Stakeholders in Nigeria’s Special Economic Zones (SEZs) have called for sustained tax incentives, stronger regulatory collaboration, and enhanced export-oriented production at the 3rd SEZ Annual Meeting held at Harbor Point Centre, Lagos.
The high-level meeting, which brought together government agencies, investors, industry experts, and SEZ operators, focused on addressing challenges in the sector while leveraging opportunities for economic growth.
A major concern raised at the meeting was the Nigeria Tax Bill 2024, with stakeholders urging the federal government to reconsider provisions that could remove tax incentives for SEZ operators.
In an official communiqué issued at the end of the meeting, stakeholders commended the federal government for prioritising SEZs as a tool for rapid industrialisation and economic transformation through the Federal Ministry of Industry, Trade and Investment.
Participants expressed their willingness to engage in upcoming public hearings at the National Assembly this week to ensure that the final tax reform law fosters both local and foreign investment in SEZs.
They also welcomed the commitment of the Chairman of the Presidential Committee on Fiscal and Tax Reform, Taiwo Oyedele, to further discussions on the matter.
“We are grateful for Oyedele’s openness to engage with us and understand our concerns,” a representative from the NEZ Association said.
Read Also: Special Economic Zones attract over $66b FDI, N620b domestic investment in 2023
“This level of dialogue is key to ensuring that the tax reforms are beneficial for everyone in the SEZ ecosystem.”
Minister of Trade and Investment, Jumoke Oduwole, OON, Jumoke Oduwole stressed that SEZs are essential to Nigeria’s economic resurgence, calling for policies that will improve SEZ competitiveness globally.
She cited Morocco’s successful Tanger Med Zones as an example of best practices, highlighting that Nigeria aims to position itself as a continental hub for digital trade, focusing on innovation, investment, and job creation.
“Digital trade is a key component of Africa’s economic transformation, and Nigeria is positioning itself as a continental hub for digital services exports,” Oduwole said.
“Our goal is to create an environment that fosters innovation, attracts investment, and creates high-paying jobs.”
Nabil Saleh, Chairman of NEZ Association, called on stakeholders to reaffirm their commitment to advancing Nigeria’s SEZs as global benchmark for industrial excellence.
Femi Ogunyemi MD of NEPZA noted the importance of aligning SEZs with the priorities outlined in President Tinubu’s agenda, such as industrialization, job creation, and export promotion. Acknowledging some progress, Ogunyemi called for strategic reforms to accelerate SEZ contribution to Nigeria’s economic recovery.
While OGFZA MD, Bamanga Usman Jada, presented impressive results, revealing that the Authority has attracted over $24.6 billion in direct investments.
Jada also pointed out the role SEZs play in Nigeria’s energy transition, citing projects such as the CNG conversion center in Onne/Ikpokiri and the expansion of LPG infrastructure, all contributing to job creation and sectoral skill development.
He also announced ongoing efforts to expand LPG infrastructure, with a 70,000MT processing plant under construction in Onne and Liberty Free Zones.
Additionally, the stakeholders lauded efforts by the Ministry of Foreign Affairs to reposition Nigeria’s foreign missions’ economic desks to attract Foreign Direct Investment (FDI) into SEZs.
Stakeholders also proposed finalising offshore banking guidelines with the Central Bank of Nigeria (CBN) to enhance financial flexibility for SEZ operators.
In line with Nigeria’s new designation as Africa’s digital free zone hub by the African Union, they advocated for increased promotion of digital service exports and integration of digital technology into manufacturing and industrial processes.
The Nigeria Customs Service (NCS) was praised for progress made in policies regarding the movement of operational vehicles and capital goods within SEZs.
However, participants called for greater collaboration with the international business community to develop smart infrastructure, circular economy initiatives, and advanced manufacturing technologies.
The NEZ Association and Free Zone Authorities were acknowledged for facilitating crucial discussions on SEZ-related issues, with stakeholders resolving to continue engagements with relevant authorities to ensure an investor-friendly regulatory environment.