'Seun Ibukun-Oni, Abuja
DAILY COURIER – The Nigeria Export Processing Zones Authority (NEPZA) has reassured operators and enterprises within the Free Trade Zones (FTZs) that the Federal Government remains committed to enhancing the competitiveness of the scheme, despite growing concerns over proposed tax reforms. Dr. Olufemi Ogunyemi, the Managing Director and Chief Executive Officer of NEPZA, emphasized that the government was focused on strengthening the scheme and not undermining it, as some critics have suggested.
Dr. Ogunyemi made these remarks at the 3rd Annual Meeting of the Nigeria Economic Zones Association (NEZA) held on Thursday in Lagos. Addressing stakeholders at the event, he reiterated that the core objectives of the Free Trade Zones scheme — which include accelerating industrialization, boosting non-oil trade, generating employment, and increasing exports — were crucial to the country’s economic development. He underscored that the Federal Government would not abandon these goals.
The NEPZA CEO also sought to dispel concerns raised by stakeholders regarding the proposed Tax Reform Bills 2024, which many believe could negatively impact the FTZ scheme. According to Dr. Ogunyemi, the new tax policies, while not without their challenges, were not designed to dismantle the scheme. He encouraged stakeholders to engage in the public hearing on the bills to voice their concerns and advocate for necessary adjustments.
“We are working behind the scenes to address the genuine concerns of stakeholders, particularly those clauses that may compromise the incentives of the scheme,” Dr. Ogunyemi stated. He further pointed out that President Bola Ahmed Tinubu is a key proponent of the Special Economic Zones (SEZs) and remains deeply committed to the success and growth of the initiative.
The 3rd NEZA Annual Meeting served as a platform for discussing the country’s economic challenges and opportunities. Dr. Ogunyemi highlighted the strategic role of SEZs in advancing President Tinubu’s “Renewed Hope Agenda,” particularly in areas such as food security, poverty eradication, economic growth, job creation, and inclusivity. He emphasized that SEZs were integral to Nigeria’s efforts to diversify its economy and create globally competitive industries.
“The SEZs remain central to our mission of attracting investment, creating jobs, and fostering industrialization,” Dr. Ogunyemi stated. He called for a collective focus on skill enhancement and export promotion, which are critical for aligning SEZ operations with Nigeria’s economic priorities.
The NEPZA MD also stressed the importance of enhanced collaboration between government agencies and other stakeholders to optimize SEZ operations. He pointed to the African Continental Free Trade Area (AfCFTA) as a critical factor in Nigeria’s role as a central hub in Africa’s trade routes. He warned that the country must remain vigilant to avoid becoming a dumping ground for goods from other African nations.
Dr. Ogunyemi shared optimistic figures reflecting the growth of the SEZ scheme over the past three decades. He highlighted that the cumulative annual growth rate for exports from SEZs stands at 0.79%, while domestic exports have grown by 3.26%. Additionally, Foreign Direct Investment (FDI) has increased by 3.68% annually, and Local Direct Investment (LDI) by 1.49%. Other key indicators such as backward linkage, custom duties, and PAYE also show positive growth.
Despite these promising trends, Dr. Ogunyemi emphasized that the focus must now shift to executing strategic reforms that would accelerate the growth trajectory of SEZs while protecting their current gains. He emphasized that policies must foster a mutually beneficial relationship between investors and the nation.
“With the acceptance of SEZ-produced goods by AfCFTA, Nigeria must adopt policies that attract FDI, enhance investor trust, and streamline investment processes,” he said.
In conclusion, Dr. Ogunyemi reaffirmed NEPZA’s unwavering commitment to supporting the development of a thriving SEZ ecosystem. He called for continued collaboration among all stakeholders to position Nigeria as a global leader in industrialization and trade, ensuring sustainable economic growth for future generations.
This message was communicated in a statement by Martins Odeh Ph.D., Head of Corporate Communications at NEPZA.
