The Federal Government has said Nigeria’s free trade zones have attracted more than $200 billion in foreign investment and over 900 billion naira in domestic investment, as it prepares to overhaul regulations governing the zones.
Minister of Industry, Trade and Investment Jumoke Oduwole disclosed this at a virtual meeting with Special Economic Zones stakeholders in Abuja.
She said the investments have generated more than 100,000 direct jobs and over 500,000 additional jobs across supply chains, logistics networks and host communities.
The planned reforms are intended to modernize the regulatory framework, strengthen oversight and increase the zones’ contribution to non-oil exports, according to the Minister.
The revised regulations for the Nigeria Export Processing Zones Authority (NEPZA), would recognize Digital Free Zones and Digital Special Economic Zones, allowing technology-driven businesses to operate without a conventional physical site.
“The Revised NEPZA Regulations and Operational Guidelines create, for the first time in Nigeria, Digital Free Zones and Digital Special Economic Zones—zones that operate on a platform rather than a perimeter, with no requirement of physical presence,” Oduwole said.
The framework would also modernize corporate and registry rules, strengthen dispute-resolution procedures and introduce new licensing categories, she added.
An Innovator Licence would be available to companies operating in areas where regulation is still developing, she said.
Reporting and fee structures would be adjusted to reflect how digital businesses generate revenue, Oduwole added.
The Minister said government is seeking to address the diversion of goods from free zones into Nigeria’s customs territory while companies continue to benefit from incentives designed for export-oriented businesses.
The revised framework would reaffirm the requirement that companies export 75% of their output while selling no more than 25% domestically.
Domestic sales would be aligned with applicable Nigerian tax laws, the Minister also said.
The reforms would also clarify the responsibilities of agencies overseeing the zones.
NEPZA and the Oil and Gas Free Zones Authority would remain responsible for licensing and operational supervision, while the Nigeria Revenue Service would oversee tax administration, Oduwole added.
The Nigeria Customs Service would retain responsibility for customs control, valuation, classification and enforcement, Oduwole said, adding that the reforms followed consultations with government agencies, lawmakers and private-sector representatives.
The aim, she said, was to preserve Nigeria’s appeal to investors while improving fiscal accountability and the integrity of the free-zone system.
Free-zone operators welcomed the proposed changes but urged the government to protect companies that had invested under the existing rules.
Responding, NEPZA Executive Secretary Toyin Elegbede said “Our priority is to ensure that the reforms address genuine gaps without creating new uncertainty for operators who have invested and modelled their investment on the strength of the existing regime at the time of investment”.
Operators are seeking a regulatory regime that attracts new capital, protects legitimate businesses and increases production and exports, he said.
NEPZA Chairman Hadi Mutallab also warned that the transition to the new framework should not undermine existing investments.
“The transition to the new framework (must be) clear, predictable and does not undermine existing investments,” Mutallab said.
Oduwole said the government would continue to support lawful incentives that serve the purpose of the zones while requiring operators to comply with applicable rules.
The government, she said, wants the zones to become engines of non-oil export growth and contribute to President Bola Tinubu’s goal of building a $1 trillion economy by 2030.
