CREATIVE INDUSTRY GETS ‘PIONEER STATUS’, QUALIFIES FOR TAX HOLIDAY

The Federal Government has granted ‘Pioneer Status’ to the Creative
Industry, in a landmark move aimed at transforming the industry to a
creative economy and creating jobs.

In a statement issued in Abuja on Thursday, the Minister of
Information and Culture, Alhaji Lai Mohammed, said the decision to
grant the industry ‘Pioneer Status’ is in fulfillment of the promise
made by the Acting President, Prof. Yemi Osinbajo, represented by the
Minister of Finance, Mrs. 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.

The ‘Pioneer Status’ for the Creative Industry 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).

”This is a shot in the arm for the Creative Industry, and it will
definitely catalyze 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.

He said the need to grant ‘Pioneer Status’ to the Creative Industry as
well as tackle the piracy of creative works were among the key issues
raised by participants at the Creative Industry Financing Conference.

”It is a measure of the increasing importance attached to the
industry by the Federal Government that these issues are now being
handled with utmost urgency. First, the ‘Pioneer Status’ has been
granted within three weeks of the conclusion of the conference.
Secondly, an Anti-Piracy Committee, comprising representatives of the
Federal Ministry of Information and Culture, industry stakeholders and
the police, has been set up to work out the modality for tackling
piracy in a lasting and sustainable manner,” Alhaji Mohammed said.

He thanked the stakeholders in the Creative Industry for supporting
the Federal Government in its efforts that have succeeded in putting
the industry in the front burner of the economy and made it a key
plank of the government’s economic diversification policy.

”We are determined to do more for the Creative Industry in order to
allow the creative talents of our youths to blossom, create massive
jobs and position Nigeria as a global hub for the industry,” the
Minister said