Business

Nigeria Reaffirms Support for Free Trade Zones

177

The Nigerian government has reaffirmed its commitment to supporting Free Trade Zone (FTZ) operators in a bid to enhance the global competitiveness of the scheme.

In a statement issued on Saturday, Dr Olufemi Ogunyemi, Managing Director of the Nigeria Export Processing Zones Authority (NEPZA), made this declaration while speaking at the third Nigeria Economic Zones Association meeting in Lagos.

Ogunyemi emphasised that the FTZ scheme, designed to accelerate industrialisation, promote non-oil trade, generate employment, and boost exports, remains a vital economic tool that the government cannot afford to undermine. He further stressed that NEPZA, established by an Act of Parliament, is strategically positioned to drive economic growth through the FTZ framework in alignment with global best practices.

He also noted growing concerns among stakeholders regarding the potential negative impact of the proposed Tax Reform Bills 2024 on the FTZ scheme, warning that the reforms could pose a threat to its sustainability and effectiveness.

Ogunyemi, however, said the new tax policy was not completely bad, adding that the stakeholders should attend the public hearing on the bills to canvass their positions.

He said the proposed tax bills were aimed at harmonising the country’s tax system and not constructed to destroy the scheme.

“We are working behind the scenes to ensure that genuine concerns of the stakeholders with regards to clauses that tended to have placated the scheme’s incentives are expunged in the interest of all.

“It is public knowledge that President Bola Tinubu remains the chief promoter of the Special Economic Zones (SEZs) scheme and therefore, he is committed to nurturing it to full maturity,” Ogunyemi said.

The NEPZA boss also said the association’s annual gathering highlighted stakeholders’ shared commitment to advancing the prosperity of Nigeria through the efficient operation and strategic utilisation of our SEZs.

“The country’s economy is navigating challenging times that demand innovative thinking and strategic tools.

“The Renewed Hope Agenda of Tinubu’s administration has laid out a robust framework to guide our economy toward revival through the eight Presidential Priorities.

“ The SEZs are positioned as a pivotal economic instrument to expedite the realisation of five of these priorities, which are food security, poverty eradication, economic growth and job creation, inclusivity, and indirectly, security,’’ he said.

According to Ogunyemi, the event provides a critical platform to examine key issues, foster collaboration, and strengthen the synergies necessary to align SEZs with these Presidential priorities.

“Achieving this alignment calls for a concentrated focus on skill enhancement, industrialization, economic diversification, and export promotion.

“The SEZs remain central to our mission to attract investment, create jobs, and establish globally competitive industries.

“Our agenda reflects the complexity and strategic importance of the SEZ ecosystem, covering topics vital to Nigeria’s economic trajectory,” he said.

According to Ogunyemi, enhanced collaboration between government agencies is key to improving SEZ operations and delivering world-class services.

“Notably, AfCFTA data highlights Nigeria’s strategic role as a central hub in Africa’s trade routes, emphasising the need for concerted efforts to ensure the country does not become a dumping ground for goods from other African nations.

“Nigeria has nurtured the SEZ scheme for more than three decades, and the fruits are just starting to manifest. The SEZ average cumulative annual growth rate for export stands at 0.79 per cent while domestic export is 3.26 per cent,” he said.

According to Ogunyemi, Foreign Direct Investment (FDI) has grown at an average annual rate of 3.68 per cent, while LDI shows a growth rate of 1.49 per cent.

He said other key indicators included backward linkage at 2.80 per cent, duty (Custom Duty and VAT) at 3.34 per cent, and PAYE at 4.21 per cent.

The NEPZA boss said it was imperative to focus on executing strategic reforms that accelerated this growth trajectory while safeguarding its progress.

According to him, these reforms must foster a symbiotic relationship between investors and the nation.

“In light of AfCFTA’s acceptance of SEZ-produced goods, Nigeria must adopt policies that attract FDI, enhance investor trust, and make investment processes competitive and seamless.

“I reiterate NEPZA’s unwavering commitment to collaborating with all stakeholders to build a thriving SEZ ecosystem.

“Together, we can position Nigeria as a leader in industrialisation and trade, fostering sustainable economic growth for generations to come,’’ he said.

 

Aisha John-Mark 3169 posts 0 comments
You might also like More from author

Comments are closed.