What is NIPC?
NIPC connote The Nigerian Investment Promotion Commission (NIPC).
The Nigerian Investment Promotion Commission (NIPC) is Federal Government of Nigeria Agency established by the NIPC Act N0.16 of 1995 to promote, co-ordinate and monitor all investments in Nigeria.
The basic functions and powers of the Nigerian Investment Promotion Commission (NIPC) are as prescribed by Act 16 of 1995.
FUNCTIONS of NIPC:
- Be the agency of the Federal Government to co-ordinate and monitor all investment promotion activities to which this Act applies;
- Initiate and support measures which shall enhance the investment climate in Nigeria for both Nigerian and non- Nigerian investors;
- Promote investments in and outside Nigeria through effective promotional means;
- Collect, collate, analyze and disseminate information about investment opportunities and sources of investment capital, and advise on request, the availability, choice or suitability of partners in joint-venture projects;
- Register and keep records of enterprises to which this Act applies;
- Identify specific projects and invite interested investors for participation in those projects;
- Initiate, organize and participate in promotional activities such as exhibitions, conferences and seminars for the stimulation of investments;
- Maintain liaison between investors and Ministries, Government Departments and Agencies, institutional lenders and other authorities concerned with investments;
- Provide and disseminate up-to-date information on incentives available to investors;
- Assist incoming and existing investors by providing support services;
- Evaluate the impact of the Commission in investments in Nigeria and make appropriate recommendations;
- Advise the Federal Government on policy matters including fiscal measures designed to promote the industrialization of Nigeria or the general development of the economy; and
- Perform such other functions as are supplementary or incidental to the attainment of the objectives of the Act.
What is NIPC Pioneer Status Incentive?
The Pioneer Status Incentive was established by the Industrial Development (Income Tax Relief) Act, No 22 of 1971 and is a tax holiday which grants qualifying industries and products relief from payment of corporate income tax for an initial period of three years, extendable for one or two additional years.
The Pioneer Status Incentive (PSI) grants company income tax relief, for 3 to 5 years, to profits from qualifying activities.
Nigerian Investment Promotion Commission (NIPC) has gazetted reports containing the details of Pioneer Certificates that were issued and cancelled in 2017 and 2018, as required by the Industrial Development (Income Tax Relief) Act Cap I7 LFN 2004 (IDITRA).
The reports show that pioneer certificates were issued to 13 companies in 2017 and 36 in 2018. No pioneer certificate was cancelled in 2017, but one was cancelled in 2018, at the beneficiary company’s request.
NIPC had also gazetted:
- the Ministerial Order dated 01 August 2017, delegating some of the powers of the Honourable Minister of Industry, Trade and Investment under IDITRA to the Executive Secretary of NIPC; and
- the Application Guidelines for PSI, which were signed by the Honourable Minister on 07 August 2017.
The publication of these documents in federal gazettes represents a key milestone, as they complete the first phase of reform of the PSI process which started in 2015. NIPC’s publication of the disclosure requirements under IDITRA demonstrate the transparency and accountability now built into the administration of PSI.
Since the lifting of the administrative suspension of PSI in August 2017, NIPC has published quarterly reports of processed applications, which are available on the Commission’s website
NIPC Issues Report of Investment Announcements, 2018
As part of its mandate of encouraging, promoting and coordinating investment in Nigeria, Nigerian Investment Promotion Commission (NIPC) is pleased to release the Report of Investment Announcements for 2018. The Report is presented by sector, investors’ country of origin, and destination state.
The Report shows that US$90.9 billion worth of proposed investments were announced for 92 projects in 23 states and the Federal Capital Territory (FCT). Mining & quarrying accounted for 35% of the total value, manufacturing 24%, construction 20%, transportation and storage 15%, while other sectors accounted for 6%. Comparatively, the proposed investments for 2018 show a 27% growth in value year on year, from the USD$66.36 billion figure recorded in 2017.
The 2018 announcements were from investors in 20 countries, with domestic investors accounting for 33% of the value, followed by investors from United Arab Emirates at 20%. France stood at 18%, United Kingdom 10%, and the remaining 19% were from other countries.
FCT was the biggest beneficiary of the announcements with 21% (by value). Rivers State accounted for 18%, Lagos and Bayelsa 14% & 13% respectively, while other states accounted for the balance of 34%.
The most active month was September with 12 projects reported, closely followed by December and February each with 11 projects. While September accounted for 22% of the total value, December and February were 19% and 1% respectively. The top 10 announcements totalled US$79.3 billion, representing 87% of the value of the announcements.
NIPC sends out its NIPC Intelligence Newsletter 6 days a week. The Newsletter carries Nigerian investment-related news culled from various sources. As the Report is based only on investment announcements cited in NIPC’s Newsletters from January to December 2018, it may not contain exhaustive information on all investment announcements in Nigeria during the period.
Nevertheless, the Report gives a sense of investors’ interest in the Nigerian economy. NIPC did not independently verify the authenticity of the investment announcements but is working on tracking the announcements as they progress to actual investments. 04 February 2019
First Three Quarters (January to September) 2018
Nigerian Investment Promotion Commission (NIPC), the agency charged with the responsibility of encouraging, promoting and coordinating investment in Nigeria is pleased to release the Report of the Investment Announcements tracked through its newsletters for the first 3 quarters of 2018 (January to September 2018), presented by sector, investors’ country of origin, and destination state.
The Report shows that US$73.08 billion worth of proposed investments were announced for 65 projects in 18 states and the Federal Capital Territory during the period. The sectoral analysis of the announcements indicates 11 sectors of interest with mining & quarrying accounting for 43% of the total value, construction 25%, manufacturing 23%, electricity, gas, steam, and air conditioning supply, and transportation and storage, each 3%, and the remaining sectors accounting for 5%.
The announcements were from investors in 17 countries, with investors from the United Arab Emirates accounting for 25% of the value, followed by announcements made by investors from France at 22%. Nigeria stood at 20%, United Kingdom 13%, China 8%, and the remaining 13% were from the other countries.
The Report further revealed that the Federal Capital Territory was the biggest beneficiary of the announcements with 26% (by value). Rivers State accounted for 22%, Bayelsa, Katsina and Akwa Ibom 16, 3 and 2% respectively, while the remaining states accounted for the balance of 31%.
The most active month was September where 12 projects were announced worth US$20.39 billion representing 28% of the total announcements made so far in the year.
The top 10 announcements accounted for US$68.1 billion, representing 93% of the value of the announcements.
NIPC sends out its NIPC Intelligence Newsletter 6 days a week. The Newsletter carries Nigerian investment-related news culled from various sources. As the Report is based only on investment announcements cited in NIPC’s Newsletters from January to September 2018, it may not contain exhaustive information on all investment announcements in Nigeria during the period.
Nevertheless, the Report gives a sense of investors’ interest in the Nigerian economy in the first 3 quarters of 2018. NIPC did not independently verify the authenticity of the investment announcements but is working on tracking the announcements as they progress to actual investments.
NIPC Issues Report On Pioneer Status Incentive for Fourth Quarter 2018
Nigerian Investment Promotion Commission (NIPC) has released the Report of Pioneer Status Incentive processed between 01 September and 31 December 2018.
The Report shows that:
- Nineteen (19) new applications and Three (3) Extension applications were received during the period.
- Nine (9) applications were granted approvals in principle and had a total investment of ₦277.417 billion, while 1,733 direct jobs was created.
- Three (3) companies were granted Extension for 2 years and their total investment is put at ₦87.31 billion while direct jobs created was 5,517.