NEPZA seeks 10yrs tax incentives for special zones operators

The Nigeria Export Processing Zones Authority (NEPZA) has called on the federal government to exempt all operators of the Special Economic Zones (SEZs) from the country’s new tax laws for at least 10 years to give them time to adjust their operations to the new regulations. The Authority said it became necessary following the continued […]

The Nigeria Export Processing Zones Authority (NEPZA) has called on the federal government to exempt all operators of the Special Economic Zones (SEZs) from the country’s new tax laws for at least 10 years to give them time to adjust their operations to the new regulations.

The Authority said it became necessary following the continued reverberation of the operators’ concerns across various local and global platforms, adding that such campaigns were deleterious to attracting Foreign Direct Investment (FDI) through the scheme

Managing Director of the Authority, Dr. Olufemi Ogunyemi, made the call during a virtual stakeholder dialogue hosted by the Federal Ministry of Industry, Trade & Investment in Abuja.

Ogunyemi, also the Chief Executive Officer of NEPZA, said tax reprieves constituted the nucleus of the scheme, noting that the measure, if granted, would provide stability, predictability, and seamless backward linkages with the local business environment.

Dr. Ogunyemi, represented by Mrs. Haleema Sani Kamba, Director, Corporate Service, explained that the country would strike the right balance between revenue collection and the promised incentives for the scheme if at least a 10-year “sunset period” of tax relief were granted.

“The managing director/CEO has instructed me to make this special appeal to the chairman of the Federal Inland Revenue Service, requesting a sunset period of approximately 10 years for all our investors. We hope the chairman will consider this for the benefit of the scheme. He has asked me to repeat this appeal, as he did earlier

“The Authority has continually aligned with the Renewed Hope Agenda of this administration to drive growth and efficiency within the Free Trade Zone ecosystem, noting that the scheme was pivotal to the country’s realizing sustainable economic growth and industrialisation.

“Our 63 Free Trade Zones and the over 700 Enterprises operating within those business enclaves will continue to serve as the cornerstone of Nigeria’s industrial and export strategy. The revenues the scheme could generate if left to operate under the global tax template, offering a potpourri of incentives as key sweeteners to attract and retain investors for sustainable operations.,” he said