Securing special tax status and protecting investment in Nigeria
A multinational telecom infrastructure company invested billions of dollars in the Nigerian economy with the understanding that its investment would benefit from significant tax incentives for pioneer investors. After the country’s 2015 presidential elections, the new administration suspended the pioneer investment incentives policy. The client’s application for pioneer status was now in jeopardy, dramatically affecting the attractiveness of the client’s investment in Nigeria. The client engaged ASG to seek a positive resolution with the government of Nigeria.
The ASG Approach
Our team of advisors in Washington and Abuja identified and consulted with key stakeholders and senior officials in the new government to understand the reasons for the suspension of the policy and the status of the client’s application. ASG developed a stakeholder engagement strategy to raise the company’s profile and showcase the impacts of the suspension on the client’s long-term plans and investment in Nigeria.
With ASG’s strategic support and targeted intervention, the client achieved its goal of securing special tax status from the Nigerian government. It saved millions of dollars in taxes and safeguarded the profitability of its investment. Further, the client was positioned as a long-term investment partner to the Nigerian government.