In a strategic move to enhance the ease of doing business for global digital, finance, knowledge, and services enterprises in Nigeria, the Federal Government, in collaboration with the Initiative for the Promotion of Digital Free Zones in Nigeria (DiFZIN), has inaugurated a steering committee aimed at establishing a Digital Free Zone. This initiative is designed to cater to the specific needs of innovative digital trade and service businesses, positioning Nigeria as a hub for global technology and service operations.
The steering committee is chaired by President Bola Ahmed Tinubu GCFR, with the Honourable Minister of Finance and Coordinating Minister of the Economy serving as Vice Chairman. The committee's membership includes key government figures such as the Honourable Attorney General of the Federation, Ministers of Industry, Trade and Investment, Communications, Innovation and Digital Economy, and Interior, as well as leaders of relevant government agencies. DiFZIN, a non-profit advocacy group supported by a consortium of private sector institutions like Africa Finance Corporation and PwC Nigeria, represents private-sector stakeholders and serves as technical advisors.
The committee's mandate includes collaborating with government agencies and private stakeholders to align Nigeria's free zone policies with global standards. They will develop and implement policy and operational frameworks to attract both global and local technology and service businesses to establish operations in Nigeria. Companies within the Digital Free Zone will benefit from a range of incentives, including tax, immigration, and banking advantages, simplified compliance processes, and a business-friendly regulatory environment.
The initiative is expected to propel Nigeria's free zones into a major African hub for technology and global service enterprises, driving economic growth and innovation.
As part of the Federal Government’s strategic growth objectives, it aims to boost foreign direct investment, create employment opportunities, and facilitate the capital flow into Nigeria’s economy, through an innovative and future-oriented approach to the free zones ecosystem.
The HMF/CME stated that “the pivotal role of free zones to catalysing and sustaining economic growth in an emerging market such as Nigeria cannot be overemphasised. Its implementation in this digital age must not only encompass manufacturing undertakings but also integrate the central role of technology-focused businesses in attracting investments and making available to the global markets, our domestic talents under a liberal regulatory framework. These and more are what the Government aims to deliver through the digital free zones.”
Dr. Olufemi Ogunyemi, MD/CEO of NEPZA (Nigeria Export Processing Zones Authority), emphasised the Authority’s commitment to digital transformation. He highlighted the e-NEPZA platform, which will streamline government services and comply with the Federal Government’s ease of doing business policy.
Dr Ogunyemi also noted the importance of data privacy, with data stored locally in local servers as well as the ability of small businesses to access global markets, addressing the need for digital infrastructure like fibre optics. “We look forward to partnering with DiFZIN to advance our digital processes,” he stated. NEPZA’s support for Digital Free Zones signals a move towards a digitally driven economy, unlocking new opportunities for small and medium-scale enterprises and large corporations in Nigeria.
Mr. Luqman Edu (Executive Director of DiFZIN and CEO of Itana and the DiFZIN consortium, aim to support the Federal Government in positioning Nigeria as a hub for regional expansion across Africa. These efforts are designed to contribute to the growth of Nigeria’s GDP, government revenue, capital importation, and foreign exchange availability, while simultaneously generating employment opportunities for the burgeoning Nigerian youth population.
“DiFZIN is committed to driving the agenda for reforms to the regulatory frameworks for taxation, banking, immigration, and ease of doing business, among others, within the free zones ecosystem,” said Mr Edu. “Our goal is to create a conducive environment for global technology and services-based businesses to thrive, facilitating remote operations and banking from Nigeria for Africa, thereby positioning Nigeria as a hub for Africa, akin to what Delaware is for the US, and Dubai is for Asia.”
Speaking on the partnership with DiFZIN, Banji Fehintola, Head of Financial Services at AFC said “AFC’s advisory team is uniquely skilled in providing tailored financial and technical advice to public and private sector players across Africa. We look forward to collaborating with DiFZIN and all other partners to modernize Nigeria’s free trade zones, attract much-needed investment, create local jobs, and boost trade and commerce in Nigeria and Africa.”
Digital Free Zones foster innovation and economic expansion by leveraging cutting-edge digital technologies such as AI and Edge Computing, and a supportive regulatory environment. These ecosystems serve as incubators for innovation, providing a platform for businesses to drive growth and competitiveness. The supportive regulatory framework also ensures a conducive environment for experimentation, collaboration, and the seamless integration of emerging technologies into everyday business operations.
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