The Nigeria Export Processing Zones Authority has requested that the Federal Government provide a 10-year tax exemption for all companies operating within the Special Economic Zones.

The authority cautioned that neglecting to implement this transitional relief might weaken investor confidence and lead to disruptions throughout the free-zones ecosystem.

This request comes just a month prior to the anticipated enactment of Nigeria’s new tax legislation. The agency indicated that this plea has become urgent due to growing apprehensions from both domestic and international investors, which it noted are already being discussed in global investment forums and could negatively impact Nigeria’s ability to attract foreign direct investment.

During a virtual stakeholder dialogue arranged by the Federal Ministry of Industry, Trade and Investment in Abuja, Dr. Olufemi Ogunyemi, the Managing Director of NEPZA, made this significant appeal. The remarks were included in a statement released on Saturday by Martins Odeh, the authority’s Head of Corporate Communications.

Represented by Haleema Kamba, the Director of Corporate Services, Dr. Ogunyemi said that the suggested tax relief, referred to as a “sunset period,” would allow operators adequate time to adapt their operations and financial plans to the new tax structure without jeopardizing ongoing investments. Kamba relayed the specific request: “The Managing Director has tasked me with making this special appeal to the Chairman of the Federal Inland Revenue Service, seeking a sunset period of roughly 10 years for all our investors. We hope the Chairman will consider this for the benefit of the scheme.”

The NEPZA leader stressed that tax incentives are fundamental to successful global free-zone models. He contended that offering a transitional period would foster stability, predictability, and stronger connections to the domestic economy. He noted that Nigeria’s 63 free-trade zones and the over 700 businesses operating in them are crucial to the country’s industrialization and export strategy, pointing out that the zones could generate significantly more revenue.

Dr. Ogunyemi underscored the significance of the zones: “The Authority has consistently aligned with the Renewed Hope Agenda of this administration to promote growth and efficiency within the Free Trade Zone ecosystem, emphasizing that the scheme is essential for the country’s sustainable economic growth and industrialization. Our 63 Free Trade Zones and the more than 700 Enterprises functioning within these business enclaves will continue to be the foundation of Nigeria’s industrial and export strategy. The revenues generated by the scheme, if permitted to operate under the global tax framework, would provide a variety of incentives as key factors to attract and retain investors for sustainable operations.”

Nigeria’s new tax legislation, which is set to be implemented in early 2026, aims to simplify incentives, enhance tax compliance, and phase out certain existing waivers. However, operators in free zones argue that sudden changes could diminish the cost advantages that initially drew investors, particularly manufacturers, logistics centers, exporters, and technology parks with long-term business strategies.

Historically, free-zone operators benefitted from tax holidays, duty exemptions, rights to repatriate profits, and simplified regulatory processes—essential attributes that established SEZs as secure environments for investors seeking stability. Altering or removing these incentives abruptly threatens to cause capital outflow at a time when the country is striving to boost industrial production, increase non-oil exports, and attract global supply chains.

Dr. Ogunyemi stressed the importance of clarity and certainty in the tax system as investors plan their budgets and production schedules for 2026.

He remarked: “Nigeria is ready for business, and NEPZA will continue to collaborate with FIRS and other stakeholders throughout this transition, ensuring stability, competitiveness, and sustained investor confidence. However, there is a need for clarity and certainty within the tax framework as investors prepare their business plans for 2026, while describing the forum as a testament to the government’s commitment to transparency and collaboration.”