Nigeria Government Drafts New Rules to Curb Abuse of Free Zones
Government convened a drafting retreat with ministries, NEPZA, OGFZA, NEZA, Customs and NRS to overhaul free‑zone regulations
In Brief
- •Government convened a drafting retreat with ministries, NEPZA, OGFZA, NEZA, Customs and NRS to overhaul free‑zone regulations
- •The reform targets allegations that goods imported under free‑zone concessions were diverted into the domestic market
- •Key incentives—duty‑free import of capital goods, tax exemption on export profits, 100% foreign ownership and unrestricted repatriation—will be preserved
- •A proposed 75/25 export‑to‑domestic sales framework and phased implementation are under consideration
- •The committee emphasizes clear transition arrangements for existing licensees and a “one authority, one visit, one record” principle for implementation
Why It Matters
Free zones are a cornerstone of Nigeria’s strategy to attract foreign investment, boost exports and create jobs. Recent customs enforcement actions have raised concerns that the incentives are being misused to funnel goods into the domestic market, undermining the scheme’s credibility. By tightening rules while safeguarding legitimate incentives, the government aims to protect genuine investors, maintain investor confidence and ensure that the free‑zone framework continues to contribute to economic growth.
Key Details
- Retreat Participants
- Federal Ministry of Justice, Federal Ministry of Industry, Trade and Investment, NEPZA, OGFZA, NEZA, National Single Window, Nigeria Customs Service, Nigeria Revenue Service
- Incentives Preserved
- Duty‑free import of capital goods, tax exemption on export profits, 100% foreign ownership, unrestricted repatriation
- Proposed Sales Framework
- 75% export, 25% domestic sales
- Transition Arrangements
- Clear transition for existing licensees
- Regulatory Coordination Principle
- One authority, one visit, one record
Context & Background
Free zones were established to attract investment and enhance exports, but recent customs enforcement actions over alleged diversion of goods have prompted a review of the scheme’s regulatory framework.
Original Reporting & Sources
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