Amid the Federal Government’s proposed tax reforms targeting Free Trade Zones (FTZs), the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has warned that the decision could drive away over $200 billion in foreign direct investments (FDIs) from the country, and jeopardise more than 600,000 jobs.
This was as FTZ stakeholders expressed concern over certain provisions of the Nigeria Tax Bill 2024, seeking to expunge some sections of Acts establishing both the Nigeria Export Processing Zones Authority (NEPZA) and Oil and Gas Free Zones Authority (OGFZA), which provided tax incentives for Special Economic Zones (SEZs) scheme.
The contentious provisions, outlined in the Nigeria Tax Bill 2024, seek to introduce minimum tax rates and remove long-standing tax exemptions for businesses operating within FTZs, a move seen as contradicting Nigeria’s industrialisation and investment objectives.
