Nigeria plans to launch a new Economic Development Incentive (EDI) scheme to promote sustainable economic growth and attract investment in key sectors.
The scheme targets key sectors like agriculture, manufacturing, and critical infrastructure such as power, ports, and waterways.
This new scheme will replace the current Pioneer Status Incentive. The Pioneer Status Incentive (PSI) has come under scrutiny for its structural weaknesses and minimal economic impact.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, unveiled the EDI, a policy that ties tax relief directly to tangible investments.
Under the EDI scheme, companies will get a 5% annual tax credit for five years (25% total) on qualifying investments, in addition to existing capital allowances. However, utility investors are required to commit a minimum of NGN 200 billion to be eligible for the incentives.
