Nigeria's Free Zones Revamp to Attract New Investments

Nigeria's Free Zones are entering a crucial phase as the government seeks to modernize their regulatory framework to attract new investments, expand exports, and create jobs. Established over three decades ago, these zones aim to enhance production and facilitate technology transfer.

However, the evolving global trade environment necessitates a review of their operational framework. Since 2024, the Federal Ministry of Industry, Trade and Investment has collaborated with Free Zone Authorities to assess the legal and fiscal structures governing these zones, particularly in light of the Nigeria Tax Act 2025.

This Act specifically addresses export processing and Free Zone entities, allowing approved enterprises to sell up to 25% of their production into the Nigerian Customs Territory, with full taxation on profits from such sales beginning January 1, 2028. The current regulatory review aims to ensure coherence within these statutory provisions, focusing on market access, customs treatment, and taxation.