In a pivotal appeal to safeguard Nigeria’s strategic energy assets, the Oil and Gas Free Zones Authority (OGFZA) has called on the Federal Government to grant operators within its purview a critical 10-year exemption from new tax legislation. This move, the authority argues, is essential to protect and sustain over $24 billion in cumulative investments that underpin the nation’s oil and gas free zones.
The Managing Director of OGFZA, Mr. Bamanga Jada, made the urgent case during a high-level meeting with officials from the Federal Inland Revenue Service (FIRS) and OGFZA licensees in Rivers State. Jada emphasized that the proposed exemption is not a request for permanent relief, but a necessary transitional buffer. It would provide operators—who often plan and fund projects on 10 to 25-year horizons—with the stability needed to adjust to the evolving fiscal landscape without jeopardizing existing capital-intensive operations.
“Policy consistency is the bedrock of investor confidence, especially under the government’s Renewed Hope Agenda,” Jada stated. He highlighted the tangible economic impact of the zones: hosting over 200 enterprises and generating hundreds of thousands of direct and indirect jobs. The stakes of policy disruption, therefore, extend far beyond corporate balance sheets to national employment and economic output.
To understand the scale of what is being protected, consider the zones’ performance. Under the current administration, exports have surged to nearly 500 million metric tonnes, reaching major global markets from the Americas to Asia. This export engine, Jada implied, is powered by the long-term investment commitments that a sudden tax shift could destabilize. The $24 billion investment figure represents not just capital, but complex infrastructure, technology transfers, and integrated supply chains that cannot be easily replicated or moved.
The FIRS response, delivered by Dr. Cletus Adie on behalf of Executive Chairman Dr. Zacch Adedeji, framed the 2025 reforms as a modernization drive focused on transparency, accountability, and compliance. Adedeji clarified that the intent for free zones is not to tax profits per se, but to strengthen the framework ensuring these zones contribute effectively to national development. This suggests a potential middle ground: a regime where compliance and reporting are enhanced, but core fiscal incentives remain protected during a negotiated transition.
The unanimous call from stakeholders at the meeting underscores a fundamental tension in economic governance: balancing immediate revenue generation with long-term investment attraction. Special Economic Zones (SEZs) globally compete on the certainty of their incentive packages. A abrupt change can signal policy risk, potentially chilling future investment not only in oil and gas zones but across all of Nigeria’s SEZs, as investors reassess the government’s commitment to previously agreed terms.
OGFZA reaffirmed its commitment to collaborate with FIRS for a fair implementation of reforms. The path forward likely requires nuanced calibration—safeguarding existing investments to maintain operational continuity and job security, while designing a future-proof tax framework that aligns zone activities with broader national fiscal goals. The requested 10-year window is thus presented as a strategic pause, allowing for a managed evolution rather than a disruptive revolution in Nigeria’s oil and gas free zone policy.
Edited by Bashir Rabe Mani
