149 firms retain tax holidays under new law – FG

By  Damilola Aina 

The Federal Government of Nigeria has confirmed that 149 companies currently enjoying pioneer status tax incentives will keep their tax holidays for at least two more years, even as a new tax regime takes effect from January 2026. 

This transitional arrangement was announced by the Nigerian Investment Promotion Commission (NIPC) at a media briefing in Abuja, assuring existing beneficiaries that they won’t lose their incentives immediately due to the tax law change. 

Pioneer Status Incentive (PSI) provides eligible firms corporate income tax relief (usually full exemption) for an initial 3-year period, extendable by two more years. The transitional protection means these firms will continue enjoying exemptions under the old terms for now. 

From 2017 to mid-2025, 693 PSI applications were received, with 304 approved and only one cancelled, leaving 149 active beneficiaries under the programme. 

The retention of these incentives aims to maintain investor confidence and ensure a smooth shift to the new tax framework, which gradually phases out PSI in favor of a new Economic Development Incentive a tax credit-based system tied to capital investment thresholds. 

Since inception, the PSI has attracted about ₦8.7 trillion in capital investment and supported nearly 58,900 direct jobs, mostly in manufacturing and Lagos State. 

This move reassures investors hit by Nigeria’s tax overhaul that existing benefits won’t be abruptly withdrawn, promoting stability during the transition to the new tax law.