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Nigeria Tax Act 2025 Raises Investor Concerns in Free Zones

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Nigeria Tax Act 2025

Nigeria Tax Act 2025 sparks NEZA concerns as new rules risk undermining free zones, jobs, and investor confidence in Africa’s largest economy

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The Nigeria Tax Act 2025 and the Nigeria Tax Administration Act, 2025, have been welcomed by the Nigeria Economic Zones Association (NEZA) as important steps toward fiscal transparency and revenue assurance.

Also readThe Revolution of Tax Reform by Zacch Adedeji

However, the group has warned that the reforms may weaken Nigeria’s Special Economic Zones (SEZs) and Free Trade Zones (FTZs), threatening investment, competitiveness, and over 100,000 jobs.

According to NEZA, the new provisions create uncertainty for companies that export 100% of their products from free zones, which may now fall under taxation.

The association cautioned that without careful engagement, the reforms could erode investor confidence, trigger capital flight, and increase consumer costs.

“Free zones already contribute significantly to the Nigerian economy, paying millions in operating licences, container charges, and taxes, while also supporting infrastructure, supply chains, and employment,” NEZA stated.

The group compared Nigeria’s situation to Morocco’s Tanger Med Free Zone, highlighting that policy stability is essential for attracting private investment and boosting exports.

It also reassured the Manufacturers Association of Nigeria that free zones are designed to complement — not compete with — domestic manufacturing.

NEZA called for structured dialogue between stakeholders, including the Presidency, FIRS, NEPZA, OGFZA, and operators, to design transitional measures that protect investor confidence while ensuring government revenue.

It proposed a moratorium or phased implementation of the tax provisions for free zone enterprises.

The association also warned that weakening the free zone framework could see investors relocating to Ethiopia, Kenya, and Ghana, which are actively enhancing their SEZ regimes with incentives and simplified customs processes.

Such moves, NEZA argued, would reduce Nigeria’s competitiveness and deny local businesses the benefits of foreign investment.

“If free zones collapse or investors shift operations abroad, the government risks shrinking its revenue base, undermining employment, and stalling critical infrastructure projects funded through private capital,” it said.

Also read: Only 41 Million People Pay Tax In Nigeria Says FIRS Boss

NEZA reaffirmed its commitment to balancing government revenue goals with investor interests, urging policymakers to adopt an evidence-driven approach that safeguards industrialisation, exports, and long-term economic competitiveness.

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Economy

Lawal Strengthens Zamfara Judiciary With ₦600m Support

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The governor distributed official vehicles to judicial officers and said about 90 per cent of court rehabilitation projects across the state had been completed

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Jubril Tinubu Links Strong Corporate Governance to African Growth

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The Oando chief says transparency and stronger institutions are essential for African businesses seeking long-term international capital

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Governor Dauda Lawal Join VP Shettima’s Delegation to Benin Republic, Seeks Industrial Model to Boost Zamfara’s Agric Zones

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Zamfara State Governor Dauda Lawal has described the Glo-Djigbé Industrial Zone (GDIZ) as a practical blueprint for transforming Zamfara state’s agricultural sector, as he joined Vice President of Nigeria, Senator Kashim Shettima and five other governors on a working visit to the Benin Republic industrial hub on Friday.

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The delegation toured the 1,640-hectare public-private industrial platform, inspecting integrated textile and agro-processing facilities where locally produced cotton is converted into yarn, fabric and finished garments while cashew and soybean are processed for domestic and export markets. GDIZ, developed by the Beninese government and ARISE Integrated Industrial Platforms, has created more than 25,000 jobs since production began in 2021.

For Governor Lawal, who presides over an agrarian state with vast arable land and a strong comparative advantage in crop production, the visit presented an opportunity to draw direct lessons for Zamfara’s agricultural transformation agenda.

“Zamfara holds a strong comparative advantage in agriculture. We grow all crops in the state, we are not limited to soybeans. We have the land and it is fertile,” Governor Lawal had told global investors at the Africa Investment Forum in Morocco last November, where he signed a strategic Memorandum of Understanding with the Ministry of Finance Incorporated (MOFI) to drive large-scale agricultural transformation under the INTEGRANIUM Initiative.

The GDIZ visit is aimed at strengthening the implementation of Nigeria’s Special Agro-Industrial Processing Zones Programme, drawing practical lessons from Benin’s approach to agricultural value addition, industrial infrastructure, investment mobilisation and export-oriented production. Particular attention was given to the textile park’s integrated production system covering cotton spinning, weaving, fabric processing and garment manufacturing. Governor Lawal believes that Zamfara State can benefit from the $370 billion worth of global cotton valuation by ensuring Zamfara grows more cotton and can also lead the charge by reviving moribund textile manufacturing hubs and value chain which could generate millions of jobs, expand non-oil exports and stimulate economic activities.

Governor Lawal’s participation in the delegation aligns with Zamfara’s recently launched 10-year Development Plan (2025–2034), which envisions the state becoming “a benchmark for transformative economic growth, not merely for Nigeria, but the continent of Africa”. The plan prioritises maximising Zamfara’s agricultural and natural resource strengths through partnerships, mechanised farming, agro-processing and value chains to create jobs, improve food security and reduce poverty-driven insecurity.

Governor Lawal was also in company of other state Governors like; Hope Uzodimma (Imo), Caleb Mutfwang (Plateau), AbdulRahman AbdulRazaq (Kwara), Dikko Radda (Katsina), and Umar Namadi (Jigawa). The visit is expected to inform the development of garment-training facilities and dedicated processing infrastructure near agricultural production communities across Nigeria.

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