…The steering committee is chaired by President Tinubu, supported by the Honourable Minister of Finance and the Coordinating Minister of the Economy (HMF/CME) as Vice Chairman.
…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
FRI AUG 09 2024-theGBJournal| The Federal Government has established a steering committee chaired by President Bola Tinubu to drive the promotion and establishment of a digital free zone in Nigeria to accommodate the peculiar needs of innovative digital trade and service businesses.
The initiative is in a bid to drive the ease of doing business for global digital, finance, knowledge- and services-oriented enterprises in Nigeria.
The steering committee is chaired by President Tinubu, supported by the Honourable Minister of Finance and the Coordinating Minister of the Economy (HMF/CME) as Vice Chairman.
Other members are 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; the heads of relevant Government Agencies and Committees; and the Initiative for the Promotion of Digital Free Zones in Nigeria (DiFZIN) as the private-sector stakeholders’ representative and technical advisers.
DiFZIN is a non-profit advocacy and policy research organisation supported by a consortium of private sector development-focused and advisory institutions including Africa Finance Corporation, PwC Nigeria, Charter Cities Institute, Future Africa, and Itana.
The mission of the organisation is to see Nigeria’s free zones ecosystem fulfil its full potential as Africa’s major hub for global technology and service businesses.
This Committee will work collaboratively with relevant agencies of government and private stakeholders to review and align Nigeria’s free zone policies, technology and processes with global standards, then develop and publish policy and operational frameworks to enable qualified global and local technology and service businesses to establish Pan-African or global operations from Nigeria.
Businesses that take advantage of the zone will benefit from competitive business incentives provided by modernized free zones regulations, including tax, immigration and banking incentives, simplified government compliance processes, clear and predictable business regulation and an enabling business environment.
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), emphasized 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 as well as 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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