Stakeholders call for synergy on SEZ regulations to boost export growth

Stakeholders have urged Free Zones Regulatory Authorities to deepen collaboration with other government agencies that regulate Special Economic Zones (SEZs) to boost export growth.

Government agencies including the Federal Inland Revenue Service (FIRS), National Agency for Food and Drug Administration and Control (NAFDAC), Nigeria Immigration Service (NIS), Standards Organisation of Nigeria (SON), Department of State Services (DSS), and the Nigeria Police Force (NPF) to enhance operational efficiency and streamline regulatory processes.

This was noted at the 3rd Special Economic Zones (SEZs) Annual Meeting, as operators of SEZs in Nigeria were encouraged to capitalise on enhanced cooperation with the Nigeria Customs Service (NCS) to ramp up the production of export-oriented goods, particularly for the African market.

The high-level meeting, which brought together government agencies, investors, industry experts, and SEZ operators, highlighted the progress made regarding the NCS circular on the movement of operational vehicles and the procedural code for specific capital goods within SEZs.

They emphasised the importance of leveraging the Africa Continental Free Trade Area Agreement (AfCFTA) to increase Nigeria’s export earnings.

Despite acknowledging the significant contributions of SEZs to Nigeria’s economic growth, stakeholders expressed reservations over specific provisions in the Nigeria Tax Bill 2024.

In particular, they raised concerns about the proposed removal of sections of the Nigeria Export Processing Zones Authority (NEPZA)/Oil and Gas Free Zones Authority (OGFZA) Acts that provide tax incentives to SEZ operators.

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They also highlighted the willingness of Taiwo Oyedele, chairman presidential committee on fiscal and tax reform, who engaged on their concerns regarding the bill as they resolved to participate actively in the upcoming National Assembly public hearing on the Tax Reform Bill to advocate for a business-friendly regulatory framework that supports both local and foreign investments in SEZs.

The meeting acknowledged the federal government’s commitment to prioritising SEZs as part of its industrialisation and economic transformation agenda.

Stakeholders also noted significant progress made through the Ministry of Foreign Affairs in repositioning Nigeria’s Economic Desk in foreign missions to attract foreign direct investment (FDI) into SEZs.

Recognising the role of digitisation in SEZ efficiency, they commended the African Union for designating Nigeria as the hub of digital free zones in Africa.

They urged regulatory authorities and Free Zone Enterprises to harness this status by exporting digital services and integrating digital technologies into manufacturing processes to enhance competitiveness and productivity.

Furthermore, the meeting resolved to foster synergy in developing smart infrastructure, circular economy initiatives, and advanced manufacturing technologies in collaboration with the international business community.

The meeting also underscored the need for the leadership of the NEZ Association, the Nigeria Economic Processing Zones Authority (NEPZA), and the Oil and Gas Free Zones Authority (OGFZA) to engage with the Central Bank of Nigeria (CBN) in finalising guidelines for implementing offshore banking in SEZs.