Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Opinions Blurb

Two quoted companies that could be affected if FG goes ahead with pioneer status restriction

Nairametrics by Nairametrics
April 13, 2015
in Blurb, Company News
A-Z Of Pioneer Status Incentives In Nigeria
Share on FacebookShare on TwitterShare on Linkedin

The Federal Government has announced plans to target 22 companies who were granted pioneer status contrary to the provisions of the Industrial Development Act. NIPC, has written to restrict the pioneer status granted to these 22 companies to three years and FIRS has raised assessments on four of the companies that are liable to pay.

Pioneer status law allows the NIPC to issues pioneer status of no more than 3 years in the first instance thus exempting them from paying tax from the income for which the pioneer status covers for that period. However, a further two year extension can be given if application is successful.

Despite this provision most companies had obtained 5 year straight pioneer status from the NIPC thus denying the government of potential tax revenues. This probably wouldn’t be a problem but now that the government is cash strapped their searchlight has now beamed on those companies. Their searchlight is particularly on oil and gas companies who have in recent times benefited from such incentives following divestment from IOCs.

RelatedPosts

By the numbers: Comparing NNPC with Saudi Aramco

MultiChoice reports N196.3 billion in subscription revenue from Nigeria

For retail investors who may be worried, one oil and gas company comes to mind. Seplat obtained pioneer status for 5 years in January 2013 after acquiring assets from an IOC. It was seen as a surprising move at the time considering that Seplat acquired an already existing asset that was under operation. Nevertheless, the pioneer status was not affected. But whilst the initial 5 year period did not fall under the scrutiny of the FIRS back then it probably will this time and may be reduced to 3 years. If it is reduced then it is likely to impact on the future value of Seplat.

Another upstream company that currently isn’t affected but may become affected is Oando. At their last earnings call in 2014, the company executives confirmed that they had applied for pioneer status from the FG and was awaiting approval. The application was on the back of the COP acquisition. With the FIRS and NIPC is now circumspect about such incentives it remains to be seen if this application will be granted soon enough to start to impact on bottom line or if indeed it will even be granted.

Related

Tags: firsNews ReviewOando Plcseplat

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Hot forex
Cornerstone
Mega Millions
Polaris Bank
Access Bank
Bankers Committee
First bank


FCMB
Ikeja Electrics




    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Nigeria raises $477 million in Marginal Oil Field development Licenses – Report
    • Crypto adoption in Africa gets a boost with Mara wallet
    • Former President Jonathan explains why he did not embark on constitutional reforms

    Follow us on social media:

    Recent News

    Oil, DPR, FG announces commencement of bids for marginal oilfields despite court injunction

    Nigeria raises $477 million in Marginal Oil Field development Licenses – Report

    June 28, 2022
    Crypto adoption in Africa gets a boost with Mara wallet

    Crypto adoption in Africa gets a boost with Mara wallet

    June 28, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com