Nigeria introduces new tax incentives for entertainment and priority sectors

The Nigeria Tax Act, 2025, which took effect on January 1, 2026, has introduced the Economic Development Tax Incentive (EDTI) to encourage investment in specific priority areas. This new framework replaces the former Pioneer Status Incentive, which previously offered time-based corporate income tax holidays.

The EDTI provides eligible companies with a 5 percent annual tax credit on qualifying capital expenditure for a period of five years. Priority sectors identified under the new law include music production, as well as motion picture, video, and television production.

To access these benefits, businesses must meet sector-specific investment thresholds and undergo a three-stage certification process estimated to take approximately 16 weeks. The incentive is designed to target companies investing in qualifying assets, such as production facilities and digital content operations, rather than individual creators.