The Nigeria Export Processing Zones Authority (NEPZA) has urged the Federal Government to grant businesses operating within the country’s Special Economic Zones (SEZs) a 10-year exemption from the newly introduced tax laws, warning that uncertainty around the reforms is dampening investor confidence.
NEPZA Managing Director, Dr. Olufemi Ogunyemi, made the appeal during a virtual stakeholder dialogue organised by the Federal Ministry of Industry, Trade and Investment.
He was represented by Mrs. Haleema Kamba, the Authority’s Director of Corporate Services.
Ogunyemi said operators across Nigeria’s Free Trade Zones have continued to express concerns, both locally and internationally, over how the new tax framework will affect their long-term commitments.
He noted that the lingering uncertainty is already impacting efforts to attract Foreign Direct Investment (FDI) into the country.
Tax incentives central to the SEZ model
According to Ogunyemi, tax incentives remain a core pillar of the Special Economic Zone scheme, and any abrupt changes could undermine the competitiveness of the zones.
“A 10-year sunset period will offer stability, predictability and stronger linkages with the domestic economy. I am making this special appeal to the Chairman of the Federal Inland Revenue Service for a sunset period of approximately 10 years for all our investors,” he said.
He added that aligning Nigeria’s SEZ incentives with global best practices would help the country strike a balance between government revenue collection and existing commitments to investors.
- Nigeria currently has 63 Free Trade Zones hosting more than 700 enterprises, which Ogunyemi described as central to the country’s industrialisation, export expansion and job creation agenda.
- However, he stressed that the full revenue potential of the zones can only be realised under a competitive incentive structure capable of attracting and retaining long-term investments.
“Nigeria is open for business, and NEPZA will continue to stand with FIRS and other relevant stakeholders through this transition—ensuring stability, competitiveness and sustained investor confidence,” he said.
The managing director also emphasised the need for clarity and certainty in the tax environment as companies prepare their 2026 business plans.
Meanwhile, speaking during the dialogue, the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, reaffirmed the government’s commitment to ongoing economic reforms.
She said the national revenue framework, Special Economic Zone incentives and updated Financial Reporting Council compliance requirements are designed to create a more competitive environment for trade, investment and sustainable economic growth.
What you should know
Nigeria is implementing a comprehensive tax overhaul in 2026 through four newly signed Acts, which include the Nigeria Tax Act (NTA), the Nigeria Tax Administration Act (NTAA), the Nigeria Revenue Service Act (NRSA), and the Joint Revenue Board Act (JRBA).
- These laws introduce significant changes for individuals and businesses, aiming to simplify the system and widen the tax base.
- Several businesses and individuals have expressed concerns about some of the provisions of these new laws. However, the government insists the laws are for better tax administration with lots of benefits for businesses and individuals.