Nigeria is planning to replace traditional tax holidays with a conditional tax-credit scheme, shifting its approach to investment incentives towards benefits tied to economic development.

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

Under the proposed arrangement, investors would receive tax credits if they met specified conditions, rather than automatically benefiting from tax exemptions.

“It’s called Economic Development Incentive, where you get a tax credit,” Oyedele said.
He said the government could not guarantee that investments would be exempt from taxes, highlighting the need for clear rules covering different asset classes and business activities.

The proposal signals a shift from broad tax exemptions towards a system in which investment incentives would depend on meeting government-defined requirements.

However, the minister did not disclose the eligibility criteria, the value of the proposed credits or when the scheme would take effect.
Oyedele also said the finance ministry was working with the National Bureau of Statistics to improve the availability and consistency of economic data, including employment statistics and a producer price index to complement the consumer price index.

He said better data would help investors assess business opportunities and make more informed decisions.

Meanwhile, Patience Oniha, director-general of the Debt Management Office, said the government’s issuance calendar covered financing requirements and new borrowing.

She said issuance volumes were not fundamentally different from those in the third quarter, although borrowing activity had been slower in the first and second quarters.

The proposed tax-credit scheme comes as the government seeks to clarify the conditions under which businesses can receive investment incentives while improving the information available to investors.

Further details of the EDI, including its implementation framework and the sectors expected to qualify, were not provided at the engagement.