Stakeholders urge OGFZA, NEZ Association, others to engage CBN on offshore banking in SEZs

Key stakeholders have urged the leadership of the NEZ Association, Nigeria Export Processing Zones Authority (NEPZA), and Oil and Gas Free Zones Authority (OGFZA) to further engage with the Central Bank of Nigeria (CBN) to finalise the guidelines for the implementation of offshore banking in Special Economic Zones (SEZs).

This, among others, was part of the communique issued at the end of the 3rd SEZ’s annual meeting held in Lagos recently.

The meeting brought together government agencies, investors, industry experts, and critical stakeholders in the Nigeria SEZ ecosystem to discuss issues of mutual concern and proffer solutions to some of the challenges confronting the scheme in Nigeria.

They noted, with a profound sense of fulfilment, the immense contribution and critical role SEZs have played in the growth and development of the Nigerian economy, stressing the importance of leveraging the much-improved collaboration with the Nigeria Customs Service (NCS) to massively produce export-orientated goods meant for the African market and take advantage of the Africa Continental Free Trade Area Agreement (AfCFTA) to boost Nigeria’s export earnings.

The stakeholders expressed reservations on certain provisions of the Nigeria Tax Bill, 2024, particularly the proposal to expunge some sections of the NEPZA/OGFZA Acts, which provide tax incentives for SEZ operators, and requested further engagement with critical stakeholders in the SEZ ecosystem to pass a tax law that promotes both local and foreign investment into the scheme.

According to the communique, the stakeholders noted the willingness of the Chairman of the Presidential Committee on Fiscal and Tax Reform, Mr. Taiwo Oyedele, to further engage stakeholders on their concerns with regards to some provisions in the Nigeria Tax Bill, 2024, affecting the SEZ scheme, and resolved to participate actively during the public hearing, organised by the National Assembly, for the passage of the new Tax Reform Bill, in order to ensure that it delivers the best possible business environment for SEZs when passed into law.

The communique stated: “The stakeholders noted, with delight, the current resolve by the Federal Government through the Federal Ministry of Industry, Trade and Investment (FMITI), to prioritize Special Economic Zones for rapid industrialization and economic transformation, and commended its commitment to set a clearly defined policy environment that would inspire investor confidence and enhance greater business efficiency in SEZs.

“The stakeholders noted the substantial progress being made through the Ministry of Foreign Affairs to reposition the Economic Desk in our Foreign Missions to deliver on Nigeria’s economic priorities and promote foreign direct investment into the SEZs in Nigeria.

“The Stakeholders urged the Free Zones Regulatory Authorities to further improve on the existing collaborations with other Government Stakeholder Agencies that exercise regulatory functions within the SEZs including FIRS, NAFDAC, NIS, NCS, SON, DSS, and NPF.”

They acknowledged the progress on the circular by the Nigeria Customs Service on the movement of operational vehicles and procedure code for some capital goods in the SEZs.

“The Stakeholders noted the critical role digitization plays in the efficiency of SEZ operations and commended the Africa Union for designating Nigeria as the hub of digital free zones in Africa and urged the FZ Regulatory Authorities and the FZEs to utilize this position and work towards the export of digital services and the integration of digital technologies into manufacturing processes and industrial operations for the purpose of increasing competitiveness and productivity.

“The meeting resolved to promote cohesive synergy in enhancing the development of smart infrastructure, circular economy initiatives, and advanced manufacturing technologies in collaboration with the international business community,” the communique added.