Summary
The National Investment Promotion Commission (NIPC) has released the gazette list of Pioneer industries and products. The Federal Government had previously revised the Guidelines for applying for Pioneer Status Incentive (PSI) and added 27 industries and products to the Scheme in August 2017. This gazette list which is dated 14 August 2017 contains the newly added 27 industries and products eligible for PSI.
Details
The PSI Scheme is an incentive Scheme that grants three to five years tax holiday to ameliorate the cost of doing business in Nigeria. In 2017, the Federal Government of Nigeria lifted the administrative suspension placed on the PSI Scheme in 2015 by the then Minister of Finance, Dr (Mrs) Ngozi Okonjo-Iweala. The Federal Government also issued a new set of Guidelines for application for the Scheme and released a list of 27 industries and products added to the Scheme. The newly released gazette list of Pioneer Industries and Products provides clarity and certainty on the industries and products which are eligible for the PSI Scheme.
It appears that the Federal Government of Nigeria reviewed the list of Pioneer industries and products to align it with the current economic realities of Nigeria and the Economic Recovery and Growth Plan (ERGP). Expectedly, the addition of new industries and lifting of administrative suspension will attract both existing and new investors into those sectors of the economy. The revised Guidelines for application for PSI Scheme aims to provide guidance to both new applicants to the Scheme and those seeking for extension of the tax-holiday period under the Scheme.
Implication
This gazette list contains a comprehensive list of the industries and products eligible for the PSI Scheme including the industries and products that were added in August 2017. (Please follow this link to read our previous publication on the PSI Scheme).
The addition of new industries and products to the Scheme is expected to increase the participation of both indigenous and foreign manufacturers or investors in the production/provision of goods and services in Nigeria which would in turn improve competitiveness of the market and provide access to a wide range of goods or services to consumers.
The periodic review of the list should enable the Government to make necessary adjustments to the list of industries and products which are eligible for the PSI and encourage new investors and entrepreneurs to venture into the critical sectors in the Nigerian economy.
Please follow this link to access the gazette list.
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