The Federal Government approved the application of 33 companies seeking pioneer status under the Industrial Development Income Tax Act in 2021.
This was contained in the quarterly PSI reports released by the Nigeria Investment Promotion Commission.
The reports also revealed that investments made by the 33 companies during the year amounted to N543.88bn.
It also noted that the government declined the applications submitted by 10 investing firms including the popular FinTech, Flutterwave, during the review period.
The pioneer status is an incentive offered by the Federal Government, which exempts companies from paying income tax for a certain period. This tax exemption can be full or partial.
The incentive is generally regarded as an industrial measure aimed at stimulating investments in the economy.
The products or companies eligible for this pioneer status are products or industries that do not already exist in the country.
An analysis of the first quarter PSI report showed that while the requests of 10 firms were denied, three companies had their applications approved in principle, while six firms were granted PSI for a three-year period.
The report also revealed that 33 firms were benefitting from the tax incentive scheme in Q1, while the requests of 132 companies were still pending.
As at March 31, 2021, the firms granted tax reliefs invested a total of N45.5bn in the Nigerian economy.