NEPZA offers duties waiver, tax holiday to startups in free trade zones - Daily Trust

Source: Daily Trust

The Nigeria Export Processing Zones Authority (NEPZA) has revealed that it will offer startups and foreign businesses operating in Free Trade Zones (FTZs) tax breaks,...

The Nigeria Export Processing Zones Authority (NEPZA) has revealed that it will offer startups and foreign businesses operating in Free Trade Zones (FTZs) tax breaks, customs duty waivers and other incentives to curb foreign businesses from exiting the country.

The Managing Director of NEPZA, Olufemi Ogunyemi, who disclosed this, said, "The initiative aims to reduce production costs and incentivise companies to maintain operations in Nigeria. We offer a range of incentives designed to attract and retain Foreign Direct Investment (FDI). These incentives include customs duty waivers, tax breaks and deferred payments to the government at the startup phase of businesses.''

He noted that in exchange for the business reliefs, companies would be mandated to train Nigerians, sometimes to professional level, through CSR activities, which he described as Community Social Regeneration.

He further said, "We are witnessing an unfortunate trend where companies are relocating due to issues like foreign exchange access and power supply. To mitigate these challenges, NEPZA is actively involved in providing power generation solutions tailored to the needs of businesses operating within its zones.

"Now, on the flip side, like I said, it's a handshake. So, we give and then we take. Therefore, NEPZA requests from these foreign direct investors that they employ Nigerians. They train Nigerians on skilled, semi-skilled, even sometimes up to professional level. These are statutory requirements that are part of this handshake.

"And on top of that, there is something people call CSR, but I call it Community Social Regeneration. I think that is a more accurate description. And it is part of the requirements we have on all these investors.''