Incentive Guide
Tax holidays, duty-free imports, free trade zones & more. Your complete playbook for investing in Nigeria's renewable energy sector.
Tax holiday
Import duty (RE equipment)
Foreign ownership
Green bond issuances
Why Nigeria offers the region's best incentives
Nigeria has restructured its fiscal policies to attract private capital into renewable energy. The government offers a mix of tax breaks, customs waivers, and streamlined regulations β making it the most competitive entry point in West Africa.
- β Pioneer Status Incentive β 5-year tax holiday, extendable to 7 years
- β Duty-free importation of solar panels, inverters, batteries, and wind turbines
- β VAT exemption on renewable energy equipment and services
- β Accelerated capital depreciation allowance (up to 95%)
Ranked #1 in
West Africa
for renewable energy incentives
βNigeriaβs fiscal incentives are among the most progressive on the continent β a deliberate strategy to de-risk investment and accelerate the energy transition.β
β Nigerian Investment Promotion Commission (NIPC)
Complete incentive framework
Eligible for power generation, storage, manufacturing, and infrastructure projects.
Tax holidays & reliefs
- β’ Pioneer Status: 5-year tax holiday, renewable for 7 years
- β’ Rural Investment Allowance: 100% tax deduction for rural infrastructure
- β’ Withholding tax exemption: on dividends for pioneer companies
- β’ VAT exemption: 0% on renewable energy products
Import duty waivers
- β’ 0% import duty on solar panels, inverters, batteries, wind turbines
- β’ Exemption from VAT on imported capital equipment
- β’ Fast-track customs clearance for green energy equipment
- β’ No excise duties on locally manufactured RE components
Foreign ownership & capital
- β’ 100% foreign equity permitted
- β’ Full repatriation of capital, profits, and dividends
- β’ No exchange controls for investment capital
- β’ Bilateral investment treaties with 30+ countries
Lagos Free Trade Zone
- β’ 100% foreign ownership in FTZ
- β’ Tax holiday: 10-year corporate tax exemption
- β’ Duty-free import of all raw materials
- β’ Zero VAT, zero withholding tax
- β’ 24/7 dedicated power supply
Green bonds & climate finance
- β’ Nigeria Green Bond Market β first in Africa
- β’ $500M+ issued, backed by World Bank
- β’ Eligible for Climate Investment Funds
- β’ AfDB renewable energy financing window
Regulatory enablers
- β’ Single-window clearance for RE projects
- β’ Feed-in tariffs for >1MW solar/wind
- β’ Net metering for C&I rooftop solar
- β’ Streamlined environmental permits
Lagos Free Trade Zone
West Africa's premier industrial hub, offering unmatched incentives for renewable energy manufacturing and assembly.
Corporate tax holiday
Import duties & VAT
Reliable power
seaport access
* Exclusively for export-oriented and strategic import-substitution industries.
Build, assemble, export β with maximum advantage
Lagos Free Trade Zone is a 860-hectare special economic zone with dedicated gas-fired power, deepwater port, and plug-and-play industrial plots. Investors in solar panel assembly, battery manufacturing, and inverter production enjoy 10-year tax holidays and zero import duties on machinery and raw materials.
- β ECOWAS market access β duty-free exports to 15 countries, 400M consumers
- β Single administrative window β permits issued within 2 weeks
- β On-site customs β expedited clearance
Qualify & access incentives
Simple, transparent process β NNEPIE provides end-to-end guidance.
Eligibility check
Projects in solar, wind, storage, green hydrogen, or RE manufacturing. Minimum investment $1M.
Submit application
To NIPC (Pioneer Status) or Nigeria Export Processing Zones Authority (FTZ).
Approval & onboarding
Approval within 30 days. NNEPIE investment concierge assists with setup.
Our team helps you navigate the application process, prepare documentation, and connect with zone authorities.
Get application supportNigeria Incentive Guide 2026
Detailed breakdown of all tax holidays, duty waivers, FTZ benefits, and green finance instruments. 32 pages, updated March 2026.
Still have questions?
Our investment advisors are ready to help you interpret incentives and build your business case.
