The Nigerian Investment Promotion Commission (NIPC) aims to boost and coordinate the participation of foreign businesses in the country. On 2 September 2024, NIPC issued a revised service fee schedule for business registration and pioneer status incentives in Nigeria. The new fees will apply from October 1 2024. NIPC has also introduced a fee for renewing business registration every year which is effective January 1 2025.
Business Registration
All enterprises in which foreign participation can apply to NIPC for business registration. The revised service fee schedule for business registration with NIPC is as follows;
- Application fee: ₦150,000 (One hundred and fifty thousand naira only). Represents a nine hundred percent (900%) increase from the old rate of ₦15,000 (Fifteen thousand naira only).
- The introduction of an annual renewal application fee of ₦50,000 (Fifty thousand naira only). The renewal fee takes effect from 1 January 2025.
- Replacement fee: ₦100,000 (One hundred thousand naira only)
Pioneer Status Incentive (PSI)
Pioneer status is an income tax relief given to companies operating in pioneer industries or providing pioneer products. A company can enjoy a pioneer status period of three years, which can be extended for two periods of one year each, or one duration of two years. Upon a successful application for a new PSI, NIPC will issue a production certificate and pioneer certificate. PSI serves as an incentive to operate in Nigeria. The recent list of industries or products permitted for pioneer status is on the official NIPC website www.nipc.gov.ng
Pioneer Status Incentive: New application
- Application fee: ₦500,000 – Five hundred thousand naira only. Represents a one hundred and fifty percent (150%) increase from the old rate of ₦200,000.
- Due diligence fee: ₦1,000,000 – One million naira only. Represents a one hundred percent (100%) increase from the old rate of ₦500,000.
- Service charge: ₦3,000,000 (Three million naira only). Two percent (2%) decline from the old fee of ₦2,500,000.
- Annual service charge: 1.5% of actual pioneer profits. Old rate was one percent (1%) of actual pioneer profits.
PSI: Application to extend the duration of pioneer status
- Application fee: ₦250,000. The old fee to renew PS was ₦100,000.
- Annual service charge: 1.5% of actual pioneer profits. Old rate one percent (1%) of actual pioneer profits.
Pioneer Status Incentive: Penalty
- New application: ₦200,000 (Two hundred thousand naira only)
- Extension application: ₦100,000 (One hundred thousand naira only)
Businesses, investors, consultants, and other stakeholders should note the changes in the fees for business registration and pioneer status incentive. The additional fees will lead to more costs for a business and higher revenue for the federal government. To download the NIPC revised service fee schedule, click here.
