FG plans tax-credit scheme to replace traditional tax holidays

The Federal Government is planning to introduce a tax-credit scheme as an alternative to traditional tax holidays to encourage investment and support economic development.

Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, announced the proposed scheme, known as the Economic Development Incentive (EDI), during an investor engagement on the sidelines of the 2026 International Monetary Fund (IMF) and World Bank annual meetings in Bangkok, Thailand, on Tuesday.

Oyedele said investors would be required to meet certain conditions to qualify for the scheme.

“It’s called Economic Development Incentive, where you get a tax credit,” he said.

He noted that the government could not guarantee that investments would be exempt from taxes, stressing the need for clear rules governing different asset classes and business activities.

The minister also disclosed that the Ministry of Finance was working with the National Bureau of Statistics (NBS) to improve economic data, including employment statistics and the development of a producer price index to complement the consumer price index.

According to him, making economic data more accessible and consistent would help investors assess opportunities and make informed decisions.

Meanwhile, Patience Oniha, Director-General of the Debt Management Office, said the government’s issuance calendar covered its financing requirements and new borrowing plans.

Oniha added that issuance volumes were not fundamentally different from those recorded in the third quarter, although activity had been slower in the first and second quarters.