Nigeria Establishes Steering Committee to Develop Digital Free Zones to Boost Global Trade and Investment

The primary objective of the committee is to review and align Nigeria’s free zone policies, technology, and processes with global standards.

In a strategic move to enhance the ease of doing business for global digital, finance, knowledge, and services-oriented enterprises, the Federal Government of Nigeria has established a steering committee to promote and develop a Digital Free Zone in the country. This initiative is spearheaded by President Bola Ahmed Tinubu GCFR, who chairs the committee, with the Honourable Minister of Finance and Coordinating Minister of the Economy (HMF/CME) serving as Vice Chairman.

The committee includes prominent figures such as the Honourable Attorney General of the Federation and Minister of Justice, the Honourable Ministers of Industry, Trade and Investment, Communications, Innovation and Digital Economy, and Interior. It also features heads of relevant government agencies and committees, as well as representatives from the Initiative for the Promotion of Digital Free Zones in Nigeria (DiFZIN), a non-profit organization supported by a consortium of private sector development institutions including Africa Finance Corporation, PwC Nigeria, Charter Cities Institute, Future Africa, and Itana.

The primary objective of the committee is to review and align Nigeria’s free zone policies, technology, and processes with global standards. It aims to develop and publish policy and operational frameworks that will enable both global and local technology and service businesses to establish Pan-African or global operations from Nigeria. Businesses operating within the Digital Free Zone will benefit from modernized regulations, including tax, immigration, and banking incentives, as well as simplified government compliance processes and a predictable business environment.

The Federal Government’s strategic goals include boosting foreign direct investment, creating employment opportunities, and facilitating capital flow into Nigeria’s economy through a forward-thinking approach to the free zones ecosystem.

HMF/CME highlighted the crucial role of free zones in driving economic growth in emerging markets like Nigeria. He stressed that the implementation of these zones in the digital age must integrate technology-focused businesses to attract investment and showcase domestic talents under a liberal regulatory framework.

Dr. Olufemi Ogunyemi, MD/CEO of NEPZA (Nigeria Export Processing Zones Authority), affirmed the Authority’s dedication to digital transformation, particularly through the e-NEPZA platform, which aligns with the Federal Government’s ease of doing business policy. Dr. Ogunyemi also emphasized the importance of data privacy and digital infrastructure, such as fibre optics, to support small businesses in accessing global markets.

Mr. Luqman Edu, Executive Director of DiFZIN and CEO of Itana, expressed the consortium’s commitment to supporting the Federal Government in making Nigeria a hub for regional expansion across Africa. Edu outlined DiFZIN’s goal to reform regulatory frameworks for taxation, banking, immigration, and ease of doing business to create a favorable environment for global technology and services-based businesses.

Banji Fehintola, Head of Financial Services at AFC, highlighted AFC’s role in providing specialized financial and technical advice to both public and private sector players. He expressed eagerness to collaborate with DiFZIN and other partners to modernize Nigeria’s free trade zones, attract investment, create local jobs, and boost trade and commerce across Africa.

The establishment of Digital Free Zones is expected to foster innovation and economic expansion by leveraging advanced digital technologies such as AI and Edge Computing, alongside a supportive regulatory environment. These zones will serve as incubators for innovation, offering a platform for businesses to drive growth and competitiveness while ensuring a conducive environment for experimentation and collaboration.