Nigeria’s federal government says 149 companies currently benefiting from pioneer status tax incentives will retain their tax holidays for at least two more years, despite the country’s planned transition to a new tax regime from January 2026.
The Nigerian Investment Promotion Commission (NIPC) said the firms would be protected under transitional provisions of the new tax framework to safeguard investor confidence.
Data presented by the commission showed the Pioneer Status Incentive (PSI) has attracted capital investments of about 8.7 trillion naira since its introduction in 2017 and supported nearly 59,000 direct jobs, mainly in manufacturing and in Lagos State.
Between 2017 and the second quarter of 2025, the NIPC received 693 applications for the incentive, granting 304, rejecting 64 and cancelling just one certificate, leaving 149 firms as current beneficiaries, it said.
The chairman of the Presidential Tax Reform Committee, Taiwo Oyedele, said existing beneficiaries would not be stripped of their incentives, adding that the measure was intended to ensure a smooth transition to the new tax regime.
Under the PSI, eligible firms enjoy full corporate income tax relief for three years, extendable by two years. The scheme, governed by the Industrial Development Income Tax Act, is aimed at encouraging investment in sectors or products not previously established in the country.
The incentives have long been controversial, with critics arguing they result in significant revenue losses. Government estimates put annual foregone revenue from tax waivers at around eight trillion naira.
NIPC officials said the PSI would be gradually phased out and replaced by the Economic Development Incentive under the new tax law. The revised system will be credit-based, allowing companies to pay taxes while earning credits tied to capital expenditure and reinvestment, potentially extending benefits for up to 15 years.
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Earlier, NIPC Executive Secretary Aisha Rimi said the commission facilitated more than US$10 billion in investment commitments in 2025, citing rising investor confidence amid ongoing economic reforms.
She said capital importation rose to US$5.2 billion in the first quarter of 2025, up from US$3.4 billion a year earlier, with inflows driven by manufacturing, ICT, agriculture, renewable energy and services.
The remarks were made during a media briefing in Abuja.
