Assessing the Contribution of Nigeria’s Special Economic Zones to Export Diversification

This study assesses the contribution of Nigeria's special economic zones (SEZs) to the country's export diversification objectives, examining whether zone-based incentive frameworks have succeeded in attracting export-oriented investment in non-oil sectors. Nigeria operates several SEZs and free trade zones including the Lekki Free Trade Zone, Ogun-Guangdong Free Trade Zone, and Onne Oil and Gas Free Zone, each targeting different industrial clusters and investor profiles. Despite substantial promotional investments, the extent to which these zones have generated diversified export streams beyond petroleum products requires empirical assessment. The study employs a mixed-methods approach combining secondary data analysis of export composition statistics from the Nigerian Export Processing Zones Authority and the National Bureau of Statistics with qualitative interviews of zone authority managers, investor relations officers, and enterprise directors within selected zones. Regression analysis of export diversification indicators and thematic analysis of qualitative data are applied. The theoretical framework draws on the enclave economy critique and the new structural economics of special economic zones. The study examines the sectoral composition of zone enterprises, their export volumes, and the extent of domestic economy linkage creation as proxies for export diversification contribution. Findings are expected to reveal that most SEZ export activity remains concentrated in petroleum-related services, with limited penetration of manufacturing and agricultural value-added exports. Recommendations include restructuring zone incentive frameworks to prioritise non-oil manufacturing, strengthening domestic content requirements, and developing zone-specific industrial master plans aligned with Nigeria's export diversification strategy. Keywords: special economic zones, export diversification, Nigeria, free trade zones, industrial policy