The Federal Government has positioned Nigeria’s Free Trade Zones as major drivers of industrialisation, investment and non-oil exports, saying the scheme has attracted more than $200 billion in foreign investment and over ₦900 billion in domestic investment.
Minister of Industry, Trade and Investment, Jumoke Oduwole, disclosed the figures during a virtual meeting with stakeholders in the Special Economic Zones sector in September 2026, as the government moved to modernise the regulatory framework governing the zones.
Oduwole said the investments had generated more than 100,000 direct jobs, while employment linked to supply chains, logistics networks and host communities had pushed the wider impact above 500,000 jobs.
“Across the scheme, the authorities record over $200bn of foreign investment and over N900bn of domestic investment, more than 100,000 direct jobs, and over 500,000 when the supply chains, the logistics networks and the host communities are counted,” Oduwole said, according to The PUNCH’s report published on October 2, 2026.
The latest figures underline the economic scale the government is seeking to preserve as it reviews the rules governing the country’s Free Trade Zones, which are overseen principally by the Nigeria Export Processing Zones Authority and the Oil and Gas Free Zones Authority.
According to the Nigeria Export Processing Zones Authority, the free-zone scheme was established to improve Nigeria’s investment climate by promoting export-oriented businesses, streamlining approvals and providing a one-stop regulatory environment. NEPZA currently lists 42 licensed Free Zones and says the scheme has attracted more than $200 billion in foreign investment.
The government is now seeking to address regulatory weaknesses while maintaining the zones as platforms for production and exports. Oduwole said the revised framework would clarify the existing 75% export and 25% domestic-sales structure and ensure goods moved from Free Zones into the Nigerian Customs Territory comply with applicable tax and customs requirements.
Under the proposed framework, NEPZA and the Oil and Gas Free Zones Authority will retain responsibility for licensing and operational oversight, while the Nigeria Revenue Service will handle tax administration and the Nigeria Customs Service will oversee customs control, valuation, classification and enforcement.
The reforms will also introduce Digital Free Zones and Digital Special Economic Zones to accommodate technology-driven businesses that may not require traditional physical industrial sites.
Oduwole said the government’s objective was to strengthen the integrity and competitiveness of the scheme while protecting legitimate investments. She said lawful incentives that support the purpose of the zones would remain important as the government seeks to increase production, exports and investment.
The Federal Government’s latest position comes after years of debate over the effectiveness and fiscal cost of Free Zone incentives. NEPZA has previously described the zones as instruments for industrialisation, infrastructure development, employment generation, skills acquisition, foreign-exchange earnings and FDI attraction.
The government is therefore seeking to make the zones more responsive to changing business models while tightening controls around domestic sales, taxation and customs compliance.
