The Federal Government has officially stopped accepting applications for the Pioneer Status Incentive (PSI) as of November 10, 2025, signaling the end of three-year tax exemptions for new businesses under the scheme.

The Nigerian Investment Promotion Commission (NIPC) explained that the move is part of preparations for the full implementation of the Economic Development Tax Incentive (EDTI), which will take effect on January 1, 2026. NIPC advised existing beneficiaries and prospective applicants to consult the Commission to ensure a smooth transition and compliance with the new framework.

Established under the Industrial Development (Income Tax Relief) Act, the PSI provided companies in key sectors such as manufacturing, agriculture, infrastructure, and technology with 100% tax exemption for three years, renewable up to five years. It aimed to promote investment, industrial growth, and economic diversification.

The new EDTI scheme shifts focus to priority sectors and introduces minimum investment thresholds to ensure only scalable projects qualify. Companies in capital-intensive sectors, such as utilities, must invest at least N200 billion to benefit. EDTI offers a 5% annual tax credit over five years, totaling 25% of qualifying investment, on top of existing capital allowances, making it particularly attractive to long-term investors.

The transition reflects the government’s effort to modernize Nigeria’s investment incentives, ensuring they are time-bound, sector-targeted, and tied to real capital deployment to maximize economic impact.