Nigeria’s federal government has approved 27 new industries for inclusion in the list of “pioneer industries” and pioneer products, as part of its efforts to diversify the economy. By implication, companies operating in these industries would be eligible to apply for pioneer status, once the list is published in the official gazette.
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). Eligible companies operating in designated pioneer industries and/or producing pioneer products, that apply for and are granted pioneer status, are eligible for an income "tax holiday" for a period of up to five years (three years to start, and renewable for an additional maximum period of two years). In addition to income tax holiday, pioneer companies enjoy other benefits—such as the exemption from withholding tax on dividends paid out of pioneer profits.
Read an unofficial list [PDF 47 KB] of the new pioneer industries as prepared by the KPMG member firm in Nigeria
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.