The Federal Government has brought an end to the long-running Pioneer Status Incentive scheme, officially stopping new applications for the tax holiday that previously allowed qualifying companies to enjoy years of exemption from Company Income Tax.
The move marks a major shift in Nigeria’s investment incentive framework. For years, the pioneer status programme granted newly established or strategic industries a three-year tax holiday, extendable to five years, as a way to stimulate growth in manufacturing, agriculture, processing, and other priority sectors. Government officials now say the structure has outlived its usefulness and no longer aligns with current economic realities.
In its place, the government is introducing a new performance-based system designed to reward genuine capital investment rather than blanket exemptions. Under the updated framework, companies will qualify for tax credits based on the scale of their investment, with stricter eligibility thresholds and clearer accountability rules.
Alongside this shift, authorities have also suspended the issuance of tax exemption certificates for companies and organisations previously relying on them, noting that the aim is to tighten control, close loopholes, and address the abuse of incentive policies.
The government says the reforms will help strengthen revenue generation, encourage more transparent investment practices, and ensure that incentives directly support economic productivity rather than becoming a channel for tax avoidance.
Shopeju Olateju
NaijaTravels News