NEWS
Leapfrogging Nigeria’s Economy Development through Free Trade Zone
By Martins Odeh
There appears to be deep-seated and conclusive negative opinions about the modus operandi of the Free Trade Zone Scheme among individuals in and out of government in Nigeria.
This global economic system is primarily aimed at encouraging economies of scale through seamless production and manufacturing for export and local markets.
It also aims to support backward linkages; industrialisation; infrastructure development; employment generation; foreign exchange earnings, and revenue generation among others.
A Free Trade Zone remains a global economic matrix with a distinct framework which gives this business ecosystem the status of “country within a country.
’’It, therefore, behooves any nation willing to adopt the concept to run it in line with the local law that regulates its operation.
This law is enshrined in the NEPZA Act 63 of 1992 and it is within the purview of international best practice and framework.
The Federal Government, seeing the benefits of the scheme to the national economy and development, adopted it some 30 years ago.
The scheme might not be at the growth level that the government had envisaged yet, but some stakeholders say excellent milestones have been attained.
For instance, 52 Free Trade Zones have been created, with over 600 enterprises operating within those business landscapes with a cumulative USD 30 billion investment lubricating the economy.
Deborah Dada, a legal practitioner, said the primary laws regulating the FTZs in Nigeria are the Nigerian Export Processing Zone Act 1992 (NEPZ Act) and the Oil and Gas Free Zone Act (OGFZ Act).
“NEPZA has also made specific regulations over the operation of specific FTZs like the Lekki Free Trade Regulations 2016.
“NEPZA has passed a regulation over the operation of FTZs in Nigeria known as the Regulations and Operational Guidelines for Free Zones in Nigeria 2004.
“Free zones in Nigeria provide rewarding opportunities that not only attract foreign investors but also provide employment opportunities to local citizens.
Thus, businesses should take advantage of these incentives to maximise industrial growth and economic development by taking steps to set up their businesses in a free trade zone in Nigeria.”
Some stakeholders say, in spite of challenges, investors and operators have found respite in the special interest of President Bola Ahmed Tinubu, to use the scheme to upscale industrialisation.
They cited how Tinubu, then governor of Lagos State, used the free trade zone concept to reconfigure the economic landscape of the Lekki Area of the state.
He also used it to abet the catastrophic submerge of the entire Victoria Island area of the state through the conversion of the then-ruptured Bar Beach into a world-class Eko Atlantic Free Trade Zone.
Today, the Lekki area harbours the Lagos Free Zone, Dangote Refinery Free Zone Enterprise, Alaro City, Deep Sea Port, and Lekki Free Trade Zone.
To the credit of the president, these accomplishments earned him the praise of stakeholders as the “brain behind modern free trade zone in Nigeria”.
The president’s attention must again be called to the gains and prospects of the scheme through sustained promotion of the economies of scale over the temptation of listing it as a pure revenue generation hub.
The concept of economies of scale promotes long-term and sustainable dividends for the country so long as the enterprises continue to reap low production cost advantages.
This will encourage continuous inflow of Foreign Direct Investments (FDIs), Direct Diaspora Investments (DDIs) as well as Local Direct Investments (LDIs) while keeping a grip on investments already attracted.
Regardless of the loud voices of anti-free trade zone campaigners, the scheme has made modest contributions to the economy.
How is it possible for the 52 Free Trade Zones and the over 600 enterprises currently in operation have not impacted the economy significantly?
The response to the above question was provided by the NEPZA Managing Director, Dr Olufemi Ogunyemi, while alluding recently that free trade zone was, however, not a ‘free meal ticket’ for the investors.
The import of this statement is simply to help grow public knowledge on the contribution of the free trade zones to the Domestic Gross Product (GDP) and National Gross Product (NGP) respectively.
The NEPZA Chief Executive Officer was emphatic when he said: “Free Trade Zones are business anchorages that have for decades been used to generate revenues for the Federal Government.”
He explained that the widely held notions that the scheme was a ‘free meal ticket’ for the investors thereby denying government revenues were incorrect.
“The NEPZA Act provides an exemption from all federal, state, and local governments taxes, rates, levies, and charges for FZE, of which duty and VAT are part.
“However, goods and services exported into Nigeria attract duty, which includes VAT and other charges.
“In addition, NEPZA collects over 20 types of revenues ranging from 500,000 USD-Declaration fees, 60,000 USD Annually as Operation License (OPL), and 3000 USD to 500 USD Registration fees in line with extant regulations on IGR remittances to the Federation Account.
“There is also the 100 USD to 300 USD Examination and Documentation fees per transaction which occurs daily’’, he said.
According to him, there are other periodic revenues derived from Vehicle Registration, Visa among others. The operations within the free trade zones are not free in the context of the word.
For instance, the Authority’s First and Second Quarters of the 2023 Key Performance Indicator (KPI) showed that a combined total of 21.3 million dollars was generated as Foreign Direct Investment while N9.8 billion accrued as Local Direct Investment.
Conversely, a total of 28.9 million dollars was generated as International Exports and N250.5 billion was accrued to the government as Domestic Exports while 338.9 million dollars and N36.3 billion were generated as International Imports and Domestic Imports.
Furthermore, the figure that accrued to the government as Custom Duty stood at N20 billion while that of PAYEE amounted to N346.8 million, and a total of 3, 776 employment was generated within the two quarters reviewed.
In total, the Authority’s 40 per cent contribution to the consolidated revenue in naira as of November 2023 stood at N1, 800,809,1773.38 with a similar 40 per cent margin of transfer to the account in dollars amounting to USD 1, 167,122.86.
The total of the figures generated in 2023, which included figures from Tender Fee; Withholding Tax (WHT); Value Added Tax (VAT); Stamp Duty; PAYEE as well as Customs Duty stood at N38, 879, 485, 774 568.90.
The KPI for 2022 also showed excellent flashes of gains made by the scheme which attracted a total of 28 new enterprises with a total of 90 million USD value of FDI and N80 billion value of Local Domestic Investment (LDI).
The record also placed the value of both the International and Local Exports at 36.8 million USD and N450.8 billion respectively.
The 2022 key performance indicator further highlighted the value of International and Domestic imports to be 999 million USD and N188 billion.
The report stated that a total of N34.215 billion was generated as Custom Duty while the amount generated from the free trade zone in 2022 by the Immigration Service stood at N702.7 million with a total of 3,555 employment created.
A session of stakeholders urges the authority to be aware of the need to ensure a transparent listing and deductions of mandatory duties and taxes.
One of the ways to achieve that, they say, is by digitalising its process and agreeing on the best ways for a dependable free trade zone tax administration with the relevant authorities.The scheme remains an economic development tool the country is using to leapfrog our economy and its sustainability and success should be our utmost concern. (NANFeatures)
Niger Government has established the state Price Control and Monitoring Board, approved by Gov. Umaru Bago to ensure fair pricing and consumer protection.
Alh. Abubakar Usman, Secretary to the Niger Government (SSG), inaugurated members of the board on Thursday in Minna.
The eight-member board has Alh.
Hussaini Ahmed, a former Permanent Secretary as the chairman.Usman noted that the inauguration of the board marked a significant step in the state’s commitment to ensuring fair pricing and consumer protection.
He said that the board was expected to control and stabilise prices of essential commodities and eradicate or reduce to the barest minimum, hoarding of essential commodities across the state.
He said that board would also handle issues that may arise as a result of enforcement and penalty for contravention of guidelines among several others.
“The board will be responsible for the distribution, monitoring and evaluation of essential commodities and keep price under continuous surveillance.
“They will also interpret price movement and relate them to other development in the State’s economy,” Usman said.
He said the board was expected to interface with relevant stakeholders such as local government chairmen, traditional institutions and councilors and well as market organisations to ensure the success of their mandate.
The SSG enjoined members of board to bring their wealth of experience and expertise in economics, consumer affairs and market dynamics to bear in their assignment.
He said that their appointment underscored the government’s dedication to maintaining economic stability and safeguarding the interests of both consumers and businesses in the state.
In his remarks, the board chairman, Ahmed, assured that the board would interface with relevant stakeholders within and outside the state in order to bring succour to the populace.
Other members of the board include Hamza Bello, Permanent Secretary, Investment, Aliyu Abubakar, Permanent Secretary, Local Government and Chieftaincy Affairs and Garba Abdullahi, from Ministry of Basic Education.
Also on the board are Adamu Maikasuwa, Ministry of Agriculture, DCP Aminu Garba, Nigeria Police, Niger Command, Aminu Ladan, Chairman, Chanchaga Local Government Area and Usman Liman, retired Statistician-General as Secretary of the Board. (NAN)
The Federal Accounts Allocation Committee (FAAC), has shared N1.298 trillion among the Federal Government, states, and the Local Government Councils (LGCs) for September.
This is according to a communique issued at the end of FAAC meeting for October held on Thursday in Abuja.
The communiqué was made available to newsmen by Bawa Mokwa, the Director, Press and Public Relations, Office of the Auditor-General of the Federation (OAGF).
According to the communiqué, N1.
298 trillion total distributable revenue comprised distributable statutory revenue of N124.716 billion, and distributable Value Added Tax (VAT) revenue of N543.518 billion.It also comprised Electronic Money Transfer Levy (EMTL) revenue of N18.
445 billion, Exchange Difference revenue of N462.191 billion and Augmentation of N150.000 billion.It said that a total revenue of N2.258 trillion was available in the month of September.
“Total deduction for cost of collection was N80.993 billion, while total transfers, interventions and refunds was N878.946 billion,” it said.
According to the communiqué, gross statutory revenue of N1.043 trillion was received in September 2024, which was lower than the sum of N1.221 trillion received in August by N177.426 billion.
It said that gross revenue of N583.675 billion was available from VAT in September, higher than the N573.341 billion available in the month of August by N10.334 billion.
“From the N1.298 trillion total distributable revenue, the Federal Government received a total sum of N424.867 billion, and the state governments received a total sum of N453.724 billion.
“The LGCs received a total sum of N329.864 billion and a total sum of N90.415 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” it said.
On the N124.716 billion statutory revenue, the communiqué said that the Federal Government received N43.037 billion and the state governments received N21.829 billion, while the LGCs received N16.829 billion.
It said that the sum of N43.021 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.
“From the N543.518 billion VAT revenue, the Federal Government received N81.528 billion, the state governments received N271.759 billion and the LGCs received N190.231 billion,” it said.
It said that in September, Oil and Gas Royalty, Excise Duty, EMTL and CET Levies increased considerably while VAT and Import Duty increased marginally.
It added that Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and others recorded significant decreases. (NAN)
The Lagos State Traffic Management Authority (LASTMA) has reiterated the importance of strict adherence to traffic laws, emphasising the prohibition of commercial motorcycles on highways and other restricted routes.
Mr Olalekan Bakare-Oki, the General Manager, said this in a statement on Thursday, signed by Mr Taofiq Adebayo, Director, Public Affairs and Enlightenment Department, LASTMA.
Bakare-Oki said that non-compliance with the regulations not only jeopardised the safety of the riders but also endangered the lives of other road users.
The statement came following the death of a motorcycle rider going against traffic on Carter Bridge, due to a collision with a fast-moving vehicle.
Bakare-Oki noted that the deceased, reportedly traveling from Ebute Ero, collided head-on with a fast-moving vehicle as it ascended Carter Bridge from Ilubirin.
“The forceful impact of the collision led to the immediate death of the motorcyclist while the vehicle driver ran away.
“Personnel from the LASTMA promptly arrived at the scene of the accident and swiftly alerted officers from the Central Police Station at Adeniji Adele and Shemo.
“Together, they coordinated efforts to retrieve the lifeless body of the rider, while LASTMA officials handed over the motorcycle to security authorities for further investigation,” he said.
The LASTMA boss extended his heartfelt sympathy to the family of the deceased.
“LASTMA remains committed to upholding public safety and is intensifying its efforts to minimise the occurrence of such tragic incidents on Lagos roads,” he said. (NAN)
Niger Govt. Establish Price Control and Monitoring Board
Share Niger Government has established the state Price Control and Monitoring Board, approved by Gov. Umaru Bago to ensure fair...
FAAC: FG, States, LGs Share N1.298trn for September
ShareThe Federal Accounts Allocation Committee (FAAC), has shared N1.298 trillion among the Federal Government, states, and the Local Government Councils...
Accident Claims 1, LASTMA Decries Non-compliance with Regulations
Share The Lagos State Traffic Management Authority (LASTMA) has reiterated the importance of strict adherence to traffic laws, emphasising the...
Aradel, GTCO, others Drag Equity Market Down by N127bn
Share The equity market extended its losses on Thursday as the market capitalisation dropped by N127 billion, or 0.21 per...
Gov Fubara’s Judicial Panel a witch Hunt – Rivers APC Chair
Share Dr Tony Okocha, Acting Chairman of the All Progressive Congress(APC), in Rivers, has described the Judicial Commission of Inquiry...
Wike, 27 Rivers Lawmakers not APC – APC Chairman
ShareDr Tony Okocha, Chairman of the All Progressive Congress(APC), in Rivers, has said that FCT minister Nyesom Wike is not...
FG Targets $1trn Economy by 2030 Via Financial Inclusion
Share The Federal Government says it is putting sustainable mechanisms in place to build a $1 trillion economy by 2030...
3 Reportedly Injured as CNG Vehicle Explodes in Benin
Share Three persons have been reportedly injured on Thursday in Benin when a Compressed Natural Gas (CNG) powered vehicle exploded...
Customs Pivotal to AfCFTA Success in Africa – Coordinator
Share The Nigeria African Continental Free Trade Area (AfCFTA) Coordination Office says Customs operations play a critical role on the...
WHO Raises Alarm over 5.3 m Health Workers Shortages in Africa by 2030
ShareBy Laide Akinboade, Abuja The World Health Organisation, WHO, on Thursday, raised alarm over 5.3 million shortages of health workers...