NEPZA: FG Strategising to Boost Global Competitiveness of Free Trade Zones, Not Planning to Scrap Them
James Emejo in Abuja
The Managing Director of the Nigeria Export Processing Zones Authority (NEPZA), Dr. Olufemi Ogunyemi, has debunked insinuations that the federal government was planning to scrap the Free Trade Zones in the country, saying that the government intended to boost the global competitiveness of the scheme.
Ogunyemi made the clarifications at the third Nigeria Economic Zones Association meeting in Lagos.
In a statement issued yesterday by the Head of Corporate Communications of NEPZA, Martins Odeh, Ogunyemi explained that the mandate of the scheme that aimed to fast-track industrialisation, non-oil trade, employment generation, and export among others, was too important for the government to circumvent.
According to Olufemi, the agency remains a product of the law of the parliament positioned to drive economic growth through the Free Trade Zones scheme, in line with global best practice.
The operators of the zones have, since the introduction of the proposed Tax Reform Bills 2024, raised concerns over the likelihood of scrapping the scheme.
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 explained that the proposed tax bills were aimed at harmonising the country’s tax system, stating that they were not constructed to destroy the free zones.
“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,” he said.
He emphasised that President Bola Tinubu remains the chief promoter of the SEZ scheme and is committed to nurturing it to full maturity.
The NEPZA boss also said the association’s annual gathering highlighted stakeholders’ shared commitment to advancing the prosperity of Nigeria through efficient operation and strategic utilisation of Special Economic Zones.
“The country’s economy is navigating challenging times that demand innovative thinking and strategic tools. The Renewed Hope Agenda of President Bola Ahmed Tinubu has laid out a robust framework to guide our economy toward revival through the eight presidential priorities.
“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.
Ogunyemi further stressed that 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, industrialisation, economic diversification, and export promotion. SEZs remain central to our mission to attract investment, create jobs, and establish globally competitive industries,” he said.
According to him, 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 exports stands at 0.79 per cent, while domestic exports is 3.26 per cent. Additionally, FDI has grown at an average annual rate of 3.68 per cent, while LDI shows a growth rate of 1.49 per cent.
“Other key indicators include backward linkage at 2.80 per cent, duty (Custom Duty and VAT) at 3.34 per cent, and PAYE at 4.21 per cent. It is now imperative to focus on executing strategic reforms that accelerate this growth trajectory while safeguarding its progress,’’ Ogunyemi added.
