The Nigerian government (NEPZA) says the country’s Free Trade Zones are business anchorages that have for decades been used to generate revenues for the Federal Government.
The Managing Director of the Nigerian Export Processing Zones Authority, Dr Olufemi Ogunyemi who made the remark in Abuja, said the widely held notions that the scheme was a ‘free meal ticket’ for the investors thereby denying government revenues were incorrect.
He explained that this public statement was essential to also clarify the misunderstanding by various individuals and entities, in and out of government, on the nature of the scheme.
Dr. Ogunyemi who is also the Chief Executive Officer of NEPZA, said the Authority was more than ever prepared to enhance public knowledge on the principal reason for the country’s adoption of the scheme by the NEPZA Act 63 of 1992.
He further stated that a policy shift on the operations of the scheme might hurt the economy badly, adding that the incentives and waivers enjoyed by the investors were backed by law.
“The Free Trade Zones are not hot spots for revenue generation, rather they exist to support the social-economic development which include but not limited to industrialization; infrastructure development; employment generation; skills acquisition; foreign exchange earnings as well as inflows of Foreign Direct Investments,’’ Dr Ogunyemi said.
The NEPZA’s managing director also said: “The NEPZA Act provides exemption from all federal, state, and local governments taxes, rates, levies, and charges for FZE, of which duty and VAT are part.”
“However, goods and services exported into Nigeria attract duty, which includes VAT and other charges. In addition, NEPZA collects over 20 types of revenues ranging from 500,000 USD-Declaration fees, 60,000 USD Operation License (OPL) Renewal Fees between three and five years.”
According to him, “There is also the 100-300 USD Examination and Documentation fees per transaction which occurs on a daily basis, there are other periodic revenues derived from Vehicle Registration, Visa among others. The operations within the free trade zones are not free in the context of the word.’’
Ogunyemi reiterated that the global business space had contracted significantly, adding that to win a sizable space would require the ingenuity of the government to either expand or maintain the promised incentives.
“These incentives, coupled with NEPZA’s streamlined approval processes and investor-friendly policies, will encourage more multinational corporations and local investors to leverage on scheme which has a cumulative investment valued at 30 billion USD.” He said.
Olusola Akintonde
