Invest in Nigeria

The Nigerian Government has put in place a number of investment incentives for the stimulation of private sector investment from within and outside the country. While some of these incentives cover all sectors, other are limited to some specific sectors. The nature and application of these incentives have been considerably simplified.


Investment Incentives


1. COMPANIES INCOME TAX

The Companies Income Tax Act has been amended in order to encourage potential and existing investors and entrepreneurs. The current rate in all sectors, except for petroleum, is 30 percent.


2. PIONEER STATUS

The grant of Pioneer Status to an industry is aimed at enabling the industry concerned to make a reasonable level of profit within its formative years. The profit so made is expected to be ploughed back into the business.


Pioneer status is a tax holiday granted to qualified or (eligible) industries anywhere in the Federation and seven-year tax holiday in respect of industries located in economically disadvantaged local government area of the Federation. At the moment, there is a list of 69 approved industries declared pioneer industries, which can benefit from tax holiday.


To qualify, a joint venture company or a wholly foreign-owned company must have incurred a capital expenditure of not less than amount specified by the Corporate Affairs Commission (CAC) whilst that of qualified indigenous company should not be less than N150,000.00.


According to CAC, Registration of Limited liability Companies can now be processed directly by the first Directors/Subscribers to Memorandum and Articles of Association similar to what obtains in the case of Business Names and Incorporated Trustees. This is part of the Federal Governments Investment Climate Reform Programme aimed at reducing cost of doing business in Nigeria.



Commercial Section







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