrogates will not relent in their insult of the Ijaw Nation because of the foolishness of the Ijaw elites–From Jonathan to EK Clark—-among others

      To them the pains and tribulations that Ijaws suffered in the hands of their Fulanis–Yoruba and Ibos masters since oil was discovered in 1956, is nothing compared to the demonic handshake they often get from the Sulatan of the Fulanis in Sokoto–and Emir of the Fulanis–in Kano———-ati Obas who do not even know their history————Efcc which has outlived her usefulness have not since her inception done anything but chase Ijaws in the creeks of the Niger Delta——from David West who was jailed by IBB for having the guts to glance at a Rolex wrist watch in Vienna and drinking a cup of tea with a white man—

      Then came Obj with HIS Satan controlled hatred for the Ijaw Nation—-He launched himself into chasing Etete the only Ijaw man to be awarded an oil block by a Kanuri man–late–Abacha–whom bingo Buhari taught how to steal——Yet Etete was pursued all over Europe while Obj was operating as Oil Minister—and dashing oil wells to his Yoruba people-

      That is why-Not one Yoruba man have had the guts to question his evil tenure as oil Minister—Now Deizani——-I do not understand how Efcc can contract two reporters one Yoruba and the other a Fulani woman trained with revenue from the oil wells in d creeks of the Niger delta–to pen this dirty unthinking article against the Ijaw Nation while they praise thieves like Rilwan Lukman and Jubril Aminu—who own oil wells and rigs in the SS—

      99.9 percent of the oil wells in the Niger delta are under the charge of the Fulanis—Yorubas and their Ibo surrogates——————-Nigeria kept quiet when every single property of Jonathan was stolen by Fulani police officers hired from Mali—-Now they have seized every pin-owned by Deizani———————-The only solution to the ongoing move to intimidate Ijaws is Separation——Deizani was married to an Ibo man—-Not one Ijaw man benefited from her work——in the oil industry——But the Ijaws can never let her down no matter the efforts by the tripod to demonize her——————-She is still by far better educated than lady alalkija who owns a private jet–gotten from the money she made from the oil wells in the Niger delta—-Adenuga–and Aluko–including Dangote-all became rich via the oil wells in d SS——–Today they are the untouchables of the earth——–Freedom is our goal——-not the rule of the Fulanis ati their Yoruba slaves and Ibo surrogates—-let my people go—–

    • Ogundare

      Sad indeed! I think closing our eyes to the injustices in the Niger Delta is not healthy. I know someday, if not very soon the situation will explode beyond what any government or army can handle.

  • _#ResumOrResign

    Can someone tell our mumu so called president Buhari to resign and leave Nigeria alone? Enough is Enough. What country in the world will condone this anomaly – that a terminally ill skeleton looking man presides over a country whose people he cannot address via video because of loss of speech? Worse is the fact that Europe and America and the rest of the world are watching and saying nothing. Why? Because it profits them that the dumb governs over Nigeria and guarantees their perpetual post-colonial and post slavery interests. Despite attrocities of Nigerian Army, US plans to sell fighter jets…all because Biafra and Niger Delta are seceding. But we are not deterred. Fighter Jets don’t win or stop anything. Were it so, Syria would be quiet by now.

  • deri best

    The insults against the Ijaw Nation will continue unabated by the Fulanis and Yorubas ati the Apes in APC—Who sadly for us were hired to pen this satanic article for the Apes in APC—–and the drug addicts in Efcc——————Sadly the Yorubas and Fulanis ati their Ibo surrogates will not relent in their insult of the Ijaw Nation because of the foolishness of the Ijaw elites–From Jonathan to EK Clark—-among others

    To them the pains and tribulations that Ijaws suffered in the hands of their Fulanis–Yoruba and Ibos masters since oil was discovered in 1956, is nothing compared to the demonic handshake they often get from the Sulatan of the Fulanis in Sokoto–and Emir of the Fulanis–in Kano———-ati Obas who do not even know their history————Efcc which has outlived her usefulness have not since her inception done nothing but chase Ijaws in the creeks of the Niger Delta——from David West who was jailed by IBB for having the guts to glance at a Rolex wrist watch in Vienna and drinking a cup of tea with a white man—

    Then came Obj with HIS Satan controlled hatred for the Ijaw Nation—-He launched himself into chasing Etete the only Ijaw man to be awarded an oil block by a Kanuri man–Abacha—Yet he was pursued all over Europe while Obj was operating as Oil Minister—and dashing oil wells to his Yoruba people-

    That is why-Not one Yoruba man have had the guts to question his evil tenure as oil Minister—Now Deizani——-I do not understand how Efcc can contract two reporters one Yoruba and the other a Fulani woman trained with revenue from the oil wells in d creeks of the Niger delta–to pen this dirty unthinking article against the Ijaw Nation while they praise thieves like Rilwan Lukman and Jubril Aminu—who own oil wells and rigs in the SS—

    99.9 percent of the oil wells in the Niger delta are under the charge of the Fulanis—Yorubas and their Ibo surrogates——————-Nigeria kept quiet when every single property of Jonathan was stolen by Fulani police officers hired from Mali—-Now they have seized every pin-owned by Deizani———————-The only solution to the ongoing move to intimidate Ijaws is Separation——Deizani was married to an Ibo man—-Not one Ijaw man benefited from her work——in the oil industry——But the Ijaws can never let her down no matter the efforts by the tripod to demonize her——————-She is still by far better educated than lady alalkija who owns a private jet–gotten from the money she made from the oil wells in the Niger delta—-Adenuga–and Aluko–including Dangote-all became rich via the oil wells in d SS——–Today they are the untouchables of the earth——–Freedom is our goal——-not the rule of the Fulanis ati their Yoruba slaves and Ibo surrogates—-let my people go—–

  • RAPE_On_Niger DELTA

    #OccupyNigerDelta • an hour ago

    1. There is oil pollution and spillage everywhere in the Niger Delta.
    2. Contaminated water, air and even on the farm land.
    3. Every food grown is contaminated with cancer causing toxins from pollution
    4. Even the minute fish found several kilometers away from the sea shores are contaminated too
    5. Nobody is prosecuting the foreign oil companies and their officials.

    Niger Deltans ARISE!!!

    1. 85% of the oil wells of the Niger Delta have been fraudulently acquired by Notherners…and nobody is probing it
    2. Contaminated water, air and even on the farm land.
    3. Every food grown is contaminated with cancer causing toxins from pollution
    4. Even the minute fish found several kilometers away from the sea shores are contaminated too
    5. There is oil pollution and spillage everywhere in the Niger Delta.
    6. Nobody is prosecuting the foreign oil companies and their officials.
    7. Why is Buhari not borrowing to clean up and rebuild the Niger Delta BUT borrowing to rebuild the North East?

    The people of the Niger Delta continue to be neglected. Their ecosystem is contaminated with morbid cancer causing toxins poured into our rivers by Nigeria’s oil exploration. …The recent Transparency International report states that every Niger Deltan adult is not likely to live beyond 45yrs. Why? Because he will die of one cancer or the other. But the Nigerian govt is doing nothing to clean up the Niger Delta. Our rivers all have black sandy beaches with repulsive and choking smell from toxins. This is war against our people and the Nigerian govt does not care.
    SOLUTION
    Actively pursue a separate state. Self determination and 100% RESOURCE control by any means necessary whether the parasitic North and West of Nigeria likes it or not.

  • RAPE_On_Niger DELTA

    Niger Deltans ARISE!!!

    1. 85% of the oil wells of the Niger Delta have been fraudulently acquired by Notherners…and nobody is probing it
    2. Contaminated water, air and even on the farm land.
    3. Every food grown is contaminated with cancer causing toxins from pollution
    4. Even the minute fish found several kilometers away from the sea shores are contaminated too
    5. There is oil pollution and spillage everywhere in the Niger Delta.
    6. Nobody is prosecuting the foreign oil companies and their officials.
    7. Why is Buhari not borrowing to clean up and rebuild the Niger Delta BUT borrowing to rebuild the North East?

    The people of the Niger Delta continue to be neglected. Their ecosystem is contaminated with morbid cancer causing toxins poured into our rivers by Nigeria’s oil exploration. …The recent Transparency International report states that every Niger Deltan adult is not likely to live beyond 45yrs. Why? Because he will die of one cancer or the other. But the Nigerian govt is doing nothing to clean up the Niger Delta. Our rivers all have black sandy beaches with repulsive and choking smell from toxins. This is war against our people and the Nigerian govt does not care.

    SOLUTION
    Actively pursue a separate state. Self determination and 100% RESOURCE control by any means necessary whether the parasitic North and West of Nigeria likes it or not.

  • Makokor

    Secession Referendum date pls!

  • Inferior NDeltan CITIZENS?

    Are you Akpan, Ibanga, Efetobo, Mudiare, Igho, Wabara, Tamuno, Sasia? Are you Donald Duke, Emmanuel Uduagham, Emmanuel Udom, James Ibori, David West? Are you from Delta, Edo, Rivers, Cross Rivers, Bayelsa, Akwa Ibom States? Did you know that REGARDLESS of your
    – Education
    – Qualifications
    – Experience
    – Smartness
    – Intelligence
    – Wealth
    …that you can NEVER become a president in Nigeria except you are made vice president and you pray for the president to die? Why? No man/woman from North or West or East of Nigeria will ever vote for a name that sounds like the names above

    On the contrary, anyone from the North or West however:
    – Uneducated
    – Certificate-less
    – Lacking in experience
    – Dumb
    – Daft
    – Poor
    ….can become president of Nigeria. Oh yes. Is Buhari not president? How can one be in a country where your ethnicity automatically excludes you from aspiring to presidency…and your RESOURCES exploited to run the so called country? Are you as a Niger Deltan INFERIOR to Hausa and Yoruba people? No. I refuse to be Nigerian.

    • musa aliyu

      Mtchewww!!!! I thought it was a human being writing

      • Papajoh

        He is a fulani cattle herdsman

  • Simeon Nigel

    Professor Osinbanjo should be very careful and extra-vigilant in his Vice-Presidental post and acting as today’s president duties against the present so called Chief of Federal Civil staffs person, who is always breathen his air always over him at all state occassions concerning national affairs. As far as the “sunnis branded” Islamists faithfuls now are concerns, they are the majority and in controlling the entire Nigerian Federal Government’s organs and structures also all national security agencies today, Professor Osinbanjo is a “kaffari” (meaning an Islamic unbeliever) and hence the Vice President should extremely traid very carefully at all times, and he should not also under no circumstances should he ever be trusting them in whatsoever Nigerian internal affairs involvement. I am a pure Christian northener and grew up and speaks hausa very fluently, so, professor Osinbanjo should always not believing any words of their words that often comes out their mouth and from any top “sunnis branded” Islam faith persons’ mouth, because any thing that any of them ever said or claim in national report presentation to Professor Osinbanjo, were often contains a remarkedily quite different from what were inside their evil minds and thinking faculties. Any time any National general meet ever been held involving Northeners, they will go back to then do stage their own secretive meetings than the one they had just finished earlier on before with everyone, because the presiding chairman of any such national state meeting previously been held is chair by unbeliever person or a christian. So I am calling on Professor Osinbanjo never should he ever always believing on them in national state executive council meeting matters in Aso Rock villa. I once offered President Jonathan the best advised, I can, about the best way forwards when dealing with any Northeners as they were so deeply conservative behaviour adherent kind of and so strongest in their Islamic beliefs that they daily displaying a kind of human instincts for being so loyalty as to their Islam religion which does comes first in their mind before ever any national interest consideration as a secondary priority in their scheming about things generally when concerning the running of the entire Nigerian general affairs. When President Jonathan first came into power as a Nigerian president in 2011 year ago, unfortunately, President Jonathan never hided or never took up my good advised very importantly. What then happened at the end today? Is that President Jonathan was disgraced out of office due to the conspiring game organised against him by Northeners by the kidnapped of Chibock school girls in 2014 year, which I had earlier before I advised for being against to him. I am sure he is by now may be wishing that had it been he is still the president today, he would have taken my advised very seriously, and also he has now have seen it very clearly as to what the northeners were really are as Islamic begots and extremists type of Nigerians of today.

    • thusspokez

      Balderdash! How long did it take you to write this rúbbish. You are obviously consumed by tribalism and religion.

      Obviously, you are too naive to realise that the human being is very complex hence you ascribe godly powers to individuals and ethnic groups. No one person or group can determine the faith of Nigeria except in the minds of juju worshippers.

      GEJ ran a very poor campaign. Instead of going out to meet the Nigerian people, he preferred visiting so-called tradition and religious leaders with brown envelopes — failing to realise that, in modern Nigeria, these people only have one vote each and have no influence over how their “subjects” and followers vote at the polls. He also spent his time chasing and visiting ex-heads of state to get their endorsement — as if that would have made any difference.

      In 2015, one could safely assume that most of the displaced North-Eastern Nigerians were Buhari voters, so why did the daft GEJ allow his NSA adviser to persuade him to delay the election in other to push back boko harams and allow the Buhari voter back? What a stúpid thing to do for a politician. Most astute politicians would secretly wish for more displaced Buhari voters to improve their chances of wining the elections.

      The problem with many Nigerians is that they can’t think! GEJ lost the election because he was daft and can’t think. It wasn’t a conspiracy.