The Nigeria Investment Promotion Council has said it will take about 25 weeks to issue a pioneer status certificate to eligible businesses.
The Executive Secretary/Chief Executive Officer, NIPC, Yewande Sadiku, explained that in the first 18 weeks, the first phase of the application for tax holiday would be done by the council while the second phase, which would last for seven weeks, would be handled by the Ministry of Industry Trade and Investment.
The pioneer status incentive is a tax holiday from the payment of company income tax given to new companies under the 27 eligible sectors for a period of time to attract investments into critical sectors of the economy.
An existing company with an expansion plan may apply for a certificate of pioneer status, which lasts for three years and is renewable for another one or two years.
Speaking in an online interview, Sadiku said in the first phase, applicants would be required to make a presentation to the NIPC on their business objectives and goals after which an application form would be filled in and submitted.
According to her, the council will embark on the inspection of the company premises and issue an approval in principle after the company has met acceptable requirements.
In the second phase, she explained that the Ministry of Industry, Trade and Investment would determine the date of production after obtaining basic information about the company, and issue a production day certificate, which would be used to obtain a pioneer status incentive certificate for a period of three years.
“With the approval in principle, the company then completes part two of the application form. The part two form is submitted to the Industrial Inspectorate Department of the Ministry of Industry Trade and Investment. Based on the information provided, it can then determine what the production day is for the company,” she said.
The NIPC boss added, “Once they issue the company with a production day certificate, the NIPC then issues the company with a pioneer status incentive certificate with the eligibility for a three-year period starting from the production day as determined by the Industrial Inspectorate Department.”
“We expect that the first phase of the application process should take 18 weeks. The part two, which involves the Ministry Of Industry Trade and Investment, is expected to take seven weeks.”
The Federal Executive Council on Wednesday approved the inclusion of 27 enterprises on the list of pioneer industries and products that would enjoy pioneer status under the Industrial Development Income Tax Relief Act.
The Minister of Industry, Trade and Investment, Okechukwu Enelamah, said this at the end of the meeting of the council presided over by Acting President Yemi Osinbajo.
The ministry has identified some of the new additions as mining and processing of coal, processing, production and preservation of meat/poultry; manufacture of starch and starch products; manufacture of household and personal hygiene paper products; manufacture of plastic products and moulds.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.