By OLUSHOLA BELLO, Lagos
The federal government said it has lifted the administrative suspension on processing Pioneer Status Incentives (PSI) applications, following the conclusion of critical reforms to the incentive regime.
The government also said that a release of new guidelines for PSI applications as well as a revamped list of pioneer industries and products.
This was made known yesterday, by the Minister of Industry, Trade and Investment, Dr Okechukwu Enelamah.
According to him, the Federal Executive Council (FEC) at its last meeting approved the lifting of the suspension, a new guideline and a revamped Pioneer list with the addition of 27 key industries and deletion of two industries and a biennial review of the list going forward.
“In line with the reform provisions, all additions will be added to the list immediately, and all deletions will be removed from the list in three years.”
He explained that the review of the list of Pioneer industries and products was done to bring it in line with the economic realities of Nigeria and the Economic Recovery and Growth Plan (ERGP)
Enelamah further said that “The federal government is committed to encouraging and attracting investments into critical sectors of the economy which will significantly impact development and deliver key benefits to the country.”
He added, “These benefits include Economic Growth and Diversification; Industrial and Sectoral Development; Employment; Skills and Technology Transfer; Export Development; and Import Substitution.”
Also, the executive secretary of the Nigerian Investment Promotion Council (NIPC) Ms. Yewande Sadiku, stated, “The reforms have brought further clarity, predictability and process efficiency to the PSI regime. We will continue the reform process as we plan to take the PSI application process online. We will also engage with relevant stakeholders with a view to updating the existing legislation.”
Recall that an administrative suspension was placed on the processing of PSI applications in September 2015, to allow for a comprehensive review and reform of the incentive regime.
This was aimed at increasing transparency and process efficiency, better articulating the expected economic benefits, and improving the federal government’s ability to measure the impact of the incentive.