The Republic of Benin is intensifying efforts to attract Nigerian manufacturers with a suite of generous fiscal incentives and streamlined business procedures, officials said at the Benin-Nigeria Business Forum in Lagos this week. Benin’s ambassador for investment promotion, Eric Akouche, chief executive of the Agency for the Promotion of Investments and Exports (APiEx), explained that his country has dramatically cut tax burdens and red tape to make it easier and cheaper for firms to establish and expand operations across its borders.
Under Benin’s revamped Investment Code, most new investments are granted broad exemptions from Corporate Income Tax (CIT), Value Added Tax (VAT), and customs duties. Depending on location and sector, companies can benefit from corporate tax holidays lasting between five and 17 years, with longer breaks available for those located in special economic zones (SEZs). The intent is to allow investors to recoup capital and scale production efficiently before normal tax obligations apply.
Akouche told forum participants that these incentives are complemented by a simplified company-formation process that allows registration within hours through a single government platform, without the need for a resident permit, local partner, or local management. Investors can also import inputs tax-free, repatriate profits without restriction, and use certificates of origin to serve markets beyond Benin, including within the Economic Community of West African States (ECOWAS).
One focal point of Benin’s pitch is the Glo-Djigbé Industrial Zone (GDIZ) near Cotonou, where power costs are relatively low and market access to Nigeria and Francophone West Africa is convenient. Authorities say the zone offers manufacturers a strategic base from which to serve regional demand and integrate production across borders.
The investment strategy aligns with Benin’s broader economic performance, with recent statistics showing robust growth driven by infrastructure development, agro-processing, and export expansion. Government officials say the nation now ranks highly in World Bank ease-of-doing-business indicators for West Africa, strengthening its appeal to foreign capital.
However, analysts and foreign observers have expressed caution that Benin’s relatively light regulatory oversight and lack of formal investment screening could pose risks for investors, particularly around judicial transparency and dispute resolution.
On the Nigerian side, industry leaders framed Benin’s outreach not as competition but as regional cooperation, noting that closer economic ties could benefit both countries’ manufacturing sectors and broader West African economic integration.
