Nigerian Investment Incentives Nigeria is the most populous African country, with a population of over 100 million. In fact, one out of every four Africans is a Nigerian. It should therefore be appreciated that business opportunities exist in virtually all sectors of the economy such as oil and gas; banking; agricultural; manufacturing; construction; transportation; information technology; telecommunication; education; health and water resources as well as professional services. The Nigerian Investment Promotion Commission Decree 1995 which came into force on January 16, 1995 was a deliberate attempt to encourage foreign investors to venture into any sector of the economy. For example, Section 17 permits non-Nigerians to invest and participate in the operation of any enterprise in Nigeria except: 1) production of arms, ammunition, etc; 2) production of and dealing in narcotic drugs and psychotropic substance; 3) production of military and para-military wears and accoutrements; including those of the police, the customs, immigration and prison services; Nigerian government accepts the private sector as the engine of growth and the creator of wealth, while the government’s major responsibility is to provide the enabling environment for the private investors to operate. In this regard, laws which had hitherto hindered private sector investments have been either amended or repealed and a national council on privatization has been established to oversee orderly divestment to private operators in vital areas of the economy such as mining, transportation, electricity, telecommunications, petroleum and gas.
The Essay on Production Function
Question No. 1P: 219 Explain the difference between short run and long run production function; cite one example of this difference in a business situation. The short run production function shows the maximum quantity of a good or service that can be produced by a set of inputs, assuming the amount of at least one of the inputs used remains unchanged. While a long run production function shows the ...
Nigerian government’s policy of economic deregulation and liberalization has opened up new windows of opportunity to all investors wishing to invest in the country’s economy. In addition, the nigerian investment promotion council (NIPC) has been strenghtened to enable it serve as a one-stop office for clearing all the requirements for investment in the country. The tarrif structure is being reformed with a view to boosting local production. Government has introduced a new visa policy to enable genuine foreign investors to procure entry visa to nigeria within 48 hours of submission of required documentation. Existing “expatriate quota” requirement for foreign nationals working in nigeria is in the process of being replaced with “work permit” which will be administered by the nigerian investment promotion council (NIPC).
Within the past few years following the end of military dictatorship in nigeria, government has progressively introduced a number of incentives designed to promote investments.
Fiscal measures have been drawn to provide for deductions and allowances in the determination of taxable income of manufacturing enterprises, including: 100 percent tax free period for 5 years for pioneer industries that produce products declared as “pioneer products” under the Industrial Development (Income Tax Relief) Act No. 22 of 1971 as amended in 1988, or such other deserving enterprises as may be approved by the Council of the Nigerian Investment Promotion Commission – (NIPC).
Up to 120% of expenses on r&d(research and development) are tax deductible provided that such r&d activities are carried out in nigeria and are connected with businesses to which allowances are granted. The result of such research could be patented and protected in accordance with internationally accepted industrial property rights. 30% tax concession for five years to industries that attain minimum local raw materials utilisation as follows:- – agro 80% – agro allied 70% – engineering 65% – chemical 60% – petro-chemical 70%. The rate is graduated in such a way that an industry employing one thousand persons or more will enjoy 15% tax concession while an industry employing one hundred will enjoy only 6%, while those employing two hundred will enjoy 7%.
The Term Paper on Tax Reform Income Rate System
The issue of tax reform is not a new one. It has been debated since the founding of the very first modern government. At the heart of the debate is what the role of government should be in its citizens lives. In the United States the controversy over taxes has been central since the nations founding in 1776. To analyze the issue of tax reform one must first look at taxes and what they represent to ...
10% tax concession applies essentially to engineering industries, while some finished imported products serve as inputs. This is aimed at encouraging local fabrication rather than the mere assembly of completely knocked down parts. 10% tax concession will apply to industries that export not less than 6% of their products. 20% of the cost of providing basic infrastructures such as roads, water, electricity, where they do not exist, is tax deductible once and for all. Any company incorporated in nigeria is allowed to have access to land rights for the purpose of its activity in any state in the country. It is, however, a requirement that industrial companies comply with regulations on use of land for industrial purposes and with environmental regulations.
Land lease is usually for a term of 99 years unless the company stipulates a shorter duration. The following fiscal incentives have been approved by the government in the gas production phase: – Tax rate under petroleum profit tax (PPT) act to be at the same rate as company tax which is currently at 30%; – Capital allowance at the rate of 20% per annum in the first 4 years, 19% in the 5th year and the remaining 1% in the books; – Investment tax credit at the current rate of 5%; – Royalty at the rate of 7% on shore and 5% offshore. Without prejudice to governments deregulation of the financial sector, banks have been enjoined to recognise the differences in the gestation periods within each category of agricultural loans ranging from 6 months to 10 years, for crops, livestock, fisheries, forestry and wild life. All exports under the nigerian value added tax (vat) system are zero-rated and dividends received from investment in export-oriented businesses are to be free of tax. Sources: Nigerian Embassy Federal Ministry of Information and National Orientation.
The Term Paper on Would A Cut In Corp. Tax Rate Be Beneficial?
Doesn’t everyone want to keep what he/she has earned? It has always been somewhat tradition for Americans to work hard for their money, only to see some of it squandered away come tax time. Wouldn’t a tax cut, for some, be like a divine, heavenly grace? As the year 2001 unfolds and George W. Bush begins his presidency, income tax rates have, in fact, become a concern. President Bush is pushing for ...
