Ecommerce, Software Development among industries to enjoy tax breaks in Nigeria

The Nigerian government has included eCommerce and Software development industries in the revised list of 27 key industries and products that will enjoy tax breaks in a bid to attract prospective investors. This is part of the ‘pioneer status’ incentives for prospective investors. Companies and products granted pioneer incentives enjoy three-year tax holiday which may be extended to five years subject to meeting required conditions.

This list was disclosed after a meeting of the Executive Council of the Federation, FEC, last week by the Minister of Industry, Trade and Investment, Okechukwu Enelamah. This increases the original number of industries and products from 44 to 71.

The trade and investment ministry earlier announced the lifting of the administrative suspension on processing pioneer status incentives, PSI, applications for prospective investors in the country.

Some of the benefits of the pioneer status include tax relief, mainly for corporate income tax.

Here is the full list of the 27 industries to enjoy the pioneer status.

1. Mining and processing of coal;
2. Processing and preservation of meat/poultry and production of meat/poultry products;
3. Manufacture of starches and starch products;
4. Processing of cocoa;
5. Manufacture of animal feeds;
6. Tanning and dressing of Leather;
7. Manufacture of leather footwear, luggage and handbags;
8. Manufacture of household and personal hygiene paper products;
9. Manufacture of paints, vanishes and printing ink;
10. Manufacture of plastic products (builders’ plastic ware) and moulds;
11. Manufacture of batteries and accumulators;
12. Manufacture of steam generators;
13.  Manufacture of railway locomotives, wagons and rolling stock;
14. Manufacture of metal-forming machinery and machine tools;
15. Manufacture of machinery for metallurgy;
16. Manufacture of machinery for food and beverage processing;
17. Manufacture of machinery for textile, apparel and leather production;
18. Manufacture of machinery for paper and paperboard production;
19. Manufacture of plastics and rubber machinery;
20. Waste treatment, disposal and material recovery;
21.  E-commerce services;
22. Software development and publishing;
23. Motion picture, video and television programme production, distribution, exhibition and photography;
24. Music production, publishing and distribution;
25. Real estate investment vehicles under the Investments and Securities Act;
26.  Mortgage backed securities under the Investments and Securities Act; and
27. Business process outsourcing.