Twelve new companies were granted tax holidays in the first quarter of this year by the Federal Government under the Pioneer Status Incentive initiative, the latest Nigerian Investment Promotion Commission (NIPC) report has shown.
The firms are Neway Power Technology Company Limited, Starich Recycle Technologies Company Limited, Gerawa Rice Mills Limited, Shafa Energy Limited, and Mafa Rice Mills Limited.
Others are Fouani Nigeria Limited, A. A Rano Nigeria Limited (haulage), A. A Rano Nigeria Limited (Natural gas supplier), Basma Agric Processing Limited, Flex Films Africa PVT Limited, Addmie Nutrition Limited, and Dufil Prima Foods Plc.
Read also: Fitch affirms Fidelity Bank rating at B
The PSI scheme is a Nigerian government program that grants tax breaks and other incentives to companies operating in certain sectors of the economy. It aims to attract investment and stimulate economic growth in these sectors.
According to NIPC, the application lists of approved companies for the PSI grants in Q1 would be for three years.
“The companies had invested N125.7 billion in its operations and production. However, NIPC approved nine other companies in principle, which will join the beneficiary companies after fulfilling certain conditions,” the report said.
It added that 18 new PSI applications were received in the first quarter of this year, while eight companies applied for an extension of their tax holiday, but only two were granted extensions.
“Approvals-in-principle are subject to the payment of application fees and only take effect after the payment of such fees,” the report said.
It added that the products or companies eligible for this pioneer status are those in the country. Meanwhile, 213 fresh applications for the tax holiday are still pending in Q1.
Tax incentives have been a contentious issue due to the high amount of revenue lost to waivers granted every year. The Federal Government recently disclosed plans to review and reduce tax waivers given to companies operating in Nigeria. It said companies operating in Nigeria received tax incentives worth N6 trillion annually.
Economic experts stressed the role of tax waivers in driving economic growth but questioned the transparency and objective rate of the Federal Government in granting tax waivers.
More details about the firms
Neway Power Technology Company
Neway Power Technology Company manufactures solar power products in Abia, Nigeria. The company invested N6.02 billion in its operations and production.
Starich Recycle Technologies Company Limited
Starich Recycle Technologies Company Limited is one of the Chinese companies based in Abia, Nigeria. They produce recycled polyester staple fibres from waste. It invested N6.6 billion in its operations and production.
Read also: Nigeria’s 30 biggest firms’ interest expense doubles on CBN rate hike
Gerawa Rice Mills Limited
Gerawa Rice Mills Limited is a rice milling company based in Kano, Nigeria. It invested N11.8 billion in its operations and production.
Shafa Energy Limited
A.Y.M. Shafa Holdings Limited is a manufacturer of gas and gas distribution company in Delta State, Nigeria. It invested N6.15 billion in its operations and production.
Mafa Rice Mills Limited
Mafa Rice Mills Limited is a rice-producing company based in Kano, Nigeria. It invested N5.02 billion in its operations and production.
Fouani Nigeria Limited
Fouani Nigeria Limited is a manufacturing company of sanitary towels and baby diapers in Ogun State, Nigeria. It invested N11.9 billion in its operations and production.
A. A Rano Nigeria Limited
A. A Rano Nigeria Limited serves as a haulage of petroleum and gas via tanker trucks, and also as a logistics company for natural gas in Lagos, Nigeria. Both companies invested a combined amount of N19.5 billion.
Basma Agric Processing Limited
Basma Agric Processing Limited is another rice milling company in Kano, Nigeria. It invested N4.5 billion in its operations and production.
Flex Films Africa PVT Limited
Flex Films Africa PVT Limited is a manufacturing arm of India’s largest multinational flexible packaging solutions company in Ogun State, Nigeria. It invested N37.2 billion in its operations and production.
Read also: FT ranking: 24 Nigerian firms grow revenue to N1.2trn in four years
Addmie Nutrition Limited
Addmie Nutrition Limited is a manufacturing company of yeast, spices, and condiments; condiments seasoning mix in Lagos, Nigeria. It invested N3.5 billion in its operations and production.
Dufil Prima Foods
Dufil Prima Foods Plc is a manufacturer of grain mill products and pure cassava flour (PCF) in Edo State, Nigeria. It invested N13.1 billion in its operations and production.
