The Federal Government has announced plans to drive foreign direct investments by deploying the use of incentives.
These incentives include customs duty waivers, tax breaks, and deferred payments to the government during the initial phases of business operations, NAN reports.
The Managing Director of Nigeria Export Processing Zones Authority, Olufemi Ogunyemi on Tuesday said the incentives include tax breaks, duty waivers and deferred payments, noting that the move was in response to challenges posed by foreign exchange constraints and unreliable power supply.
He stated that the move is an effort to reduce production costs and incentivise companies to maintain their operations within Nigeria.
He added that by alleviating the financial burden through customs duty waivers and tax breaks, the Nigeria Export Processing Zones Authority aims to create a favourable business environment that encourages both local and foreign investment.
“To mitigate these challenges, NEPZA is actively involved in providing power generation solutions tailored to the needs of businesses operating within its zones.
“This initiative aims to reduce production costs and incentivise companies to maintain operations in Nigeria. We offer a range of incentives designed to attract and retain foreign direct investment.
“These incentives include customs duty waivers, tax breaks, and deferred payments to the government at the start-up phase of businesses.
This initiative is expected to not only support existing businesses but also attract new ventures looking to capitalise on these incentives to establish and expand their operations in Nigeria,” Ogunyemi said.
He emphasised the importance of corporate social responsibility as a reciprocal obligation for businesses benefiting from these incentives noting that the organisation requires investors to contribute to societal development through CSR initiatives, ensuring that economic growth is coupled with sustainable community impact.
“And on top of that, there is something people call CSR but I call it Community Social Regeneration. I think that is a more accurate description.
“And it is part of the requirements we have on all these investors,’’ he said
