Administration of Taxes Arising from the Operation of Free Zones
2022-07-27 09:30 - 14:30 (Europe/London) | Radisson Blue Anchorage Hotel, Lagos, Lagos, Nigeria
Collaboration in the Administration of Taxes Arising from the Operations of the Free Zones: NEZA’s 2022 Forum with FIRS and NEPZA
In a strategic move to address concerns within the free trade zones tax system, the Nigeria Economic Zones Association (NEZA) convened a pivotal forum in response to the Memorandum of Understanding (MoU) signed by the Federal Inland Revenue Service (FIRS) and the Nigerian Export Processing Zones Authority (NEPZA).
This landmark event, titled “Collaboration in the Administration of Taxes Arising from the Operations of the Free Zones,” took place on July 27, 2022, at the Radisson Blue Anchorage Hotel in Lagos. The forum aimed to reconcile ambiguities within the tax pact and address stakeholders’ reservations regarding tax deductions from free zones and enterprises operating within them.
One of the major outcomes of this forum was the mutual decision to adjust sections of the MoU to accommodate stakeholders’ concerns. This move was prompted by feedback from a diverse array of stakeholders, who expressed those certain aspects of the guidelines conflicted with the NEPZA Act for free zone operators.
Adesoji Adesugba, Managing Director of NEPZA, emphasized the significance of the free trade zone scheme as a potent instrument for economic growth and development. He stated that the forum’s purpose was to make necessary adjustments in how FIRS and NEPZA handled tax-related issues within the free trade zone ecosystem.
The flexibility of the MoU was a central theme during the event, with the stakeholders being given the leverage to call for the amendment of tax guidelines when needed.
Mohammed Nami, Executive Chairman of FIRS, affirmed their commitment to evaluating stakeholder concerns, clarifying that the document provided a flexible guideline for administering the MoU. While some concerns were acknowledged, FIRS reiterated its emphasis on remittances of returns, Value Added Tax (VAT), and Withholding Tax for enterprises with full status in free trade zones.
In a promising development, it was announced that all other issues raised during the forum would be diligently addressed within two months.
Toyin Elegbede, Executive Secretary of NEZA, underscored the forum’s importance in addressing members’ concerns about the tax administration pact between NEPZA and FIRS. He highlighted the positive discussions at the event, expressing optimism about the government’s commitment to supporting Foreign Direct Investment (FDI) through the free trade zone scheme.
The forum boasted an impressive turnout, featuring chief executives of free zones, enterprises, contractors, consultants, and other key stakeholders. It stood as a testament to NEZA’s dedication to fostering collaboration and alignment in tax administration, ultimately contributing to the growth and vitality of Nigeria’s economic zones

Streamlining Free Zone Operations for Global Competitiveness
2022-03-03 09:00 - 17:00 | Fantasia Ballroom, Convention Centre, Eko Hotels & Suites, Victoria Island, Lagos, Nigeria
At the end of the deliberations, the forum agreed as follows:
1) That as coordinating agencies, the Nigeria Export Processing Zones Authority (NEPZA) and Oil and Gas Free Zones Authority (OGFZA) should endeavor to have regular briefings with all the relevant government agencies so as to streamline Free Zone operation and to be kept abreast of all burning issues and new development in procedures and the operations in general.
2) That there is a need for automation of operational processes and digitalization of the information in the Free Zones in order to enhance accessibility and competitiveness.
3) That the stakeholders should embrace innovation to increase competitiveness of operators in the Free Zones.
4) That the Honorable Minister of the Federal Ministry of Industry, Trade and Investment should be applauded for his approval to increase Operational License validity to 5 years subject to annual renewal.
5) That Nigeria Customs Service should have copies of landing certificates for other stakeholders.
6) That training institutions of Nigeria Customs Service(NCS), Nigeria Immigration Service (NIS), Federal Inland Revenue Service (FIRS), etc., should include the Free Zone scheme in their study curriculum.
7) That all stakeholders, as a matter of urgency, hook up to the Nigeria Integrated Customs Information System (NICIS II) portal.
8) That the Forum should appeal to Central Bank of Nigeria to approve the offshore banking regulations as soon as possible.
9) That for easy access to immigration facilities, the Forum should appeal for a Combined Expatriate Residence Permit and Alien Card (CERPAC) printing/processing for the Free Zones within Lagos axis.
10) That no immigration facilities should be processed without regulators’ authentication to avoid abuse of facilities.
11) That Stakeholders should share more information and increase the level of collaboration and interaction.
12) That the Forum applauds the understanding of the Nigeria Customs Service of Free Trade Zone activities and appeals that it considers the resolutions reached on the procedure of calculating duty on products manufactured and assembled in the Free Zones starting from April, 2022.
13) That the forum should advise FIRS, NCS, and NIS to show understanding towards the special incentives available to Free Zone operators.
14) That NIS should be considered to be included in the board of the regulatory Agencies; NEPZA and OGFZA.
15) That henceforth, regulators should extend their sensitization to other stakeholders like Standard Organization of Nigeria, NAFDAC, NCDMB, ITF, State Inland Revenue, City Building Plan Approval and Development Control Agencies, etc.
16) That Stakeholders should collaborate with the leadership of the Nigeria Economic Zones Association to defend and preserve the interest of the Operators.
