OGFZA MD: Free Trade Zones Attracted $24bn Investments, Backs 10-year Tax Exemption Proposal for Oil & Gas Operators

James Emejo in Abuja

The Managing Director/ Chief Executive, Oil and Gas Free Zones Authority (OGFZA), Mr. Bamanga Umar Jada, has disclosed that the nation’s Free Trade Zones (FTZs) have attracted over $24 billion in investments, underscoring their strategic importance to the Nigerian economy.

This is as OGFZA also backed current advocacy for a 10-year exemption for operators in oil and gas free zones from the new tax laws

Jada made the call in Onne, Rivers State, during a town hall meeting with the Federal Inland Revenue Service (FIRS) and OGFZA licensees.

He said the proposed 10-year extension would provide operators with the necessary “adaptation space” to transition and comply with evolving tax requirements.

In a statement, he said, “Accordingly, OGFZA supports the call for a 10-year extension of existing tax incentives, coupled with a phased implementation to mitigate potential disruptions.

“Many of our licensees, including prominent foreign investors, formulate strategies spanning 10, 15 or even 25 years, based on prevailing incentives.”

He added that granting the transitional period would reinforce the Renewed Hope agenda and ensure policy consistency, which he described as a cornerstone for attracting sustained investment.

The OGFZA chief disclosed that Nigeria’s free zones have attracted over $24 billion in investments, underscoring their strategic importance to the nation’s economy.

According to him, “Energy-oriented free zones have been pivotal in driving development in several countries, as seen in the Jebel Ali Free Zone in Dubai and the Sohar Free Zone in Oman.

“These initiatives have attracted billions of dollars in investments, created massive employment opportunities and positioned their economies as global leaders.

“Similarly, OGFZA-regulated free zones in Nigeria have secured more than $24 billion in investments, host over 200 enterprises, and have generated hundreds of thousands of direct and indirect jobs.

“This highlights the value of strong incentives and effective regulation in accelerating industrialisation.”

Jada commended President Bola Tinubu for his commitment to tax reforms and economic transformation, while also acknowledging the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, for her guidance and advocacy in support of the sector.

He noted that under the Tinubu administration, exports from Nigeria’s oil and gas free zones have risen to 496.54 million metric tonnes, generating significant foreign exchange inflows.

He said, “Our operators now supply markets in Brazil, the United States, France, India, the United Kingdom, the Republic of Korea and beyond, in line with the President’s Renewed Hope Agenda.”

Jada reaffirmed OGFZA’s readiness to sustain collaboration with FIRS, in line with their memorandum of understanding, to ensure tax reforms are implemented efficiently and fairly.