The Federal Government has granted a three-year tax incentive to 25 companies under the Industrial Development Income Tax Act.
A pioneer status is an incentive from the Federal Government, which exempts companies from basic income tax.
The incentive is also known as tax holiday and it is generally regarded as an industrial measure aimed at stimulating investments into the economy.
This means companies with a pioneer status do not have to pay tax for a certain period of time, thus allowing the firms to get established. This can be a full or partial tax exemption.
The products or companies suitable for this pioneer status are industries or products that do not already exist in the country; the existing industries do not meet the required needs.
The companies that got the waivers are Royal Mills and Foods Limited, UVA Limited, Pinnacles Apartments Development Limited, Obu Cement Company Limited,
Saba Steel Industries Nigeria Limited, Gowus Nigeria Limited, Fidson Healthcare Plc, Gowus Nigeria Limited, Lafarge Africa Plc, Edimara Properties Limited and Wacot Rice Limited.
Others are Tribon Aqua Africa Limited, Grand Pela Hotels, Globus Resources Limited, Karshi Agro Farms Limited, Crown Flour Mills Limited, Dharul Fertilizer Limited, Olam Hatcheries Limited, Harvestfield Industries Limited, and Jabi Mall Development Company Limited.
The rest are Power Gas Global Investment Limited, Polar Petrochemicals Limited, Royal Pacific Group Limited, Montego Upstream Services Limited, Dangote Sinotrucks West Africa and Hayat Nigeria Ltd.