The Federal Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, has reassured manufacturers that Nigeria’s free trade zones are structured to boost exports without compromising the interests of local manufacturers.
Speaking at a press briefing in Lagos, Dr. Oduwole addressed concerns raised by stakeholders in the industrial sector, emphasizing that the zones are governed by strict guidelines aimed at fostering economic development.
She remarked, “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.”
The minister highlighted the primary goal of these zones, which is to offer tax incentives to encourage export activities.
She clarified, “The essence of the free zones is to give you some tax relief, enable you to facilitate your exports,” adding that no more than 25 per cent of goods from free zones can be sold domestically without incurring taxes.
Addressing the concerns of local manufacturers, Dr. Oduwole affirmed the ministry’s dedication to balancing the needs of all stakeholders, saying, “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.”
Oduwole reiterated the ministry’s focus on accelerating export growth, particularly in dollar earnings.
She stated, “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.”
On regulatory measures, she detailed the ministry’s collaboration with the Central Bank of Nigeria and other relevant bodies to create a supportive framework 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 explained.
The minister underscored the importance of compliance and discipline in the operations of free trade zones, with oversight provided by the Nigerian Export Processing Zones Authority and the Oil and Gas Free Zones Authority.
She remarked, “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.”
Looking ahead, Oduwole encouraged stakeholders to align their business models with the government’s policies, assuring that measures will remain consistent and supportive of economic advancement.
She stressed, “As a federal government, we’re aligned, and we’re going to make sure that the policies are consistent and well-implemented.”
