Mohammed Shosanya

The Nigerian Investment Promotion Commission(NIPC) is working assiduously to stem the exit of foreign companies and investors from Nigeria.

Mr. Abayomi Salami, Director, Department of Policy Advocacy in NIPC, who stated this at a media briefing in Abuja, said the management of the Commission was concerned over the issue that some companies/organisations and investors are leaving the shores of Nigeria due to unfavourable business climate.

Salami identified challenging investment climate and exchange rate of naira as some of the factors responsible for investors and companies closing shops in Nigeria.

He assured that the NIPC management was working relentlessly in collaboration with relevant agencies of government to reverse the ugly trend.

He disclosed that already that the leadership of the Manufacturers Association of Nigeria(MAN) had held a meeting with the management of NIPC to chart a way forward.

He expressed optimism that the outcome of the meetings and work being done by the Commission would soon begin to impact positively on the economy.

He stated that the Commission would continue to advocate favourable investment climate as well as ensure reduction of the cost of doing business in the country.

In her presentation, Mrs. Lovina Kayode, Deputy Director, Investors Relations in the Commission, said the Commission granted Pioneer Status Incentive (PSI) also known as tax holidays to 34 companies seeking tax incentives and waivers in 2023.

Kayode explained that tax incentives are meant to boost foreign investments into Nigeria, adding that they have become contentious issues due to the high volume of revenue loss to waivers granted every year.

She stated that stringent processes and procedures were followed by the Commission while granting tax waivers and holidays to these companies.

She said: “The pioneer status incentive is a stimulus that allows a company to get three years of not paying Corporate Income Tax, just to get more investments.

“This process is stringent because our parent Ministry of Industry, Trade and Investment and the Federal Inland Revenue Service are involved to make sure the right investors get this incentive.

“So far this year, we granted 34 applications and one of the things we intend to do is to ensure we are not just giving incentives to undeserving companies.

“However, there is already a notion that Nigeria gives out too many waivers, incentives, and concessions.

“Tax expenditure which means what government has lost by granting pioneers status incentive is just a small amount compared to what the country gains by granting these incentives to qualified companies.”

Kayode disclosed that the Commission would carry out impact assessment of the incentives provided to the benefitting companies.

According to her, “On impact, that is one thing NIPC is planning on, next year. It is one of our biggest tasks to do an impact assessment.These incentives we gave out, how have they impacted the country in terms of job creation?

“How many jobs are the companies creating and what kind of import substitution has come about because we have granted these incentives and how much would the government gain after the three years of them not paying these taxes?

Earlier, Aisha Rimi, Executive Secretary/Chief Executive Officer of NIPC, said the Commission would re-align its efforts and focus to key into 8-point Agenda of the present administration.

Rimi underscored the need for every Nigerian to contribute in making Nigeria to work through the facilitation and promotion of healthy investment climate in the country.