The Nigeria Investment Promotion Commission (NIPC) has announced its forthcoming initiative to undertake an extensive impact assessment, aimed at gauging the concrete outcomes of tax incentives awarded to companies in the country.
Going beyond conventional fiscal metrics, this assessment will delve into the real-world contributions of these incentives, particularly in terms of employment generation and broader economic advancement.
Head of Incentives Administration at the NIPC, Lovina Kayode, provided insights into the pivotal move, elucidating on the intricacies of the pioneer status tax holiday initiative.
She characterised the pioneer status incentive as a strategic stimulus, granting companies a three-year exemption from corporate income tax with the primary goal of attracting increased investments to foster economic growth.
Kayode emphasised the significance of the impending impact assessment, stating, “Next year, it is one of our biggest tasks to do an impact assessment. These incentives we gave out, how have they impacted the country in terms of job creation?”
The assessment aims to meticulously scrutinise the dynamics of job creation catalysed by these incentives, offering a nuanced perspective on their efficacy in shaping Nigeria’s socio-economic landscape.
Kayode underscored that this comprehensive evaluation aligns with the NIPC’s commitment to fostering a nuanced and multifaceted understanding of the broader impact of fiscal measures.
“This assessment is crucial in setting the stage for evidence-based policymaking and ensuring a continuous drive towards optimal economic development,” remarked Kayode.
She also hinted that the meticulous evaluation process would involve collaboration with the parent ministry and the Federal Inland Revenue Service (FIRS), ensuring transparency and effectiveness in the grant of incentives.
She further stated that the objective is to ensure that these fiscal benefits are directed towards corporations genuinely committed to enhancing the nation’s economic fabric.
