Nigeria’s investment tax incentives have attracted N8.7 trillion in capital investments and created over 58,000 jobs within eight years, the Nigerian Investment Promotion Commission (NIPC) has disclosed.
The figures, covering the period from 2017 to the second quarter of 2025, were presented at the NIPC Media Parley/Meet and Greet with the Press in Abuja on Thursday, during a presentation on the impact of the Pioneer Status Incentive (PSI) and the Economic Development Incentive (EDI).
According to data released by the Commission, a total of 304 Pioneer Status Incentive (PSI) applications were granted out of 693 applications received during the period. The approved projects generated N8.7 trillion in capital investments and led to the creation of 58,897 direct jobs across key sectors of the economy.
Currently, 149 companies are active beneficiaries of the PSI program.
Manufacturing emerged as the leading sector benefiting from the incentive, while Lagos State recorded the highest concentration of PSI-backed investments nationwide.
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The Pioneer Status Incentive, administered by NIPC, grants qualifying companies operating in priority sectors a corporate income tax holiday for an initial period of three years, extendable by an additional two years. The incentive is designed to attract new investments, deepen industrial capacity, and stimulate economic growth.
Speaking during the presentation, Uchenna Okonkwo of the Incentives Administration Department explained that empirical analysis by the Commission shows a positive correlation between tax incentives, capital investment inflows, both foreign direct investment (FDI) and domestic direct investment (DDI) and industrial output.
He noted that while the PSI provides full tax relief during the incentive period, the Economic Development Incentive represents a shift toward a tax credit–based framework under the Nigeria Tax Act (NTA) 2025.
Under the EDI, qualifying companies receive a 5 per cent tax credit on eligible capital expenditure, which is used to offset their corporate income tax liabilities over an initial five-year period, with an option for a further five-year extension subject to reinvestment conditions.
“The EDI addresses some of the gaps under the Pioneer Status Incentive, including clearer sunset provisions and sector-specific investment thresholds
“Under the Economic Development Tax Incentive (EDI), beneficiaries are granted a tax credit linked to sector-specific investment thresholds. These thresholds are outlined in the Tenth Schedule of the Nigeria Tax Act (NTA) 2025.
“Each sector has a defined minimum investment threshold, and once a company meets this threshold, it is entitled to a tax credit equivalent to five per cent of the qualifying amount. Unlike the Pioneer Status Incentive, the EDI does not provide full tax relief.
“Companies operating under the EDI are required to pay corporate income tax; however, their tax liability is offset using the tax credits earned based on qualifying capital expenditure that meets the prescribed threshold,” Okonkwo said.
He added that companies with high tax obligations could effectively enjoy incentive benefits for up to 15 years through unutilised tax credits.
This means that the company is not tax-free for 15 years. Instead, it is gradually using previously earned tax credits to reduce its tax bills over a longer period.
In her remarks, Aisha Rimi, Executive Secretary/Chief Executive Officer of NIPC, represented by Abubakar Yerima, the Director of Strategic Services, said the Commission recorded measurable progress in investor facilitation, policy reforms, and subnational investment development in 2025.
She highlighted the continued administration of the PSI, expansion of the National Investment Certification Programme for States, and improvements to the One-Stop Investment Centre (OSIC), where 100 per cent of business registrations were processed within 48 hours in the first quarter of 2025.
Rimi said the Commission’s focus going forward includes the full implementation of the Economic Development Incentive framework, enhanced investor aftercare services, and deeper global and domestic partnerships.
Looking ahead to 2026 and beyond, she said the NIPC is committed to scaling investment facilitation across priority sectors, implementing the Economic Development Incentive (EDI) framework, and strengthening the National Investment Certification Programme for States (NICPS) to enhance subnational competitiveness.
The Executive Secretary also plans to enhance investor aftercare and business support services, advance digital transformation for a seamless end-to-end investor experience, deepen both global and domestic partnerships, ensure data-driven transparency in investment reporting, and position Nigeria more boldly and strategically in global markets.
According to her, the commission’s overarching goal is to translate investment interest into real, job-creating, revenue-generating projects that support the country’s national economic objectives.
“Advancing digital transformation for end-to-end investor experience, Deepening global and domestic partnerships, Ensuring data-driven transparency in investment reporting.
“Positioning Nigeria more boldly and strategically in global markets, Our goal is clear: to translate investment interest into real, job-creating, revenue-generating projects that support national economic objectives,” Rimi stated.
