Overview

The Industrial Development (Income Tax Relief) Act is a Nigerian law enacted to provide tax relief for certain industries designated as pioneer industries. It empowers the President to publish a list of pioneer industries and products, and to issue pioneer certificates to qualifying companies. Key provisions include: (1) The President may declare an industry as a pioneer industry if it is not being carried on in Nigeria on a suitable scale or if further development is expedient. (2) Applications for pioneer certificates can be made by companies incorporated in Nigeria, with a minimum qualifying capital expenditure of N50,000 for indigenous-controlled companies and N150,000 for others. (3) The Act outlines the terms of pioneer certificates, including the tax relief period which typically starts from the production day. (4) It provides for income tax relief on profits derived from pioneer products, exemption of certain dividends from tax, and restrictions on dividend distributions and loans during the relief period. (5) Capital allowances and losses are governed under Schedule 2 of the Act. (6) Provisions for plantation industry are included. (7) The Act also covers cancellation of certificates, information requirements, false information penalties, and transitional provisions repealing previous legislation. The Act came into force on 1st April 1970.

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