Does your business qualify for Pioneer Status in Nigeria?

The grant of Pioneer Status to an investment in Nigeria is aimed at enabling the industry concerned to make a reasonable level of profit within its formative years. The profit so made is expected to be ploughed back into the business.

Vehicle manufacturing is one of the industries that qualify for Pioneer Status in Nigeria

Vehicle manufacturing is one of the industries that qualify for Pioneer Status in Nigeria

Pioneer Status is a tax holiday granted to qualified or eligible industries anywhere in the country and a seven-year tax holiday in respect of industries located in economically disadvantaged areas. At the moment, there is a list of 71 approved industries declared pioneer industries, which can benefit from a tax holiday.

To qualify, a joint venture company or a wholly foreign-owned company must have incurred a capital expenditure of not less than ₦5 million (US$33,000) whilst that of a qualifying indigenous company should not be less than ₦150,000 ($991). In addition, an application in respect of Pioneer Status must be submitted within one year the applicant company starts commercial production, otherwise the application will be time-barred.

1 Cultivation, processing and preservation of food crops and fruits Preserved canned foodstuff and fruits, tea, coffee, refined sugar, tomato puree/juice, etc
2 Integrated dairy production Butter, cheese, fluid milk, powder milk, ice cream
3 a) Deep sea trawling and processing

b) Coastal fishing and shrimping

Preserved sea foods, fish and shrimps, fishmeal
4 Mining lead, zinc, and steel from iron ore Iron and steel products
5 Manufacturing of steel from iron ore Iron and steel products
6 The smelting and refining of non-ferrous base metals and the manufacturing of their alloys Refined non-ferrous base metals and their alloys
7 Mining and processing of barytes, bentonites and associated minerals Barytes, bentonites and associated minerals
8 Manufacturing of oil well drilling materials containing a predominant proportion of Nigerian raw materials Barytes, bentonites and associated minerals
9 The manufacturing of cement Cement, clinker
10 Manufacturing of glass and glassware Sheet glass and laboratory glasswares
11 Manufacturing of lime from local limestone Lime
12 Quarrying and processing of marble Marble and processed marble
13 Manufacturing of ceramic products Refractory and heat insulating constructional products, laboratory ware
14 Manufacturing of basic and intermediate chemicals i) Basic and intermediate organic chemicals

ii) Basic and intermediate in-organic chemicals

iii) Fertiliser

iv) Petro-chemicals

v) Caustic soda and chlorine

vi) Pesticide and insecticide

15 Formulation and manufacturing of pharmaceuticals Pharmaceuticals, health vitamins
16 Manufacturing of yeast, alcohol and related products Yeast, industrial alcohol and related products
17 Manufacturing of paper pulp Paper pulp
18 Manufacturing of yarn and man-made fibres Yarn and synthetic fibres
19 Manufacturing of machinery involving the local manufacture of substantial proportion of components thereof Office and industrial machinery, equipment and apparatus
20 Manufacturing of products made wholly or mainly of mental Pipes and tubes structure metal products
21 Manufacturing of nets from local raw materials Fishing nets, mosquito nets and related products
22 Manufacture of gas cylinders Gas cylinders
23 The processing of local wheat flour materials Flour and Offal
24 Rubber plantation and processing Rubber
25 Gum Arabic plantation and processing Gum Arabic
26 Manufacturing of fertilisers Ammonia, Urea Superphosphate and nitrogenous fertilisers
27 Vehicle manufacturing Motor vehicles and motorcycles, tricycles and automotive components
28 Oil palm plantation and processing Palm oil
29 Manufacture of automotive and other components Automotive and other components.
30 Book printing Books
31 Large scale mechanised farming Wheat, maize, rice and sorghum
32 Cattle ranching and piggery of not less than 500 herds Cattle and pigs of not less than 500 herds
33 Mining of gypsum Gypsum
34 Re-refining or recycling of waste oil Low power oil
35 Manufacturing of electrical appliances/equipment/components and parts Generators, transformers, meter, control, pressing irons, switch gears, test equipment, ballets/starters/lighters, discreet components, resistor/capacitors/coils/semi-conductors/conductors
36 Ship building, repairs and maintenance of ocean going vessels Ships, boats and barges
37 Manufacturing of computer and computer chips Computer hardware and software
38 Manufacture of cameras, photographic equipment and other materials Cameras, photographic equipment or any components thereof
39 Diving and underwater engineers Underwater engineering services
40 Local fabrications of machinery, equipment Machinery
41 Manufacturing of tools Machines and hand tools
42 Installation of facilities for aircraft manufacturing and maintenance of aircraft Aircraft maintenance and manufacturing
43 Installation of scientific instruments and communication equipment Scientific instruments, radio, audio play-back/recorders, loudspeaker units, amplifying systems, microphones, video playbacks/recorders, PBX, telephone handset, tele-printers, trans-receivers, autophones/aerials
45 Manufacture of gas and distribution Gas and gas distribution
46 Manufacturing of solar energy powered equipment and gadgets Solar panels, refrigerators, water pumps, calculators, etc
47 Large-scale inland fishing farms Fish and shrimps
48 Bitumen mining and processing Bitumen
49 Salt production Salt
50 Manufacturing of fire fighting equipment and detection systems Fire fighting equipment and detection systems
51 Manufacturing of cables Electrical, telephone and other cables
52 Manufacturing of medical equipment X-ray, oxygen equipment, etc
53 Mineral oil prospecting and production Petroleum
54 Manufacturing of lubricants Grease, hydraulic/engine oil, gear oil, etc
56 Manufacturing of flat sheets Flat sheets
57 Manufacturing of ovens, cookers, cold rooms, refrigerators, fridges, freezers, air conditioners Ovens, cookers, cold rooms, refrigerators, fridges, freezers, air conditioners
58 Manufacturing of agricultural machinery and equipment Ploughs, harvesters, threshers, planters, etc
59 Manufacturing of materials handling and equipment Cranes, forklifts, etc
60 Establishment of foundries Moulds, casting, etc
61 Manufacturing of alum Alum
62 Manufacturing of enzymes Enzymes
63 Manufacturing of concentrates Food/fruits concentrates
64 Manufacturing of welding electrodes Welding electrodes
65 Manufacturing of nails Nails, related items
66 Manufacturing of iron rods Rods from billets
67 Manufacturing of hops Brewing hops
68 Information and communication technology (ICT) Manufacture/production of ICT equipment, hardware and software
69 Tourism Development of holiday resorts, hotels, sporting and recreational facilities
70 Real Estate Development i) Rental income from residential and commercial premises

ii) Capital gains from any real estate disposed of within a specified period

71 Utility services i) Independent power generation utilising gas, coal and renewable energy sources

ii) All aspects of transportation such as rail, road and waterways

iii) Indigenous telecommunications companies other than GSM operations

Source: Nigerian Investment Promotion Commission