Regulatory policy

Reps Probe Pioneer Status Policy, Summon Minister, NIPC Executive Secretary, CEOs

The House of Representatives on Tuesday unveiled plans to investigate the approval of pioneer status granted to private companies in a bid to unravel lost revenue and tax evasion.

To this end, the House Committee on Public Accounts, chaired by Hon. Oluwole Oke, has concluded plans to conduct an investigation into the activities of the Federal Ministry of Commerce and Investment Management and the Nigeria Investment Promotion Council. (NIPC) as well as companies that have achieved pioneer status. Status and associated incentives.

Pursuant to the resolution passed by the House, lawmakers alleged that many companies created under the guise of foreign direct investment were taking advantage of loopholes in the system to divert revenue from the federal government in the form of taxes and other fees. which belong to him, but which are skilfully eluded.

Worried about the development, Hon Oke therefore decided that the regulatory authorities involved in approving the pioneer status as well as the management teams of companies to attract and encourage foreign investment should appear before him on April 27 with the documents submitted by companies enjoying the benefits of pioneer status to this day.

The lawmaker also alleged that for some of the companies that were allegedly involved in switching from one surveillance agency to another before the tax and other rights expired, exemption licenses were granted to them as soon as the start of their operations in the country.

Hon Oke also ordered all relevant government agencies to join the general manager of enterprises enjoying status such as tax exemptions, concession in the import-export regime and conducive atmosphere for operating in the free trade areas.


He said: “While the idea of ​​granting pioneering status to manufacturing companies as a means of attracting foreign investment to the country is laudable, the collision between investors and supervisory agencies to bleed the government into the depriving him of income due to him will no longer be tolerated by parliament.

“Records available to us show that some companies, including the Aluminum Smelting Company located in Akwa Ibom State, had since its inception in 1981 paid no tax kobo to the federal government, specializing instead in the jump from one scheme to another just before the expiration date of an ongoing incentive.

Hon. Oke, who has vowed to see justice done, alleged that such a development “cannot be perfected without the collision of officials from oversight agencies”.

On the Auditor General’s question on the NIPC, Hon. Oke, who frowned at the various breaches, expressed deep concern over the extra-budgetary spending and non-disbursement of Internally Generated Revenue (IGR) accumulated in the Council’s coffers as a fully funded government agency, in flagrant contradiction with financial regulations.

Hon. Oke mandated the Council, led at the investigative hearing by its Acting Executive Secretary, Emeka Offor, to submit two streams of annual budgets, the Appropriations Budget and the RMI Budgets in order to assist the Committee in determine the agency’s level of financial infractions.

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