The Managing Director of the Nigeria Export Processing Zones Authority (NEPZA), Dr. Olufemi Ogunyemi, has disclosed that 20 of the over 50 free trade zones in the country are currently non-operational. However, the agency is working to revive them to strengthen the country’s economic zones and attract more investors.
Thank you for reading this post, don't forget to subscribe!Speaking on Channels Television’s News Night, Ogunyemi explained that the original concept of export processing zones has evolved globally, with most countries now adopting the term special economic zones to reflect their broader scope beyond exports.
Why Special Economic Zones?
He clarified that the term “free trade zone” is misleading since operators still pay for licenses, tariffs, and duties. “The correct term is special economic zones because they now cover more than just exports; they have diversified into various industries,” he said.
What Are the Benefits?
According to Ogunyemi, special economic zones offer incentives to investors, including duty waivers and tax breaks, making Nigeria more competitive for Foreign Direct Investment (FDI). “If we don’t create an attractive investment environment, our neighbors will take all the FDI,” he warned.
Current Status of Free Trade Zones
Nigeria currently has about 55 to 56 zones, but 20 are inactive. Ogunyemi noted that in comparison, Dubai has about 44 zones, and Kenya has 33 zones, but a single zone in Dubai hosts around 5,000 enterprises, whereas Nigeria’s largest zone only has 85 companies.
The most successful zones are in Lagos, largely due to policies initiated by President Bola Ahmed Tinubu when he was governor. These include:
• Lekki Free Trade Zone (40% owned by Lagos State, 60% by the Chinese government)
• Lagos Free Trade Zone (owned by Singapore’s Tolaram Group)
• Dangote Refinery
• Alaro City near Epe
Other zones include Ogun Guangdong Free Trade Zone, Bundu Free Trade Zone in Delta State, and the Agro-Processing Zone in Adamawa State.
State Governments Pushing for More Zones
Ogunyemi noted that several state governors, including Kwara’s, are exploring smart city projects and agro-processing zones. Many states see these zones as key to industrialization, employment generation, and agricultural value addition.
Revenue and Tariff Review
On revenue generation, Ogunyemi revealed that NEPZA is reviewing tariffs for the first time in 10 years. “Operators pay various fees, from application assessments to Customs inspections and port charges,” he explained.
In 2023, one of Nigeria’s most successful free trade zones generated ₦40 billion, while NEPZA remitted about ₦8–9 billion to the federal government in the first six months alone. “Many government agencies—Customs, NAFDAC, Immigration—also generate revenue from these zones,” he added.
With reforms underway, Ogunyemi expressed optimism that reviving dormant zones and enhancing existing ones will boost Nigeria’s economic competitiveness.
