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General News

FG to Introduce New Tax Credit Scheme to Replace Pioneer Status Incentive

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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.


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General News

Tripoint Travels Hosts Pre-GEC Brunch for Nigerian Delegates Ahead of Global Entrepreneurship Congress 2025

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In a vibrant celebration of national pride, global relevance, and entrepreneurial drive, Tripoint Travels, the official logistics partner of GEN Nigeria hosted an exclusive pre-congress brunch for Nigerian delegates attending the upcoming Global Entrepreneurship Congress (GEC) 2025.

Held at Tripoint’s Lagos headquarters, the event brought together top entrepreneurs, investors, ecosystem leaders, and government officials, including Dr. Peter Bamkole, Deputy Vice Chancellor, Pan Atlantic University; Dr. Olawale Anifowose, Managing Director of the Global Entrepreneurship Congress Nigeria (GEN Nigeria); Dr. Babangida Ruma from The Katsina State Enterprise Development Agency (KASEDA), Mrs. Uche Uzoebo, CEO of the Shared Agent Network Expansion Facilities (SANEF) Limited; Actor and influencer Mr. Umar Gombe; along with other distinguished guests and representatives from various government bodies, all in anticipation of their journey to Indianapolis, Indiana this June.

The Global Entrepreneurship Congress (GEC), Organized annually by the Global Entrepreneurship Network (GEN), the GEC brings together more than 5,000 participants from over 200 countries, including Entrepreneurs, Investors, Policymakers, Researchers, & Support organizations to build stronger entrepreneurial ecosystems worldwide. Since its inception in 2009, the GEC has become a cornerstone of international collaboration and entrepreneurial innovation.

This year’s GEC, hosted in partnership with the Indiana Economic Development Corporation (IEDC), marks the Congress’ return to the United States after 16 years. Held in Indianapolis from June 2–5, 2025, the event aims to spotlight Indiana’s pro-growth business climate while strengthening global ties that promote sustainable economic development and innovation.

The brunch allowed the delegation to connect in an intimate and engaging setting, sharing expectations, ideas, and goals ahead of one of the most impactful convening in the global entrepreneurship calendar. Designed to build camaraderie, align visions, and foster a sense of shared identity, the event emphasized the importance of collaboration as Nigerian representatives prepare to take the global stage.

“The Global Entrepreneurship Congress is not just a conference, it’s a platform that is deliberate about  global innovation meeting local action, said Mrs. Shuhda Muhammed, Founder of Tripoint Travels. We wanted to set the tone for our delegates, to ensure that they feel connected to this year’s theme – The Bold Change the World, as well as foster the necessary collaborations to make that happen at the local and global stage.. As a company rooted in both logistics and empowerment, we are proud to play a role in making their journey seamless and meaningful.”

Speaking at the event, Dr. Olawale Anifowose, Managing Director of the Global Entrepreneurship Network Nigeria (GEN Nigeria), emphasized the significance of the Global Entrepreneurship Congress (GEC) as both a meeting point and a growth platform, where Nigerian entrepreneurs engage with global ecosystems to connect, learn, and thrive. He noted that Nigeria’s presence at the GEC is not just symbolic but essential, reflecting the country’s growing influence in the global entrepreneurial landscape. Dr. Anifowose also commended Tripoint Travels for their pivotal role as a trusted partner in mobilizing Nigeria’s brightest talent and making the journey to GEC 2025 a reality.

GEN Nigeria has emerged as a critical force in supporting entrepreneurship at the grassroots and policy level, and with a Partner as Tripoint Travels, its expansive network and initiatives, continues to actively shape the country’s innovation landscape, championing inclusive growth, and equipping thousands of Entrepreneurs with the tools, exposure, and networks needed to succeed in both local and international markets.

With delegates selected for their contributions to Ecosystem building and Entrepreneurship, Nigeria’s representation at The GEC 2025 would reflect the country’s diversity, resilience, entrepreneurship spirit and creative potential. The presence of Founders and Innovators like Mr Rotimi Awofisibe – MD, VFD bank, one of the officially invited participants, is testament to Nigeria’s growing influence in the Global Entrepreneurship arena.

“We’re proud to be a longstanding partner of GEN Nigeria, supporting the Entrepreneurs shaping Nigeria’s future. Attending the Global Entrepreneurship Congress (GEC) is about learning, contributing, and returning with a renewed, broader vision. It’s through committed partnerships like ours that such visions become reality,” said Mrs. Muhammed.

More than just a travel management company, Tripoint Travels is a trusted enabler of dreams, mobility, and opportunity. As GEN Nigeria’s official travel partner for GEC 2025, Tripoint is overseeing every aspect of the delegation’s journey, from visa coordination and flight logistics to accommodation and ground transportation, ensuring a seamless and empowering experience.

Tripoint Travels also extends its commitment to ecosystem development through Tripoint Academy, its nonprofit arm that supports early-stage entrepreneurs with training, mentoring, and access to local and global opportunities. Tripoint’s partnership with GEN Nigeria reflects its broader mission: to use travel as a tool for empowerment, education, and national development.

“Every single ticket we issue is a bridge, a bridge between where someone is now, and where they’re meant to be,” added Mrs. Muhammed. “We don’t just book travel. We open up the world for Nigerian entrepreneurs.”

The highlight of the Pre-Congress brunch was the piece of art done by all the delegates present at the event. The interactive art was introduced as an inclusive way to showcase the multiculturalism and pivotal position of the Nigerian business mind, and so the essence of the Nigerian delegation materialised through the painting. The art work will be exhibited and gifted at a special event during the Congress.


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FG to Provide High-fibre Internet in 12 Universities by Year End

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Dr. Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, on Wednesday said that no fewer than twelve federal universities will benefit from high-fibre digital infrastructure before the end of the year.

In addition, some Nigerian universities are set to begin enjoying 24-hour electricity supply to enhance teaching, research, and learning on campuses, according to the Minister of Education, Dr. Maruf Alausa.

Dr. Tijani disclosed this at the commissioning of a High-Fibre Digital Facility at the University of Abuja’s old Boys Hostel. He said the initiative aims to equip students with digital skills and access needed to explore emerging opportunities in the global tech ecosystem before graduation.

Citing examples of young Nigerians who have successfully built billion-dollar online payment firms, Dr. Tijani urged students to leverage the digital infrastructure being provided by the current administration to develop themselves and build a future in tech.

The project is a collaboration between the federal government, Galaxy Backbone Nigeria Ltd, Huawei Technologies Nigeria, and other tech firms. It will deliver free Wi-Fi services across campuses, serving as a digital equalizer for students.

Present at the inauguration were the Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa; the National Commissioner for the Nigeria Data Protection Commission, Dr. Vincent Olatunji; the Managing Director of NigComSat, Mrs. Jane Egerton-Idehen; and the Postmaster General of the Federation, Mrs. Tola Odeyemi.

Also the Vice chancellor of the University of Abuja, Prof Patricia Lar and the institution’s Registrar and the Managing Director of Huawei Technologies Nigeria, Mr Teorens Wu attended the event.

Dr Tijani further said digital inclusion was necessary especially for the students to navigate contemporary challenges and become successful in the digital space without waiting for white collar jobs on graduation.

He said the University was the first of the seven universities for the first phase of the pilot scheme. And that by the end of June, they would have connected the seven universities for the first phase.

“This initiative we are launching here today is the first of the seven in a pilot scheme, and by the end of July, we will have connected the seven universities”, he said.

“Galaxy Backbone has the infrastructure in place already; all we are doing is to take the fibre to hostels,” the Minister added.

“Your challenge today is what you do with the knowledge that you’re being given. And this is why to actualise the dream of our president, we’ve taught it to be important that Nigerian university students cannot continue to learn without access to meaningful connectivity.

“It is unacceptable because we know when we give you this access that not only are you going to be better in what you’re learning, but you’re actually going to create the future that our president is asking that we create as a nation”, Dr Tijani said.

Dr. Alausa, on his part, noted that the University was a special institution selected by the government to enjoy a 24-hour power supply. And that other special institutions will enjoy 24hrs power before the end of 2026.

“The president is energising institutions. We have special institutions in the country today enjoying 24-hour electricity via the presidential renewable mini-grid project, the solarisation project.

“The University of Abuja is one of the beneficiaries. You have a 3.3 megahertz mini-grid here and everybody can attest to it now that you have a 24-hour electricity supply.

“The president is not stopping there. Before the end of next year, all the special institutions will have a mini-grid. You will all enjoy a 24-hour electricity supply, “Dr Alausa said.

The Acting Vice Chancellor, University of Abuja, Prof. Patricia Lar in her welcome address described the project as a laudable one that would benefit the school community.

“It’s a special initiative that’s going to create opportunities for students of all economic status to access data to be able to use for knowledge and education, and to feed their creativity with ease.

“We are grateful for deploying fibre to our hostels. This also works with the solar power backup that has been installed in our campus,” she said.


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Nigeria Approves $500m for AfDB’s Trust Fund Replenishment over Next 15 Years

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Nigeria has approved a fresh $500 million replenishment of the Nigeria Trust Fund (NTF) at the African Development Bank (AfDB), extending the facility for another 15 years.

President of the AfDB, Dr. Akinwumi Adesina, announced this during his opening remarks at the ongoing AfDB Annual Meetings in Abidjan as he expressed deep appreciation to President Bola Ahmed Tinubu and Vice President Kashim Shettima for their continued support.

“To President Bola Ahmed Tinubu and to Vice President Kashim Shettima, for your support over the past two years, I am profoundly grateful. Thank you for graciously approving the replenishment of the Nigeria Trust Fund for another 15 years for $500 million.”

The Nigeria Trust Fund (NTF) was set up in 1976 through an agreement between the Nigerian government and the African Development Bank Group. It’s a revolving fund that sustains itself over time and is designed to support the development of low-income African countries in need of concessional financing.

The fund can be used in a number of ways—either to co-finance projects alongside the African Development Bank and the African Development Fund (ADF) or to finance projects independently. It supports both public and private sector initiatives and can also be used to top up funding for ongoing Bank Group-backed projects.

Unlike the ADF, which allocates funds to countries, NTF resources are tied to specific projects. This allows for more flexible, needs-based support where it’s most effective.


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