Stakeholders push for stronger SEZ regulations to boost export growth

Stakeholders have urged Free Zones Regulatory Authorities to deepen collaboration with other government agencies that regulate SEZs, including the Federal Inland Revenue Service (FIRS), National Agency for Food and Drug Administration and Control (NAFDAC), Nigeria Immigration Service (NIS), Standards Organisation of Nigeria (SON), Department of State Services (DSS), and the Nigeria Police Force (NPF) to enhance operational efficiency and streamline regulatory processes.

Also, operators of Special Economic Zones (SEZs) in Nigeria have been encouraged to capitalise on enhanced cooperation with the Nigeria Customs Service to ramp up the production of export-oriented goods, particularly for the African market.

This resolution was among the key takeaways from the 3rd Special Economic Zones (SEZs) Annual Meeting, held from February 19-20, 2025, in Lagos.

The communique issued today highlighted the progress made regarding the NCS circular on the movement of operational vehicles and the procedural code for specific capital goods within SEZs.

The stakeholders emphasised the importance of leveraging the Africa Continental Free Trade Area Agreement (AfCFTA) to increase Nigeria’s export earnings.

Despite acknowledging the significant contributions of SEZs to Nigeria’s economic growth, stakeholders expressed reservations over specific provisions in the Nigeria Tax Bill 2024.
In particular, they raised concerns about the proposed removal of sections of the NEPZA/OGFZA Acts that provide tax incentives to SEZ operators.

The communique highlighted the willingness of the Chairman of the Presidential Committee on Fiscal and Tax Reform, Mr. Taiwo Oyedele, to engage further with stakeholders on their concerns regarding the bill.

Stakeholders resolved to participate actively in the upcoming National Assembly public hearing on the Tax Reform Bill to advocate for a business-friendly regulatory framework that supports both local and foreign investments in SEZs.

The meeting acknowledged the Federal Government’s commitment to prioritising SEZs as part of its industrialisation and economic transformation agenda.

Stakeholders also noted significant progress made through the Ministry of Foreign Affairs in repositioning Nigeria’s Economic Desk in foreign missions to attract foreign direct investment (FDI) into SEZs.

Recognising the role of digitisation in SEZ efficiency, stakeholders commended the African Union for designating Nigeria as the hub of digital free zones in Africa.

They urged regulatory authorities and Free Zone Enterprises to harness this status by exporting digital services and integrating digital technologies into manufacturing processes to enhance competitiveness and productivity.

Furthermore, the meeting resolved to foster synergy in developing smart infrastructure, circular economy initiatives, and advanced manufacturing technologies in collaboration with the international business community.

The communique also underscored the need for the leadership of the NEZ Association, the Nigeria Economic Processing Zones Authority (NEPZA), and the Oil and Gas Free Zones Authority (OGFZA) to engage with the Central Bank of Nigeria (CBN) in finalising guidelines for implementing offshore banking in SEZs.