Published in: Government & Policy Updates

Nigeria Pioneer Status Incentive PSI Extension Green Affordable Housing 2028 NIPC

Author Mercy

Published on: February 3, 2026

The Nigerian Investment Promotion Commission (NIPC) has officially extended the eligibility window for the Pioneer Status Incentive (PSI) to qualifying green and affordable housing projects through December 2028.

This follows the transition from the legacy PSI framework to the new Economic Development Tax Incentive (EDTI) scheme (effective January 1, 2026), with transitional provisions protecting and extending benefits for priority sectors including sustainable and low-cost housing developments.

The extension aims to accelerate delivery of solar-ready, energy-efficient and affordable units to help address Nigeria’s 28 million housing deficit while aligning with national climate and economic diversification goals.

Updated PSI / Transitional EDTI Eligibility Criteria for Green & Affordable Housing (2026–2028)

To qualify for up to 5–10 years of corporate income tax holiday + VAT relief on key inputs (solar panels, inverters, sustainable materials), projects must meet NIPC/NGBC thresholds:

• Green Projects (renewable energy & sustainability focus):
  • ≥50% on-site renewable energy (solar PV mandatory, hybrid systems allowed)
  • ≥40% potable water efficiency (rainwater harvesting, low-flow fixtures)
  • ≥60% construction waste diverted from landfill
  • Use of local/low-carbon materials (≥30% by cost)
  • NGBC Level 2+ certification (or LEED Silver/EDGE Advanced equivalent)
• Affordable Housing Projects:
  • Units priced ≤₦50M (targeting middle/low-income earners)
  • Minimum 50 units per scheme
  • Compliance with FMBN Renewed Hope guidelines or state affordable housing standards
  • Inclusion of basic renewable features (solar-ready wiring, energy-efficient design)

Application Timeline & Process (2026–2028)

1. Pre-Application Engage NIPC-accredited consultant or NGBC verifier (₦5M–₦20M fee range depending on project scale).
2. Submission Window Applications accepted through December 31, 2028 for new projects starting construction in 2026–2028.
3. Documentation Required
   • Detailed project plan showing green/affordable features
   • Proof of land title (C of O / Governor’s Consent)
   • Environmental Impact Assessment (EIA) approval
   • NGBC provisional certification
   • Evidence of capital commitment
4. Approval Timeline Provisional approval: 60–120 days Final PSI/EDTI grant: 30–60 days post-construction milestone verification
5. Annual Compliance Submit energy/water performance reports and progress updates to retain incentive.

Developer Case Studies & Early Adopters (2026)

• Lekki Gardens (Lagos): Solar-hybrid retrofits on mid-range estates → secured transitional PSI extension; reported 15–20% faster sell-out and 12% rent premium.
• Ogun Affordable Scheme (Mixta / State JV): 300-unit solar-ready development → approved 5-year tax holiday; projected ₦150M–₦250M tax savings over incentive period.
• Abuja Green Mixed-Use: Level 2 certified office/residential → 7-year relief approved; tenants cite predictable bills as top leasing factor.

Projected Financial Impact

• Tax Savings (mid-scale ₦5B project): ₦750M–₦1.2B corporate income tax over 5–10 years
• VAT Relief: ₦300M–₦500M on solar & sustainable inputs
• Total Incentive Value: ₦1–1.7B (12–18% effective project cost reduction)
• Market Effect: Expected to unlock ₦500B+ additional green/affordable investment by 2028

Risks & Compliance Notes

• Non-compliance (failure to meet green/affordable targets) triggers clawback + penalties
• Certification delays possible (mitigate by early NGBC engagement)
• Incentive is project-specific — not automatic for all housing

Final Thoughts

The extension of PSI eligibility through 2028 for green and affordable housing is a powerful signal from government that sustainability and accessibility are now core priorities.

For developers, this creates one of the strongest financial levers available: tax savings + faster absorption + premium pricing.

For investors, it means more certified, high-yield opportunities in a market hungry for both eco-conscious and affordable stock.

Are you planning a green or affordable project to leverage this extension? Share your timeline or target incentives below!

Disclaimer: This information is for general purposes only and not legal advice. Consult a qualified real estate lawyer for guidance.

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