The Nigeria Export Processing Zones Authority has asked the Federal Government to grant businesses operating within Special Economic Zones a 10-year exemption under the incoming tax regime, warning that uncertainty surrounding the reforms is already unsettling investors. The Managing Director, speaking through the Director of Corporate Services during a virtual stakeholder dialogue of the Ministry of Industry, Trade and Investment, said operators in Nigeria’s Free Trade Zones are worried about how the new tax laws may affect long-term investments. He cautioned that the uncertainty is slowing efforts to attract foreign direct investment and could weaken confidence in the zones.
He explained that tax incentives are central to the SEZ model and remain a key reason investors commit capital to the zones. He appealed to the Federal Inland Revenue Service leadership to grant a 10-year sunset period that would provide predictability, give investors room to transition and strengthen linkages with the local economy. Aligning Nigeria’s incentive structure with global standards, he noted, would help maintain competitiveness while balancing revenue expectations. Nigeria currently has 63 Free Trade Zones with over 700 active enterprises, which he described as critical to industrialisation, export growth and job creation. He added that the zones can deliver greater revenue only under a friendly incentive framework that encourages sustained investment.
NEPZA reiterated that clarity and stability in tax implementation are essential as companies plan for 2026. The Authority said it will continue to work with the FIRS and relevant agencies in managing the transition, maintaining competitiveness and sustaining investor confidence. This conversation is important to MSMEs already present or hoping to enter SEZs, as reduced uncertainty could influence expansion decisions, production planning and export commitments.
Responding during the meeting, the Minister of Industry, Trade and Investment reaffirmed the government’s commitment to ongoing reforms. She said the new tax framework, SEZ incentives and updated Financial Reporting Council compliance requirements are intended to support trade, investment and long-term economic growth.
Nigeria is expected to implement the tax overhaul in 2026 through four new Acts — the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Act and the Joint Revenue Board Act. These laws aim to simplify taxation, expand the tax base and improve administration, though businesses and individuals have continued to raise concerns about potential impacts. The government maintains that the reforms will ultimately offer benefits to both enterprises and citizens as implementation progresses.
