AfriPulse
By Felix Khanoba
The Oil and Gas Free Zones Authority (OGFZA) has endorsed proposals seeking a 10-year tax exemption for operators within oil and gas free zones under the newly introduced tax law.
The Managing Director and Chief Executive Officer of OGFZA, Mr. Bamanga Umar Jada, made the position known on Thursday at a town hall engagement in Onne, Rivers State, involving the Federal Inland Revenue Service (FIRS) and OGFZA-licensed companies.
According to Jada, a decade-long extension would offer operators sufficient “adaptation space” to adjust their operations and fully align with changing tax regulations.
“Accordingly, OGFZA supports the call for a ten-year extension of existing tax incentives, coupled with a phased implementation to mitigate potential disruptions. Many of our licensees, including prominent foreign investors, formulate strategies spanning 10, 15 or even 25 years, based on prevailing incentives,” he said.
He explained that the proposed transition period would strengthen the Renewed Hope Agenda and promote policy stability, which he identified as essential for attracting long-term investments.
The OGFZA chief revealed that Nigeria’s free zones have so far attracted investments valued at over $24 billion, highlighting their contribution to economic growth.
“Energy-oriented free zones have been pivotal in driving development in several countries, as seen in the Jebel Ali Free Zone in Dubai and the Sohar Free Zone in Oman. These initiatives have attracted billions of dollars in investments, created massive employment opportunities and positioned their economies as global leaders,” Jada said.
“Similarly, OGFZA-regulated free zones in Nigeria have secured more than $24 billion in investments, host over 200 enterprises, and have generated hundreds of thousands of direct and indirect jobs. This highlights the value of strong incentives and effective regulation in accelerating industrialisation,” he added.
Jada praised President Bola Ahmed Tinubu for advancing tax reforms and economic restructuring, and also commended the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, for her continued support of the industry.
He further noted that exports from Nigeria’s oil and gas free zones under the current administration had reached 496,537,804 metric tonnes, boosting foreign exchange earnings.
“Our operators now supply markets in Brazil, the United States, France, India, the United Kingdom, the Republic of Korea and beyond, in line with the President’s Renewed Hope Agenda,” he said.
Jada reiterated OGFZA’s commitment to ongoing cooperation with FIRS, consistent with the existing memorandum of understanding, to guarantee effective and equitable implementation of tax reforms.
Speaking at the meeting, the Executive Chairman of FIRS, Dr. Zacch Adedeji, described the 2025 tax reforms as a significant milestone in updating Nigeria’s tax system.
Adedeji, who was represented by his Special Adviser on Tax Incentives, Dr. Cletus Adie, said the requirement of a tax clearance certificate for the renewal of operating licences had become essential.
“For export processing and free trade zones, the focus is not on taxing income or profits, but on promoting transparency, accountability and proper reporting,” he said.
He added that improved compliance and collaboration would enable free trade zones to make stronger contributions to national development, which he described as the central goal of the Special Economic Zones framework.
Adedeji also referenced what he termed “continuous recalcitrant behaviour by some enterprises,” noting that this had prompted a structured administrative response to enforce compliance in accordance with Section 72(4)(f) of the Nigerian Tax Administration Act.
Participants at the town hall meeting collectively appealed for operators in special economic and free zones to be exempted from the new tax law, arguing that such relief would allow for a smoother transition period.
Source: Authorityngr.com | Read the Full Story…
