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Nigeria’s free zones have attracted over $200bn in foreign investment and more than N900bn in domestic investment, the Federal Government says.
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The zones have created over 100,000 direct jobs and more than 500,000 jobs across supply chains, logistics networks and host communities.
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The government is introducing Digital Free Zones and tightening rules on exports, domestic sales, taxation and customs.
October 02, (THEWILL) – The Federal Government has said Nigeria’s free trade zones have attracted more than $200bn in foreign investment and over N900bn in domestic investment, while generating 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 at a virtual meeting with Special Economic Zones stakeholders in September, as the government moves to modernise the regulatory framework governing the zones and strengthen their contribution to investment and non-oil exports.
Oduwole said the government was revising the Nigeria Export Processing Zones Authority regulations to make the scheme more responsive to changing business models and investment patterns, including digital operations.
“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,” she said.
The minister said the reforms were aimed at building on the investments and jobs already created while addressing weaknesses that had affected the integrity and competitiveness of the scheme.
She said the revised framework followed consultations with government agencies, lawmakers and private-sector stakeholders and would seek to preserve Nigeria’s attractiveness as an investment destination while strengthening fiscal accountability.
New rules for free zones
Oduwole identified the diversion of goods produced in free zones into the Nigerian Customs Territory while retaining fiscal incentives intended for export-oriented activities as a major concern.
She said the revised framework would reinforce the export orientation of the scheme by clarifying the 75 percent export and 25 percent domestic-sales structure and aligning domestic sales with applicable Nigerian tax laws.
The reforms would also clarify the responsibilities of agencies overseeing the zones. NEPZA and the Oil and Gas Free Zones Authority would retain responsibility for licensing and operational oversight, while the Nigeria Revenue Service would handle tax administration.
The Nigeria Customs Service, she said, would remain responsible for customs control, valuation, classification and enforcement.
The revised framework would also accommodate businesses that do not require conventional physical zones, particularly technology-driven enterprises.
“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.
She added that the framework would introduce new licence categories, including an Innovator Licence for enterprises operating in areas where regulatory frameworks were still developing. Reporting and fee structures would also be adapted to the revenue models of digital businesses.
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Operators seek investment protection
The Executive Secretary of NEPZA, Toyin Elegbede, said operators welcomed the reforms but urged the government to protect businesses that had invested under the existing regulatory regime.
“Our members recognise the need for a strong, transparent and well-regulated Special Economic Zones regime, and we welcome the opportunity to engage the government before the framework is finalised,” Elegbede said.
He said the reforms should address genuine gaps without creating uncertainty for operators whose investments were based on existing regulations.
Similarly, NEPZA Chairman Hadi Mutallab said the transition to the new framework should be clear and predictable and should not undermine existing investments.
He said the reform was necessary to ensure that incentives provided to free zones delivered the intended investment, production, jobs and exports.
Oduwole said the government would continue to support lawful incentives that served the purpose of the zones while demanding greater compliance from operators.
She said the government’s objective was to position the zones as engines of non-oil export growth and support President Bola Tinubu’s target of building a $1tn economy by 2030.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
