The Federal Government of Nigeria has granted tax break to music, movie producers and others in the creative industry.
This action, according to the Minister of Information and Culture, Lai Mohammed, is aimed at transforming the industry to a creative economy and also creating jobs for Nigerians.
In the statement issued in Abuja on Thursday, the minister said the decision to grant the industry ‘Pioneer Status’ is in fulfilment of the promise made by the Acting President, Yemi Osinbajo, represented by the Minister of Finance, Kemi Adeosun, at the opening of the Creative Industry Financing Conference in Lagos 17-18 July 2017.
The ‘Pioneer Status’ is granted to companies making investments in qualifying industries and products as tax holiday from the payment of corporate income tax and withholding tax on dividend from pioneer profits for an initial period of three years, extendable for one or two additional years.
”This is a shot in the arm for the Creative Industry, and it will definitely catalyse investments in the industry. It is also the answer to our quest to spur the establishment of world class studios in Nigeria for production and post-production of movies and music videos,” the minister said.
The ‘Pioneer Status’ or tax break covers music production, publishing and distribution (including online digital distribution); Photography; Production and post-production of digital content for motion pictures, videos, television programmes, commercials, distribution and exhibition (digital movies, animation, videos, tv programmes and commercials); Publishing of books (copyrighted books) and development and Publishing of ready-made software (operating systems, software applications and computer games).