Nigeria’s free trade zone regime is heading towards a significant fiscal transition, with 2028 set as the deadline for the full application of domestic sales taxation on goods produced within the zones and sold into the Nigerian customs territory.
The policy shift will require enterprises operating under the Nigeria Export Processing Zones Authority (NEPZA) and other designated free trade zones to begin treating goods destined for the domestic market on par with ordinary imports for tax and duty purposes.
At present, entities within the zones benefit from a range of fiscal incentives, including exemptions from customs duties, value-added tax, and companies income tax on approved activities. However, when zone-manufactured goods cross into the domestic market, the applicable tax treatment has been a subject of evolving policy and enforcement debate.
The 2028 timeline marks the endpoint of whatever transitional arrangements may currently be in place, after which the full spectrum of domestic taxes and levies will become due at the point of entry into the Nigerian market.
Industry stakeholders have been urged to begin preparing their compliance frameworks well ahead of the deadline to avoid disruption to supply chains and potential penalties.