08 Aug

Nigeria: Govt Announces 27 Industries to Enjoy Tax Break Under Pioneer Status (Full List)

The federal Nigerian government on Monday released the full list of the 27 key industries and products who will enjoy a tax break

The federal Nigerian government on Monday released the full list of the 27 key industries and products who will enjoy a tax break, being included in the revised list of ‘pioneer status’ incentives for prospective investors.

At the end of the meeting of the Executive Council of the Federation, FEC, last week, the Minister of Industry, Trade and Investment, Okechukwu Enelamah, disclosed the approval given to the 27 industries.

Mr. Enelamah did not, however, list the 27 industries.

The Minister of Information and Culture, Lai Mohammed, later confirmed that the creative industry was among the 27.

Earlier, the trade and investment ministry announced the lifting of the administrative suspension on processing pioneer status incentives, PSI, applications for prospective investors in the country.

Some of the benefits of the pioneer status include tax relief, mainly for corporate income tax.

Here is the full list of the 27 industries to enjoy the pioneer status.

Mining and processing of coal;

Processing and preservation of meat/poultry and production of meat/poultry products;

Manufacture of starches and starch products;

Processing of cocoa;

Manufacture of animal feeds;

Tanning and dressing of Leather;

Manufacture of leather footwear, luggage and handbags;

Manufacture of household and personal hygiene paper products;

Manufacture of paints, vanishes and printing ink;

Manufacture of plastic products (builders’ plastic ware) and moulds;

Manufacture of batteries and accumulators;

Manufacture of steam generators;

Manufacture of railway locomotives, wagons and rolling stock;

Manufacture of metal-forming machinery and machine tools;

Manufacture of machinery for metallurgy;

Manufacture of machinery for food and beverage processing;

Manufacture of machinery for textile, apparel and leather production;

Manufacture of machinery for paper and paperboard production;

Manufacture of plastics and rubber machinery;

Waste treatment, disposal and material recovery;

E-commerce services;

Software development and publishing;

Motion picture, video and television programme production, distribution, exhibition and photography;

Music production, publishing and distribution;

Real estate investment vehicles under the Investments and Securities Act;

Mortgage backed securities under the Investments and Securities Act; and

Business process outsourcing

Via AllAfrica 

10 Jul

African consumer products industry rides out uncertainty

According to Deloitte’s inaugural  African Powers of Consumer Products report, despite a much-discussed slowdown in the African economic growth story, the continent’s consumer products industry is demonstrating a resilient and positive growth path when viewed in local reporting currencies.

The analysis by Deloitte shows that the top 50 African listed consumer product companies are concentrated in 15 countries, with South Africa, Egypt, Nigeria and Morocco accounting for 64% of the companies with just above 80% of their total revenues. This concentration reflects the size of their respective economies, their level of development and economic diversification, but also the low degree of capital market development in other African countries.

While the overall African growth story might have ‘stuttered’ recently (mostly due to the commodities decline), the prospects and opportunities for consumer goods companies still reflect a generally positive growth opportunity. For instance, sub-Saharan Africa’s GDP per capita in purchasing power doubled to US$3,831 between 2000 and 2016. While several oil-producing countries have seen faltering investment, East African economies that are less exposed to commodity markets, are growing at rates of 6% per annum or more.

On average, the year-on-year revenues of the top 50 declined by 7.5% in USD and grew by 4.7% in local reporting currencies. When measured over a five-year period from 2011 to 2015, the average of the top 50 compound annual growth rate (CAGR) in USD was 3.5% and 12.5% in local currencies.

“Although African economies have seen their currencies depreciate sharply against the USD, making imported goods more expensive, companies which produce goods locally and are able to ramp up facilities have an opportunity to grow their market share,” said Andre Dennis, Deloitte Africa consumer products leader.

The report considers the performance of Africa’s Top 50 listed consumer product companies in FY15 (year ending up to and including May 2016), as calculated according to revenue in US dollar terms. It focuses on African domiciled companies which are listed on African stock exchanges, with manufacturing as a core business.

Read More: How we made it in Africa