Nigeria’s 5% investment tax credit carries conditional five-year term
Eligible firms may claim a 5% annual tax credit on qualifying capital expenditure for five years, subject to statutory eligibility and certification.
- Publish date: 2026-10-20
- Category: Standards & Policy
- Original source: BusinessDay Nigeria
- Reading time: 1 min read
The Economic Development Tax Incentive under the Nigeria Tax Act 2025 replaces the Pioneer Status Incentive. Eligible firms may receive a 5% annual tax credit on qualifying capital expenditure for five years, subject to statutory conditions.
NIPC administers applications, followed by certification stages involving the Industrial Inspectorate Department and Nigeria Revenue Service. BusinessDay says NIPC guidance estimates 16 weeks for the three stages; eligibility depends on activity and capital-expenditure thresholds, so the credit is not automatic or universal.