Nigeria’s free trade zones have attracted more than $200 billion in foreign direct investment (FDI) and over N900 billion 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 Federal Government has said.
The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, disclosed this at a virtual meeting of Special Economic Zones stakeholders held in September, as the government moves to modernise the regulatory framework governing the zones and strengthen their role in driving investment and non-oil exports.
Oduwole said the government was revising the Nigeria Export Processing Zones Authority (NEPZA) regulations to make the scheme more responsive to changing business models and investment patterns, including digital operations.
She said the revised framework would recognise Digital Free Zones and Digital Special Economic Zones, support technology-enabled and non-physical operations, modernise corporate and registry provisions and strengthen dispute-resolution mechanisms.
“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.
The minister said the reforms were designed to build on the investments and jobs already created 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 strengthening fiscal accountability.
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 restore the export orientation of the scheme by clarifying the 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 responsibilities of agencies overseeing the zones, taxation and customs.
Under the proposed framework, NEPZA and the Oil and Gas Free Zones Authority would retain responsibility for licensing and operational oversight, while the Nigeria Revenue Service would remain responsible for tax administration.
The Nigeria Customs Service would continue to handle customs control, valuation, classification and enforcement.
Oduwole said the modernised 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,” she said.
She added that the framework would introduce new licence categories, including an Innovator Licence for enterprises operating in areas where regulatory frameworks are still developing.
Reporting and fee structures would also be adjusted to reflect the way digital businesses generate revenue, she said.
The Executive Secretary of NEPZA, Toyin Elegbede, said operators welcomed the reforms but urged the government to protect businesses that had already invested under the existing regulatory regime.
He said stakeholders wanted the reforms to address genuine gaps without creating new uncertainty for operators whose investments had been based on the rules in place when they invested.
Elegbede said the priority was to build a competitive free-zones ecosystem capable of attracting more investment, protecting legitimate businesses and increasing production and exports.
The Chairman of NEPZA, Hadi Mutallab, also called for a clear and predictable transition to the new framework, saying existing investments should not be undermined.
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 broader objective was to position Nigeria’s Special Economic Zones as engines of non-oil export growth and support President Bola Tinubu’s target of building a $1 trillion economy by 2030.