adsNigeria will allow 149 companies currently enjoying Pioneer Status Incentives (PSI) to retain their tax holidays for up to two more years as the country transitions to a performance-based investment incentive regime under the Nigeria Tax Act (NTA) 2025.
The transitional protection is aimed at safeguarding investor confidence while the government phases out blanket tax holidays in favour of credits tied to verifiable capital expenditure.
The shift marks a major change in how investment incentives are granted in Nigeria. Under the new law, the long-running Pioneer Status Incentive has been replaced by the Economic Development Incentive (EDI), which links tax relief directly to verified capital investment and economic activity rather than granting broad tax holidays upfront.
According to Resolution Law Firm, the new regime moves away from open-ended tax holidays toward incentives tied to measurable economic activity and qualifying capital expenditure.
The firm noted that the EDI introduces a certificate-based tax credit system designed to ensure that only companies making genuine and verifiable investments benefit from reliefs.
