The Federal Executive Council approved 27 new industries and products to take a tax break in other to give them an opportunity to grow and expand investments. 27 industries will benefit from not having to pay tax for a certain period of time, allowing them to get established. This is an incentive from the Nigerian government to allow companies take a tax holiday from basically income tax.
Companies would be exempted from paying income tax for a period of three years, after which they can be exempted for two more years. A review of the list was done based on the economic realities of the nation and also Federal Government strategy of Economic Recovery and Growth.
The Minister of Industry, Trade and Investment, Okechuckwu Enelemah, announced this along with set guidelines to follow, as the process is sure to help reduce the cost of doing business in Nigeria.
Here is a full list of industries that would enjoy the Pioneer Status:
- 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, varnishes and printing ink.
- Manufacture of plastic products (builders’ plastic ware) and molds.
- 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 program 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.
- Business process outsourcing.