NIPC approves three-year tax holiday for eight companies

The Nigerian Investment Promotion Commission (NIPC) approved the pioneer status applications of eight companies in the first quarter of 2020.

This is according to NIPC first quarter report released on Wednesday.

Some of the companies which received the approval-in-principle were Main Data Nigeria Limited, Honeywell Flour Mills, Apple & Pear Nigeria Limited and Tranos Contracting Limited.

Others are Elvis Hotels, Medlog Nigeria Limited, Kalambina Cement Company and Wells Hosa Greenhouse Farms.

Obu Cement Nigeria Limited got a two-year extension of the tax holiday.

The commission said it received 18 new applications, three of which were denied, and one application for an extension during the first quarter.

Industries that qualify for the PSI are exempted from paying company income tax for an initial period of three years with the possibility of an extension for one or two years.

This incentive is listed in the Industrial Development (Income Tax Relief) Act, which is administratively regulated by the NIPC.

“The companies made a total investment of N151.916 billion, have 1,460 staff and are in various sectors including agriculture, construction, administrative service, information & communication, and manufacturing. one company was granted extension for two years; the company had a total investment of N88.700 billion, while its staff strength was 573,” a statement by the commission read.

According to the report, 39 companies were enjoying the PSI as of March 31, 2020, with 125 applications are still pending, and no PSI certificate has been cancelled.

Featured image: Yewande Sadiku, NIPC executive secretary