Business

MAN Articulates Benefits of Amending FTZs Tax Bill

An example that is not farfetched is the situation in nearby Ghana. Ghana only allows up to 30% of sales into the customs territory subject to payment of duties and taxes, including CIT.

Published

2 years ago

February 25, 2025

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The Manufacturers Association of Nigeria (MAN) said on Tuesday that the National Assembly should go on with the proposed reform of the free-trade zone operations in the country.

The leadership of the MAN expressed their conviction that the amendments will ensure equitable tax treatment for companies operating in the customs territory and those licensed to operate within the free zones with respect to sales into the customs territory, thereby enabling fair competition while protecting the country’s tax base.

In the position statement, signed by the association’s Segun Ajayi-Kadir, Director-General, MAN noted that licensed entities will also enjoy similar incentives available to entities within the customs territory with respect to their sale of goods and services into the Customs Territory, a win-win outcome.

“It is important for us to situate this conversation within the context of what export processing zones and export free trade zones were created to achieve and the value they are purposed to deliver to the economy.

It is clear from the enabling laws and in the 3rd Schedule to the NEPZA Act with the first listed approved activity stated as “manufacturing of goods for export”, while other activities relate to international services, transshipment and services within the zones.

The emphasis here is “within the zones,” he said.

He argued that for instance, banking is listed as an approved activity but it does not mean that a bank can set up in the zone and render banking services across Nigeria without paying taxes, rather it refers to banking within the zone and exports.

So, this should explain how other activities (apart from manufacturing for export) should be viewed.

“The concern of my members and the contention here are obviously pertaining to tax incentives.

In specific terms, Section 8 on exemption from taxes only applies to approved enterprises operating within a Zone.

They are exempted from all Federal, State and Local Government taxes, levies and rates. Sales to the customs territory is neither an approved activity nor is it within the zone.

“However, section 18 permits the sale of goods and services to the customs territory, but this does not confer tax exemption on the sales, but rather a regulatory matter regarding what is permissible.

“Over time, the provisions of sections 8 and 18 have been misinterpreted as not only permitting the sale into the customs territory but also as tax exemption.

“So again, I say this is where the concern of my members and the contention lies: This position is not consistent with the law and it undermines tax-paying entities operating within the customs territory and producing similar goods and services.

Where does the tax exemption enjoyed by the companies operating within the zones, leave my more than 2,500 members who operate outside the zone, in terms of level playing field, competitiveness, fairness and equity?

They find themselves in a disadvantaged position and are rendered less competitive”, he stated.

Ajayi-Kadri said that he believed that the tax reform bill before the National Assembly has actually come to the rescue.

“The bill seeks to bring clarity and equity by stating that sales to the customs territory are taxable, not just for import duties and VAT, but also for CIT purposes.

That is to say that all sellers in the customs territory should be subject to the same tax obligations.

“Subsequently, I don’t think the relevant provisions of the tax reform bill amount to a reversal of the incentives, not at all. It is actually a clarification to align with the intent and letters of the enabling laws.

This is in line with global best practice for free zones. In fact, Nigeria will continue to be more generous even after the proposed amendments.

An example that is not farfetched is the situation in nearby Ghana. Ghana only allows up to 30% of sales into the customs territory subject to payment of duties and taxes, including CIT.

Whereas we allow 100% sales. Exports by a zone entity are tax-free only for 10 years after which up to 8% CIT will apply. Nigeria offers indefinite tax exemption on exports.”

Related Topics:Featured FTZ tax exemptions FTZs tax reform bill

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Business

Cement: Manufacturers Post N5.8tn Nine Months Revenue

The surge in the revenue is being driven by the increasing prices of cement selling N12,000 to N15,000 between July and September 2026 in Lagos and Ogun States, compared with around N10,000 sold in September 2025.

Published

5 hours ago

November 9, 2026

OCHEFA

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The three largest cement manufacturers in Nigeria Dangote Cement Plc, Lafarge Africa Plc, and BUA Cement Plc have reported a combined N5.8 trillion revenue for the nine months ended September 30, 2026.

THISDAY reported that their unaudited result and accounts, the N5.8 trillion revenue is about 21 per cent increase over the N4.8 trillion revenue reported in nine months of 2025.

A breakdown revealed that Dangote Cement reported N3.8 trillion revenue during the period under review, about 19.6 per cent increase when compared to N3.15 trillion in 2025.

Dangote Cement’s production capacity increased by 9 per cent to 22.1million metric tonnes from 20.2 million tonnes in the corresponding period of 2025. It sold 14.1Mt, up by 6.4 per cent in the period under review. Its average selling price also rose by 9.4 per cent to N170,493 per tonne.

Exports of cement and clinker from Nigeria increased by 41.8 per cent to 1.5Mt, including 26 clinker shipments to Ghana, Cameroon and Ivory Coast. The company’s operations in other African countries sold 9.1Mt, up by 14 per cent. Senegal grew by 30%, Ethiopia by 19 per cent and Tanzania by nine per cent, and a new grinding plant in Ivory Coast sold 0.53Mt. Sales in Ghana and Cameroon were lower.

The first phase of the company’s 6Mt/yr plant at Itori in Ogun state is on track to be commissioned in 2027, part of a plan to increase capacity to 80Mt/yr from 55Mt/yr across Africa.

On its part, BUA Cement posted N1.09 trillion revenue, a growth of 26.5 per cent from N858.72 billion in 2025, while HBM Nigeria declared N928.25 billion revenue, representing an increase of nearly 19 per cent from N780.5 billion in 2025.

Business

Dangote Says Refinery’s IPO Misses 10 Million Investors Target

According to him, the company is yet to establish the official number of investors who participated in the offer, as the necessary reports are still being compiled.

Published

5 hours ago

November 9, 2026

OCHEFA

44 Views

Chairman of Dangote Industries Limited (DIL), Aliko Dangote, has disclosed that the initial public offering (IPO) of the Dangote Petroleum Refinery failed to meet its target of attracting 10 million investors.

Dangote disclosed this during the 25th annual conference of the Women in Management, Business and Public Service (WIMBIZ) in Lagos.

Dangote, however, said the public offer recorded significant participation, attracting millions of investors despite not reaching the projected figure.

According to him, the company is yet to establish the official number of investors who participated in the offer, as the necessary reports are still being compiled.

“We cannot tell the figure right away because we have not reported to this, but we’ve gotten an amazing demand from various people,” Dangote said.

Business

Dangote Rice Mill in Jigawa Begins Processing

Published

6 hours ago

November 9, 2026

OCHEFA

47 Views

The Jigawa State Government investment tracker has confirmed that the Dangote Rice Mill in Hadin is operational with a processing capacity of 32 tonnes per hour, equivalent to roughly 280,000 tonnes annually.

The commencement of the rice mill is trending on a video shared on X.

The footage comes 12 years after Aliko Dangote committed $1 billion to commercial rice farming and processing across Nigeria

The facility is linked to commercial cultivation schemes around Hadejia and Kafin Hausa.

Dangote Group signed a memorandum of understanding with the Federal Government in August 2014 to invest $1 billion in integrated rice farming and milling across Jigawa, Kebbi, Niger, Kwara and Edo states. Two years later, the company launched an 8,000-hectare rice outgrower scheme in Hadejia, Jigawa State. Participating farmers received improved seeds, fertilisers and technical support, and the company committed to buying their harvested paddy for processing.By February 2017, the outgrower scheme had expanded to 25,000 hectares across 14 states. Dangote set a target of 225,000 metric tonnes of milled rice by the end of that year, with an ambition of reaching one million tonnes annually. Construction announcements followed over several years without matching production results.

Dangote laid the foundation for a processing plant in Hadin, Kaugama Local Government Area of Jigawa State, in March 2018.

The facility was initially designed to handle 16 tonnes of paddy per hour.In July 2025, Dangote said Niger State had joined Jigawa, Sokoto, Kebbi, Kano and Nasarawa as locations with rice mills under construction.

By November 2025, the group outlined plans for mills across five states with a combined annual processing capacity of 1.5 million tonnes.

To secure raw materials, Dangote Rice Limited signed a N1.8 trillion paddy rice supply agreement with Niger Foods Security Systems and Logistics Company in July 2025.

The 10-year deal requires Niger State to develop 25,000 hectares of commercial rice farms and support 50,000 local farmers.

In May 2026, Dangote confirmed the company had committed to purchasing one million metric tonnes of paddy rice from Niger Foods over the life of that agreement.