Economists Urge Policy Stability for Nigeria's SEZs

Economists are advocating for policy stability to sustain the $500 million earnings from Nigeria's Special Economic Zones (SEZs) and the projected creation of 20,000 direct jobs by 2025. They caution that abrupt reforms could undermine investor confidence and stall manufacturing growth.

The focus is on reinforcing a stable regulatory environment to support the SEZs, which have shown positive manufacturing output when investors operate within a consistent incentive-driven framework. Dr.

Yusuf from the Centre for the Promotion of Private Enterprise (CPPE) highlighted the importance of predictable incentives, warning that sudden changes in tax exemptions and import duty arrangements could weaken investor confidence at a critical time when Nigeria competes with other African economies. Currently, there are 30 licensed free trade zones supervised by NEPZA, with 500 enterprises operating across various sectors, including manufacturing and oil and gas services.

The SEZs are designed to offer tax breaks and streamline regulations to boost manufacturing investment and export.