FG Plans Economic Development Incentives as Alternative to Tax Holidays

The federal government is planning to introduce a new tax-credit scheme as an alternative to traditional tax holidays.

Taiwo Oyedele, minister of finance and coordinating minister of the economy, announced during a presentation at an investor engagement on the sidelines of the 2026 International Monetary Fund (IMF) and World Bank annual meetings in Bangkok, Thailand on Tuesday.

Oyedele said the proposed tax-credit scheme, called the Economic Development Incentive (EDI), comes with conditions that investors must meet to qualify for the scheme.

“It’s called Economic Development Incentive, where you get a tax credit,” he said.

He also said the government could not guarantee that investments would be exempt from taxes, but stressed the need for clarity on the rules governing different asset classes and business activities.

Oyedele further said the ministry of finance was working with the National Bureau of Statistics  (NBS) to improve economic information, including employment statistics and the development of a producer price index to complement the consumer price index.

According to him, more accessible and consistent data would help investors assess opportunities and make informed decisions.

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

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