Nigeria: Transition to new economic development tax incentive scheme

Applications for the pioneer status incentive (PSI) must be received on or before November 10, 2025

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november 5, 2025

The Nigerian Investment Promotion Commission (NIPC) announced that it will no longer accept applications for the pioneer status incentive (PSI) effective November 10, 2025, in preparation for the transition to the economic development tax incentive (EDTI) scheme, which takes effect January 1, 2026.

Companies seeking to benefit from the PSI must submit applications on or before November 10, 2025.

The Nigeria Tax Act (NTA) repealed the Industrial Development (Income Tax Relief) Act and replaced the PSI with the EDTI scheme, which aims to stimulate capital investment in priority sectors. Existing PSI beneficiaries will continue to receive benefits under the previous act for the unexpired tax relief period.

The EDTI scheme aligns tax incentives with Nigeria’s economic priorities, offering an Economic Development Tax Credit (EDTC) of 5% per year on eligible capital expenditures over a five-year period. Unused EDTC can be carried forward for an additional five years, with possible extension of the incentive period.

Read a November 2025 report prepared by the KPMG member firm in Nigeria

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