The federal government has reiterated its commitment to supporting operators of free trade zones (FTZs) to boost the scheme’s global competitiveness.
Olufemi Ogunyemi, the managing director of the Nigeria Export Processing Zones Authority (NEPZA), said this in a statement on Saturday. He spoke at the third Nigeria Economic Zones Association meeting in Lagos.
Mr Ogunyemi said the mandate of the scheme, aimed at fast-tracking industrialisation, non-oil trade, employment generation and export, was too precious for the government to circumvent now.
He said the authority remained a product of the parliament’s law, which was positioned to drive economic growth through the FTZs scheme in line with global best practices.
According to him, stakeholders have raised concerns over the likelihood of destroying the scheme since the introduction of the proposed Tax Reform Bills 2024.
Mr 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 intended to harmonise the country’s tax system and not 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,” Mr 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.
According to Mr 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, industrialisation, 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.
Mr Ogunyemi said enhanced collaboration between government agencies is key to improving SEZ operations and delivering world-class services.
“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 Mr 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,’’ he said.
(NAN)
