The Federal Government of Nigeria has approved 27 new industries for inclusion in the list of pioneer industries and pioneer products. The approved industries are listed below:
- 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;
- Manufacture of paints, vanishes and printing ink;
- 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;
- Manufacture of machinery for paper and paperboard production;
- 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.
- By implication, businesses operating in the industries listed above would automatically be eligible to apply for and enjoy Pioneer Status Incentive.
What is Pioneer Status Incentive?
Pioneer status is a fiscal incentive provided under the Industrial Development (Income Tax Relief) Act, Cap I7, Laws of the Federation of Nigeria, 2004 (IDA). The pioneer status incentive is tax holiday given to companies for a period of time, to encourage the growth and development of the Nigerian economy. In this new approval list, eligible companies who are granted pioneer status, are entitled to income tax holiday for up to five (5) years broken down as three (3) years in the first instance which is renewable for an additional maximum period of two (2) years. The process is being administered by the Nigerian Investment Promotion Council which has more details on the Pioneer Status here.
Benefits of the Pioneer Status Incentive
In addition to income tax holiday, pioneer companies enjoy other benefits, such as the exemption of dividends paid out of pioneer profits from withholding tax.
Documents to Access Pioneer Status Incentive
For further details on the process, please visit our Nigerian Investment Promotion Commission MSME Hub Tools and Templates Section or click on the following links below to download the application process flow, application forms and project presentation guidelines.
We hope you find this information useful and you take advantage of the opportunity to invest in Nigeria.