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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

FG Begins Fresh Tax Reform Review Ahead of 2027 Budget

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Nigeria begins a tax reform review ahead of the 2027 Finance Bill, with officials targeting implementation gaps, simpler compliance and stronger investment (more…)

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Governor Dauda Lawal woos investors, highlights Zamfara’s economic opportunities at CEO Forum

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Zamfara State Governor, Dauda Lawal, has called for stronger collaboration between government, businesses and investors to unlock private capital and drive inclusive economic growth in the state.

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Lawal made the call while delivering a Special Policy Address at the 2026 CEO Forum organised by the Global Compact Network Nigeria in Lagos.

The forum, held under the theme “Financing a Dignified Future: Aligning Business Action, Policy and Capital,” brought together chief executives, senior government officials, industry leaders, diplomats, trade commissioners and international development partners.

Participants were drawn from key sectors of the economy, including oil and gas, energy, manufacturing, construction and infrastructure.

The governor spoke on the growing competition among states for increasingly selective private capital and the factors that could transform an economic opportunity into an investable proposition.

He explained how his administration was working to bridge the gap between available economic opportunities and investment, with emphasis on building investor confidence while ensuring that investments deliver meaningful outcomes for the people of Zamfara.

According to him, attracting investment requires more than identifying economic opportunities, but also creating the conditions, policies and partnerships capable of giving investors confidence to commit capital.

The forum provided a platform for business leaders, government officials and investors to examine ways of aligning business strategies, public policies and capital deployment to unlock productive investment.

Discussions also focused on identifying businesses, sectors and projects with strong potential but facing difficulties in accessing financing, as well as measures to make such opportunities more attractive to investors.

The organisers also introduced the concept of the “Dignity Dividend,” examining how investment-led growth could translate into better jobs, stronger businesses, increased productivity, local value creation and broader economic participation.

Another key component of the forum was the identification of actionable commitments and partnerships that participating institutions could advance over the next six to 12 months.

Notable speakers at the event included chief executives of First Bank Group, Access Bank, Flour Mills of Nigeria Plc, Nigeria Economic Summit Group, Nigerian Exchange Group, Chellarams Plc, SecureID Group and Greenwich Merchant Bank Plc, among others.

The organisers said the session would culminate in a live showcase of the Business Value and Sustainability Platform (BVSP), described as a standing coalition of business, capital and policy actors designed to sustain the dialogue.

The platform is also expected to contribute to shaping Nigeria’s private-sector engagement during the United Nations General Assembly High-Level Week.

The governor’s participation in the forum comes as Zamfara seeks to strengthen its economic base, attract productive investment and create opportunities that can support sustainable livelihoods and wider participation in the state’s economy.

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Fuel subsidy debate: Between economic reform and political expediency

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Atiku petrol subsidy plans have reignited Nigeria’s 2027 debate as the ADC candidate promises relief while the Presidency demands clarity

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