Vying to end the exodus of foreign businesses from Nigeria, the Nigeria Export Processing Zones Authority (NEPZA) has launched a series of measures aimed at supporting startups and foreign enterprises operating within the country’s free trade zones.
These measures, 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, spoke on the authority’s focus on 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).
“This initiative aims to reduce production costs and incentivise 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 at the startup phase of businesses”
In addition to financial incentives, NEPZA is tackling one of the most vital issues affecting businesses in Nigeria: power supply. The authority is providing power generation solutions to meet the needs of companies within its zones.
This addresses a huge issue for many multinationals that have noted 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 sometimes up to professional level. These are statutory requirements that are part of this handshake,” 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, simplifying processes and reducing bureaucratic issues.
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 in Nigeria’s potential to attract and sustain foreign investments, despite global economic challenges.
He said, “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.
“And on top of that, there is something people call CSR but I call it Community Social Regeneration. I think that is a more accurate description. And it is part of the requirements we have on all these investors.”
