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

    Dangote Refinery says PENGASSAN strike threatens fuel supply to 230 million Nigerians

    The Dangote Group has accused the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) of planning to sabotage the Dangote Refinery.   The post Dangote Refinery says PENGASSAN strike…

    Barcelona’s shrinking salary limit signals more trouble ahead for transfers 

    When La Liga released its updated salary limits on Friday, Barcelona’s numbers revealed the depth of their financial bind. The post Barcelona’s shrinking salary limit signals more trouble ahead for…

    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

    Dangote Refinery says PENGASSAN strike threatens fuel supply to 230 million Nigerians

    Barcelona’s shrinking salary limit signals more trouble ahead for transfers 

    Lagos state govt seals illegal reclamation sites in Lekki, arrests five suspects 

    Non-Interest Banking: 20 innovative startups compete for ₦5mn grant

    Non-Interest Banking: 20 innovative startups compete for ₦5mn grant

    AfDB pledges funding for Nigeria’s SAPZ expansion to 24 states

    Dangote Refinery: PENGASSAN declares nationwide strike over workers’ sack

    Eunisell pretax profit rises by 79% in 2025 as oil revenue surpasses N1 billion

    Nigeria Customs launches One-Stop-Shop to cut clearance time to 48 hours

    Scammers using AI to fake celebrity endorsements – SEC Warns 

    NCAA considers China’s COMAC C919 aircraft for domestic airlines 

    NDLEA nabs two drug kingpins with cocaine, heroin, meth in Lagos

    25% CGT on share sale gains if reinvested in fixed income 

    Business owners speak as Abuja International Trade Fair commences

    Business owners speak as Abuja International Trade Fair commences

    Don Jazzy says artist activation costs $100K-$300K in Mavin Records 

    Reps wade into Dangote, PENGASSAN crisis

    Reps wade into Dangote, PENGASSAN crisis

    EU launches €545 million initiative to boost clean energy in Africa

    Top 10 Markets where Lagosians shop for cheap household items 

    Petroleum Tanker Drivers attack PENGASSAN over feud with Dangote Refinery

    Petroleum Tanker Drivers attack PENGASSAN over feud with Dangote Refinery

    NRC to resume Abuja–Kaduna train service after track repairs at Asham 

    Nigeria secures re-election into ICAO Council for 2025–2028 term 

    Abuja–Kaduna train services to resume next week — NRC

    Abuja–Kaduna train services to resume next week — NRC

    CBN’s First Rate Cut Since COVID Tests Fragile Stability

    Ossiomo Power and the Politics of Edo

    Dangote Refinery resumes PMS sales in naira

    JUST IN: Dangote Refinery announces resumption of petrol sales in Naira

    JUST IN: Dangote Refinery announces resumption of petrol sales in Naira

    Capital Gains Tax will boost investors’ confidence – Taiwo Oyedele  

    Africa Food Prize: IITA celebrates Nigerian scientist’s breakthrough in cassava, yam innovation

    Africa Food Prize: IITA celebrates Nigerian scientist’s breakthrough in cassava, yam innovation

    Dangote responds as PENGASSAN threatens major disruption of refinery

    Dangote responds as PENGASSAN threatens major disruption of refinery

    PenCom expands investment options, caps corporate exposure at 25%

    PenCom expands investment options, caps corporate exposure at 25%

    Dangote Refinery rejects PENGASSAN move to halt gas supply

    Visa restriction lifted: U.S. restores Ghana visa validity to 5 years 

    Top 10 African cities with highest number of luxury hotel projects  

    Unity Bank says existing shareholder bought AMCON’s 34% stake

    Airtel, MTN push Nigeria’s mobile subscriptions to 171.3 million in August

    PENGASSAN orders halt of gas supply to Dangote Refinery

    Top Electric Vehicle Companies assembling in Nigeria and their owners