Economy
Nigeria Plans New Tax Incentives to Boost Agriculture, Energy Investments
By Adedapo Adesanya
The Nigerian government is planning to offer tax incentives to firms investing in key sectors such as agriculture and energy to boost projected growth.
This is part of a new scheme known as the Economic Development Incentive (EDI), which will address long-standing inefficiencies in the current Pioneer Status Incentive (PSI).
The proposed investment-driven incentive framework is designed to stimulate real economic activity by tying tax relief directly to verifiable investments and part of the country’s ongoing tax reform efforts.
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, disclosed this in a keynote address at BusinessDay’s Policy Intervention Series held on Tuesday, April 22 in Lagos.
He said a review of the PSI revealed structural flaws that have undermined its effectiveness.
“Once granted a pioneer status, companies may import goods classified as pioneer products tax-free, effectively allowing them to operate without tax obligations—even with minimal value addition to the economy,” he said.
The incentives will mainly be in the form of a multiyear tax credit that companies can use to reduce what they owe the government, Mr Oyedele further explained.
He said investments in sectors including agriculture, energy and manufacturing will enjoy the tax credit based on a prescribed minimum amount of investment for a period ranging from 10 to 20 years.
Mr Oyedele also reiterated that the country has initiated reforms to boost tax revenue as a share of gross domestic product to 18 per cent by 2027 from 13.6 per cent in 2024, adding these proposals seek to drive growth in priority sectors of the economy.
Also, investors in utility projects like power, waterways and ports will have to invest at least N200 billion to qualify for the tax credit.
He explained that if a company invests N10 billion in Year 1, it earns a N500 million tax credit each year for five years and if an additional N5 billion is invested in Year 2, that new investment begins its own five-year 5 per cent cycle—N250 million annually until Year 6 and if the company continues investing progressively, each round of investment starts a new five-year cycle of tax credits, potentially extending the benefit period up to 10 years.
The tax maven further stated that if a business has a N15 million tax liability in a given year and applies N25 million in tax credits, its liability is wiped out entirely, with the N10 million balance rolled over to subsequent years and that if a company fails to follow through on its investment plan or halts capital deployment, unused credits are forfeited and this accountability mechanism ensures that only consistent and credible investments are rewarded.
By Aduragbemi Omiyale
The sum of N1.681 trillion has been disbursed to the federal government, the 36 states and the 774 local government areas of the federation from the N2.849 trillion generated in April 2025 by the nation, higher than the N1.719 trillion earned in March 2025.
The money was given to the three tiers of government by the Federation Account Allocation Committee (FAAC) after its meeting for this month.
A statement issued after the meeting held in Abuja disclosed that last month, Petroleum Profit Tax (PPT), Oil and Gas Royalty, Electronic Money Transfer Levy (EMTL), Value Added Tax (VAT), Excise Duty, Import Duty and CET Levies increased significantly, while Companies Income Tax (CIT) decreased considerably.
It was revealed that the N1.681 trillion shared in May 2025 comprised distributable statutory revenue of N962.882 billion, distributable VAT revenue of N598.077 billion, EMTL revenue of N38.862 billion and exchange difference of N81.407 billion.
From the N1.681 trillion, the federal government got N565.307 billion, the states received N556.741 billion, the local councils were given N406.627 billion, and the oil-producing states took N152.553 billion as 13 per cent of mineral revenue.
From the N962.882 billion distributable statutory revenue, the national government was given N431.307 billion, N218.765 billion was disbursed to the states, N168.659 billion went to the local councils, and N144. 151 billion was distributed among the oil-generating states as 13 per cent of mineral revenue.
In addition, from the N598.077 billion distributable VAT revenue, FAAC gave the central government N89.712 billion, N299.039 billion to the state government, and N209.327 billion to the local governments.
Further, from the N38.862 billion generated from EMTL, the federal government got N5.829 billion, the state governments received N19.431 billion, and the local councils went away with N13.602 billion.
Also, from the N81.407 billion exchange difference, the federal government took N38.459 billion, the state governments went with N19.507 billion, the local governments received N15.039 billion, and the oil-producing states shared N8.402 billion as 13 per cent of mineral revenue.
By Dipo Olowookere
The last trading session of this week ended a positive note with a 0.22 per cent leap on Friday, influenced by continued demand for local equities.
During the session, the All-Share Index (ASI) gained 242.73 points to close at 109,710.37 points compared with the 109,467.64 points it ended in the preceding trading day, and the market capitalisation expanded by N152 billion to finish at N68.953 trillion versus Thursday’s closing value of N68.801 trillion.
Business Post reports that the consumer goods lost its momentum yesterday, going down by 0.26 per cent at the close of transactions.
However, the commodity index gained 2.08 per cent, the insurance counter appreciated by 1.10 per cent, the energy sector improved by 0.52 per cent, the industrial goods industry jumped by 0.27 per cent, and the banking sector grew by 0.10 per cent.
A total of 36 stocks ended on the gainers’ table and 21 stocks finished on the losers’ chart, implying a positive market breadth index and strong investor sentiment.
Four shares chalked up the maximum 10.00 per cent price appreciation on Friday and they were Northern Nigeria Flour Mills, Trans-Nationwide Express, Champion Breweries, and Honeywell Flour, quoting at N119.90, N2.20, N6.82, and N18.15, respectively, as Beta Glass gained 9.99 per cent to finish at N235.05.
On the flip side, International Energy Insurance depreciated by 9.57 per cent to N1.70, Multiverse slumped by 9.55 per cent to N8.05, The Initiates tumbled by 7.86 per cent to N6.80, University Press crashed by 7.37 per cent to N4.40, and Regency Alliance lost 6.78 per cent to sell for 55 Kobo.
Investors traded 431.8 million equities worth N8.6 billion in 16,400 deals during the session compared with the 716.1 million equities valued at N13.7 billion exchanged in 14,559 deals in the previous day, showing an increase in the number of deals by 12.65 per cent and a fall in the trading volume and value by 39.70 per cent and 37.23 per cent apiece.
The busiest stock was Access Holdings with 32.1 million units valued at N739.7 million, GTCO transacted 30.9 million units for N2.1 billion, AIICO Insurance traded 28.9 million units worth N46.5 million, Universal Insurance exchanged 25.0 million units valued at N13.0 million, and Chams sold 23.8 million units worth N54.2 million.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended recent gains by 0.03 per cent on Friday, May 16, supported by five companies, whose share prices closed green.
NASD Plc added N2.09 to close at N22.99 per unit compared with Thursday’s closing price of N20.90 per unit, Geo-Fluids Plc gained 23 Kobo to settle at N2.54 per share versus the preceding day’s N2.31 per share, Nipco Plc appreciated by 8 Kobo to N199.88 per unit from N199.80 per unit, Afriland Properties Plc grew by 5 Kobo to N17.50 per share from N17.45 per share, and FrieslandCampina Wamco Nigeria Plc gained 2 Kobo to finish at N41.00 per unit compared with the previous closing value of N40.98 per unit.
As as result, the NASD Unlisted Security Index (NSI) rose by 0.99 per cent to 3,154.86 points from the previous session’s 3,153.87 points, and the market capitalisation went up by N580 million to close at N1.847 trillion from N1.846 trillion quoted at the preceding session.
Business Post reports that during the session, Central Securities Clearing System (CSCS) lost 29 Kobo to trade at N25.70 per share versus N23.99 per share, and First Trust Mortgage Bank Plc shrank by 2 Kobo to 61 Kobo per unit from 63 Kobo per unit.
A look at the activity chart indicated that the number of deals carried out by investors increased by 24.1 per cent to 36 deals from 29 deals, previously recorded at the previous session, the value of transactions rose by 196.9 per cent to N15.4 million from N5.2 million, while the volume of securities bought and sold decreased by 16.6 per cent to 253,960 units from the 304,374 units recorded a day earlier.
Impresit Bakolori Plc remained the most active stock by volume (year-to-date) with 536.9 million units sold for N524.7 million, Geo-Fluids Plc posted 266.4 million units valued at N470.6 million, and Okitipupa Plc recorded 153.6 million units worth N4.9 billion.
Okitipupa Plc ended the day as the most active stock by value (year-to-date) with 153.6 million units worth N4.9 billion, FrieslandCampina Wamco Nigeria Plc traded 21.8 million units valued at N837.9 million, and Impresit Bakolori Plc exchanged 536.9 million units for N524.7 million.
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