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FG Grants Dangote, Honeywell, Others Tax Reliefs and Concessions Worth N16tn – Report
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The Federal Government has foregone N16.76tn in revenue to tax reliefs and concessions given to large companies between 2019 and 2021, according to findings by The PUNCH.
As of the end of 2021, 46 companies had benefitted from various tax incentives and duty waiver schemes while the requests of 186 companies were still pending.
These were contained in the tax expenditure statement (TES) reports in the Medium-Term Expenditure and Fiscal Strategy documents posted on the website of the Budget Office of the Federation.
The TES deals with revenue forgone on Company Income Tax, Value Added Tax, Petroleum Production Tax, and Customs Duty.
In the TES report for 2019, it was stated that the Federal Government had forgone revenue of N4.2tn from two main sources, CIT and VAT.
For CIT, the estimated amount of revenue forgone was N1.1tn while N3.1tn was for VAT.
The TES report read, “The most significant conclusion is the large size of Nigeria’s revenue forgone from just two of the main taxes, i.e., CIT and VAT. Nigeria’s non-oil revenue potential is at least twice its current collections.
“The preliminary estimate of revenue forgone from CIT incentives and concessions in 2019 is N1.1tn; for contrast, 2019 CIT collections was N1.6tn. The preliminary estimate of revenue forgone from VAT policy choices and compliance gaps is estimated to be NGN 3.1tn and could possibly be more. It is worth reiterating that revenue forgone from Customs Duty, Excises, Petroleum Production Tax, Personal Income Tax and concessions under the Oil and Gas Zones legislation is still to be computed.”
According to the TES report, the figure for revenue foregone would likely exceed N4.2tn if there were sufficient data, especially from Customs Duty, Excises, PPT, Personal Income Tax and concessions under the Oil and Gas Zones legislation.
By 2020, the figure rose to N5.8tn, with majority of it coming from revenue forgone under VAT. A breakdown showed that N4.3tn was forgone under VAT; N457bn under CIT; N307bn under PPT, and N780bn under customs duty.
It was also noted that five countries accounted for about 86 per cent of total customs relief, with China accounting for nearly two-thirds of total relief granted. Netherlands, Togo, Benin and India were the other top sources of supplies benefitting from the reliefs.
The total figure continued to rise in 2021, hitting N6.79tn, with revenue foregone on VAT accounting for most of it. A breakdown showed that N3.87tn was forgone under VAT, N548.40bn under CIT; N337.70bn under PPT; N1.84tn under customs duty; and N111.15bn under imports VAT.
For the three-year period, therefore, the Federal Government had to forgo a total of N16.79tn in tax reliefs, Customs duty waivers and concessions, according to an analysis by The PUNCH.
Under this figure, tax exemptions covered imported goods covered by diplomatic privileges, military hardware, fuels and lubricants, hospital and surgical equipment, aircraft (their parts and ancillary equipment), plant and machinery imported for use by companies in export processing zones, health and medical supplies to abate the spread of COVID.
Other exemptions included: reliefs on the presidential initiative on COVID-19 supplies, Import Duty and VAT on commercial airlines.
It was also noted that five countries accounted for about 92 per cent of total Customs relief with China accounting for nearly half of the total relief granted. Singapore, Netherlands, Togo, Benin Republic and India were the other top sources of supplies benefitting from the reliefs.
Meanwhile, the beneficiaries of the tax reliefs and concessions included Dangote, Lafarge, Honeywell and 43 other major beneficiaries.
As of the end of 2021, 46 companies had benefitted from the tax incentive scheme while the requests of 186 companies were still pending.
They were beneficiaries of the pioneer status tax relief under the Industrial Development Income Tax Act with tax reliefs for a three-year period.
This was contained in the Q4 2021 PSI report released by the Nigeria Investment Promotion Commission.
The pioneer status is an incentive offered by the Federal Government, which exempts companies from paying income tax for a certain period. This tax exemption can be full or partial.
The incentive is generally regarded as an industrial measure aimed at stimulating investments in the economy.
The products or companies eligible for this pioneer status are those that do not already exist in the country.
These companies included: Dangote Sinotrucks West Africa Limited, Lafarge Africa Plc, Honeywell Flour Mills Nigeria Plc, Jigawa Rice Limited, and Stallion Motors Limited.
Others included: African Foundries Limited, Royal Pacific Group Limited, Kunoch Hotels Limited, Princess Medi Clinics Nigeria Limited, Medlog Logistics Limited, and Masters Liquefied Gas Limited.
The Punch
Headlines
Obi Tasks Tinubu to Give Account of N15.8trn Subsidy Savings, $100bn Borrowing
The Nigeria Democratic Congress (NDC) presidential candidate, Peter Obi, has called on President Bola Tinubu to account for the N15.8 trillion saved from the removal of the fuel subsidy and the over $100 billion borrowed by his administration.
Obi’s challenge comes 24 hours after Tinubu took a swipe at the former Governor of Anambra State during an All Progressives Congress (APC) campaign rally in Akwa Ibom State, saying that while the NDC candidate ran from erosion in Anambra, he (Tinubu) confronted the Atlantic Ocean in Lagos.
In a post on his X handle on Saturday, Obi congratulated Tinubu on spending a night in a Nigerian State outside Lagos and Abuja, while urging him to visit other states and account for the resources available to his administration.
“I congratulate you on spending a night in one of Nigeria’s states outside Lagos and Abuja. I hope you enjoyed the warmth, hospitality, and delicious cuisine of Akwa Ibom, which I am sure is even better than those of the destinations where you have spent over 260 days outside Nigeria since coming into office.
“I sincerely hope this visit will inspire you to travel to the remaining 33 states of the federation, spend time with the people and, more importantly, explain what your administration has done with the ₦15.8 trillion saved from the removal of fuel subsidy, the over $100 billion you have borrowed, the increased revenues accruing to the government from taxing Nigerians, and the additional government revenues which your administration celebrated last year as having surpassed its target,” Obi wrote.
He insisted that Nigerians deserve to know what the government has achieved with the resources, including the number of people lifted out of poverty, children returned to school and functional primary healthcare centres built.
“Nigerians deserve to know how many that were pulled out of poverty within this period, how many out-of-school children were returned to school, and how many functional primary healthcare centres you have built.
“They also deserve to know how much electricity supply has improved, especially given your promise that if you do not fix power, Nigerians should not vote for you. They deserve an explanation of how you have secured the country, which still ranks among the most terrorised countries in the world.
“Mr. President, Nigerians deserve answers. They deserve to know what has been done with the resources entrusted to your government,” he added.
Obi said the new Nigeria he hopes to build would be founded on accountability, transparency and the physical, measurable impact of public resources on the lives of citizens.
Headlines
Flamingos Beat Japan 2-1 to Win 2026 U17 Women World Cup
Nigeria’s under-17 women’s national team, the Flamingos, etched their names into football history Saturday, defeating former champions Japan 2–1 at the Mohammed VI Football Complex to lift the 2026 FIFA U17 Women’s World Cup.
With the victory, Nigeria becomes the first African nation to win the tournament since its inception in 2008.
Led by head coach Akeem Busari, the Flamingos entered the showpiece having already broken ground as the first African side to reach the final, surpassing their previous best finish of a bronze medal in 2022.
After a fiercely contested opening half-hour against a disciplined Japanese side making their fourth final appearance, Nigeria broke the deadlock in the 39th minute.
Midfielder Awawu Bashiru—who had starred with a brace in the semi-final against Brazil—unleashed a long-range strike that slipped past Japanese goalkeeper Kou Kadowaki to give the Flamingos a 1–0 lead at the break.
Nigeria wasted no time doubling their advantage after the restart. Just two minutes into the second half, forward Oluebube Umejiaku latched onto a through ball and lifted a composed finish over the onrushing Kadowaki in the 47th minute to make it 2–0.
Desperate to reclaim a title they last won in 2014, Japan responded with a triple substitution and mounted heavy late pressure.
The Young Nadeshiko eventually pulled a goal back in the 80th minute through setting up a tense finish in front of a crowd that included FIFA President Gianni Infantino and CAF President Patrice Motsepe.
Despite Japan’s late surge, Nigeria’s backline—marshalled by goalkeeper Sylvia Ijirigho and defender Omowunmi Sunday—held firm through stoppage time to seal an unforgettable triumph for Nigerian and African women’s football.
ThisDay
Headlines
2027: In spite of Court Ruling, Atiku Takes ADC Campaign to Kebbi
The African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has pledged to restore fuel subsidy, improve security and create employment if elected president in 2027.
Atiku made the pledge on Thursday during a campaign rally in Kebbi State, where he called on voters to support the ADC, describing it as the only party committed to addressing the three issues.
“The people of Kebbi State, let me ask you a few questions. Do you want the return of subsidy? Do you want security? Do you want employment? Therefore you have no option other than the ADC. ADC is the only political party that is committed to these three objectives and more to bring about prosperity, unity and peace to the people of our country,” he said.
The former Vice President and his running mate also criticised some projects being presented as achievements of the President Bola Tinubu administration, describing them as legacies of the late President Muhammadu Buhari.
Supporters of the ADC gathered at the party’s secretariat in Birnin Kebbi to welcome Atiku and other party chieftains ahead of the rally.
Speaking at the event, the Director-General of the ADC Presidential Campaign Council, Senator Austin Akobundu, commended party faithful for what he described as their resistance to intimidation by the state government.
Akobundu said the 2027 general elections would be a referendum between suffering Nigerians and the Federal Government under President Tinubu.
The ADC National Chairman, in his remarks, described the party as a moving train that no amount of intimidation could stop.
He called on the people of Kebbi State to vote for Atiku as president, Abubakar Malami as governor and other ADC candidates in the 2027 general elections.
The rally ended with the ADC National Chairman formally presenting the party’s flag to Malami as the party’s governorship candidate for the 2027 election.
The campaign in Kebbi came hours after a Federal High Court in Abuja nullified the leadership of the Senator David Mark-led ADC and voided the actions taken by the party’s executives, including the process that produced Atiku as its presidential candidate.
Justice Peter Lifu delivered the judgment in a suit filed by Nafiu Bala Gombe, a former National Deputy Chairman of the party, who challenged the emergence of the Mark-led leadership.
Atiku rejected the ruling, describing it as an attempt to weaken his political support and frustrate his campaign. He said he would challenge the judgment at the Court of Appeal.
The ADC also rejected the decision, accusing the ruling All Progressives Congress (APC) of attempting to cripple the opposition and vowing to challenge the judgment through all available judicial processes.






