The Federal Government has lifted the administrative suspension on processing Pioneer Status Incentives (PSI) applications, following the conclusion of critical reforms to the incentive regime.
The Minister of Industry, Trade and Investment, Mr. Okechukwu Enelamah made the disclosure at a media briefing in Abuja on Monday.
He said that the government had also released a new guideline for PSI applications and revamped list of pioneer industries and products.
“The Federal Executive Council (FEC) at its last meeting approved the lifting of the suspension, a new guideline and a revamped Pioneer list, with the addition of 27 key industries.
“FEC also approved the deletion of two industries and a biennial review of the list going forward.
“In line with the reform provisions, all additions will be added to the list immediately, and all deletions will be removed from the list in three years,’’ he said.
Enelamah noted that the review of the list of pioneer industries and products was done to bring it in line with the economic realities of Nigeria, and the Economic Recovery and Growth Plan (ERGP).
“The Federal Government is committed to encouraging and attracting investments into critical sectors of the economy, which will significantly impact development and deliver key benefits to the country.
“These benefits include Economic Growth and Diversification; Industrial and Sectoral Development; Employment; Skills and Technology Transfer; Export Development; and Import Substitution,’’ he said.
Executive Secretary, Nigerian Investment Promotion Council (NIPC), Ms Yewande Sadiku said the reforms had brought further clarity, predictability and process efficiency to the PSI regime.
“We will continue the reform process as we plan to take the PSI application process online. We will also engage with relevant stakeholders with a view to updating the existing legislations,’’ Sadiku said.
She advised that companies could visit the commission’s website (www.nipc.gov.ng) for further information and to download the new application forms, guidelines for PSI and Pioneer list.
Sadiku noted that the commission was established to encourage, promote and coordinate all investments and provide support services to new and existing investors.
An administrative suspension was placed on the processing of PSI applications in September 2015, to allow for a comprehensive review and reform of the incentive regime.
The aim was to increase transparency and process efficiency, articulate the expected economic benefits and improve the government’s ability to measure the impact of the incentive.
The new application guidelines provide information on the considerations for assessing new PSI and extension applications.
It further outlines the application processes and timelines, and also details the on-going obligations of beneficiaries.
The PSI grants companies which meet certain requirements a tax holiday; such companies would be exempted from the payment of company income tax for an initial period of three years.