149 Firms Retain Tax Holidays Under New Law — FG!

149 Firms Retain Tax Holidays Under New Law — FG By Enock Damidami | Sele Media Africa

The Federal Government has confirmed that 149 companies currently benefiting from pioneer status incentives will retain their tax holidays for at least two more years despite the transition to a new tax regime set to take effect in January 2026. This move aims to protect investor confidence and ensure a smooth transition to the updated tax framework. [1]According to data from the Nigerian Investment Promotion Commission (NIPC), out of 693 applications received from 2017 to the second quarter of 2025, 304 pioneer status incentives were granted. Of those, 149 companies remain current beneficiaries, while 64 applications were denied and one certificate cancelled. The pioneer status incentive previously providedfull corporate income tax relief for three years, extendable by two years. [1]NIPC officials explained that existing beneficiaries will continue enjoying their tax exemptions under transitional provisions within the new tax law, which seeks to phase out the old pioneer incentive system in favour of a tax credit–based model designed to encourage long‑term investment, reinvestment, and sector growth. Data presented showed that the pioneer incentives have contributed to about N8.7 trillion in capital investment since inception and supported over 58,000 direct jobs, particularly in manufacturing and Lagos State. The new tax framework will gradually replace the pioneer status regime while maintaining benefits for firms already granted incentive status. [1]

Citations:1. punchng.com/149-firms-retain-tax-holidays-under-new-law-fg — 149 firms retain tax holidays under new law — FG [1]

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