The removal of pioneer status tax incentive for the cement industry has caused concerns for operators in the real sector, who feel the development will send the wrong signal to investors.
The issue was raised by the President of Manufacturers Association of Nigeria, Dr Frank Jacobs, with the Minister of Industry, Trade and Investment, Dr Okechukwu Enelamah, at a recent stakeholders’ meeting. Dr Jacobs said, “The news of government withdrawing the pioneer status tax incentive enjoyed by the cement industry is not only disturbing but also amounts to government shooting itself in the foot as it would send a bad signal to both current and prospective investors of local and foreign origins.”
Dr Jacobs went on to say that when an economy is contracting, as Nigeria’s is, countries work with he private sector, providing incentives and support to encourage them to maintain their investments. Director-General of the Lagos Chamber of Commerce and Industry, Muda Yusuf, agreed, saying that now was not the right time to withdraw the incentives.