Export Processing Zones Authority Seeks 10-year Tax Relief For Oil Investors

The Nigeria Export Processing Zones Authority (NEPZA) has appealed to the chairman of the Federal Inland Revenue Service (FIRS) for a 10-year “sunset period” of tax relief for oil investors, as Nigeria’s new fiscal reforms take effect from January 2026.

The managing director/chief executive officer of NEPZA, Dr Olufemi Ogunyemi, made the request during a virtual stakeholder dialogue hosted by the Federal Ministry of Industry, Trade & Investment, noting that the measure would provide stability and predictability for oil sector businesses planning their 2026 operations.

Meanwhile, the minister of Industry, Trade & Investment, Dr Jumoke Oduwole, stressed the critical role of the reforms—covering the National Revenue System, Special Economic Zones incentives, and updated Financial Reporting Council compliance—in creating a competitive environment for trade, investment, and economic growth.

Represented by the director of Corporate Services, Hajiya Haleema Kamba, the NEPZA boss said: “The MD has also directed that I make this special appeal to the chairman of the Federal Inland Revenue Service requesting for a sunset period for all oil investors, possibly about 10 years. We pray the chairman will consider this for our zone operators. He has asked me to make this appeal once more as he had done that earlier.”

Dr Ogunyemi, assuring investors of the security of their investments, stated: “Your incentives remain secure, your investments are protected, your operating environment will become more predictable and efficient. The government is fully aligned on ensuring that special economic zones remain a cornerstone of Nigeria’s industrial and export strategy. Nigeria is open for business and NEPZA will continue to stand with you through this transition, ensuring stability, competitiveness and sustained investor confidence.”

He emphasised the need for clarity and certainty as investors develop their 2026 business plans, describing the platform as a demonstration of the government’s commitment to transparency and collaboration.

He added that the President is fully aware of the strategic importance of the Special Economic Zones scheme in driving Nigeria’s industrialisation.

“We understand that the current fiscal reforms may raise questions and, at times, concerns among investors. It is natural to consider how new policies could influence your business models, but I encourage everyone to view these reforms with an open mind. The primary objective of the new fiscal framework is to foster greater economic stability.”

Recalling Nigeria’s economic challenges, he said: “We all experience the repercussions of currency volatility, which can hinder planning and raise costs, forcing some businesses to close. To address this challenge, it is essential for the government to harmonise monetary, fiscal, trade, and investment policies. By stabilising the currency and enhancing transparency, we can improve management practices and focus on expanding exports.”

According to him, the government remains united in its commitment to making special economic zones a major pillar of Nigeria’s industrial and export strategies. “We would like to reiterate that Nigeria is open for business, and NEPZA will continue to support you through this transition by ensuring stability, competitiveness, and sustained investor confidence.”

On her part, Dr Oduwole emphasised the importance of ongoing economic reforms, describing them as essential for fostering a competitive environment that supports trade, investment, and sustainable growth.

Speaking at the virtual stakeholder dialogue, she highlighted the National Revenue System (NRS), Special Economic Zones (SEZ) incentives under the new fiscal environment, and the recalibrated compliance regime of the Financial Reporting Council of Nigeria (FRC Nigeria), all of which form part of the tax reforms coming into effect in January 2026.

The Minister underscored the need for a modernised tax system that is efficient, transparent, and fair, and which aligns with the government’s development goals. She urged the private sector to “lead in this transformation”, emphasising collaboration between government and industry stakeholders as central to driving growth and prosperity.

Oduwole stated that “under the leadership of Mr President, Nigeria is embracing a new era characterised by fiscal discipline, regulatory clarity, and a commitment to economic modernisation. This strategic vision aims to strengthen our fiscal and regulatory frameworks, essential components for fostering a competitive environment that encourages trade, investment, and sustainable economic growth.”

She further highlighted “how crucial the initiative is for Nigeria’s economic future. As the global economic landscape continues to evolve, Nigeria must remain adaptable and proactive, especially in navigating the challenges of recent times.”

The Minister underscored “the importance of a stable environment for predictability and cohesion in our efforts. Collaborating closely with FIRS, FRC and other stakeholders in the organised private sector, we remain committed to delivering on our promises.”

Also speaking, the chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, affirmed the President’s resolve to support the private sector, stating that “the intention is not to burden businesses with taxes on initial investments or potential future prosperity. Instead, the focus is on fostering an environment where success can thrive.”

Fiscal Policy Partner, Mr Taiwo Oyedele, noted that “the introduction of these reforms is crucial for improving Nigeria’s tax system, which many recognise is currently not functioning effectively. It is clear that we need a reset to create a more dynamic and equitable fiscal environment.”

He added that “historically, our tax-to-GDP ratio has been disappointingly low, typically under 10 per cent. The reality is that neglecting tax obligations can compel the government to resort to money printing, a decision with wide-reaching implications for us all.”

According to Oyedele, “these reforms are designed to be pro-growth, pro-investment, and economically progressive. They emphasise attributes such as fairness, simplicity, and global competitiveness.

“We are implementing a suite of reforms, which includes the Nigerian Tax Act, the Nigerian Tax Administration Act, the Nigerian Revenue Service Establishment Act, and the Joint Revenue Board Establishment Act. Additionally, we propose constitutional amendments currently progressing through the National Assembly, aimed at addressing the long-standing issue of multiple taxation that has impeded our economic advancement.

“Recognising the challenges businesses face from local government tax collection, we are also pushing for constitutional changes to address these nuisance taxes. In the interim, we have collaborated with the Joint Tax Board and state representatives to draft a model law that each state can adopt, aiming to streamline local tax collections.”