The Nigerian government has assured new entrants into the country’s distributed renewable energy (DRE) market of its commitment to ensure they enjoy its generous five-year tax holiday without interruptions.
It said it would uphold its commitment to the pioneer status law which grants up to five years of tax holiday to firms within their formative years in certain industries, one of which include energy.
The country’s investment promotion council – NIPC, made this assurance to new project developers in the country’s DRE market at the recent call to action of the global Power for All in Abuja.
The call to action was initiated to get the commitment of key stakeholders in the country’s DRE market to take steps to grow the market. Expectedly, stakeholders including the NIPC made commitment they would be held accountable for in the future for the DRE market.
The NIPC stated however that it would ensure effective facilitation of fiscal concessions and incentives including the pioneer status law which is a tax holiday granted to qualified companies within their formative years, to the DRE sector to encourage potential and existing investors and entrepreneurs.
It also noted that it would push for investment promotion and protection agreement to guarantee safety of investments, long lease on land for industrial development as well as liberalisation of ownership structures.
It explained that the tax holiday was planned to reduce the operational burden of infant companies for the first 3 years, with options of extension for another 2 years to allow the companies stabilise in their businesses.
