Free Trade Zones stakeholders have expressed concern over certain provisions of the Nigeria Tax Bill, 2024, seeking to expunge some sections of the acts establishing both the Nigeria Export Processing Zones Authority (NEPZA) and the Oil and Gas Free Zones Authority (OGFZA), which provide tax incentives for the Special Economic Zones (SEZs) scheme.
The stakeholders urged the federal government to pass only tax laws that promote a sustained inflow of both local and foreign investment into the SEZs ecosystem.
Their concern was expressed in a communiqué issued at the end of a two-day 3rd Special Economic Zones Annual Meeting organized by the Nigeria Economic Zones Association (NEZA) in Lagos.
The communiqué was signed by Mr. Toyin Elegbede, Executive Secretary of the association, and made available to newsmen on Sunday in Abuja.
NEZA noted the willingness of the Chairman of the Presidential Committee on Fiscal and Tax Reform, Mr. Taiwo Oyedele, to engage stakeholders on their concerns regarding some provisions in the Nigeria Tax Bill, 2024, affecting the SEZ scheme as a mark of responsibility to reposition the scheme for greater productivity.
The stakeholders acknowledged the substantial progress already made through the Ministry of Foreign Affairs to reposition the Economic Desk in the country’s Foreign Missions to deliver on Nigeria’s economic priorities and promote foreign direct investment into the SEZs.
They urged SEZ operators to leverage the much-improved collaboration with the Nigeria Customs Service (NCS) to massively produce export-oriented goods meant for the African market and take advantage of the African Continental Free Trade Area Agreement (AfCFTA) to boost Nigeria’s export earnings.
They also acknowledged with delight the progress regarding the circular by the Nigeria Customs Service on the movement of operational vehicles and procedure code for some capital goods in the SEZs.
The communiqué urged the leadership of the association, NEPZA, and OGFZA to further engage with the Central Bank of Nigeria (CBN) to finalize the guidelines for the implementation of Offshore Banking in Special Economic Zones.
It further urged the Free Zones Regulatory Authorities to improve the existing collaborations with other government agencies that exercise regulatory functions within the SEZs.
The operators resolved to promote cohesive synergy in enhancing the development of smart infrastructure, circular economy initiatives, and advanced manufacturing technologies in collaboration with the international business community.
They noted the critical role digitization could play in the efficiency of SEZ operations, urging stakeholders to take advantage of the recent African Union designation of Nigeria as the hub of digital free zones in Africa.
“Stakeholders should utilize this position and work towards the export of digital services and the integration of digital technologies into manufacturing processes and industrial operations for the purpose of increasing competitiveness and productivity,” the communiqué said.
