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VOL. 11, ISSUE 11 (2025)
Special economic arrangements/zones, can Nigeria become the economic pathway to AFCFTA? An appraisal of Nigeria’s legal framework for special economic zones
Authors
Fatima Bello
Abstract
Special Economic Zones are becoming a popular
tool for attracting investment to increase manufacturing, spur
industrialisation, and attain economic growth. For some countries with tough
investment climates, the zones are used to create enabling environments for
attracting investment. In this circumstance, they are used for two important
purposes. First, as a tool to derisk investment, and second, as a tool to
support export manufacturing and its direct benefits of job creation, skills
development, etc. While these are mostly the objectives behind establishing
special economic zones, research shows that a significant number of them
underperformed for several reasons, including weak regulation and weak linkages
with national economic growth and development. Nigeria seeks to deploy its
special economic zones as a conduit for investors to access the African
Continental Free Trade Area. Like many countries, it also grapples with a tough
investment climate characterised by weak regulation, policy inconsistency, poor
coordination, financing gaps, and infrastructure deficit. Adopting a doctrinal
approach, this paper analyses Nigeria’s special economic zones regime with a
view to identifying the gaps that could impede its effort to attract foreign
investment and proffering solutions. The paper observed that research indicates
that besides incentives, effective industrial policy, clear and effective legal
and regulatory framework, and the ability to adapt to international changes
have been crucial to the success of some of the most viable special economic
zones. Although Nigeria made a National Industrial Revolution Plan in 2014 and
other initiatives to spur industrialisation, stimulate export manufacturing,
diversify the economy and create jobs, international developments warrant a
review that will attract the kind of investments needed to strategically
realise the potentials of special economic zones to stimulate sustainable
economic growth, increase export manufacturing, and provide access to the
single market. The paper recommends way to enhance the national industrial
policy to guide the development special economic zones policy, establishment of
specialised zone, and amendment or repeal of the NEPZA Act to enable it control
and regulate evolve and new generation special economic zones.
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Pages:131-137
How to cite this article:
Fatima Bello "Special economic arrangements/zones, can Nigeria become the economic pathway to AFCFTA? An appraisal of Nigeria’s legal framework for special economic zones". International Journal of Law, Vol 11, Issue 11, 2025, Pages 131-137
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