Free Zones Attract $200bn FDI, Create 500,000 Jobs — FG

The Federal Government has said Nigeria’s free trade zones have attracted more than $200bn in foreign investment and over N900bn in domestic investment, while supporting more than 500,000 jobs across various sectors of the economy.

The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, disclosed this during a virtual meeting with stakeholders in the Special Economic Zones sector.

Oduwole said the free zones had generated more than 100,000 direct jobs, with the figure rising above 500,000 when employment created through supply chains, logistics networks and host communities was included.

She said the government was reviewing the regulatory framework governing the zones to make them more responsive to changing business models and strengthen their contribution to investment, production and non-oil exports.

According to the minister, the reforms are designed to preserve Nigeria’s attractiveness to investors while improving regulatory clarity, fiscal accountability and compliance within the zones.

She said the revised framework would reinforce the export-oriented nature of the free zone scheme, including a structure under which 75 per cent of output is exported while 25 per cent can be sold domestically under applicable Nigerian laws.

The government has also expressed concern about the diversion of goods produced within free zones into the domestic market while operators continue to benefit from incentives intended to encourage exports.

Oduwole said the revised framework would clearly define the responsibilities of the agencies responsible for licensing, taxation and customs operations.

She said the Nigeria Export Processing Zones Authority and the Oil and Gas Free Zones Authority would retain responsibility for licensing and operational oversight, while the Nigeria Revenue Service would handle tax administration and the Nigeria Customs Service would oversee customs control, valuation, classification and enforcement.

The minister also announced that the new regulations would formally recognise Digital Free Zones and Digital Special Economic Zones.

She explained that the digital framework would allow technology-driven businesses and other non-physical operations to participate without necessarily requiring a conventional physical zone.

The revised regulations would also introduce an Innovator Licence for businesses operating in emerging areas where regulatory frameworks are still developing.

Oduwole said the government remained committed to protecting lawful incentives for investors while ensuring that the benefits of the free zone system were achieved through genuine investment, production, exports and job creation.

The Executive Secretary of NEPZA, Toyin Elegbede, welcomed the reforms but urged the government to protect investors who had already committed funds under existing regulations.

He said stakeholders wanted a transparent and competitive environment that would attract additional investment, increase production and expand Nigeria’s export capacity.

The government said the reforms are part of efforts to reposition Nigeria’s free zones as major drivers of non-oil exports and economic growth.