The Federal Inland Revenue Service (FIRS) has officially halted the issuance of tax exemption certificates to all categories of taxpayers, including pioneer status companies, NGOs, and free zone entities. In a public notice signed by Executive Chairman Zacch Adedeji, the agency declared that all previously granted certificates will remain valid only until their expiry dates and will not be renewed. All future claims for tax relief must now strictly comply with applicable laws and FIRS-approved procedures.

The decision comes as part of broader efforts to curb Nigeria’s rising tax expenditure, which exceeded N6 trillion in 2021 through waivers and incentives under programmes like the Pioneer Status Incentive scheme. Adedeji has previously criticised the lack of reliable data and coordination among government agencies, which makes it difficult to measure the true economic value of tax incentives. He warned that any misrepresentation or forgery of exemption status would attract severe legal penalties.

This policy shift also aligns with recommendations from the Presidential Tax Reform Committee, which has been reviewing tax waivers since 2023. Although 25 companies were recently granted tax relief under the existing framework, a new Economic Development Incentive (EDI) is expected to replace the current pioneer status scheme. However, delays at the National Assembly have stalled the full implementation of the new tax laws meant to improve transparency and drive investment.