By: Aba O. Aba in Abuja.
The Federal Government has moved the reform of Nigeria’s Special Economic Zones (SEZs) from consultation to drafting stage, assuring investors that legitimate incentives under the Free Zones regime will be retained.
Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, gave the assurance as a dedicated drafting retreat by the Special Economic Zones Legislative and Regulatory Reform Committee commenced.
The committee comprises the Federal Ministry of Industry, Trade and Investment (FMITI), Nigeria Export Processing Zones Authority (NEPZA), Oil and Gas Free Zones Authority (OGFZA) and the Federal Ministry of Justice.
The retreat opened with engagements involving key stakeholders including the Nigeria Economic Zones Association (NEZA), National Single Window, Nigeria Customs Service and Nigeria Revenue Service (NRS), whose presentations framed issues for drafting.
Crucially, Customs and the NRS are participating directly in the drafting, to ensure customs and tax provisions are developed by the institutions that will administer them.
The reform incorporates concerns raised during the September 17 stakeholder engagement by operators, enterprises and industry associations.
It comes amid renewed scrutiny of the Free Zones scheme following recent enforcement by Customs over alleged diversion of goods admitted under Free Zone concessions into the domestic market.
Addressing the concern, Dr. Oduwole said: “A Free Zone cannot become an alternative route into the Nigerian domestic market on terms unavailable to manufacturers operating in the Customs Territory. But this is not an argument against Free Zones. It is an argument for protecting them.”
She reaffirmed incentives such as duty-free importation of capital goods, tax exemption on qualifying export profits, 100 per cent foreign ownership and unrestricted repatriation of capital and profits, subject to applicable laws.
NEPZA Chairman, Hadi Mutallab, said the reform is necessary to ensure incentives translate into investment, production, jobs and exports, while protecting legitimate operators.
NEZA Executive Secretary, Toyin Elegbede, welcomed the consultative approach and called for a competitive, transparent regime that does not create uncertainty for existing investors.
Key issues under consideration include treatment of existing investments and transition arrangements, the proposed 75/25 export-to-domestic sales framework, customs coordination and joint inspections, foreign exchange and tax reporting, and avoidance of multiple regulatory interfaces.
The draft also proposes recognition of Digital Free Zones and Digital Free Zone Enterprises, including Innovator and Sandbox licence categories, in line with President Bola Tinubu’s directive to launch Digital Free Zones within 180 days.
Dr. Oduwole said the expansion reflects global trade shifts: “Nigeria’s future exports will not only leave our ports in containers. Nigerian companies increasingly export technology, financial and professional services, creative products and intellectual property.”
The reform is anchored on the Renewed Hope Agenda to expand productive capacity, deepen non-oil exports and create jobs. The Ministry acknowledged the support of the House Committee on Commerce chaired by Hon. Ahmed Munir.
