Business

FG Grants Three-year Tax Relief To 33 Companies, Bars 10 Firms

Published

4 years ago

April 4, 2022

The Federal Government approved the application of 33 companies seeking pioneer status under the Industrial Development Income Tax Act in 2021.

This was contained in the quarterly PSI reports released by the Nigeria Investment Promotion Commission.

The reports also revealed that investments made by the 33 companies during the year amounted to N543.88bn.

It also noted that the government declined the applications submitted by 10 investing firms including the popular FinTech, Flutterwave, during the review period.

The pioneer status is an incentive offered by the Federal Government, which exempts companies from paying income tax for a certain period. This tax exemption can be full or partial.

The incentive is generally regarded as an industrial measure aimed at stimulating investments in the economy.

The products or companies eligible for this pioneer status are products or industries that do not already exist in the country.

An analysis of the first quarter PSI report showed that while the requests of 10 firms were denied, three companies had their applications approved in principle, while six firms were granted PSI for a three-year period.

The report also revealed that 33 firms were benefitting from the tax incentive scheme in Q1, while the requests of 132 companies were still pending.

As at March 31, 2021, the firms granted tax reliefs invested a total of N45.5bn in the Nigerian economy.

In July, Flutterwave was one of the ten companies denied PSI in Q1 2021.

Flutterwave had in February 2022, disclosed that its valuation rose to $3bn, after it was able to raise $250m from a Series D funding round.

At $3bn, using an exchange rate of N570 to one dollar, it means Flutterwave’s valuation is approximately N1.71tn.

A cursory look at the second quarter PSI report for the year 2021 showed that the government granted tax holidays to eight firms who invested an aggregate of N12.8bn.

Seven firms got approval in principle while no application was denied in Q2, the NIPC said.

The report also revealed that 31 firms were benefitting from the tax incentive scheme, while the requests of 160 companies were still pending.

In the third quarter of last year, eight firms were granted PSI while the requests of two companies were rejected.

The firms offered tax holidays invested a whopping N328.5bn into the economy during the review period, the NIPC report said.

The NIPC also revealed that the government granted approval in principle to 16 firms, 168 applications were pending and 35 companies were benefitting from the government’s tax incentive in Q3.

Meanwhile, the latest PSI report from the NIPC revealed that in the last quarter of the year, six companies were granted tax reliefs for a three-year period.

The companies are First Independent Power Company, Cormart Nigeria Limited, Premium Agro Chemicals Limited, West African Soy Industries Limited, Prudent Energy and Services Limited, and Checkers Africa Limited.

These companies contributed N157.08bn to total investments in Q4 2021.

Further analysis of the Q4 report revealed that, during the period, 13 companies had their applications approved in principle while the application of one company was denied.

As at the end of 2021, 46 companies were benefiting from the tax incentive scheme while the requests of 186 companies were still pending.

The Acting Executive Secretary, NIPC, Emeka Offor, had in an interview with The PUNCH assured stakeholders that the commission would , this year, partner with local and global stakeholders to boost Foreign Direct Investments into the country.

Emeka had said, “I can assure you that already, we have been getting greater response and inquiries from potential investors, within the country and across the globe.

“We plan to hold more stakeholder engagements in 2022.”

PUNCH

Business

CBN Directs Nigerian Banks To Withdraw Misleading Advertisement

Published

19 hours ago

November 28, 2025

Editor

The Central Bank of Nigeria (CBN) has directed Nigerian banks, payment service banks and other financial institutions to immediately withdraw all advertisements that violate consumer-protection rules.

The directive, issued in a circular dated Thursday and signed by Olubunmi Ayodele-Oni, director of the CBN’s compliance department, followed a review of marketing practices in the financial sector.

The apex bank said the assessment revealed inconsistencies in how institutions apply disclosure, transparency and fair-marketing requirements.

The CBN ordered the removal of all non-compliant adverts and warned that future promotional materials must be factual, balanced and transparent.

It banned misleading claims, exaggerated benefits, incomplete information, unaudited financial results and comparative language that could de-market competitors.
The regulator of Nigeria’s financial sector also prohibited chance-based promotional inducements such as lotteries, prize draws and lucky dips.

Accordingly, institutions submitting adverts for prior notification must now include campaign timelines, creative materials, target audience details and written confirmation of internal legal and compliance clearance, along with proof that the underlying product has CBN approval.

The bank clarified that such notifications are only for monitoring and do not amount to approval.
All affected institutions must file a compliance attestation within 30 days, signed by the chief executive and compliance leads.

The CBN added that beginning January 2026, it will conduct a follow-up review and apply sanctions for violations under BOFIA 2020 and the Consumer Protection Regulations.

Business

Fourteen Nigerian Banks Yet To Meet CBN’s Recapitalisation Ahead Of Deadline

Published

2 days ago

November 27, 2025

Editor

No fewer than 14 Nigerian commercial banks are yet to meet the Central Bank of Nigeria’s recapitalisation requirement as the 31st March 2026 deadline inches closer.

This follows CBN Governor, Olayemi Cardoso’s announcement on Tuesday that sixteen Nigerian banks have met their recapitalisation requirement ahead of the apex bank’s March 2026 deadline.

DAILY POST reports that Cardoso disclosed this in a statement after the bank’s 303rd Monetary Policy Committee in Abuja.

According to Cardoso, the development indicates that there is financial soundness in the country’s financial banking system.

MPC had been urged by banks to ensure a successful implementation of the recapitalisation process.

“The committee noted with satisfaction the sustained resilience of the banking system, with most financial soundness indicators remaining within regulatory thresholds,” Cardoso said.

“Acknowledged the substantial progress in the ongoing recapitalisation programme, with 16 banks achieving full compliance with the revised capital requirements.

“The committee thus urged the Bank to ensure a successful implementation and conclusion of the programme, among other domestic developments,” Cardoso said.

This means that two additional Nigerian banks have been added to the list of banks which have complied with the apex bank recapitalisation requirement in the last two months.

Recall that Cardoso, in the 302nd MPC meeting, announced that only fourteen banks have met the recapitalisation requirement.

CBN records as of 2024 showed that the country has thirteen commercial banks, five merchant banks and seven financial holdings companies.

Earlier, a report emerged that Access Bank, Zenith Bank, GTBank, Wema Bank, Jaiz Bank, Stanbic IBTC, and others have already met CBN’s recapitalisation requirement.

CBN in March directed commercial banks with international authorisation to increase their capital base to N500 billion, while those with national licences must raise to N200 billion.

Business

CBN Retains Interest Rate At 27%

Published

4 days ago

November 25, 2025

Editor

The Monetary Policy Committee of the Central Bank of Nigeria has voted to retain the benchmark interest rate at 27 per cent.

CBN Governor, Olayemi Cardoso, announced the decision on Tuesday following the apex bank’s 303rd MPC meeting in Abuja.

Cardoso stated that the committee also resolved to keep all other monetary policy indicators unchanged.

He noted that the Cash Reserve Ratio (CRR) remains at 45 per cent for commercial banks and 16 per cent for merchant banks, while the 75 per cent CRR on non-TSA public sector deposits was equally maintained.

Cardoso added that the Liquidity Ratio was retained at 30 per cent, and the Standing Facilities Corridor was adjusted to +50/-450 basis points around the Monetary Policy Rate.

The decision comes as Nigeria records its seventh consecutive month of declining inflation, which eased to 16.05 per cent in September 2025.