OGFZA secures $24bn investments as stakeholders seek tax waiver

The Oil and Gas Free Zones Authority (OGFZA) has announced that it has attracted more than $24 billion dollars in investments into Nigeria, an achievement that underscores the strategic value of the nation’s free zones. The Authority also threw its weight behind calls for a 10-year exemption for operators in special economic and free zones […]

The Oil and Gas Free Zones Authority (OGFZA) has announced that it has attracted more than $24 billion dollars in investments into Nigeria, an achievement that underscores the strategic value of the nation’s free zones.
The Authority also threw its weight behind calls for a 10-year exemption for operators in special economic and free zones from the new tax law provisions.
Managing Director and Chief Executive Officer, OGFZA, Bamanga Usman Jada, made the disclosure during a town hall meeting with the Federal Inland Revenue Service (FIRS) and OGFZA licensees held at the Onne Oil and Gas Free Zone in Rivers State on Thursday.
He argued that the proposed 10-year extension would provide operators with the “adaptation space” needed to transition and comply with evolving tax requirements, noting that Nigeria’s free zones have already generated hundreds of thousands of direct and indirect jobs across the country.
He said, “Energy-oriented free zones have been pivotal in driving development in numerous nations, exemplified by the Jebel Ali Free Zone in Dubai and the Sohar Free Zone in Oman. These initiatives have drawn billions in investments, generated extensive employment opportunities, and positioned their economies as global leaders.”
The OGFZA helmsman commended the President of Nigeria, Bola Ahmed Tinubu for what he described as “his visionary leadership,” even as he thanked the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, and the Minister of State, Senator John Enoh, for “their steadfast guidance and advocacy in supporting the sector.”

 

He noted: “Under the leadership of President Bola Ahmed Tinubu, “exports from Nigeria’s oil and gas free zones have surged to 496,537,804 metric tons, generating substantial foreign exchange inflows. Our operators now supply markets in Brazil, the United States, France, India, the United Kingdom, the Republic of Korea, and beyond, aligning seamlessly with the President’s Renewed Hope Agenda.

 

He reiterated OGFZA’s readiness to “sustain collaboration with FIRS, in accordance with our memorandum of understanding, to ensure the tax reforms are executed efficiently and equitably.”

 

Speaking at the event, Executive Chairman of FIRS, Zacch Adedeji, represented by the Special Adviser on Tax Incentive Management, Dr. Cletus Adie argued that “the 2025 tax reforms mark a significant step in modernizing Nigeria’s fiscal frameworks.”

 

According to the chairman, “For Export Processing and Free Trade Zones, the focus is not on taxation of income or profits of Zone entities, but on promoting transparency, accountability and proper reporting. By embracing compliance, collaboration and commitment to respecting obligations imposed by relevant tax laws, Free Trade zones can meaningfully contribute to national development, which is the very essence for implementing the Special Economic zones scheme.”