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NIPC grants tax holiday to Honeywell, Savannah Sugar, 4 others with N175.28 billion investments

6 additional companies with an investment value of N175.28 billion were granted Pioneer Status Incentive (PSI) by the NIPC.

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NIPC grants tax holiday to Honeywell, Savannah Sugar, 4 others with N175.28 billion investments, AfCFTA: Nigeria is more ready than most African economies - Yewande Sadiku

The Nigeria Investment Promotion Commission (NIPC) has disclosed that 6 additional companies with an investment value of N175.28 billion were granted Pioneer Status Incentive (PSI) for the third quarter (Q3) ended September 2020. These companies include:

  • Savannah Sugar Company Limited with N7.78 billion investments, granted tax-exempt to manufacture sugar.
  • Daily Need Industries Limited with N4.91 billion investment value, granted the tax holiday for the manufacture of some pharmaceutical products.
  • Tribute Lifestyle Global Concept Limited – an e-commerce player with N121 million investment, granted PSI for sales done predominantly or exclusively online.
  • Others are Kalambaina Cement Company with N107.54 billion investment value, granted PSI for manufacturing of cement.
  • Wells Hosa Greenhouse Farms with N5.47 billion investment value,  granted PSI for Crop production.
  • Honeywell Flour Mills Nigeria Plc with N49.45 billion investment value, granted PSI for manufacturing of Wheat (pasta – macaroni, spaghetti and sorghum).

READ: NIPC releases its Q3 2020 report on Pioneer Status Incentive (PSI) applications

The disclosure is contained in the report on PSI applications for third quarter 2020, issued by NIPC on Wednesday, November 11, 2020.

The report states that NIPC received new pioneer status applications from 28 companies, currently have 37 companies who are benefitting from the PSI. It also discloses that there are 102 pending applications for the PSI, with 60 companies abandoning their PSI applications.

READ: Honeywell reports N300 million pre-tax profits in Q2 2020

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Pioneer Status Incentive (PSI) is a tax holiday provided under the Industrial Development (Income Tax Relief) Act, that grants qualifying industries, products relief, from the payment of corporate income tax for an initial period of three years, renewable for one or two additional years.

The report shows that Lafarge Africa Plc, Honeywell Flour Mills Nigeria Plc, Dangote Sinotrucks West Africa, Crown Flour Mills Limited, Maryland Mall Limited and 32 other companies are currently enjoying the PSI of the FG.

READ: Flour Mills of Nigeria Plc: Increase in agro-allied, others boost revenues

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It also shows that 3 companies – Pan Africa Towers Limited, Aarti Rolling Mills Limited and Princess Medi-Clinics Nigeria Limited – were granted approval-in-principle for colocation/infrastructure hosting and sharing facility, manufacture of cold-rolled and flat-rolled products of steel and for construction and operation of non-residential buildings (specialized hospital).

READ: Berger Paints Nigeria Plc records 8.96% increase in 2020 9M revenues

Also, 3 extension applications were received during the period, while one extension application was approved. No approvals were denied during the period. The report further revealed that three companies had their production date certificate confirmed.

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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Business

InfraCredit to increase guarantee portfolio to N100bn in 2021

InfraCredit has revealed plans to raise funding through debt and equity capital to fund infrastructure projects in Nigeria in 2021.

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Infracredit finalize accessing of AFDB $10 million unsecured 10-year facility

Nigeria’s Infrastructure Credit Guarantee Company, InfraCredit, has revealed plans to raise funding through debt and equity capital to fund infrastructure projects in Nigeria in 2021. The company plans to increase its guarantee portfolio to N100 billion by 2021 and raise $40 million in funding.

This was disclosed by Chinua Azubike, CEO of InfraCredit, in an interview with Bloomberg on Thursday.

You need access to funding to kick-start the economy,” Azubike said. He revealed plans to increase its guarantee portfolio to N100billion naira in 2021 and also raise capital of $40 million, which would be used for infrastructure financing in Nigeria.

He added that apart from Infrastructure, it has its sight on telecommunications, health care, and agriculture projects in 2021, which could help clients raise as much as 20-year funds in the local debt market.

In addition to our guarantee services, we work with our development partners to render technical assistance to companies to come up with bankable projects,” he said.

What you should know 
Nairametrics reported last week that President Muhammadu Buhari approved the establishment of an infrastructure company that will be wholly focused on critical infrastructural investments in the country.
The Presidency in a tweet post said, “President Buhari has approved the establishment of an Infrastructure Company, wholly focused on critical infrastructural investments in Nigeria. This Infrastructure company will raise funding from Central bank of Nigeria, Nigeria Sovereign Investment Authority, Pension funds, and local and foreign private sector development financiers.”

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Public and private sectors must work together to transform the economy – Osinbajo

Vice President, Yemi Osinbajo has stated that public and private sectors must work together to transform the economy.

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FG to slash import duties on tractors, buses, others in 2020 Finance Bill, Nigeria will not issue Eurobonds, says Vice President Yemi Osinbajo, FG guarantees mortgage loan to low income buyers at low interest rate, FG inaugurates gold refinery project in a landmark event

The Nigerian Economic Summit Group (NESG) and the Ministry of Finance, Budget and Economic Planning recently held the 26th National Economic Summit (NES#26) Group Conference, themed: “Building Partnerships for Resilience”.

The summit held virtually and physically at the Transcorp Hilton Hotel and was attended by the Vice President of Nigeria, Prof. Yemi Osinbajo.

In his welcome address, the Chairman of NESG, Mr Asue Ighodalo, said the focus of the summit is primarily on building partnerships for resilience of Nigeria’s households, businesses, and the general economy.

“This became important due to the pandemic and its far reaching health and economic consequences. The restiveness of our huge youth population, a population growth rate that exceeds our rate of economic growth and development; the high rate of unemployment and underemployment as well as the resultant high levels of poverty in our economy.”

Prof. Osinbajo, who delivered the opening remark on behalf of President Buhari, remarked that the theme is quite appropriate at this time in the history of the nation, as vital partnerships are quite critical lessons to be learnt from the COVID-19 pandemic and emphasized the need for both public and private sectors to work together to transform the economy and build a fair and just society.

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According to Prof. Osinbajo, “Our national journey to economic prosperity is a long one, so we must all certainly work together. As we saw, partnerships were essential when we were faced with the serious challenge of combatting COVID-19 pandemic. They are also necessary for framing medium and long-term development plans. They are needed for transforming our economy and certainly indispensable to ensuring that we build a fair and just society.

“We saw the key role that partnerships played in our national effort to combat the COVID-19 crisis. While, Federal and State Governments worked together to manage the health response and ensure the establishment of isolation centres, availability of test kits, personal protective equipment, and medicines. The private sector also played an active role as individual entities and also worked together in groups like the Coalition Against COVID-19.”

(READ MORE: Nigeria to exit recession by first quarter of 2021)

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The Executive Secretary/CEO of Nigerian Investment Promotion Commission (NIPC), Ms. Yewande Sadiku, who spoke during the session on a topic, “Attracting Foreign Investments” said there is a greater improvements by Nigeria as shown in the Ease of Doing Business ranking in the last five years and more could be achieved if the government institutionalize its economic reform process.

What you need to know

  • NES#26 is the 26th Nigerian Economic Summit and the annual economic summit of the Nigerian Economic Summit Group (NESG). It is expected to focus on building strategic partnerships and cooperation between governments, businesses, and the civil society for resilience.
  • To drive greater attention to subnational investment opportunities in Nigeria, NIPC had developed the Book of States which contains summaries of critical information about 36 States and the FCT needed for investment promotion and facilitation.
  • NIPC is also working with the States to identifying high net-worth individuals that can invest in the profiled investment opportunities across the states.

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Medical Free Zone to save Nigeria about $1billion in annual medical tourism – NEPZA

NEPZA has stated that it is considering setting up 15 Medical Free zones in at least 15 states of the federation.

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The Nigeria Exports Processing Zones Authority (NEPZA) is thoughtfully considering setting up 15 Medical Free zones in at least 15 states of the federation, not minding the torrential pressures from the State governments lobbying to skew the location of the novel Medical Free Zones to their own states.

This disclosure was made by the Managing Director of NEPZA, Prof. Adesoji Adesugba, when he was visited recently by the new President of the Healthcare Federation of Nigeria (HFN), Dr. Pamela Ajayi.

According to Prof. Adesugba, the Medical Free Zone is a novel concept and project that is intended to revolutionize the healthcare sector in the country. He said that a number of the Governors are jostling for their states to be selected, as they can see the full benefits of this project to their states and the health-care delivery systems.

The push by these State governments shows acceptability of the project premised upon its viability. NEPZA is, therefore, considering if the project can be located in more than one state.”

He further said that the Federal Government through NEPZA is favourably disposed to siting the novel project in any state that meets all the requirements, as the Authority would not be willing to relax any of its guidelines in the process due to the sensitive nature of the sector.

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What you should know

NEPZA is amenable to partner with relevant stakeholders to deliver the proposed world-class medical enclave to Nigerians.

The project is critically important as it would save about $1billion expended on medical tourism annually by Nigerians. It will provide Nigerians access to some of the best hospitals in the world, that our people spend huge sums of money in for treatments.

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A total of 15 world-class foreign hospitals and a handful from within the country are expected to be part of this project to deliver impeccable services in 2021.

The Healthcare Federation of Nigeria and some of its affiliates are already buying into this great opportunity to invest in. When fully developed, the proposed Medical Free Zone would reposition the local health sector and enable the local operators to compete with themselves and their foreign healthcare providers.

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