General News
FG to Introduce New Tax Credit Scheme to Replace Pioneer Status Incentive
As part of Nigeria’s ongoing tax reform efforts, the federal government is proposing a new investment-driven incentive framework aimed at addressing long-standing inefficiencies in the current Pioneer Status Incentive (PSI).
The new scheme, known as the Economic Development Incentive (EDI), is designed to stimulate real economic activity by tying tax relief directly to verifiable investments.
This was the focus of a keynote address delivered by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, at BusinessDay’s Policy Intervention Series held on April 22 in Lagos.
According to Oyedele, a close review of the Pioneer Status Incentive revealed structural flaws that have undermined its effectiveness. “Once granted Pioneer Status,” he said, “companies may import goods classified as ‘pioneer products’ tax-free, effectively allowing them to operate without tax obligations—even with minimal value addition to the economy.”
He further noted that while the PSI was initially designed to encourage investment, it created loopholes and ambiguities. For example, businesses often benefit from extended tax relief even after the designated holiday period ends.
“The assets used during the Pioneer period are essentially frozen in time,” Oyedele explained. “They’re treated as if acquired after the incentive ends—meaning companies only start claiming deductions once the holiday period is over. This creates long-term tax advantages that go well beyond the policy’s original intent.”
He also pointed out that the PSI makes it difficult for the government to quantify revenue forgone and for investors to clearly assess the value of the incentive—undermining transparency on both sides.
The Economic Development Incentive
The proposed Economic Development Incentive is a departure from the one-size-fits-all model. Instead, it’s structured around priority sectors—primarily manufacturing, followed by services and infrastructure—that have strong multiplier effects on the economy.
Another key design feature is the introduction of minimum investment thresholds to ensure only scalable and impactful projects qualify. For instance, companies operating in capital-intensive sectors like utilities would need to invest at least N200 billion to be eligible for the tax credit.
“The EDI is about real impact,” Oyedele said. “It’s time-bound, sector-targeted, and tied to actual capital deployment—not just approval on paper.”
Unlike blanket tax holidays, the EDI grants companies a 5 percent annual tax credit over five years—totaling 25 percent of the value of their qualifying investment. Importantly, this is in addition to existing capital allowances, making the scheme particularly attractive to long-term investors.
Crucially, approval under the scheme does not mean the investment has already been made. It only confirms that the company has a verified plan. The incentive kicks in only after capital is actually deployed, and all investments are subject to inspection by the Industrial Inspectorate Division.
Oyedele broke down how the system works using practical examples:
If a company invests N10 billion in Year 1, it earns a N500 million tax credit each year for five years. If an additional N5 billion is invested in Year 2, that new investment begins its own five-year 5 percent cycle—N250 million annually until Year 6.
If the company continues investing progressively, each round of investment starts a new five-year cycle of tax credits, potentially extending the benefit period up to 10 years.
For instance, if a business has a N15 million tax liability in a given year and applies N25 million in tax credits, its liability is wiped out entirely, with the N10 million balance rolled over to subsequent years.
However, there’s a catch: if a company fails to follow through on its investment plan or halts capital deployment, unused credits are forfeited. This accountability mechanism ensures that only consistent and credible investments are rewarded.
PalmPay has opened a new office at 33 Old Yaba Road, Lagos, reinforcing its commitment to innovation, customer service, and operational growth in Nigeria.
The new office represents a continued investment in PalmPay’s people, operations, and infrastructure, supporting the company’s ability to deliver reliable financial services at scale. Designed to accommodate PalmPay’s growing team, the workspace enables closer cross-functional collaboration while strengthening service delivery nationwide. Located in Yaba, one of Lagos’s most established commercial and technology corridors, the office further anchors PalmPay within Nigeria’s innovation and financial ecosystem.
Speaking at the office launch, Managing Director Chika Nwosu highlighted that the new workspace reflects PalmPay’s long-term vision and dedication to excellence. “This new office represents an important step in our growth journey and our commitment to building secure, reliable, and inclusive financial solutions for our users,” he said.
The launch event was attended by PalmPay’s leadership team, employees and customers, who toured the facility and marked the company’s continued growth and progress.
With the opening of its office at 33 Old Yaba Road, PalmPay continues to strengthen its presence in Nigeria and reaffirm its mission to drive financial inclusion through innovative digital solutions.
PalmPay is a leading digital banking platform driving financial inclusion and economic empowerment in underserved emerging markets. Through its secure, user-friendly, and inclusive suite of financial services, PalmPay empowers individuals and businesses with tools to manage and grow their money.
PalmPay offers a comprehensive range of products, including mobile payments, savings, and micro-insurance via its app and mobile money agent network.
Since launching in Nigeria in 2019 under a Mobile Money Operator license, the platform has grown to over 35 million app users and processes up to 15 million transactions daily. PalmPay has operations in Nigeria, Ghana, Tanzania, and Bangladesh.
The Nigerian Aviation Handling Company Plc has announced the signing of a chain of contracts with major airlines for the provision of total handling solutions.
In a statement on Tuesday, the company announced the signing of contract renewals with Air France, KLM and Virgin Atlantic, as well as the African operator, RwandAir.
NAHCO also signed fresh contracts with United Nigeria – Regional, Bellagio and Malaikair.
According to the statement, the contracts with Air France and KLM are for three years and will run till 2028, respectively. The duration of the contract with Virgin Atlantic was also put at three years.
The duration for the RwandAir contract is for three years, effective 1 October 2025.
The statement read, “The new contract with United – Regional would be for a period of five years, effective from 1 August 2025. For Bellagio and Malaikair, the contracts are for three and five years, respectively.
“Bellagio Air, Nigeria’s rising star in aviation, is redefining air travel with a blend of luxury, efficiency, and reliability. Headquartered in the vibrant city of Ikeja, Lagos, Bellagio Air is committed to providing world-class service across key domestic and regional routes.”
The Group Executive Director, Commercial and Business Development, NAHCO Plc, Saheed Lasisi, who expressed his delight with the new contracts, said NAHCO is already ready to exceed customers’ expectations.
According to Lasisi, NAHCO’s more than 46 years of unblemished excellent service delivery puts it heads and shoulders above any other service provider in the industry.
“This is what we have been doing for almost half of a century. We will continue to delight our customers and make our stakeholders happy by exceeding expectations in all aspects of our service offerings. We are always willing and ready to do more,” Lasisi added.
The Group Managing Director/Chief Executive Officer, NAHCO Plc, Olumuyiwa Olumekun, added that with the new fleet of equipment the company is deploying, service delivery will only be better.
Nigerian Communications Commission (NCC) has unveiled a forward-looking strategy that places satellite-enabled mobile connectivity at the heart of the country’s drive to bridge its long-standing coverage gaps.
The draft Spectrum Roadmap for the Communications Sector for 2025 to 2030 lays out how satellite technologies could help deliver reliable voice and data services to millions of Nigerians who live beyond the reach of conventional mobile networks.
The direction is outlined in the Commission’s draft Spectrum Roadmap for the Communications Sector covering the period.
The proposed approach highlights non-terrestrial networks as a complement to existing mobile infrastructure, especially in areas where terrain, insecurity, or high costs limit the deployment of base stations.
The NCC said D2D satellite technology, which allows standard mobile phones to connect directly to satellites, is gaining traction globally as a means of delivering voice and data services without reliance on ground towers.
According to the regulator, the technology could help close persistent coverage gaps in rural, riverine, and border communities that remain outside the reach of conventional networks.
It also noted that satellite-backed connectivity could improve network reliability by providing alternative links during fibre cuts, power failures, or other disruptions affecting terrestrial systems.
The Commission added that wider adoption of D2D services could support emergency communications, public safety operations, Internet of Things applications, and services such as smart agriculture in underserved regions.
It also pointed to potential investment opportunities through partnerships between mobile network operators and satellite companies, including more efficient use of shared spectrum resources.
Beyond D2D services, the roadmap places emphasis on Low-Earth Orbit satellites to expand broadband access to remote parts of the country.
It also proposes better utilisation of Geostationary Orbit satellites and the exploration of high-altitude platforms, such as stratospheric balloons, to support mobile backhaul and rural connectivity.
The policy signals come shortly after Airtel Africa announced an agreement with SpaceX to introduce Starlink-powered direct-to-cell services in Nigeria.
The NCC’s roadmap is expected to shape future spectrum allocation, licensing decisions, and technology adoption across the telecommunications sector.
Fidelity Bank Completes N500Bn Capital Raise ahead of Deadline
PalmPay Deepens Its Long-Term Commitment in Nigeria with New Office @ Yaba
Kaspersky Shares AI Cybersecurity Predictions for 2026
Youth Talent Takes Center Stage as T2 Ignites High-Octane Rap Battles @ Carnival Calabar
Nigerians with Albinism Reject Pity, Demand Dignity at Empowerment Forum
Banks quietly move to enforce new ₦50 transfer levy from Jan. 1
FIRS says NIN, CAC Numbers to Serve as Tax IDs from 2026
Financial Sector Faced AI, Blockchain and Organised Crime Threats in 2025 – Report
PalmPay Launches N400 Million World Travel Carnival, Rewarding Users with Free Global Trips
Check Point Reveals Nigeria as Second Most Targeted African Country for Cyberattacks in November
News3 days agoCourt Sends Faleti, Ex-Lagos Director to Jail for Stealing ₦48.9m from Access Bank
E-Financial3 days agoRemita Powers over ₦100 Trillion in Payments as Nigeria’s Digital Economy Expands
E-Financial3 days agoWhy 2026 Must Be the Year Nigeria’s Economy Works for All
E-Financial3 days agoFlutterwave Acquires Nigeria’s Mono in $25m-$40m All-Stock Deal
E-Financial3 days ago2026: SEC to Review Rules to Incentivise SME Listings
General News3 days agoNigeria Targets Satellite-to-Mobile Services in Draft Spectrum Roadmap
Telecom3 days agoSamsung Plans to Double AI Mobile Devices to 800 million Units this Year
Telecom3 days agoMENXTT NG to pre-install Bitdefender Antivirus on all laptops from 2026