The Federal Government has disclosed that Nigeria’s free trade zones have attracted more than $200 billion in foreign investment and over N900 billion in domestic investment, while creating more than 100,000 direct jobs and over 500,000 jobs across supply chains, logistics networks and host communities.
The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, disclosed this during a virtual meeting with Special Economic Zones stakeholders in September.
She said the government was reviewing the regulatory framework governing the zones to make them more responsive to changing business models, attract further investment and strengthen Nigeria’s non-oil export capacity.
According to Oduwole, the government is revising the Nigeria Export Processing Zones Authority (NEPZA) regulations to accommodate emerging areas of business, including digital operations.
She said the proposed framework would formally recognise Digital Free Zones and Digital Special Economic Zones, allowing technology-driven businesses to operate without the conventional requirement for a physical zone.
“Across the scheme, the authorities record over $200bn of foreign investment and over N900bn of domestic investment, more than 100,000 direct jobs, and over 500,000 when the supply chains, the logistics networks and the host communities are counted,” Oduwole said.
She described operators in the zones as valuable contributors to the Nigerian economy, adding that the government’s commitment to supporting legitimate investments remained unchanged.
The minister said the reforms were designed to build on the investments and jobs already generated by the zones while addressing weaknesses that had affected the integrity and competitiveness of the scheme.
She said the review followed consultations with government agencies, lawmakers and private-sector stakeholders and was aimed at preserving Nigeria’s attractiveness as an investment destination while improving fiscal accountability.
Oduwole identified the diversion of goods produced in free zones into the Nigerian Customs Territory while retaining export-related fiscal incentives as a major concern.
She said the revised framework would reinforce the export orientation of the scheme by clarifying the existing 75 per cent export and 25 per cent domestic-sales structure and aligning domestic sales with applicable Nigerian tax laws.
The minister said the reforms would also clarify the roles of agencies responsible for regulating the zones, taxation and customs.
She explained that NEPZA and the Oil and Gas Free Zones Authority would continue to oversee licensing and operations, while the Nigeria Revenue Service would remain responsible for tax administration.
The Nigeria Customs Service, she added, would retain responsibility for customs control, valuation, classification and enforcement.
On digital businesses, Oduwole said the revised framework would create new opportunities for enterprises whose operations did not require conventional physical zones.
“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,” she said.
She added that the framework would introduce new licence categories, including an Innovator Licence for businesses operating in areas where regulatory frameworks were still evolving.
Reporting and fee structures would also be adjusted to reflect the revenue models of digital businesses, she said.
The Executive Secretary of NEPZA, Toyin Elegbede, welcomed the proposed reforms but urged the government to protect businesses that had already invested under the existing regulatory framework.
Elegbede said operators supported a transparent and well-regulated Special Economic Zones regime but wanted the reforms to address existing gaps without creating uncertainty for businesses that had made investments based on the rules in force at the time.
He said stakeholders were seeking a competitive free zones ecosystem capable of attracting more investment, protecting legitimate businesses and increasing production and exports.
Similarly, NEPZA Chairman Hadi Mutallab said the transition to the new framework should not undermine existing investments.
He said the reform was necessary to ensure that incentives provided to operators delivered the intended investments, production, jobs and exports, while maintaining a clear and predictable transition for existing businesses.
Oduwole said the government would continue to support lawful incentives that served the objectives of the free zones while insisting on greater compliance by operators.
She said the government’s broader objective was to position the zones as engines of non-oil export growth and contribute to President Bola Tinubu’s target of building a $1 trillion Nigerian economy by 2030.
