Blessing Ibunge in Port Harcourt
The Nigerian Content Development Monitoring Board (NCDMB) and the Federal Inland Revenue Service (FIRS) have resolved to collaborate in creating a platform aimed at providing tax incentives for oil and gas industry stakeholders investing in research and development.
This was disclosed yesterday, at the 2023 Tax awareness workshop for Nigerian oil and gas industry suppliers, held in Yenagoa, Bayelsa state.
In his welcome address, Executive Secretary, NCDMB, Mr. Sim Wabote, said the workshop was in tandem with Section 70 of the Nigerian Oil and Gas Industry Content Development Act 2010 in achieving the goal of developing local content in the Nigerian oil and gas industry.
Wabote also explained that the workshop was based on provisions of the Finance Act 2021 and other extant tax codes relating to Research and Development.
In terms of strategic intent, the NCDMB boss revealed that the workshop would highlight the inherent benefits of investing in research and development, and showcase mutual benefits to both the private sector and the government separately and collectively.
According to Wabote “The Board is leveraging the Enabling Business Environment pillar of its 10-year Strategic Roadmap, to collaborate with the Federal Inland Revenue Service (FIRS) in creating a platform for engaging Oil and Gas industry stakeholders on tax incentives available to companies that invest in Research and Development.
“Globally, there is a consensus on the adoption of the Triple Helix model to foster partnership between the academia, industry, and Government to foster market-driven research which advances the socio-economic development of nations.
“Indeed, the level of technological advancement in most developed economies is a result of a combination of Government providing the enabling environment and the private sector providing the funds needed for Research and Development.
“In Nigeria, we have also commenced our journey of creating meaning of addressing our peculiar challenges by leveraging on our natural endowments.
“The Federal Inland Revenue Service, through this workshop, will do a deep dive and provide critical insights into the incentives inherent in the Finance Act 2021 and how companies that invest in Research and Development can benefit from tax credit.”
Wabote further noted the need for the two government agencies to forge a strong collaboration to drive government’s aspiration to develop local technology with consequential impact on increasing Government revenue from tax.
In his remarks, the Executive Chairman, FIRS, Mr. Muhammad Nami, stressed that the growth of the Nigerian oil and gas industry was very crucial to the economic development of Nigeria, being a single sector that contributes the largest income to the Nigerian economy.
Nami said: “By investing in Research and Development, the industry can improve exploration and production, reduce environmental impact, develop local content, and improve safety and security. This can help the industry remain competitive and contribute to the country’s economic development.”