Nigeria: Government approves 27 new pioneer industries | KPMG | GLOBAL

Nigeria: Government approves 27 new “pioneer industries”

Nigeria: Government approves 27 new pioneer industries

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.

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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

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