To drive investment and foster economic growth, the Federal Government is crafting a fresh tax-credit framework designed to phase out the conventional practice of granting tax holidays to corporations.
Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, disclosed the plan during an investor engagement on the sidelines of the 2026 International Monetary Fund (IMF) and World Bank annual meetings in Bangkok, Thailand, on Tuesday.
The proposed initiative, known as the Economic Development Incentive (EDI), will allow eligible investors to access tax credits after meeting specific conditions established by the government.
Oyedele explained that the scheme would operate under defined eligibility requirements, meaning businesses would need to satisfy the stipulated criteria before benefiting from the incentives.
He added that the government could not guarantee complete tax exemptions for investments, stressing the need for clear rules governing different asset classes and business activities.
According to the minister, establishing transparent guidelines would help investors understand their tax obligations and identify the incentives available to them before committing funds to projects.
In a related development, Oyedele said the Ministry of Finance was working with the National Bureau of Statistics (NBS) to improve the quality and availability of economic data.
He explained that the collaboration would focus on strengthening employment statistics and developing a producer price index to complement the existing consumer price index.
The minister noted that access to reliable and consistent economic information would help investors assess market conditions, identify business opportunities and make informed investment decisions.
Separately, Patience Oniha, Director-General of the Debt Management Office (DMO), discussed the government’s borrowing plans and debt issuance programme.
Oniha said the DMO’s issuance calendar covered the government’s financing needs and planned borrowing requirements.
She added that debt issuance volumes were broadly comparable to those recorded in the third quarter, although borrowing activity had been slower during the first and second quarters.
What You Should Know
The Federal Government is overhauling how it rewards businesses by phasing out traditional tax holidays and replacing them with a structured tax-credit scheme called the Economic Development Incentive (EDI).
- Positive Impact: Investors will benefit from transparent guidelines and clear rules tailored to specific asset classes, making it easier to plan investments and understand obligations beforehand.
- Potential Concerns: Complete tax exemptions will no longer be guaranteed, meaning businesses must strictly meet predefined government criteria to qualify for any relief.
