FG assures manufacturers free trade zones will boost exports
The Federal Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, has reassured manufacturers that Nigeria’s free trade zones are aimed at boosting exports and will not undermine local industries.
Speaking at a press briefing in Lagos, she emphasized that the zones are designed to operate within guidelines that promote economic growth and address stakeholders’ concerns.
She noted, “Nigeria is a situation where some, not all, but some players in the free trade zone have been exporting 100 per cent into the domestic market, which of course distorts things for the manufacturers within Nigeria that are paying taxes.”
She explained that the fundamental purpose of free zones is to provide tax relief to facilitate exports, adding, “The essence of the free zones is to give you some tax relief, enable you to facilitate your exports,” she said, while also clarifying that only 25 per cent of goods produced in these zones may be sold at the local market without incurring taxes.
Oduwole allayed local manufacturers’ fears of abuse, stressing the ministry’s commitment to balancing interests: “So I understand the issues between the Manufacturers Association of Nigeria and other stakeholders. But just to say that we’re one economy. We’re one economy. What we want for the Nigerian economy is the same, wherever anybody is.”
The minister reaffirmed that the Federal Ministry of Industry, Trade, and Investment is committed to driving exponential export growth, particularly in dollar value, stating, The Federal Ministry of Industry, Trade and Investment is committed to driving exports. And so we want exports to increase exponentially, in dollar terms in particular. We also want to make sure that those export proceeds come back.”
Oduwole emphasized the ministry’s partnership with the Central Bank of Nigeria and other key stakeholders to implement regulatory measures that foster a supportive environment for exporters.
“We’re working on the regulatory framework. We’ve discussed policies with CBN and other stakeholders to make exporters comfortable, happy, and committed to bringing back their export proceeds to the Nigerian economy,” she said.
The minister stressed that compliance and discipline are vital for the effective operation of free trade zones, with oversight by the Nigerian Export Processing Zones Authority and the Oil and Gas Free Zones Authority under the ministry’s jurisdiction.
She explained, “It’s an opportunity to make sure that we all practice what we need to practice, and that there’s discipline in the system, and that every player is committed and has the opportunity, whether to be in a free trade zone or not.
“It’s time for everybody to make their decision. And indeed, people have the opportunity to do both. You can produce in the free trade zone and outside the free trade zone, depending on your business model.
