Overview
Introduction Free Trade Zones (FTZs) refer to geographic areas within a particular state that are exempt from the application of orthodox trade laws, particularly 1 regarding the taxation of goods and services offered within such areas. The nomenclature for FTZs varies by jurisdiction. In this regard, they are also termed Export Processing Zones, Special Economic Zones, and Foreign Trade 2 Zones, among others. Depending on their use within a state, FTZs could be catalysts for national economic growth. This is so as the benefits that characterise such zones incentivise local businesses, facilitate international trade, and attract foreign 3 direct investment (FDI), among others.
Within the Nigerian context, FTZs serve as a strategic tool for diversifying national income, offering a non-oil revenue stream for the government and consolidating the national economy. In this regard, the Nigerian Export Processing Zones Authority (NEPZA) reported that between 2020 and 2023, FTZs in Nigeria generated N11.1 billion. This reflects the capacity for expansive revenue generation in the 4 approximately 42 (forty-two) enterprises that make up the free zone economy. 5 Inevitably, the enactment of the 2025 tax reform Acts, and how they apply to the FTZs in Nigeria may be crucial in realising the full economic gains of FTZs.
