NEZA Welcomes Tax Reform, Calls for Constructive Dialogue on Provisions for Free Zones

Eromosele Abiodun

The Nigeria Economic Zones Association (NEZA) has called for constructive dialogue among stakeholders on the newly enacted tax provisions affecting Special Economic Zones and Free Trade Zones.

According to the Executive Secretary, NEZA, Toyin Elegbede, certain provisions of the new laws especially as it relates to Special Economic Zones (SEZs) and Free Trade Zones (FTZs), pose significant risks to Nigeria’s investment climate.

While commending the federal government for enacting the Nigeria Tax Act, 2025 and the Nigeria Tax Administration Act, 2025, Elegbede stressed that the new tax law remains a significant step towards enhancing fiscal transparency and strengthening revenue assurance across the country.

In a statement, he explained that with the Nigeria Tax Law provisions, free zone enterprises who do not sell into Nigeria custom territory will now be subjected to taxation in an unparalleled and aggressive encroachment.

The new tax provisions for SEZ and FTZ operators have created deep uncertainty among investors, completely undermining the free zone scheme and when implemented will make Nigeria’s free zones one of the least attractive and competitive on the continent.

He dismissed the view held in some quarters that free zones deprive government of revenue, stressing that all the free zones have made substantial contributions to Nigeria’s economy and fiscal system.

“Under the supervision of the Regulatory Authorities, free zone operators pay an average of $100,000 per zone (25 fully operational zones under NEPZA and 8 under OGFZA) annually in Operating Licence (OPL) renewal fees excluding additional renewals by FZEs, and pay an additional $100,000 per zone annually in container examination charges. In 2024 alone, free zones contributed over N100 billion in customs duties and remitted over N2 billion in PAYE taxes on behalf of employees. They also meet numerous other obligations, including immigration fees, authority administrative fees, and levies,” he said.

He stated that with careful engagement and strategic interventions among stakeholders on the new tax provisions, the risks associated with investor confidence, job losses, capital flight to competing African countries, and increasing costs for Nigerian consumers will be avoided.

He emphasised that dialogue has become imperative, particularly at a time when Nigeria is expected to consolidate its leadership of African Continental Free Trade Area for competitive advantage.

He therefore urged the Presidency, the Federal Inland Revenue Service, NEPZA, OGFZA, and other key stakeholders to engage in a structured and inclusive dialogue with operators to enable them assess empirical data, design appropriate transitional measures, and implement reforms in a manner that preserves investor confidence and safeguards Nigeria’s competitiveness.

NEZA also urged the government to consider a moratorium on the implementation of the new tax provisions for FZEs which would allow for a temporary extension of existing incentives, and thereby give investors the certainty needed to protect jobs, honour financing commitments, and complete long-term project.

He noted that doing so, would give government the necessary space to conduct impact assessments and design an orderly framework that balances revenue objectives with Nigeria’s trade and economic competitiveness.

“What is needed now is stability, policy clarity, and constructive engagement underpinned by a well-considered moratorium on the implementation of the new tax provisions. This approach is essential to ensure that Nigeria’s Free Zones continue to serve as engines of growth, industrialisation, and global competitiveness,” he said.

He noted that Nigeria’s free zones have proven to be engines of trade, industrialisation, and employment and should not be weakened under the guise of tax reforms.

“In 2023, the port handled 8.61 million TEU, with its industrial zones hosting about 1,200 companies, generating 110,000 jobs and $15 billion in exports. It is now on track to exceed its nominal capacity of 9 million TEU. This is what strategic, coordinated investment combined with policy stability can deliver. Nigeria has the potential to replicate and even surpass such success, but only if the free zone framework is protected and strengthened,” he added.

While acknowledging the concern raised by the Manufacturers Association of Nigeria (MAN) over the uneven playing field for those manufacturing businesses operating within the custom territory, he stated that the purpose for establishing SEZs is primarily to attract foreign direct investment, expand exports, and generate jobs by creating competitive enclaves that drive industrialisation and connect to wider markets.

He charged the federal government to do all it can to strengthen SEZs as it remains the launchpads for AfCFTA exports. Rather than focusing on weakening free zone scheme, he advised the federal government to establish fair and transparent rules that balance the interests of manufacturers in the customs territory with the export-driven mandate of FZEs.

The post NEZA Welcomes Tax Reform, Calls for Constructive Dialogue on Provisions for Free Zones appeared first on THISDAYLIVE.

  • Related Posts

    Immigration Officials: High Cost of Passport Cannot Prevent Racketeering, Extortion

    Chinedu Eze Despite the increase in the cost of Nigerian passports, officials of the Nigeria Immigration Service (NIS) said that applicants will still pay more for passports beyond the official…

    Nigeria has been officially picked to host the 2027 edition of the Intra-African Trade Fair (IATF).

    The Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, received the IATF flag on behalf of the country as Lagos was confirmed host city for the continental fair, during…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Business & Economy

    Immigration Officials: High Cost of Passport Cannot Prevent Racketeering, Extortion

    NEZA Welcomes Tax Reform, Calls for Constructive Dialogue on Provisions for Free Zones

    Nigeria has been officially picked to host the 2027 edition of the Intra-African Trade Fair (IATF).

    As Ethiopia Aims to Boost Revenue from Tourism

    Contractor to Commence Work on Lagos International Terminal in 3 Months

    Environment Minister Inaugurates Vitapur’s Eco-friendly Innovation Hub

    NAHCO Deploys New, Advanced Equipment to Enhance Operations Nationwide

    Wema Bank: Driving Societal Impact Through Innovation, Grants, Youth Empowerment

    Four New Millionaires Emerge in Season 10 of FCMB Promo

    Experts Urge Young Professionals to Build Networks, Emotional Intelligence for Career Success

    Experts Push for Homegrown AI Solutions

    FG Urged To Adopt Bottom-Up Measures to Deliver Social Intervention Programme 

    BPE moves to privatise 91 companies, eyes IPOs for DisCos, GenCo

    RMRDC charts post-ban course for shea Industry, targets women

    RMRDC charts post-ban course for shea Industry, targets women

    Court convicts Dennis Tamarakuro for defrauding a U.S.-based NGO of over $71,000 

    FG did not order CNG pump price change, private operators responsible – PCNGI 

    President Tinubu commits N1.85 billion to education and rehabilitation of Chibok girls

    Fidson Healthcare signs MoU with Japanese firm Ohara, highlights partnership benefits 

    International Breweries up 9.82% as All-Share Index snaps losing streak, mid-caps rally 

    How Dangote Cement made revenue of N2.07 trillion in 6 months of 2025  

    PCNGI speaks on subsidy removal claim on CNG

    PCNGI speaks on subsidy removal claim on CNG

    Inflation, a major factor driving DeFi adoption in Nigeria – Polytope Labs Co-Founder 

    Wale Edun calls for sustainable health financing, strategic infrastructure investments in Nigeria’s health sector 

    Billionaire fashion designer, Giorgio Armani dies at 91 

    From Within the Room: Beyond the noise of criticism

    President Tinubu leaves for Europe on 10-day annual vacation 

    PenCom issues new guidelines for pension fund performance reporting to enhance transparency 

    Fidson signs MOU with Japanese firm at TICAD9  

    AA&R Group and Abdullahi Bashir Haske refute false allegations, demand retraction from The Africa Report 

    University of Maiduguri joins beneficiaries of OPay’s N1.2 billion ten year scholarship programme 

    Plant your trading success: leverage and margin explained by Octa Broker 

    Making a case for socially responsible investing in Forex 

    FirstBank confirms service disruption on mobile and USSD platforms, assures quick resolution 

    Sovereign Trust seeks shareholder approval to raise N20 billion capital, reveals directors’ pay 

    Nigerian crude sells $71 per barrel, OPEC+ signals output boost

    Adlantique named Nigeria’s best in digital marketing and content creativity at 2025 Beacon of ICT Awards