Honeywell, 7 others get approval-in-principle
By Nkiruka Nnorom
The Nigerian Investment Promotion Commission, NIPC, has denied Flour Mills of Nigeria Plc, Friesland Campina WAMCO Nigeria Plc, producers of Peak Milk brand and Kuber Development Limited, application for tax relief under the Industrial Development Income Tax Relief Act (IDITRA).
The NIPC disclosed this in its Pioneer Status Incentive Application report for the first quarter 2020 (Q1’20).
The report showed that eight other companies out of18 new applications received during the period were granted approval-in-principle, AIP, for three years each.
The companies are Honeywell Flour Mills Plc, Main Data Nigeria Limited, Apple & Pears Nigeria Limited, Tranos Contracting Limited, Elvis Hotels Nigeria Limited, Medlog Nigeria Limited, Kalambina Cement Company Limited and Wells Hosa Greenhouse Farms Limited.
The NIPC explained in the report that Flour Mills of Nigeria was denied approval because the activity for which it sought tax relief (flour milling/ project expansion) is not eligible under IDITRA, while the activities of WAMCO and Kuber were not covered under the pioneer status incentive Act.
The report further showed that the eight companies that were granted AIP made a total investment of N151.916 billion, employed 1,460 staff and are in various sectors including agriculture, construction, administrative service, information & communication, and manufacturing.
One company – Obu Cement Nigeria Limited- was granted extension for two years for the manufacture of cement, lime and plaster. The company, according to the report, had a total investment of N88.7 billion, while it has staff strength of 573.
The report further revealed that one company – Fujian Stone Company Limited – was granted Pioneer Certificate with confirmed production date for cutting, shaping and polishing of stone for construction. While the company invested N 776.64 million, but its staff strength was not listed in the report.
As at 31 March 2020, 39 companies were still enjoying PSI, no application was deemed abandoned, 125 applications were still pending, and no PSI certificate was cancelled.