Executive Secretary of NIPC, Aisha Rimi
By Felix Khanoba
The Nigerian Investment Promotion Commission (NIPC) has expressed concerns over the rate at which foreign companies and investors are leaving the country.
The AUTHORITY reports that popular consumer goods company, Procter & Gamble, had recently announced plans to terminate its on-ground operations in Nigeria.
The American multinational joined a growing list of multinationals to leave Nigeria in 2023.
In June, the President of the Manufacturers Association of Nigeria, Francis Meshioye, had warned that more international manufacturing companies may leave Nigeria and site their factories in other countries.
Speaking on the exit of some foreign companies during a media parley organised by NIPC in Abuja on Friday, Head, Policy and Advocacy of the commission, Mr. Salami Abayomi, blamed some challenges for the ugly development.
He, however, assured that the commission was working in collaboration with relevant agencies to address the issue.
Abayomi expressed optimism that by 2024, the efforts of the agencies in that regard would yield positive results.
Also speaking at the event, Mrs Lovina Kayode, Head of Incentives Administration, NIPC, said the Commission granted three years tax exemption to 34 companies in 2023.
She said the exemption was to promote the company’s investments drive towards developing the nation’s economy.
“This tax exemption known as Pioneer Status Incentives (PSI) is executed under the Investors Relations Department of the NIPC and allows a company three years of not paying Corporate Income Tax,” she said.
According to her, not all companies are granted incentives owing to the stringent procedures followed by the commission on waiver awards.
While acknowledging the high amount of revenue lost to waivers granted every year, Kayode said what mattered was the bigger picture, amount of forex brought into the country.
“The Federal Inland Revenue Service(FIRS) and our parent ministry, the Ministry of Industry, Trade and Investment, is also part of this process to ensure that right investors get this incentive.
“So far 34 applications have been approved, and one of the things we intend to do was to ensure that we were not just giving incentives to undeserving companies.
“Meanwhile, there is already a notion that Nigeria gives out too many waivers, incentives, and concessions.
“However, tax expenditure means what the government has lost by granting PSI, was just a small amount compared to the gains made by granting these incentives to qualified companies.”
She revealed the plans by the commission to publish impact assessment reports on the effectiveness of the pioneer status report on job creation and other economic activities to promote investments.
“On impact, that is one thing NIPC is planning on, 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 and what kind of import substitution has come about because we granted these incentives.
“And how much will the government gain after the three years of them (the companies defaulting paying these taxes?) ”
Earlier, NIPC’s Executive Secretary, Aisha Rimi, reiterated the commission’s commitment to facilitate and assist investors to gain inroad into the country.
The NIPC boss urged the media to be good ambassadors and promote Nigeria positively to enable the country to attract more investments.
Rimi said Nigerians had a role to play in driving President Bola Tinubu’s Renewed Hope Agenda and ensuring the growth and development of the country, adding that the media was not left out.
“So it is essential that we make Nigeria work in whatever shape or forms we can. We are all stakeholders in this, and at every level, everybody has a role to play.
“There are countries where you never hear the press talking wrong about their country, no matter how the story goes, they spin it to their benefit.
“So let us try to do that. Let us be ambassadors. Let us promote Nigeria and promote the good things about Nigeria,” she said.
The CEO acknowledged that there might be instances where the country might get it wrong and things were not done as they should, but it was up to Nigerians to act as ambassadors.
Rimi said, “everybody is an ambassador of this country, and we must ensure that Nigeria is seen positively worldwide.
” Let us highlight the good stories; let us learn to support each other so that investors will be attracted to the country, and we will be able to grow the economy.”
Rimi reiterated the mandate of the Commission, which centred on attracting and retaining investments in the country.
She said,” if nobody traps these people and gives them the support they need, other countries are competing with Nigeria, so we must be very intentional.
” So our job is to bridge that gap between the private sector and government.
“To ensure that our investors, be they foreign or domestic, incoming or already here, that we ensure their experience and economic activities in Nigeria are fruitful and beneficial.
“This is because if they do well, we do well; we know the resultant effects, the multiplier effects that a successful investment will have on our economy, job creation, diversification of the economy, and all of that.”
According to her, the commission is realigning its focus and efforts to key into the new administration and Mr President’s eight-point agenda.
She thanked the media for the support the commission had enjoyed in the past and expressed optimism that such supportive cooperation would continue.
Rimi said,” as I settle down, I will continue to depend on your support to promote the commission’s activities.
“As we go into the next year (2024), by God’s grace, we will keep you abreast of the developments as they occur.
” Please look at us as an open agency. Our doors and ears are open; we will listen to constructive criticism and information, verify what we can, and provide you with what we can.
” But it is a partnership that we all exist in the same ecosystem, and so we must coexist harmoniously, cordially, and respectfully.”
The NIPC boss then pledged a stronger partnership with the media in the coming year while wishing everyone God’s continued blessings, guidance protection, good health, and all prosperity in 2024.
Also speaking, Mr Ifeanyi Onuba, the President of the Commerce and Industry Correspondent Association of Nigeria (CICAN), pledged the members’ commitment to showcase the commission in good light.
Onuba also called on the commission to carry every member of the association along in all its activities.
He said this would enable them to contribute their quota in disseminating the right news/information in a manner that would benefit NIPC and the country’s interest.
