Tax reform: NEPZA seeks 10-year tax relief for investors

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The Nigeria Export Processing Zones Authority has urged the Federal Government to grant a 10-year tax relief to all operators within the Special Economic Zones (SEZs).

This is as it warns that failure to do so could undermine investor confidence and trigger disruptions across the free-zones ecosystem.

The appeal is coming barely one month before the implementation of Nigeria’s new tax act.

The agency stated that the call had become urgent amid rising concerns from local and international investors, which it warned were already reverberating across global investment forums and could harm Nigeria’s prospects for foreign direct investment.

The Managing Director of NEPZA, Dr. Olufemi Ogunyemi, made the appeal during a virtual stakeholder dialogue organised by the Federal Ministry of Industry, Trade and Investment in Abuja.

The remarks were contained in a statement issued on Saturday by the authority’s Head of Corporate Communications, Martins Odeh.

Ogunyemi, represented by the Director of Corporate Services, Haleema Kamba, said the proposed tax reprieve would give operators enough time to adjust their operations and financial plans to the new tax regime without jeopardising ongoing investments.

“The Managing Director has instructed me to make this special appeal to the Chairman of the Federal Inland Revenue Service, requesting a sunset period of approximately 10 years for all our investors. We hope the Chairman will consider this for the benefit of the scheme,” Kamba said.

The NEPZA boss emphasised that tax incentives are the backbone of global free-zone models and argued that allowing a transitional window would provide stability, predictability, and stronger backward linkages to the domestic economy.

He added that Nigeria’s 63 free-trade zones and more than 700 enterprises operating within them remained central to the country’s industrialisation and export strategy, noting that the zones could generate far more revenue.

“The Authority has continually aligned with the Renewed Hope Agenda of this administration to drive growth and efficiency within the Free Trade Zone ecosystem, noting that the scheme was pivotal to the country’s realising sustainable economic growth and industrialisation.

“Our 63 Free Trade Zones and the over 700 Enterprises operating within those business enclaves will continue to serve as the cornerstone of Nigeria’s industrial and export strategy. The revenues the scheme could generate if left to operate under the global tax template, offering a potpourri of incentives as key sweeteners to attract and retain investors for sustainable operations,” he added.

Nigeria’s new tax act, expected to take effect in early 2026, will 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, especially 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 SEZs as safe havens for investors seeking stability.

The removal or abrupt alteration of these incentives risks triggering capital flight at a time the country is trying to increase industrial output, grow non-oil exports, and court global supply chains.

Ogunyemi emphasised the need for clarity and certainty in the tax system as investors prepare their 2026 budgets and production schedules.

“Nigeria is open for business, and NEPZA will continue to stand with FIRS and other stakeholders through this transition, ensuring stability, competitiveness and sustained investor confidence. But there is a need for clarity and certainty within the tax system as investors prepare their 2026 business plans, while describing the forum as the government’s commitment to transparency and collaboration,” he added.

Odeh added that the Minister of Industry, Trade and Investment, Jumoke Oduwole, told participants that the ongoing reforms, including updates to the national revenue system, SEZ incentive framework, and Financial Reporting Council compliance, were aimed at improving Nigeria’s competitiveness.

The minister stressed that the adjustments were designed to strengthen the investment environment while ensuring transparency and alignment with global standards.

A business, investment, infrastructure and property correspondent currently with The PUNCH, Aina is a media professional with over three years experience

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