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 its pioneer investment incentives policy and the client’s application for pioneer status was now in jeopardy, dramatically shifting the attractiveness of the client’s investment in Nigeria. ASG was engaged by the client 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 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 investment and long-term plans in Nigeria.
With ASG’s strategic support and targeted intervention, the client achieved its goals of securing the special tax status from the Nigerian government, resulting in millions of dollars in tax saves and ensuring the profitability of the investment. In addition, the client was positioned as a long-term investment partner to the Nigeria government.