Nigeria launches Digital Free Zone

To enhance the ease of doing business for global enterprises in digital, finance, knowledge, and services sectors in Nigeria, the Federal Government has established a steering committee chaired by President Bola Ahmed Tinubu GCFR

This initiative aims to promote and establish a digital free zone in Nigeria, catering to the unique needs of innovative digital trade and service businesses.

The Initiative for the promotion of Digital Free Zones in Nigeria (DiFZIN) represents private-sector stakeholders and serves as technical advisers. DiFZIN is a non-profit advocacy and policy research organisation backed by a consortium of private sector development-focused institutions, including Africa Finance Corporation, PwC Nigeria, Charter Cities Institute, Future Africa, and Itana. Its mission is to ensure Nigeria’s free zones ecosystem becomes a leading hub for global technology and service businesses in Africa.

The committee will work with government agencies and private stakeholders to align Nigeria’s free zone policies, technology, and processes with international standards. It will develop and publish frameworks to allow both global and local technology and service businesses to set up Pan-African or global operations from Nigeria. Businesses utilising the zone will benefit from competitive incentives such as tax, immigration, and banking advantages, streamlined government compliance, predictable regulations, and a supportive business environment.

This initiative supports the Federal Government’s strategic growth goals by aiming to increase foreign direct investment, create job opportunities, and facilitate capital flow into Nigeria’s economy through a forward-thinking approach to the free zones ecosystem.

The HMF/CME highlighted the crucial role of free zones in driving and sustaining economic growth in emerging markets like Nigeria, emphasizing that the digital age must integrate technology-focused businesses within a liberal regulatory framework to attract investment and showcase domestic talent globally.

Dr Olufemi Ogunyemi, MD/CEO of NEPZA (Nigeria Export Processing Zones Authority), emphasised NEPZA’s dedication to digital transformation. He highlighted the e-NEPZA platform’s role in streamlining government services in line with the Federal Government’s ease of doing business policy. Dr. Ogunyemi also stressed the importance of data privacy and the need for digital infrastructure, such as fibre optics, to support small businesses accessing global markets. “We look forward to partnering with DiFZIN to advance our digital processes,” he stated. NEPZA’s backing of Digital Free Zones marks a step towards a digitally-driven economy, unlocking new opportunities for businesses of all sizes in Nigeria.

Luqman Edu, executive director of DiFZIN and CEO of Itana, and the DiFZIN consortium, aim to support the Federal Government in making Nigeria a hub for regional expansion across Africa. These efforts are intended to enhance Nigeria’s GDP, government revenue, capital importation, and foreign exchange availability, while creating employment opportunities for the growing 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 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.”

Banji Fehintola, head of financial services at AFC, commented, “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 promote innovation and economic growth by utilizing advanced digital technologies like AI and Edge Computing within a supportive regulatory environment. These zones act as incubators for innovation, offering a platform for businesses to enhance growth and competitiveness. The supportive regulatory framework ensures an environment conducive to experimentation, collaboration, and the seamless integration of emerging technologies into business operations.