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Edo State Investment Promotion Office (ESIPO) is a body established by the Act of the Edo State House of Assembly in January 2018, to coordinate investments in Edo State. The concept is in consonance with the operation of the Nigeria Investment Promotion Commission of the Federal Republic of Nigeria. The body acts as an investment bureau which serves as a one-stop shop for investors seeking to do business in Edo State.

Contents

1	Background

2	Operations

3	Invest Edo

4	External links

5	References

Background

The Edo State Government has embarked on various ways through an ongoing reform process in all major sectors in Edo State. One of these initiatives is the creation of an investment bureau called the Edo State Investment Promotion Office (ESIPO).

The aim of this establishment is to act as a facilitator for prospective investors interested in the Edo State market, get assistance about their business needs such as starting a business and where to invest in the state. More so, the Edo State government alongside the Federal Government of Nigeria are working with the World Bank to domesticate the Ease of Doing Business reforms which has been a huge success in other parts of the world. It is intended by all parties implementing the reform in the State that prospective investors will experience a seamless process setting up and running their business when they come.

Operations

The Act establishing the body permits, the Edo State government to set aside some fund annually for its operation and achievement of key objectives. The money from this fund would be used to promote investments in and outside Edo State through effective promotional means. The expectation is that policy measures designed to promote industrialization in the state will be facilitated by this agency. The fund is administered by the agency with consortium of members from the advisory council which will be rotated annually to allow even participation among indigenous stakeholders who are captains of industries with distinguished business acumen.

Invest Edo

Edo State is naturally blessed with arable land of over 2 million hectares and with good weather because of its tropical rainforest climate, the state is good for agricultural activities. It is one of the largest producers of palm oil and other cash crops such as rubber, timber, and cocoa in Nigeria. Edo is home to several tribes with cultural heritage dating as far back as 1487 CE when it was believed that it started engaging in foreign trade with the outside world. The Bini culture for instance uses different artifacts for festivities and decoration that are among the most exquisite and coveted around the world.

Edo State’s landscape and regional location in Nigeria makes it accessible to do business throughout the country. Edo State is only a drive away by land from a market of over 40 million people in the Niger Delta and only some hours away from more than 400 million people in Nigeria and the West Africa put together. With its expansive export trade in agriculture and destination markets, Edo State is connected regionally, nationally, and internationally to markets, people, technology, and services.

Furthermore, Edo State has access to large reserves of varied resources in the forestry, mining, agriculture, and energy sectors. The government of Edo State has also introduced several reforms to reduce red tape and streamline regulations. The State has created a business environment for manufacturers and artisans with many competitive advantages such as low corporate income tax for manufacturers and processors, as well as the Infrastructure Development and Social Investment Tax Credit Scheme which is aimed at deepening investment in infrastructure and the social sector of the state. The initiative which is backed by an executive order affords prospective investors tax credits for financing infrastructural projects in Edo State. With that an investor can build infrastructure or social amenities in host communities with benefits of tax exemptions.

Edo state has a general security and of personal safety with hospitable, friendly, and accommodating people. Its cultural heritage which is well documented is embodied in several artifacts such as the infamous Benin moat which can be seen by tourists either in its museum or around the Benin city from crafts shop. Benin City has a National Museum which offers insight about the Benin Kingdom, its people, and other kingdoms around the state. The State has thriving hospitality business which has seen several luxury hotels developed by private individuals for relaxation and recreational activities. Also, there are several exquisite apartments which gives the ambience of home away from home being used as short lets for anyone seeking privacy and comfort.

Tax and Incentives:


 * The Edo state corporate income tax rate on manufacturing and processing profits may be as low as 10 per cent. This is supported by the Companies Income Tax Act, which permits deduction, from taxable income, of expenses incurred exclusively and necessary in the promotion of a business venture.
 * More so, the Act provides for capital allowances for qualifying capital expenditure incurred while doing business (as provided for under the Second Schedule to the CITA). Also, it grants tax exemption for interest payable in relation to foreign and agricultural loans invested in any part of Nigeria such as Edo state under certain circumstances, as provided for under the Third Schedule (pursuant to Section 11) to the CITA, amongst other incentives.
 * Pioneer manufacturers and processors investing in certain types of industrial activities in Edo state are eligible for tax holidays which may on application be granted and extended for up to two years if specified conditions are met. Examples of commodities that could attract tax holidays are mining of solid minerals, glassware manufacturing, steel production and fertilizer manufacturing.
 * Access to other Government tax incentives for small or medium sized companies engaged in primary agricultural production are eligible for an initial tax-free period of four (4) years which may be extended for an additional two (2) years period subject to satisfactory performance.
 * There are also several incentives available to companies operating in the agricultural, mining and minerals sector. Mining companies enjoy an accelerated capital allowance of 95% on qualifying capital expenditure incurred in the year in which the investment is incurred.
 * Provision is also made for loss relief by which losses can be relieved for a maximum period of four (4) years after which all un-relieved losses will lapse. Further, by the combined provisions of section 36 of CITA and section 28 of the Mining Act, a tax relief period of three (3) years and a further extension of up to two (2) years can be granted to companies engaged in mining operations.
 * By the provision of section 25 of the Mining Act, operators in the mining sector are granted exemption from payment of custom/import duties in respect of plants and machineries imported specifically and exclusively for mining operations.
 * The Mining Act also gives allowance to a mining company to set up a tax-deductible reserve for environmental protection, mine rehabilitation, reclamation, and mine closure costs. Further, mining companies may benefit from waiver of applicable royalties (of 3-5%, depending on the nature of minerals being mined).
 * Edo state is home to many raw materials such as clay, wood, granite, sharp sand, cash crops such as rubber, cocoa, oil palm, cashew, pineapple etc. Prospective investors seeking to engage in economic activities within the state can access large expanse of land from the land registry without stress.
 * Edo state does not charge a payroll tax for employers, and there are lots of cheap and affordable health premiums accessible to employees and Edo residents such as the Edo State Health Insurance Scheme.
 * Edo state has a refundable tax credit for Infrastructure Development in the state undertaken by investors through the Infrastructure Development and Social Investment Tax Credit Scheme.
 * Edo state has several business incentives and tax credits available to encourage business growth, investment, and innovation in Edo State.

External links


 * Official Website

References


 * Companies Income Tax Act, Cap C21, LFN 2004 (“CITA”)
 * Nigerian Minerals and Mining Act 2007
 * https://banwo-ighodalo.com/grey-matter/doing-business-in-nigeria-some-of-the-incentives-available-to-investors?leaf=2 accessed 2021-09-11
 * http://edhic.edostate.gov.ng/ accessed 2021-09-11
 * https://eirs.gov.ng/tax-types/ accessed 2021-09-11
 * https://invest.edostate.gov.ng/ accessed 2021-09-05
 * https://www.edostate.gov.ng/   accessed 2021-09-05
 * https://businessday.ng/news/article/edo-to-attract-infrastructure-investment-via-tax-credit-scheme/ Businessday NG. 2021-05-17. Retrieved 2021-09-05.
 * https://www.edostate.gov.ng/arts-and-craft/   accessed 2021-09-05
 * Balouga Jean, The Niger Delta: Defusing The Time Bomb, 2009, 1st Quarter, The Energy Journal, Pg. 8
 * https://www.nipc.gov.ng/compendium/3-sector-specific-incentives/ accessed 2021-09-11
 * https://taxsummaries.pwc.com/nigeria/corporate/tax-credits-and-incentives accessed 2021-09-11
 * https://www.worldometers.info/world-population/western-africa-population/ accessed 2021-09-09
 * https://www.pwc.com/ng/en/publications/promoting-economic-prosperity.html accessed 2021-09-09
 * https://www.worldhistory.org/Kingdom_of_Benin/ accessed 2021-09-09
 * https://www.nipc.gov.ng/ accessed 2021-09-09
 * https://marcusonobun.org/edo-state-house-of-assembly-has-given-first-reading-to-a-bill-for-a-law-to-provide-the-framework-for-the-promotion-coordination-propagation-monitoring-and-regulations-of-investment-in-edo-state/ accessed 2021-09-09
 * https://invest.edostate.gov.ng/2021/06/28/fg-hails-obasekis-ease-of-doing-business-reforms/ accessed 2021-09-09
 * https://invest.edostate.gov.ng/investment-opportunities-2/ accessed 2021-09-11

Categories:


 * Investing in Edo State/ Investment promotion agencies