The federal government’s move to impose taxes on Free Trade Zones (FTZs) has raised alarm among investors.
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) cautioned that the policy could trigger an exodus of $200 billion in foreign investments and jeopardise over 600,000 jobs across key sectors.
The controversial provisions in the Nigeria Tax Bill 2024 propose the introduction of minimum tax rates and the removal of long-standing tax exemptions for businesses operating in Free Trade Zones, a policy shift that many view as a contradiction to Nigeria’s industrialisation and investment ambitions.
NACCIMA, through its National President, Dele Oye, raised deep concerns over the proposed amendments, particularly Sections 57, 60, 198(2), and 198(3), warning that these changes could undermine the core incentives that have driven Free Trade Zone investments since the enactment of the Nigeria Export Processing Zones Act in 1992.
“Stripping away established tax exemptions is a drastic measure that will diminish investor confidence and jeopardize Nigeria’s standing in the global investment community,” said Oye, who is also the Chairman of Nigeria’s Organised Private Sector (OPS).
