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www.spnglegal.com_____________________________________________________________________________________ • 140% for research and development on local raw materialsInfrastructure• 20% of the cost of providing basic infrastructure (roads, water, and electricity) in communitieswhere they do not exist is tax deductible once and for all.Re – Investment AllowanceThis incentive is given to manufacturing companies that incur capital expenditure for the followingpurposes:• Approved expansion of production capacity• Modernisation of production facilities• Diversification into related productsInvestment in Economically Disadvantaged Areas• 100% tax holiday for 7 years• 5% depreciation allowance over and above the initial capital depreciationTAX TREATIESNigeria has executed double tax treaty agreement (DTA) with some countries that could impact the taxliability of a foreign investor. Some of the countries with which Nigeria has DTAs include the UnitedKingdom, France, Belgium, China, the Netherlands, Pakistan, the Philippines, Romania, South Africa,Canada and Italy (Italy is with respect to shipping and air transport). Please note that this list is by nomeans exhaustive as new ones are being negotiated_____________________________________________________________________________________Doing Business in NigeriaAn Investor’s Guide- 2013Page 16 of 36