27 Sep RMAFC CALLS FOR MULTI-STAKEHOLDER COLLABORATION IN PROMOTING INVESTMENT
The Revenue Mobilization Allocation and Fiscal Commission has called for multi-stakeholder collaboration in promoting investment in all critical sectors of the Nigerian economy so as to fast track the attainment of national development objectives such as Vision 20-2020 and the Transformation Agenda of the present administration. Elias Mbam, Chairman of the Commission who made the call today during an interactive session with a delegation from the Nigeria Investment Promotion Council (NIPC) in his Office in Abuja observed that at the moment, “Nigeria remains an investor’s haven with numerous opportunities in Oil and Gas, Manufacturing, Agriculture, Telecommunications, Chemicals, Transportation and power sectors waiting to be tapped”. In order to harness these resources, the Chairman opines that it was necessary for concerted efforts to be made by all relevant stakeholders so as to attract foreign direct investment through the provision of critical infrastructure, legal and regulatory frameworks and tax incentives. To this end, he stressed that the Commission through its economic diversification programme has been at the forefront of forging synergy by bringing all stakeholders together on the quest to create the necessary enabling environment for sustainable investment climate that would in the long run turn around Nigeria’s economy, boost its revenue base, create employment opportunities for the teeming unemployed youths and generally improve the socio-economic living conditions of the populace. Mbam told the delegation that the Commission had also met with the Customs Service, Federal Inland Revenue Service, NNPC and its subsidiaries and the Central Bank of Nigeria to strategize on how to reduce revenue loss through indiscriminate granting of waivers and tax holidays. In this regard, the Chairman urged the NIPR to exercise caution and observe due diligence in the granting of Pioneer Status Initiative with a view to minimizing abuse and reducing consequent revenue loss. In her presentation earlier, the NIPC Executive Secretary Mrs. Saratu Altine Umar who led the delegation told Members of the Commission that NIPC has since inception granted Pioneer Status Incentive (PSI) to 410 companies comprising:175 Manufacturing companies, representing 42.68%; 42 Agriculture/Agro – Allied companies, representing 10.42%; 40 Oil & Gas companies, representing 9.76%; 35 ICT/Telecommunications companies, representing 8.53%; 8 Chemicals companies, representing 1.92%; and 4 Transportation Companies, representing 0.98%. Mrs. Umar explains that the Pioneer Status Incentive is a fiscal concession, designed by Government and backed by Law, to encourage and promote certain targeted Industries, Activities, products and services, identified by Government as “Priority Areas” and “Growth drivers” of the economy. She also observed that over the past two decades, most Governments have actively promoted their countries as investment locations to attract scarce private capital, associated technology and managerial skills in order to help achieve their developmental goals adding that for Nigeria to compete favourably with other countries, the country must continue to evolve strategies and develop incentives to position the economy to attract much needed FDI/private capital, especially against the backdrop of inadequate infrastructure and unattractive business climate. The Executive Secretary believes that the Pioneer Status(tax holiday) Incentive will continue to be relevant, critical and unassailable if the country is to be positioned effectively to take advantage of the current “scramble for Africa”, as investors continue to jostle for attractive FDI destinations within the continent.