The Federal Government gave clarifications on August 9, 2017 regarding businesses that would qualify to enjoy pioneer status under the extra 27 new industries and products for inclusion in the list of “pioneer industries” and “pioneer products”. Pioneer status is available to companies making investments in eligible industries and products. They can qualify for an exemption from company income tax for an initial period of 3 years to 5 years. This measure was approved by the Federal Executive Council (FEC) on August 2, 2017.

According to the Executive Secretary, Nigeria Investment Promotion Council (NIPC) pioneer status does not relate only to new industries or entrants to the economy. It can also be granted in a situation where the country did not even have an industry at all, or the industry did not have sufficient presence to contribute significantly to economic development. In trying to encourage the establishment or growth of the industry and the economy, the Nigerian government decided to look at its priority sectors in the Nigerian Industrial Revolution Plan, NIRP, and the Economic Recovery and Growth Plan, ERGP, by promoting the 27 industries and products in the approved status document. Businesses that have existed for several years in a specific sector may not get the pioneer status, unless those companies have ventured into a brand-new line of business covered under the list of 27 new industries and products.

The list of 27 industries and products issued on August 7, 2017 includes 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; and manufacture of paints, vanishes and printing ink and so on.