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Spanco gets five-year tax holiday from Nigerian govt

Spanco Ltd. | BPO/ITeS | IT & ITES | BSE: 508976 | NSE: SPANCO

16 Dec 2011 Evaluate

A unit of Mumbai-based Spanco has received a five-year tax holiday from the Nigerian Government for creating more jobs in the country's outsourcing sector. The company will now invest $27 million in phases over a three-year period towards capacity build-up and technology infrastructure in the country.

The tax holiday comes after the Nigerian Investment Promotion Commission (NIPC) granted the ‘Pioneer' status to Spanco Channel BPO (the company's operating arm in Nigeria) for its activities in the telecommunication BPO space. The grant of Pioneer Status to an industry is aimed at enabling the industry concerned to make a reasonable level of profit within its formative years. The profit so made is expected to be ploughed back into the business.

Spanco had applied for the Pioneer Status and had made detailed representations to various committees and government officials on plan for expansion, contribution to the Nigerian Economy, Job creation and developing Nigeria as a hub for Outsourcing activity across the African continent. The term period for this is five years, with effect from the date of commencement of production which will be certified by the Industrial Inspectorate Department of the Ministry of Trade & Investment, Garki, Abuja.

Earlier in the year Spanco’s BPO arm had bagged the five year $250 million Bharti Alrtel's Outsourcing contract to service 6 of the 15 countries under its regime. Nigeria is the largest both for Airtel and for Spanco and hence the Pioneer Status becomes increasingly important, Spanco is already one of the largest third party Outsourcing company's in Africa with more than 3,000 employees.

Spanco is one of the leading telecom systems integration and IT services company in India. From providing telecom integration services to multinationals, Public Sector Units and India's vast defense sector. Spanco has evolved to extend its expertise into the dynamic space of Business Process Outsourcing and RFID.

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Spanco gets five-year tax holiday from Nigerian govt

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