Free trade zones fetched Nigeria $200bn FDI, 500,000 jobs

Nigeria’s free trade zones attracted more than $200bn in foreign investment and over N900bn in domestic investment while generating more than 100,000 direct jobs and over 500,000 jobs across supply chains, logistics networks and host communities.

The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, disclosed this at a meeting of Special Economic Zones stakeholders held virtually in September.

Oduwole said the government was revising the Nigeria Export Processing Zones Authority regulations to make the scheme more responsive to the changing nature of businesses and investment, including digital operations.

She said the revised framework would recognise Digital Free Zones and Digital Special Economic Zones, support technology-enabled and non-physical operations, modernise corporate and registry provisions and strengthen dispute-resolution mechanisms.

“Across the scheme, the authorities record over $200bn of foreign investment and over N900bn of domestic investment, more than 100,000 direct jobs, and over 500,000 when the supply chains, the logistics networks and the host communities are counted. So you are all, indeed, valuable investors and contributors to the Nigerian economy. This has not and will not change,” Oduwole said.

The Minister said the government’s latest regulatory reforms sought to build on the investments and jobs already created by the zones while addressing weaknesses that had affected the integrity and competitiveness of the scheme.

She said the reforms followed extensive consultations with government agencies, lawmakers and private-sector stakeholders and were designed to preserve Nigeria’s attractiveness as an investment destination while strengthening fiscal accountability.

Oduwole said the government had identified the diversion of goods produced in free zones into the Nigerian Customs Territory while retaining fiscal incentives intended for export-oriented activities as a major concern.

She said the revised framework would restore the export orientation of the scheme by clarifying the 75 per cent export and 25 per cent domestic-sales structure and aligning domestic sales with applicable Nigerian tax laws.