On 7th August, 2017, the Federal Government of Nigeria announced the lifting of an administrative suspension on the processing of Pioneer Status Incentive (PSI) applications following a comprehensive review and reform of the process. The Government also released a list of 27 new industries added to the existing PSI list.
The PSI grants companies making investments in qualifying industries and products a tax holiday from the payment of company income tax for an initial period of three years, with the possibility of an extension for one or two additional years.
New guidelines and application forms have also been issued and the application process will continue to be managed by the Nigerian Investment Promotion Commission (NIPC).
The new Industries added to the PSI List are as follows:
1. Mining and processing of coal;
2. Processing and preservation of meat/poultry and production of meat/poultry products;
3. Manufacture of starches and starch products;
4. Processing of cocoa;
5. Manufacture of animal feeds;
6. Tanning and dressing of Leather;
7. Manufacture of leather footwear, luggage and handbags;
8. Manufacture of household and personal hygiene paper products;
9. Manufacture of paints, vanishes and printing ink;
10. Manufacture of plastic products (builders’ plastic ware) and moulds;
11. Manufacture of batteries and accumulators;
12. Manufacture of steam generators
13. Manufacture of railway locomotives, wagons and rolling stock;
14. Manufacture of metal-forming machinery and machine tools;
15. Manufacture of machinery for metallurgy;
16. Manufacture of machinery for food and beverage processing;
17. Manufacture of machinery for textile, apparel and leather production;
18. Manufacture of machinery for paper and paperboard production;
19. Manufacture of plastics and rubber machinery;
20. Waste treatment, disposal and material recovery;
21. E-commerce services;
22. Software development and publishing;
23. Motion picture, video and television programme production, distribution, exhibition and photography;
24. Music production, publishing and distribution;
25. Real estate investment vehicles under the Investments and Securities Act;
26. Mortgage backed securities under the Investments and Securities Act; and
27. Business process outsourcing.
For further information and to download the new application forms, guidelines for PSI and Pioneer list, please visit the NIPC website www.nipc.gov.ng