The Nigeria Export Processing Zones Authority (NEPZA) has reassured operators and enterprises within the country’s Free Trade Zones (FTZs) that the proposed 2024 Tax Reform Bills will not negatively impact their operations.
Speaking at the 3rd Nigeria Economic Zones Association meeting in Lagos, Olufemi Ogunyemi, Managing Director and Chief Executive Officer, NEPZA, dismissed concerns that the tax reform would dismantle the FTZ scheme. Instead, he emphasized that the government remains committed to enhancing the global competitiveness of Nigeria’s Special Economic Zones (SEZs).
This was disclosed in a statement signed by Martins Odeh, Head, of Corporate Communications, NEPZA.
“The scheme’s mandate to fast-track industrialization, promote non-oil trade, generate employment, and boost exports is too vital for the government to undermine,” Ogunyemi stated.
He assured stakeholders that NEPZA is actively working behind the scenes to ensure that any clauses in the tax bills that could erode the incentives for SEZ operators are amended in their favour.
Ogunyemi further urged stakeholders to participate in the upcoming public hearing on the tax reform bills to voice their concerns. “The new tax policy is not entirely detrimental, but we must engage in dialogue to refine it for the benefit of all.
“We are working behind the scenes to ensure that genuine concerns of the stakeholders with regards to clauses that tended to have placated the scheme’s incentives are expunged in the interest of all.
“It is public knowledge that His Excellency, President Bola Ahmed Tinubu GCFR remains the chief promoter of the SEZ scheme and therefore, he is committed to nurturing it to full maturity,” Ogunyemi said
Highlighting President Bola Ahmed Tinubu’s support for SEZs, Ogunyemi reiterated that the administration’s Renewed Hope Agenda places economic growth, job creation, and industrialization at its core. SEZs, he noted, play a pivotal role in realizing key presidential priorities, including food security, poverty eradication, economic growth, and inclusivity.
He also underscored the importance of enhanced collaboration between government agencies to improve SEZ operations and ensure Nigeria remains a key player in the African Continental Free Trade Agreement (AfCFTA). “With Nigeria’s strategic position in Africa’s trade routes, we must implement policies that attract Foreign Direct Investment (FDI), strengthen investor confidence, and streamline investment processes,” he said.
Ogunyemi shared insights into the SEZ sector’s progress, noting that over the past three decades, the scheme has begun to show positive growth trends. Key indicators include a 3.26% annual growth rate in domestic exports, 3.68% growth in FDI, and 4.21% in Pay-As-You-Earn (PAYE) tax contributions.
However, he stressed that further strategic reforms are necessary to sustain and accelerate this trajectory. According to him, these reforms must foster a symbiotic relationship between investors and the nation.
“Nigeria has nurtured the SEZ scheme for more than three decades, and the fruits are just starting to manifest. The SEZ average cumulative annual growth rate for exports stands at 0.79% while domestic exports are 3.26%. Additionally, FDI has grown at an average annual rate of 3.68%, while LDI shows a growth rate of 1.49%.
“Other key indicators include backward linkage at 2.80%, duty (Custom Duty and VAT) at 3.34%, and PAYE at 4.21%. It is now imperative to focus on executing strategic reforms that accelerate this growth trajectory while safeguarding its progress.
The Managing Director reiterated the government’s unwavering commitment to collaborating with all stakeholders to build a thriving SEZ ecosystem. “Together, we can position Nigeria as a leader in industrialization and trade, fostering sustainable economic growth for generations to come,’’ he said.
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