The Nigeria Economic Zones Association has commended the leadership of the Nigeria Export Processing Zones Authority and the Oil and Gas Free Zones Authority for calling for a 10-year moratorium on the implementation of the National Tax Policy within Nigeria’s free zones.
The association described the position of the two regulators as timely, strategic, and aligned with global best practices, warning that a hasty rollout of the policy could undermine investor confidence and weaken the competitiveness of the country’s free zone scheme.
In a statement issued on Tuesday and signed by its Executive Secretary, Toyin Elegbede, NEZA said the proposal echoed its long-standing concerns over the potential impact of the National Tax Policy on free zone operations.
Recall that NEPZA and OGFZA recently urged the Federal Government to grant a 10-year tax relief to all operators within Special Economic Zones.
Elegbede noted that the association had earlier raised similar concerns in a press statement dated September 1, 2025, stressing that the absence of a clearly defined transition framework could trigger capital flight and deter prospective investors.
He said, “The call by the managing directors of NEPZA and OGFZA for a 10-year moratorium is bold, forward-thinking, and in the best interest of Nigeria’s economic zones.
“Abrupt implementation of the National Tax Policy without adequate transition measures would be counterproductive, as it risks the flight of existing investments and discourages new entrants into the free zone scheme.”
According to NEZA, the proposed moratorium would provide a critical buffer period for policy harmonisation, sustained engagement with investors, regulatory clarity, and the development of a globally competitive incentives framework tailored to zone-based enterprises.
The association added that free zones thrive on policy stability and predictability, noting that sudden fiscal shifts could erode the confidence of investors who committed capital based on existing incentive structures.
NEZA further urged NEPZA and OGFZA to sustain their joint advocacy efforts to safeguard the integrity of Nigeria’s free zone regime, which plays a key role in export growth, industrialisation, job creation, and foreign direct investment inflows.
The statement read in part, “The Nigeria Economic Zones Association commends the managing directors of the Nigeria Export Processing Zones Authority and the Oil and Gas Free Zones Authority for their recent call for a 10-year moratorium before the implementation of the National Tax Policy within Nigeria’s free zones.
“This bold and forward-thinking position is timely and aligns with NEZA’s previously stated concerns, as expressed in our official press release dated September 1, 2025.”
“We urge the regulators to continue speaking with one voice to preserve the integrity of the free zone scheme. NEZA remains committed to working with all relevant authorities to ensure that no policy undermines the competitiveness and long-term sustainability of free zones in Nigeria, Elegbede added.
The National Tax Policy, which seeks to streamline and harmonise Nigeria’s tax administration framework, has sparked concerns among free zone operators and investors who fear it could dilute longstanding fiscal incentives that underpin the zones’ attractiveness.
Nigeria currently operates dozens of free zones across manufacturing, logistics, oil and gas, and export-oriented industries, with the zones contributing significantly to non-oil exports, employment, and technology transfer.
The tax policy, expected to take effect in early 2026, aims to streamline incentives, tighten tax compliance, and phase out some existing waivers.
However, free zone operators argue that abrupt changes could erode the cost advantages that attracted investors in the first place, particularly manufacturers, logistics hubs, exporters, and technology parks operating under long-term business plans.
Before now, free zone operators typically enjoyed tax holidays, duty exemptions, repatriation rights, and simplified regulatory processes—key features that positioned Special Economic Zones as stable investment destinations.
The removal or abrupt alteration of these incentives, stakeholders warn, could trigger capital flight at a time Nigeria is seeking to boost industrial output, expand non-oil exports, and attract global supply chains.
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