Economists urge policy stability for Nigeria's SEZs to sustain growth

Economists warn Nigeria's Special Economic Zones (SEZs) risk losing investor confidence without policy stability and regulatory consistency, despite recording $500 million in exports and 20,000 jobs in 2025. Their concerns follow renewed focus on SEZs' potential as manufacturing anchors, with experts arguing momentum requires disciplined reforms, infrastructure upgrades, and predictable fiscal policies rather than celebrating milestones. Dr. Muda Yusuf of CPPE cautioned that policy changes around taxation and oversight could dilute investor advantages. Dr. Felix Echekoba noted SEZs lower production costs but stressed scale is critical for export diversification. Dr. Paul Nkwo questioned whether local suppliers benefit and skills transfer occurs. Economists also warned sudden fiscal reforms altering incentives could weaken competitiveness amid Africa's manufacturing investment race. Nigeria's manufacturing sector contributes 8-10% of GDP, below targets for industrial transformation. Analysts agree SEZs demonstrate manufacturing potential but stress infrastructure and transparent policies are key to scaling output and non-oil exports.

SOURCE: https://nairametrics.com/2026/02/18/economists-seek-policy-stability-to-sustain-sezs-500m-earnings/