Economists have called for policy stability and regulatory consistency to sustain the gains recorded in Nigeria’s Special Economic Zones (SEZs), warning that abrupt reforms could undermine investor confidence and stall manufacturing growth.

Their concerns follow renewed attention on the previously reported 500 million dollars in export earnings and over 20,000 direct jobs generated by the zones in 2025.

Analysts say the focus should now shift from celebrating milestones to strengthening the policy environment that made the performance possible.

The export figures, earlier disclosed by the Federal Ministry of Industry, Trade and Investment, reinforced government efforts to position SEZs as anchors for industrialisation and non-oil exports. However, experts argue that sustaining momentum will require disciplined reforms, infrastructure upgrades, and predictable fiscal policies.

Without these safeguards, they warn, Nigeria risks eroding the competitive advantages that attracted investors into the zones.

Economic analysts say SEZs have demonstrated that manufacturing output can respond positively when investors operate within relatively stable, incentive-driven frameworks. They caution, however, that policy inconsistency could dilute these gains.

Dr. Muda Yusuf, Chief Executive of the Centre for the Promotion of Private Enterprise (CPPE), said that investors need predictability, noting that if incentives are granted with one hand and withdrawn with another, capital would simply move to more stable jurisdictions.

Dr. Paul Nkwo of Ebonyi State University said the real test is linkages.

Nigeria currently has more than 30 licensed free trade zones under the supervision of the Nigerian Export Processing Zones Authority (NEPZA) and the Oil and Gas Free Zones Authority, with over 500 enterprises operating across sectors including manufacturing, oil and gas services, logistics and agro-processing.

Some economists raised concerns over ongoing fiscal reforms that could alter incentive structures for zone operators.

They cautioned that sudden changes to tax exemptions or import duty arrangements could weaken investor confidence at a time when Nigeria is competing with other African economies for manufacturing capital under the African Continental Free Trade Area framework.

Nigeria’s manufacturing sector contributes roughly 8 to 10% of Gross Domestic Product, according to data from the National Bureau of Statistics, a figure many analysts consider low for a country seeking rapid industrial transformation.

Despite the concerns, analysts agree that the latest export and employment data show that properly structured industrial clusters can yield measurable gains.

They argue that expanding infrastructure within the zone, particularly power, transport connectivity and customs efficiency, while maintaining transparent policies could significantly raise manufacturing output and non-oil export earnings in the coming years.

Special Economic Zones (SEZs), regulated by NEPZA, are designated areas offering tax breaks, duty-free importation, and streamlined regulation to boost manufacturing, investment, and exports.

Key zones include Lekki Free Trade Zone, Ogun Guangdong Free Trade Zone, and Calabar Free Trade Zone, with over 40 active zones fostering economic diversification.