The successive and current governments of the Federal Republic of Nigeria has deemed it expedient to adopt the international best practice of introducing a wide range of economic incentives and reliefs that would motivate investors so as to make Nigeria an investment safe haven.
These incentives and reliefs are meticulously captured in the Nigerian Investment Promotion Commission (NIPC) Act and other similar laws of the Federal Republic of Nigeria. (For other similar laws on the subject visit: https://ibechidoassociates. com/pioneer-status-and-other-incentives-available-to-foreign-and-indigenous-investors-in-the-nigerian/)
The Nigerian Investment Promotion Commission is an agency under the Federal Ministry of Trade, and they are saddled with the responsibility of ensuring the participation of non-Nigerians for the development of the Nigerian economy.
The benefits accruable to Non-Nigerians under the Act are:
1. Non Limitation to any investment in any Business within the sovereign territory of Nigeria, except for those listed in the
2. Unconditional transfer of Dividend and profit in their Business in Nigeria to their country of origin.
3. No Government is allowed under the Act to nationalize any foreign enterprise in Nigeria
The Foreign exchange (monitoring and miscellaneous provisions) Act as the name entails was enacted for the purpose of ensuring that importation of foreign currency by non-Nigerian investors is made easy.
Under the Act, the foreign investor who wishes to invest in Nigeria must as a matter of transparency declare his or her sources of income. Such an investor is allowed to open, maintain, and operate different domiciliary accounts in his or her name(s), then lodge different foreign currencies through an authorized dealer at any of the Banks. The foreign currency imported for legitimate business shall not be liable to seizure or forfeiture or suffer any form of expropriation by the Federal or a State Government of Nigeria.
The relief under the Customs and Excise Management Act is centered on duty drawback policy of the Government which is in the form of a refund made on import duties on raw materials used in producing goods of export.
The Industrial Development (income tax relief) Act provides that companies whether wholly foreign or a joint venture are entitled to a tax holiday in the form of pioneer status for a period of three years and can be extended for two years.
Below are the requirements for the grant of a pioneer status in Nigeria.
1. A Formal Covering Letter to the Executive secretary for Pioneer status
2. Company’s contact, information (shareholders, directors, and management) and external representative.
3. Project cost and overview
4. Source of Financing
5. Production and financial performance
6. Number of employees, Training cost and emolument
7. Skills and technology transfer to Nigerians
8. Sources of raw material and components
9. Export earnings and destination
10. Infrastructure development so far by the company
11. Environmental, social and governance policies and plans
12. The utilization of tax savings
13. Declaration signed by the Chief Executive Officer/ Managing Director
For more detailed information on the above topic please visit https: https://ibechidoassociates. com/pioneer-status-and-other-incentives-available-to-foreign-and-indigenous-investors-in-the-nigerian/)
Okpi, Ibe Chinedu is the Principal Partner in the Law Firm of Ibe, Chido and Associates (www. ibechidoassociates. com), with an extensive knowledge in Corporate and Commercial Law Practice. He can be contacted via phone: 07069279374 or email: info@ibechidoassociates. com