Federal Gov’t Not Scrapping Free Trade Zones – NEPZA
The Managing Director of the Nigeria Export Processing Zones Authority (NEPZA), Dr. Olufemi Ogunyemi, has reassured operators of the Free Trade Zones (FTZs) that the Federal Government is not planning to scrap the scheme. Instead, the government aims to enhance the global competitiveness of the Free Trade Zones, despite concerns that have been raised following the introduction of the proposed Tax Reform Bills 2024.
Dr. Ogunyemi made this clarification at the 3rd Nigeria Economic Zones Association (NEZA) meeting in Lagos, emphasizing that the FTZs’ mandate to drive industrialization, non-oil trade, employment generation, and export remains vital to the country’s economic growth. He assured stakeholders that the government values the scheme too much to undermine it.
The concerns over the potential abolition of FTZs stemmed from the recent proposed tax reforms. However, Ogunyemi stressed that the new tax policy is not designed to eliminate the scheme, and urged stakeholders to participate in the public hearings to voice their concerns, particularly regarding clauses that could negatively affect the scheme’s incentives.
Ogunyemi further noted that President Bola Tinubu is a staunch supporter of the Special Economic Zones (SEZ) scheme and is committed to ensuring its development. He emphasized that the ongoing efforts to refine Nigeria’s tax system aim to harmonize and improve the country’s tax landscape, not to destroy the FTZ initiative.
The NEPZA MD highlighted the importance of SEZs in supporting key priorities outlined in President Tinubu’s Renewed Hope Agenda, including food security, poverty eradication, economic growth, job creation, and inclusivity. He stated that SEZs are integral to achieving these goals by attracting investment, creating jobs, and facilitating industrialization.
The event also underscored the critical role of collaboration among government agencies to improve SEZ operations and ensure that Nigeria remains a competitive player in African trade, particularly in light of the African Continental Free Trade Area (AfCFTA). Ogunyemi pointed to the significant progress made in the SEZ sector over the past three decades, citing growth in export, foreign direct investment (FDI), and local development indicators.
Looking forward, Dr. Ogunyemi stressed the need for strategic reforms to accelerate the growth of SEZs, enhance investor trust, and make Nigeria an attractive destination for investment. He reiterated NEPZA’s commitment to working closely with all stakeholders to ensure the success of SEZs and position Nigeria as a leader in industrialization and trade.
“Together, we can position Nigeria as a leader in industrialisation and trade, fostering sustainable economic growth for generations to come,” he concluded.
