Nigeria Launches Initiative to Establish Digital Free Zones for Global Trade and Innovation

In a bid to position Nigeria as a hub for global digital trade and innovation, the Federal Government has launched an initiative to establish Digital Free Zones in the country. Chaired by President Bola Ahmed Tinubu GCFR, a steering committee has been inaugurated to oversee the establishment of these digital free zones, designed to attract and support tech, finance and service-oriented businesses, in a conducive environment tailored to the 21st-century digital trade and technological age.

The steering committee includes the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun as Vice Chairman, as well as other key government officials such as the Attorney General of the Federation and Minister of Justice, Prince Lateef Olasunkanmi Fagbemi SAN; the Honourable Ministers of Communications, Innovation and Digital Economy, Dr Bosun Tijani; Industry, Trade and Investment, Dr Doris Uzoka-Anite; Interior, Mr Olubunmi Tunji-Ojo; and the heads of relevant government agencies.

The Initiative for the Promotion of Digital Free Zones in Nigeria (DiFZIN) serves as the private-sector stakeholders’ representative and technical advisers on the committee. DiFZIN, a non-profit advocacy and policy research organisation, is 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 is to develop Nigeria’s free zones ecosystem into Africa’s primary hub for global technology, finance and service businesses.

The committee will collaborate with relevant government agencies and private stakeholders to update Nigeria’s free zone policies and 30-year-old regulatory framework, technology and processes to align with global standards. This includes developing and publishing policy and operational frameworks to enable qualified global and local technology, finance and services-based businesses to establish Pan-African or global operations from Nigeria.

Businesses operating within the zones will benefit from modernized free zone regulations, including tax, banking, and immigration incentives, simplified government compliance processes, and a stable regulatory environment. The strategic goals include boosting foreign direct investment, creating employment opportunities, and facilitating foreign exchange inflow through an innovative approach to the free zones ecosystem.

The establishment of Itana, Africa’s first digital free zone management company, registered and licensed by NEPZA, underscores the Federal Government’s commitment to creating an enabling environment for global technology, finance and services-based businesses.