The Federal Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, has reassured manufacturers that Nigeria’s free trade zones are structured to enhance export activities and not disrupt the operations of local manufacturers.
Speaking during a press briefing in Lagos, Oduwole addressed concerns raised by industrial stakeholders, emphasizing the need for the zones to adhere strictly to their intended guidelines. She acknowledged that certain players within the zones had been exporting the entirety of their goods into the domestic market, a practice she described as counterproductive for local manufacturers who pay taxes.
“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 said.
She clarified that the core purpose of free zones is to facilitate exports through tax relief, adding that only 25 per cent of goods produced in these zones may be sold in the local market without incurring taxes.
The minister reassured manufacturers of the government’s commitment to maintaining a balanced economy. “We’re one economy. What we want for the Nigerian economy is the same, wherever anybody is,” she noted, allaying fears of abuse within the free trade zones.
Oduwole highlighted the ministry’s goal to drive significant export growth, particularly in dollar terms, while ensuring that export proceeds are reinvested into the Nigerian economy. “The Federal Ministry of Industry, Trade and Investment is committed to driving exports. We want exports to increase exponentially, in dollar terms in particular. We also want to make sure that those export proceeds come back,” she said.
To create a conducive environment for exporters, Oduwole revealed that the ministry is collaborating with the Central Bank of Nigeria (CBN) and other stakeholders to establish robust regulatory measures. “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 added.
She stressed the importance of compliance and discipline within the free trade zones, noting that the Nigerian Export Processing Zones Authority (NEPZA) and the Oil and Gas Free Zones Authority are closely monitoring operations. “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,” she explained.
The minister encouraged stakeholders to align their business models with government policies and reassured them that the policies would remain consistent and supportive of economic growth. “As a federal government, we’re aligned, and we’re going to make sure that the policies are consistent and well-implemented,” she concluded.
The remarks underline the ministry’s focus on fostering an export-driven economy while safeguarding the interests of local manufacturers and maintaining balance within Nigeria’s industrial ecosystem.
