The Lead Story
Good-bye, Tax Holiday. Hello, EDTI.
Yesterday marked the end of the 21-year-old Pioneer Status Incentive (PSI), the three-year tax break that helped woo manufacturers, agribusinesses and tech firms into Nigeria. In a notice released late Monday, the Nigerian Investment Promotion Commission (NIPC) said it will no longer accept PSI applications after 10 November 2025, teeing up a clean switch to the Economic Development Tax Incentive (EDTI) on 1 January 2026, Daily Trust reports.
The Big Picture: Officials say the move streamlines incentives and plugs revenue leakages. For more detailed background on recent reforms, see Nigerian Tax Laws 2025 - Comprehensive Tax Reform Legislation. Companies still on the PSI have been "advised to consult with the Commission" to ensure a smooth hand-off to the new regime.
The Details:
* Established under the 2004 Industrial Development Act, the PSI offered up to five years of zero corporate income tax.
* Under EDTI, incentives will be tied to job creation, export earnings and technology transfer.
* NIPC urged would-be applicants to "act promptly" before the January switch, hinting that qualifying thresholds could tighten (Nigeria Tax Act, 2025).
Why It Matters / What They're Saying: Tax pros have long complained that the PSI’s blanket reliefs favoured rent-seekers. "The EDTI is built to reward real performance, not paperwork" (Introduction To Nigerian Tax Laws), one consultant summed up during a Lagos briefing streamed by CNBC Africa.
Around the Tax World
- Women-Owned SMEs Get Relief: New reforms will exempt small firms with turnover under ₦100 million from CIT, VAT, WHT and PAYE, according to committee chair Taiwo Oyedele at the WIMBIZ conference (TechEconomy).
- Hotel Shutdown Spree in Enugu: The state’s revenue service has sealed about 100 hotels over unpaid purchase tax and levies, a move owners call double taxation (The Nigerian Voice).
- 15 % Duty on Petrol Imports Sparks Pushback: TUC President Festus Osifo warns the new levy could jack up pump prices unless refiners come online fast (The Guardian).
- CSOs Eat Their Words: Nine civil-society groups have publicly apologised to FIRS chair Dr Zacch Adedeji after admitting corruption claims were "based on unverified information" (Tribune Online).
By the Numbers
Prime Number: ₦100 million, the turnover threshold below which small companies will pay zero corporate tax from 2026 under the women-focused reform package (TechEconomy).
Looking Ahead
All eyes now shift to 1 January 2026, when the EDTI kicks in and the first batch of SME tax waivers take effect. Expect a flurry of last-minute PSI filings, and plenty of guidance notes, before the ball drops.