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To curb the exodus of foreign businesses from Nigeria, the Nigeria Export Processing Zones Authority (NEPZA) has introduced several measures aimed at supporting startups and foreign enterprises operating within the country’s free trade zones.
These initiatives, designed to reduce operational costs and encourage investment retention, include tax breaks, customs duties waivers, and innovative power solutions.
NEPZA’s Managing Director, Olufemi Ogunyemi, emphasized the authority’s commitment to sustaining business operations in Nigeria despite the challenging economic environment. Speaking to the News Agency of Nigeria (NAN), Ogunyemi outlined the incentives available to businesses in free trade zones, which are intended to attract and retain foreign direct investment (FDI).
“Our initiative aims to reduce production costs and incentivize companies to maintain operations in Nigeria. We offer a range of incentives designed to attract and retain foreign direct investment,” Ogunyemi stated. “These incentives include customs duty waivers, tax breaks, and deferred payments to the government during the startup phase of businesses.”
In addition to financial incentives, NEPZA is addressing one of the most critical issues affecting businesses in Nigeria: power supply. The authority is providing power generation solutions to meet the needs of companies within its zones, addressing a significant concern for many multinationals that have cited high power costs as a reason for relocating their operations.
Ogunyemi also highlighted the reciprocal nature of NEPZA’s support. In exchange for the incentives, foreign companies are required to contribute to local workforce development. This includes training Nigerians to skilled, semi-skilled, and professional levels, as part of a broader initiative he referred to as “Community Social Regeneration.”
“NEPZA requests that these foreign direct investors employ and train Nigerians. They train Nigerians on skilled, semi-skilled, and even professional levels. These are statutory requirements that are part of this partnership,” Ogunyemi explained.
NEPZA is improving the ease of doing business within its zones by functioning as a one-stop shop for investors. This simplifies interactions with various government agencies, reducing bureaucratic hurdles.
Despite past inconsistencies in enforcing these directives, Ogunyemi assured that during his tenure, NEPZA would implement these measures for the benefit of both investors and the nation. He reiterated his optimism about Nigeria’s potential to attract and sustain foreign investments despite global economic challenges.
“We are witnessing an unfortunate trend where companies are relocating due to issues like foreign exchange access and power supply. To mitigate these challenges, NEPZA is actively involved in providing power generation solutions tailored to the needs of businesses operating within its zones,” Ogunyemi said.
“And beyond that, we emphasize what is often called CSR but prefer to call it Community Social Regeneration. It’s a more accurate description and a requirement for all our investors,” he added.
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