The Federal Government has received 19 applications for tax incentive under the Industrial Development Income Tax Act.
The pioneer status is an incentive from the Federal Government which exempts companies from paying income tax.
It is also known as tax holiday and generally regarded as an industrial investment device.
This means the companies with pioneer status do not have to pay tax for a certain period while they are trying to get established. This tax exemption can be full or partial.
The products or companies suitable for this pioneer status are those that do not already exist in the country but with favourable prospects for development.
An analysis of the third quarter Pioneer Status Incentive report released by the Nigerian Investment Promotion Commission showed that while 19 companies applied, one of them was given approval in principle.
The company which got approval in principle operates in the tourism sector and had a total investment of N3.03bn while its staff strength was put at 65.
The report stated that two applications were granted direct presidential approval for extension for two years.
The two applications had a total investment of N185. 63bn, while their staff strength was put at 3,085.