The Oil and Gas Free Zones Authority (OGFZA) has voiced support for a ten‑year tax exemption for operators in Nigeria’s oil and gas free zones. At a town‑hall meeting with the Federal Inland Revenue Service (FIRS) and licensed operators in Onne, Rivers State, Managing Director and Chief Executive Officer Bamanga Jada warned that an abrupt implementation of the new tax law could disrupt long‑term investments and undermine investor confidence. The meeting took place just a month before Nigeria’s new tax act is slated to take effect.
Jada argued that a ten‑year exemption would give operators the “adaptation space” needed to align with the evolving tax framework while protecting investments that rely on long‑term fiscal incentives. He noted that many licensees, including major foreign investors, plan their businesses over ten, fifteen, or even twenty‑five years based largely on the incentives available at the time of investment.
OGFZA has attracted more than $24 billion in investments, and energy‑focused free zones have played a transformative role in other economies such as the Jebel Ali Free Zone in Dubai and the Sohar Free Zone in Oman. Strong incentives in those jurisdictions have drawn billions of dollars, created large‑scale employment, and positioned the host countries as global industrial hubs. Similarly, OGFZA‑regulated free zones in Nigeria have secured significant investments, host over 200 enterprises, and generate hundreds of thousands of direct and indirect jobs.
The authority praised President Bola Tinubu for his commitment to tax reforms and economic transformation, and commended Minister of Industry, Trade and Investment Dr. Jumoke Oduwole for her support of the free‑zones sector. Exports from Nigeria’s oil and gas free zones have surged under the current administration, reaching 496,537,804 metric tonnes and generating substantial foreign‑exchange inflows.
FIRS Executive Chairman Dr. Zacch Adedeji described the 2025 tax reforms as a critical step toward modernising Nigeria’s fiscal system and strengthening compliance. He emphasized the need for transparency, accountability, and proper reporting, especially for export processing and free‑trade zones.
Stakeholders at the meeting unanimously called for exempting operators in special economic and free zones from the immediate application of the new tax law, arguing that a transition period is essential for stability and sustained investment. Nigeria’s new tax act, expected to take effect in early 2026, will streamline incentives, tighten tax compliance, and phase out some existing waivers. However, free‑zone operators contend that abrupt changes could erode the cost advantages that originally attracted investors, potentially triggering capital flight and undermining the country’s goals of increasing industrial output, growing non‑oil exports, and attracting global supply chains.
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