The Nigerian Investment Promotion Commission has published guidelines for the Economic Development Tax Incentive (EDTI), offering eligible companies a 5% tax credit on Qualifying Capital Expenditure for priority investments under the Nigeria Tax Act, 2025.
The Nigerian Investment Promotion Commission has published the Application Guidelines for the Economic Development Tax Incentive (EDTI).
The EDTI serves as a comprehensive guide for companies seeking to leverage tax credits for priority investments in Nigeria. Established under the Nigeria Tax Act (NTA), 2025, the EDTI provides eligible businesses with a 5% tax credit on Qualifying Capital Expenditure (QCE) to boost the viability, sustainability, and profitability of qualifying projects.
The guide is structured into several key sections designed to provide transparency and clarity on the incentive’s requirements and processes:
Foreword and objectives: This opening section highlights the Federal Government’s commitment to industrial growth, job creation, technology transfer, and economic diversification. It frames the EDTI as a strategic tool to enhance Nigeria’s global competitiveness and attract both domestic and foreign direct investments.
Overview of the incentive scheme: This section explains how the incentive works, detailing the 5% tax credit on QCE for priority sectors listed under the Tenth Schedule to the NTA, 2025. It also defines the specific responsibilities of the five government executives and agencies—the President, the Minister of Industry, Trade and Investment, NIPC, the Industrial Inspectorate Department (IID), and the Nigeria Revenue Service (NRS)—in administering, monitoring, and enforcing the scheme.
Considerations and mode of application: A major portion of the guidelines, this section outlines who can apply (including pre-incorporated promoters) and the thresholds required. It maps out the exact phases of the application process—spanning preliminary screening at NIPC, site inspections by the IID to certify the production day, and final QCE certification by the NRS. It also details the process for seeking a five-year extension, which is contingent on reinvesting 100% of priority profits back into the business.
Obligations of the beneficiary: This section details the ongoing compliance duties for approved companies. Beneficiaries must submit annual performance reports, participate in periodic impact surveys, and maintain strictly separated financial records for their priority and non-priority business lines.
Overall, these guidelines act as a critical roadmap, aligning private sector investment with Nigeria’s national development priorities while providing a structured, step-by-step path to obtaining and maintaining the tax credit.
