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.
In commemoration of Women’s Month, health-tech platform Myitura has released a new white paper addressing the critical gaps in healthcare financing for women in Nigeria.
Titled “Closing the Gap: Healthcare Financing for Women in Nigeria,” the report highlights how high out-of-pocket costs, limited insurance coverage, and socio-economic factors continue to prevent women from accessing timely healthcare.
According to the report, over 70% of healthcare expenses in Nigeria are paid out-of-pocket, disproportionately affecting women who often delay care due to financial and social constraints.
“When women can afford to take care of their health early, we don’t just save lives; we strengthen families, communities, and the economy,” said Chialuka Kelechi, MyItura’s Chief of Staff.
Key Insights from the White Paper:
- Preventable conditions often escalate due to delayed care
- Women are more likely to deprioritize their own health
- Affordable, structured healthcare financing can significantly improve outcomes
Introducing a Women’s Health Initiative
As part of its commitment, Myitura is launching affordable women-focused health packages (powered by Mediloan), starting at ₦58,180, designed to encourage preventive care and early detection.
The package provides access to:
- Fasting/Random Blood Sugar
- Urinalysis
- Electrolytes
- Urea
- Creatinine
- Pap Smear Submitted slides
- HIV I & II Rapid (Qualitative)
- Hepatitis B Surface Antigen Screening (Rapid)
- Hepatitis C Virus Screening (Rapid)
- Abdominopelvic Ultrasound
- Ongoing support via the Myitura platform
Access:
Women can access these packages by downloading the Myitura app, which makes healthcare more accessible and convenient.
Myitura is a health-tech platform focused on improving access to healthcare through financing, technology, and preventive care solutions.
General News
DBI Unveils Nigeria Digital Economy Outlook 2026: Q1 Report Highlights Strategic Trends, Risks
DigitalSENSE Business Intelligence (DBI), powered by ITREALMS Media, has launched the Nigeria Digital Economy Outlook 2026: Q1 Intelligence Report (Executive Edition), delivering vital insights for navigating Nigeria’s fast-paced digital landscape.
This executive summary spotlights trends, risks, and opportunities in telecommunications, fintech, digital infrastructure, policy shifts, and investment flows. It underscores digital transformation’s pivotal role in boosting economic growth, financial inclusion, and nationwide innovation.
DBI Publisher, Ogbuefi Remmy Nweke, emphasized its value for leaders: “This Executive Edition offers a sharp, strategic view of Nigeria’s digital economy during a pivotal moment. As the sector surges ahead, reliable intelligence is key to seizing opportunities and tackling risks.”
Key highlights include:
Broadband infrastructure expansion.
Surge in digital payments adoption.
Evolving regulations.
Investor pivot to sustainable, profitable ventures.
The report urges action on digital financial inclusion, infrastructure funding, skills training, and public sector digitization.
Freely accessible, the Executive Edition complements the premium Full Edition with in-depth analysis for executives and institutions. Stakeholders can request full access or briefings.
Media & Access Contacts:
Email: [email protected]
Website: www.itrealms.com.ng
The on-going construction works at the National Agency for Science and Engineering Infrastructure, NASENI’s Renewable Energy Industrial Park, Gora, Nasarawa State is gathering momentum as the project is envisioned to address the country’s energy needs.
NASENI’s Renewable Energy Industrial Park, Gora, Nasarawa State
The project occupying a 40-hectare park designed as a multi-energy hub will help curb capital flight and save foreign exchange expenditure by enabling local production of key renewable energy components such as solar panels, mounting racks, wind systems and biomass technologies.
Speaking during an inspection visit on the project site on Tuesday, March 31, 2026, Special Adviser to the Executive Vice Chairman on Renewable Energy, Engr. Suyud Abdullahi Muhammad, who also serves as the Gora Project Manager, disclosed that the initiative is designed to significantly reduce Nigeria’s dependence on imported renewable energy equipment.
“There will be a wind assembly plant, small hydro power equipment production, and solar panel manufacturing; Renewable energy goes beyond just solar, and this park reflects that broader vision,” he said.
Abdullahi noted that the project aligns with NASENI’s goal of reducing energy poverty in Nigeria, where over 80 million citizens remain off-grid, while many connected to the national grid continue to experience inadequate power supply.
The Special Adviser also emphasised on the project’s industrialisation potential, highlighting its role in job creation and value chain development. The park is expected to generate 2,000 direct jobs, with an additional 50,000 indirect employment opportunities across supporting industries when completed.
“This initiative will localise the renewable energy value chain. Instead of relying on imports, Nigeria will begin to produce and eventually export these technologies, starting with the West African market and scaling up to the rest of the continent,” he added.
On sustainability and long-term viability, he revealed that the project is being executed in collaboration with private sector players, academia and other stakeholders, in line with NASENI’s “3Cs” principle of Creation, Collaboration and Commercialisation.
The ongoing construction is being handled by about 35 contracting firms, each handling specific components at varying levels of execution such as Multipurpose Halls for industrial productions, Research and Development (R&D) Centre, Knowledge Park, Energy Centre, Workshops, Researchers Lodge, Studio Apartments, Clinic, Restaurant, Wellness Centre, Solar Farm, Drivers Lounge, Gate House, Internal roads and drainage system and Fencing.
The Gora Renewable Energy Industrial Energy Park is considered a key component of the Federal Government’s Renewed Hope Agenda, aimed at strengthening local manufacturing, enhancing energy security and positioning Nigeria as a renewable energy hub in Africa.
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