FG Dumps Tax Holidays, Unveils New Plan to Attract Investors

The Federal Government is preparing a new tax-credit scheme to attract investment and stimulate economic growth, signalling a shift away from the traditional practice of granting businesses tax holidays.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Tuesday during an investor engagement on the sidelines of the 2026 International Monetary Fund and World Bank annual meetings in Bangkok, Thailand.

The proposed Economic Development Incentive (EDI) will allow eligible investors to access tax credits after meeting conditions set by the government.

Oyedele said the initiative would operate under clearly defined eligibility rules, with businesses required to satisfy specific requirements before qualifying for the benefits.

He explained that the government could not promise blanket tax exemptions for investments, stressing that transparent guidelines were needed to clarify the incentives available across different asset classes and business activities.

According to him, establishing clear rules would help investors understand their tax obligations and assess available incentives before committing funds to projects.

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In a related development, Oyedele said the Ministry of Finance was collaborating with the National Bureau of Statistics (NBS) to improve the quality and availability of economic data.

The partnership will focus on strengthening employment statistics and developing a producer price index to complement the existing consumer price index, providing businesses with a broader picture of economic conditions.

The minister said reliable data would help investors evaluate market trends, identify opportunities and make better-informed decisions.

Meanwhile, Director-General of the Debt Management Office (DMO), Patience Oniha, said the government’s debt issuance calendar was designed to cover its financing needs and planned borrowing requirements.

Oniha noted that debt issuance volumes were broadly comparable to those recorded in the third quarter, although borrowing activity had been slower in the first and second quarters.