Nigeria Overhauls Tax Regime for Export Processing Zones and Free Trade Zones in 2025

Nigeria enacted the Nigeria Tax Act 2025 to reform the tax system for entities within Export Processing Zones and Free Trade Zones. The Act provides comprehensive tax exemptions, including relief from federal, state, and local taxes, for approved enterprises operating within these zones.

Entities in these zones enjoy incentives such as exemption from corporate income tax, value-added tax (VAT), import/export duties, and foreign exchange controls. The Nigerian Export Processing Zone Authority (NEPZA) and Oil and Gas Free Zone Authority (OGFZA) play key roles in granting licenses and providing substantial incentives to encourage investments within the zones.