Nigeria is blessed with lot of mineral resources that will last till the end of creation, even till the next earth to come, Nigeria is among the few Nation that has a taste of all the neccessary resources needed for quality development for a nation. Here are some of these opportuinties:
OPPORTUNITIES IN AGRICULTURE:
The agricultural potential of Nigeria is barely being tapped and this explains the inability of the country to meet the ever increasing demand for agricultural produce. Although the agricultural sector remains a dominant employer of labour, serious investment is needed across the board to enhance production and increase the contribution of the sector to GDP. Investment is required in the following priority activities:
(a) Crop production to achieve food security and to provide industrial raw materials. Potentials exist for the following crops:
Cereals: Maize, rice, sorghum, corn, millet, wheat.
Root crops: Cassava, yam, ginger, potato, coco yam.
Legumes: Soya beans, groundnuts, cowpeas.
Fruits: Mango, banana, oranges, guava, papaw, pineapple.
Vegetables: Cabbage, green pepper, carrots, lettuce, spice, onions, melons.
Tree crops: Oil palm, cocoa, rubber, coconut, kola nut, coffee, she nuts, beniseed, cotton, cashew nut, sugar cane.
Others: Commercial growing of flowers and ornamentals and experimental orchards for more temperate fruits-apples, grape vines and pears have been successfully established in the high plateau regions.
(b) Food processing and preservation involving industries that will use agricultural produce as raw materials.
(c) Livestock and Fisheries production which possess great potentials for development. Grazing lands are abundant, facilities for animal feed production are plentiful, and the in-land rivers, lakes and coastal creeks are sufficient to augment ocean fishery resources.
(d) Agricultural inputs supplies and machinery, water resources development especially for flood control infrastructure and irrigation.
(e) Commodity trading and transportation.
(f) Development and fabrication of appropriate small-scale mechanized technologies for on-farm processing and secondary processing of agricultural produce.
(g) Exploitation of timber and wood processing activities. A wide range of wood resources abound.
Foreign and domestic investors are being encouraged through improved fiscal incentives in the Nigeria oil and gas sector. In the Upstream and Downstream sectors, the following are some of the areas where there are pressing needs for investors.
(A) UPSTREAM ACTIVITIES
(i) Petroleum Exploration and Exploitation.
(ii) Search for development of local substitute for such items as Medium pressure valve, pumps, shallow drilling equipment, Drilling mud, bits fittings, drilling cements etc.
(iii) Manufacturing of consumable materials in exploration such as explosives, detonators, steel castings, magnetic tapes etc.
(iv) Other areas in the services sector of the upstream are:
1. Construction and Installation
2. Maintenance
3. Pipelining
4. Well Services and
5. Transportation Support Services.
(B) DOWNSTREAM ACTIVITIES:
(i) Domestic Production and marketing of Liquefied Petroleum Gas (LPG)
(ii) Manufacturing of LPG cylinders, valves and regulators, installation of filing plants, Retail distribution and development of simple, flexible and much less expensive gas burner to encourage the use of gas instead of wood and other fuels.
(iii) Establishment of processing plants and industries for:
- The production of refined mineral oil, petroleum jelly and grease.
- The manufacture of bituminous based water/damp-proof building materials such as roofing sheets, floor tiles, rubber products, tarpaulin. Building of asphalt storage, packaging and blending plants to handle the product for export.
(iv) Establishment of chemical industries such as distillation units for the production of naphtha and other special boiling point solvents used in plant and other food processing industries.
(v) Establishment of industries for processing Linear Alkyl Benzene, Carbon Black and Polypropylene.
(vi) Development of Phase II (Phase III to join later) of Nigeria’s Petrochemical Programmed.
(vii) Participation in all phases of the Nigeria Gas Industry development programmed from exploration, gathering, production and processing to transmission.
(viii) Establishment of small scale industries to produce chemicals and Solvents, for example Chlorinated methane, Formaldehyde, Acetylene, etc., from natural gas.
(ix) Refining: One condition for purchasing Nigerian Crude Oil is the ownership of an efficient refinery. The shelter which the domestic petroleum products market enjoys, almost completely seals the prospects and viability of privately financed refinery for locally consumed petroleum products. However, opportunities exist for the construction of a refinery in bonded premises with adequate export facilities for dedication to the export market. Companies with the technological know-how can undertake turn-around maintenance of refineries. Refineries consume a lot of chemicals and utilize a broad range of spare parts. There is tremendous scope for small scale joint venture manufacturing concerns with foreign technical partners. Such ventures can start warehousing arrangements that will ensure continuity of supply at competitive prices. Other investment opportunities contingent upon refining and Ancillary activities are the manufacture of special products such as:
- Industrial and food grade solvents
- Insecticides
- Cosmetics
- Mineral Oil, petroleum jelly grease
- Bituminous-based water/damp-proof building materials such as floor tiles, rubber products, tarpaulin, etc., and
- Asphalt storage, packaging and blending plants to handle products for export and local use. Export of refined products surplus also exists as an opportunity in refining.
(x) Products Marketing: Petroleum Product Marketing would seem sealed with hardly any opportunity except by way of establishing an independent marketing outfit or aspiring to establish dealership with the marketers.
While indeed those opportunities remain viable, far more challenging opportunities may be explored in the areas of product transportation, by road and coastal tankers.
Associated with products distribution and marketing is a chain of manufacturing and maintenance business such as lubricating oil reprocessing, LPG bottles and accessories, oil cans reconditioning, etc.
The nations pipeline and depot network consists of 3,001km of pipeline of varying sizes as well as sixteen (16) storage depots. These pipelines and networks traverse the length and breath of the country. The system therefore must be maintained in a healthy state for effective and efficient distribution of products.
OPPORTUNITIES FOR INVESTMENT IN THE SOLID MINERALS SECTOR
Nigeria is endowed with numerous mineral resources. Recent policy reforms have brought the solid minerals sector to the fore. The emphasis is on encouraging massive foreign investors’ participation in this sector.
PROFILE OF SOLID MINERALS DEPOSITS IN NIGERIA
TALC
An estimated reserve of over 100 million tones of talc has been obtained in Niger, Osun, Kogi, Kwara, Ogun, Taraba and Kaduna States. There are only two medium size talc processing plants currently operating in Nigeria and both are located in Niger State. The color of the Nigerian talc varies from white through milky-white to gray. The talc industry represents one of the most versatile sectors of the industrial minerals of the world. The exploitation of the vast talc deposits in Nigeria would therefore satisfy not only local demands but also that of the international markets as well.
IRON ORE
There are over 3 billion tones of iron ore found in kogi, Enugu, Niger, Zamfara and Kaduna States. Iron is currently being mined at Itakpe (Kogi State), which is more or less at the center of the region of crystalline iron deposits. The large deposit of oolitic iron ores of Kogi and Enugu States are yet to be fully explored. Itakpe iron ore is being beneficiated to 67% Fe. To feed Aladja and Ajaokuta Steel complexes. Besides there are three in-land rolling mills at Oshogbo, Jos and Katsina in addition to some privately owned rolling mills in Lagos and Kano.
GOLD
There are proven reserves of both alluvial and primary deposits of gold with proven reserves in the shiest belt covering the western half of Nigeria. At present exploitation of alluvial deposits is being carried out mostly by artisan miners in a few places in the country. A number of primary deposits, which are sufficiently big for large scale mechanized mining, have been identified in the northwest and southwest parts of the county. Private investors are invited to stake concessions on these primary deposits. It is interesting to note that the primary deposits are of relatively high grade and at shallow depth. Production costs will easily be as low as about $50 per ounce.
BITUMEN
The occurrence of Bitumen deposits in Nigeria is indicated at about 42 billion tones almost as twice the amount of existing reserves of crude petroleum. When fully developed, the industry will no doubt meet local requirements for road construction and also become a foreign exchange earner for the country.
ROCK SALT
The national demand for table salt, caustic soda, chlorine, sodium bicarbonate, sodium hypochloric acid and hydrogen peroxide exceeds one million tones. A colossal amount of money is expended annually to import these chemicals by various companies including tanneries, food beverages, paper and pulp, bottling and other industries including the oil companies. There are salt springs at Awe (Plateau State), Abakaliki (Enugu State) and Uburu (Imo State), while rock salt is available in Benue State. A total reserve of 1.5 billion tones has been indicated, and further investigations are now being carried out by government to ascertain the quantum of reserves.
GYPSUM
Gypsum is an important imput for the production of cement. It is used for the production of Plaster of Paris (P.O.P) and classroom chalk, etc. A strategy for large-scale mining of gypsum used in the cement industries is urgently required to sustain existing plants and meet future expansion. Current cement production is put at 8 million tones per annum while the national requirement is 9.6 million tones. About one billion tones of gypsum deposits are spread over many states in Nigeria.
LEAD/ZINC
An estimated 10 million tons of lead/zinc veins are spread over eight States in Nigeria. Joint venture partners are encouraged to develop and exploit the various lead/zinc deposits all over the country.
BENTONITE AND BARYTE
These are the main constituents of the mud used in the drilling of all types of oil wells. The Nigerian baryte had specific gravity of about 4.3. Over 7.5 million tons of baryte have been identified in Taraba and Bauchi States. Large bentonite reserves of 700 million tonnes are available in many states of the Federation ready for massive development and exploitation.
COAL
Nigerian Coal is one the most bituminous in the world owing to its low sulpur and ash content and therefore the most enviroment friendly. There are nearly 3.00 billion tonnes of indicated reserves in 17 identified coalfields and over 600 million tonnes of proven reserves.
GEMSTONES
Gemstone mining has boomed in various parts of Plateau, Kaduna and Bauchi States for years. Some of these gemstones include Sapphire, Ruby, Aguamarine, Emerald, Tourmaline, Topaz, Garnet, Amethyst, Zircon and Flourspar which are among the world’s best. Good prospects exists in this area for viable investments.
KAOLIN
An estimated reserve of 3 billion tonnes of good kaolinitic clays has been identified.
TANTALITE
Large deposits of Tantalite are known to occur in Nasarawa, Gombe and Kogi tates as well as the Federal Capital Territory. The deposits ar both alluvial and primary in the numerous pegmatite bodies that infest these ares. Grades of well over 50% Ta2O5 are found. Private investors are invited to stake concessions for the development and exploitation of tantalite in these areas.
Pelletisation of Coal for Domestic Use
Given the large deposits of brown coal in the tertiary sediments east and west of River Niger; Nigeria can cash in on foreign investors’ technology to produce coal pellets for industrial use, coal briquettes for domestic use; that is, to replace firewood.
Incentives and Strategies for Investment
Investment Incentives:
- 3-5 years Tax Holiday.
- Deferred royalty payments.
- Posible capitalisation of expenditure on exploration and surveys.
- Extension of infrastructure such as roads and electricity to mining sites, and provision of 100% foreign ownership of mining concerns.
HOW TO OBTAIN A MINING LEASE IN NIGERIA
There are two options available to a company or an individual to enter into mining industry in Nigeria.
Through the acquisition of an existing mining property from the original owner. Approval must be obtained from the Ministry of Solid Minerals Development for such a purchase.
By obtaining an application, either a Prospecting Right (PR), an Exclusive Prospecting Licence (EPL), or a Special Exclusive Prospecting Licence (SEPL), the application should state financial and technical capability qualifying the applicant for entry into the mining sector.
INVESTMENT OPPORTUNITIES IN THE POWER, STEEL AND ALUMINIUM SECTORS.
POWER SECTOR: Government has concluded plans towards revitalization of installations of the National Electric Power Authority, NEPA to enable it meet its total installed capacity of 6000MW. Sufficient funds are being injected for the rehabilitation of ageing plants and equipment. In order to allow full private sector patricipation in power generation, transmission and distribution, government has accepted to deregulate the secror by the year 2000. This will allow local and foreign investors to build, own and operate and/or transfer independent electricity. All laws that inhibit private sector participation in the power sector are being reveiwed with a view to amending them and encouraging investment. This step will complement the de-consolidation of the industry as far as the state-owend NEPA is concerned. The hitherto largely over-centralised operations of this agency will be decentralised.
Guidelines and framework for Independent Power Products (IPP’s) are now being put together folowing the interests and applications already put forward by independent producers from all around the world.
Investment Opportunities exist for hydro-power generation in Mambilla Fall, Adamawa State and Agbokin fall in Cross-River State. NEPA will readily negotiate a Memorandum of Understanding (MOU) with any foreign energy company to cover the following areas:
(i) Development of energy resources and infrastructures,
(ii) Management of energy infrastructure;
(iii) Commercialization of energy
(iv) Training; and
(v) Exchange of information and experience.
It is expected that further discussions will centre on:
(i) Construction and management of power stations by private companies;
(ii) Production of Steam and gas turbine spare parts;
(iii) Repairs and testing of power transformers;
(iv) Development of wind turbines for generation of electricity;
(v) Manufacture of distribution transformers and line hardware;
(vi) Technology transfer through joint erection of new power plants;
(vii) Training of NEPA staff in computer based maintenance system etc.
NEPA and the foreign company will then set up a joint committee for the purpose of achieving these objectives.
THE STEEL SECTOR: Plans by the Ministry to revitalise the steel sector are underway. As a first step to reviving the sector, technical audit and cost estimate for completion of Ajaokuta Steel Project are being contempleted. The Ministry is also planning to rehabilitate the Delta Steel Company and three in-land Steel Rolling Mills in the country with a view to making them function effectively. Staff training and development is also being given attention because local skilled manpower availability can motivate an investor into the industry. These are aimed at putting the sector in a state of readiness for foreign investment.
In consonance with the nation’s technical and economic co-operation policies for this sector, some areas of joint co-operation have been identified, and investors will be encouraged to invest in the sector. Discussions will centre on joint venture commercial operation of the completed units of the Ajaokuta Steel Project. Investors will be encoureged inthe following areas:
(i) Iron Making Plant with capacity to produce 1.35 metric tonnes of billets;
(ii) Billet Mill with capacity to produce 795,000 tonnes of billets per annum;
(iii) Light Section Mill with capacity to produce 400,000 tonnes of bars per annum;
(iv) Medium Section Mill with capacity to produce 130,000 tonnes of wire coils per annum; and
(v) Engineering Workshops comprising:
- The Power Equipment Repair Shop
- Forge Fabrication and Rubberising Shop with capacity to produce 4,200 tonnes of fabricated structures.
THE ALUMINIUM SECTOR:
The Aluminium Smelter Company of Nigeria, ALSCON, is a joint venture project in which Nigeria owns 70% of the equity shares, while the remaining 30% is shared between AG Ferrostaal of Germany with 20% shares and Reynolds Inc. Of US with 10% shares. The present administration is making efforts to ensure that the aluminium smelter plant is properly funded. It has given invitation to private investors to invest in the company and /or take part of Nigeria’s 70% shares. The plant is one of the best and biggest in the world with the most modern technology. A number of countries have signed or are negotiating trade and economic cooperation agreements with Nigeria. Since the essence of these bilateral agreements is to foster unity: boost economic growth and technological co-operation, foreign investors should take advantage of existing bilateral ties and harken to the call to invest in the ALSCON project as in other projects in the power and steel sectors.
COMMUNICATIONS SECTOR
The deregulation of the telecommunications sector in 1992 through Decree 75 was to allow for private sector participation in the sector and expand the nation’s communication facilities. The Nigeria Communications Commission (NCC) was established consequently to regulate the performance of the sector. The liberalisation thrust was further strengthened by the Nigeria Communications Commission (Amendment) Decree No. 30 of 1998 which deleted those provisions in the first decree that inhibited competition in the sector thus enhancing the expected role of private sector enterprises.
The functions of Nigerian Communications Commission include:
* Regulating the privatised sector of the telecommunications industry.
* Facilitating entry into the telecommunications market by private enterpreneurs.
* Creating a regulatory enviroment for the supply of telecommunications equipment and facilities.
* Issuing of telecommunications licences.
* Promoting fair competition and efficient market conduct among all players in the telecommunications industry.
* Arbitrating disputes between participants in the telecommunications industry and protecting consumers against unfair practices.
INVESTMENT OPPORTUNITIES IN TELECOMMUNICATIONS INDUSTRY IN NIGERIA
1. LOCAL MANUFACTURE OF EQUIPMENT
The telecommunications industry in Nigeria is far from being developed. There is a dearth infrastructural facilities and this has placed a constraint on the provision of services to existing and potential customers. There is therefore an urgent need to expand the infrastructures in this sector if it is to effectively play its role in the economic, social, plotical, cultural and in fact overall development of the Nigerian society and properly integrate it into the international community. Such desired expansion can not be achieved under the present dispensation where the needed equipment are usually imported with attendant problems of foreign exchange procurement, freighting cost, long delivery period etc. There is therefore no other realistic option thanthe local manufacture of these equipment and spares.
SWITCHING AND TRANSMISSION EQUIPMENT
Local manufacture of switching and transmission equipment is requird since no single company exists in Nigeria or even neighbouring countries for this purpose. Hence any company that goes into the venture will have its market beyond the frontiers of Nigeria.
CABLES
In Nigeria, there are three companies engaged in the production of telecommunication cables using imported copper and other local resources like poly vinyl chloride materials for insulation. There is no company that is cuurently producing fibre optic cables in the country.
The copper cable producing companies are producing only low pair capacity of 50, 100, 200 pairs. There is need for a plant that will produce high pair capacity cables that will enhance massive provision of lines to the teaming population.
2. FACILITIES AND SERVICES PROVISION
With Nigeria’s population that is over 108 million people, an installed telephone capacity of about 700,000 lines and a telephone penetration of 0.65 lines to 100 persons, it is abundantly clear that telephone service to the populace is grossly inadequate. Even with the Government introduction of competition in the sector and the subsequent licensing of Private Telecommunications Operatos. (PTOs), the market has not experienced any noticeable chang. Although some of the PTO’s have commenced operation for over two years, they have not been able to collectively introduce up to 100,000 telephone lines into the country’s telecommunictions network.
Hence, the sector is still a virgin land for investors wishing to provide and operate private network links employing cable, radio communications, data services, INTERNET Business and Satellite communication, Payphone services and Cellular radio phone services.
3. JOINT VENTURE FUNDING OF INVESTMENTS
Apart from the absence of local manufacture of equipment and inadequate services, another major problem that has seriously affected the growth of the industry is insufficient financial resources. The industry is a capital intensive one and the banks in the country appear no to have strong financial muscle to handle massive investment in the sector. The industry has not also attracted individuals’ cooperative initiative probably as a result of the low level of income per capita in the economy. Hence joint venture partnership between foreign investors and Nigerians will be a veritable source of investment capital for the sector. At present there is no joint venture enterprise in the sector. The Nigeria-Turkey joint venture for the local manufacture of telecomms equipment initiated over five years ago was not concluded as a result of the plotical climate during this period. It is hoped that with the return of democracy in Nigeria, negotiation will once more commence on this issue.
INVESTMENT PROCEDURES WITHIN THE NIGERIA EXPORT PROCESSING ZONES (EPZ)
i) Any company, person or group of persons wishing to carry out approved activity within a zone shell apply to the Nigerian Export Processing Zones Authority NEPZA using the prescribed forms and shall submit such documents and information in support of the applications. The forms shall specify the application fees and such other details as the Authority may stipulate from time to time. A feasibility study in respect of the investment project which the applicant wishes to undertake in the zone shall be attrached as an annex to the application and shall contain the following among others:
- Project description;
- Market survey;
- Funding proposals;
- Financial projections;
- Environmental impact statement and control measures.
ii) Application to undertake approved activity in the zone duly received, shall be considered by the Authority within 30 days of receipt and the Authority shall notify the applicant in writing og its decisions to grant the said approval or otherwise. The approval shall be subject to such terms and conditions as may be imposed by the Authority.
iii) If the application is approved the investor may proceed to carry out the following:
(a) Apply for company registration
(b) If outright purchase of factory building is desired
- Payment of 10% deposit of the selling price of the standard factory building within 3 months of approval;
- Payment of the balance 90%, 5 months after;
(c) Renting of factory building
- Down payment of one year rent required not exceeding 3 months after signing the rental contract. Thereafter, rental charges shall be paid in the first quarter of every year.
(d) Leasing the standard factory
- Payment of 40% lease value on approval
- Payment of 30% at the end of the 5th year
- Payment of 30% balance at the end of the 10th year.
(e) Leasing of serviced plots
- Down payment of 40% on completion of factory building
- 30% at the end of the 5th year
- 30% at the end of the 10th year
Construction must be completed within a period of one year which can be extended for another 6 months.
A plan of the building shall be submitted to the Authority for approval. The land lease contract shall be signed within 2 months after allocation of land. The area occupied by such building shall be between 60%-70% of the leased land and construction shall start within 3 months after signing the lease contract.
iv) With condition(s) in (iii) fulfilled, the investor may proceed to carry out the following: Remittance of Investment Capital through banks in the zone and notify the Authority on arrival
v) When the factory building is ready, investor(s) may bring in machinery for installation and workers employed. Therefore, the Authority shall be required to carry out pre-inspection, and if found satisfactory, a certificate to commence production will be issued.
vi) Companies intending to sell the permitted 25% of their total production in the domestic market, will be required to notify the Authority for necessary documentation and payment of appropriate levies and charges as applicable.
vii) The company shall apply to the Authority for assessment of invested capital for later repatriation purposes. This is applicable to comanies which are 100% foreign owned and those with part foregn equity participation only.
INVESTMENT REQUIREMENTS
1. Industries must be guaranteed to be environmentally friendly.
2. At least 75% of total products to be exported.
3. Maximum of 25% of products can be exported to the customs. territory on payment of appropriate levies & duties.
4. Minimum investment capital outlay is 500,000 US Dollars or its Naira equivalent.
TYPES OF INDUSTRIES PERMISSABLE IN NIGERIA EXPORT PROCESSING ZONES
- Electrical and Electronic Products
- Leather Products
- Plastic Products
- Petroleum Products
- Rubber Products
- Cosmetics
- Garments
- Chemical Products
- Metal Products
- Educational Materials and Equipment
- Communication Equipment and Materials
- Sports Equipment and Materials
- Machinery
- Handicraft
- Optical Instuments and Appliances
- Medical Kits and Instruments
- Biscuits and Confectionaries
- Printed Materials, Office Equipment and Appliances
- Paper Materials
- Food processing
- Pharmaceutical Products.
INVESTMENT OPPORTUNITIES IN THE TOURISM SECTOR
The Federal Government of Nigeria in its determined efforts to develop and promote tourism into an economically viabe industry had in 1991 evolved a touriam policy. The main thrust of the policy is to make Nigeria a prominent tourism destination in Africa, generate foreign exchang, encourage even development, promote tourism-based rural enterprises, generate employment, accelerate rural-urban integration and foster socio-cultural unity among the various regions of the country through the promotion of domestic and international tourism. It also aims at encouraging active private sector participation in tourism development.
The following special investment potentials exist within the country:
- Overland Safaris
- National Parks
- Game and Gorilla viewing
- Deep Sea Recreational Fishing
- Lake and River Fishing
- Archaeological Tours
- Beach Resorts and Hotels
- Transportation-Water, land and sea
- Surfing and snorkeling
- Theme Parks and Exposition Centres
PROCEDURES FOR ESTABLISHING A BUSINESS ENTERPRISE BY A FOREIGNER IN NIGERIA
STEP 1
Incorporation of the Business at the Corporate Affairs Commission (CAC) in accordance with the Companies and Allied Matters Act, 1990.
STEP 2
Registration of the company with Nigerian Investment Promotion Commission for the granting of Business Permit. IPC also grnats approvals for expatriate quota positions and incentives.
a. Requirements for Business Permit
i. Perchase NIPC form I for N10,000.00. Completed form submitted with original receipt.
ii. Certificate of Incorporation.
iii. A minimum share capital holding in the joint venture.
iv. Details of share holding in the joint venture.
v. Joint venture/partnership Agreement where applicable.
vi. Memorandum and Articles of Association.
vii CAC’s Form CO2 and CO7 duly certified.
viii. Evidence of capital importation for wholly foreign companies.
ix. Approval from the appropriate professional bodies where applicable.
b. Expariate Quota
In addition to the requirements listed under Business Permit, the following additional requirements have to be met for expatriate quota approvals.
i. Evidence of acquisition of operational premises and operational machinery/equipment in the case of industrial establishment.
ii. Evidence of Foreign Capital Importation.
iii. Management and Technical Services agreement (for service companies).
iv. Tax Clearance Certificate.
v. Minimum authorised share capital of N5million.
vi. Evidence that the personnel required is not likely to be available in Nigeria.
vii. Minimum share capital of N15 million (for two automatic expatriate quota positions) and of N30 million share capital (in case of four automatic expatriate quota positions).
viii. Supply names, address, qualifications and positions to be occupied by the expatriates.
ix. The company must produce its project implementation programme.
x. The company must produce a training program for Nigerians in addition to management succession schedule.
xi. The company will furnish its feasibility report where applicable especially for new and prior industries.
c. Incentives
These include pioneer Status and Technical Agreement incentives:
PIONEER STATUS
The benefit of a Pioneer Status Certificate is that the holder (i.e. the company) is exempted from payment of tax for a specified number of years (5 years or 7 years for companies located in economically disadvantaged areas).
Requirements
I. Certificate of Incorporation.
ii. Memorandum and Articles of Association.
iii. Feasibility study.
iv. Tax Clearance Certificate.
v. Joint Venture Agreement.
vi. Evidence of acquisition and installation.
vii. Evidence of development carried out at factory site.
viii. NIPC Form II (to be purchased from NIPC at N10,000 and should be returned with original purchase receipt).
ix. The company must not be more than one year old from its commencement date of production.
x. Evidence of physical development of the factory site.
xi. Joint venture must attain a minimum expenditure of N5 million.
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