Boosting Tech Businesses: FG Unveils Steering Committee for Establishing Digital Free Zones
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.
Key Statements
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The Vice Chairman of the Steering Committee, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun noted that “The pivotal role of free zones in catalysing and sustaining economic growth in Nigeria cannot be overemphasized. In this digital age, we must integrate technology-focused businesses to attract investments and showcase our domestic talents under a liberal regulatory framework.” The Government, he added, “aims to deliver these benefits through the digital free zones.”
In his remarks, the Honourable Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani noted that “As we embrace the concept of digital free zones in Nigeria, we are presented with a unique opportunity to drive local domiciliation of global technology companies to boost skills development and job creation in innovation and technology, and contribute to the local economy. An ecosystem tailored to fostering innovation, knowledge and skills development, and improved digital infrastructure is crucial for harnessing the potential of Nigeria’s digital economy.”
Dr. Olufemi Ogunyemi, MD/CEO of NEPZA assured that “NEPZA is committed to digital transformation through initiatives like the e-NEPZA platform, which will streamline government services and comply with the Federal Government’s ease of doing business policy. We look forward to partnering with DiFZIN to advance our digital processes.”
Also speaking, Mr. Luqman Edu, Executive Director of DiFZIN and CEO of Itana reiterated that “DiFZIN is committed to driving regulatory reforms in taxation, banking, immigration, and ease of doing business within the free zones ecosystem. Our goal is to create a conducive environment for global technology, finance and services-based businesses, positioning Nigeria as a hub for Africa, akin to Delaware for the US and Dubai for Asia.”
Mr Banji Fehintola, Executive Director and Head of Financial Services at AFC, informed that “AFC’s advisory team is skilled in providing tailored financial and technical advice across Africa. We look forward to collaborating with DiFZIN to modernize Nigeria’s free trade zones, attract investment, create jobs, and boost trade and commerce in Nigeria and Africa.”
Technological and Economic Impact
Digital Free Zones will leverage cutting-edge technologies like AI and Edge Computing, fostering an environment for innovation, job creation and economic expansion. These ecosystems will support business growth and competitiveness through a supportive regulatory framework, facilitating the seamless integration of emerging technologies into business operations.
For more information about DiFZIN and its initiatives, please visit www.difzin.org or contact [email protected]
Signed
Mohammed Manga, FCAI
Director, Information and Public Relations
Federal Ministry of Finance
August 7th 2024
