The Economic Development Tax Incentive (EDTI), established under the Nigeria Tax Act, 2025, provides eligible companies with a tax credit to encourage investment in priority sectors of the economy. It grants a tax credit on Qualifying Capital Expenditure (QCE) for priority sectors listed in the Tenth Schedule to the Act, at 5% of the QCE value as it relates to the threshold provided in the Tenth Schedule.
Through the EDTI, the Federal Government of Nigeria seeks to promote economic growth and diversification, domestic and foreign direct investment, industrial growth, employment, skills and technology transfer, import substitution, and export development and competitiveness. The incentive is designed to improve the viability, sustainability and long-term profitability of qualifying investment projects while advancing Nigeria's economic development objectives.
The Priority List is available on the websites of NIPC, FMITI and NRS. The same application process applies to new applications and to applications for additional products or services. An EDTI Certificate may be extended for one additional period of five years, and no more, on the condition that the priority company reinvests 100% of its priority profits for expansion of the same products or services.
Administering Agencies
-
Nigerian Investment Promotion Commission (NIPC)Receives and processes applications, assesses compliance with QCE thresholds, evaluates eligibility, recommends to the Minister, issues the EDTI Certificate on the approval of the President, and publishes the names of companies granted an EDTI Certificate in the Official Gazette.
-
Industrial Inspectorate Department (IID) of FMITICertifies the production day from which the EDTI takes effect, determines the Qualifying Capital Expenditure prior to production day and during the priority period, and notifies NIPC and NRS within one month of certification.
-
Nigeria Revenue Service (NRS)Certifies the amount of QCE incurred by the company prior to production day and grants the tax credit to qualifying priority companies that maintain separate records of income and books of account for priority and non-priority businesses.
Certificates Issued
- EDTI Certificate Issued by NIPC upon receipt of the President's approval.
- Production Day Certificate (PDC) Issued by IID upon determination of the production day of the products or services.
- Qualifying Capital Expenditure Certificate (QCEC) Issued by NRS after confirming that the value of the company's QCE meets the threshold required for the priority sector, as provided in the Tenth Schedule to the Nigeria Tax Act, 2025.
Obligations of Beneficiaries
- Submit an annual report to NIPC and NRS During the priority period, a performance report must be submitted to NIPC annually for monitoring and evaluation purposes.
- Maintain separate records for priority and non-priority businesses Companies must keep separate records of income and books of account for priority and non-priority business.
- Impact assessment NIPC carries out periodic EDTI impact assessment surveys, and NIPC, FMITI and NRS publish the impact assessment reports on their websites with data presented in an aggregated format.
Submitting an Application
Applications are submitted to the Nigerian Investment Promotion Commission, Plot 1181, Aguiyi Ironsi Street, Maitama District, Abuja. The email address for submission of applications is incentives@nipc.gov.ng, and the telephone number is +234 707 4908 914.
