Dr Olufemi Ogunyemi, Managing Director of the Nigeria Export Processing Zones Authority (NEPZA) has assured operators of the Free Trade Zones that the Federal Government was only poised to boost the global competitiveness of the scheme and not “annihilate’’ it as held in some quarters.
Dr Ogunyemi, also the Chief Executive Officer of the agency made the remarks at the 3rd Nigeria Economic Zones Association meeting on Thursday in Lagos.
The managing director explained that the mandate of the scheme that aimed to fast-track industrialization, non-oil trade, employment generation, export among others was too precious for the government to now circumvent.
According to Dr Olufemi, the Authority remains a product of law of the parliament positioned to drive economic growth through the Free Trade Zones scheme in line with global best practice.
The stakeholders have since the introduction of the proposed Tax Reform Bills 2024 raised concerns over there likelihood of destroying the scheme.
Dr Ogunyemi, however said that the new tax policy was not completely bad, adding that the stakeholders should attend the public hearing on the bills to canvass their positions.
He explained that the proposed tax bills were aimed at harmonizing the country’s tax system, stating that they were not constructed to destroy the scheme.
“We are working behind the scene to ensure that genuine concerns of the stakeholders with regards to clauses that tended to have placated the scheme’s incentives are expunged in the interest of all.
“It is a public knowledge that His Excellency, President Bola Ahmed Tinubu GCFR remains the chief promoter of the SEZ scheme and therefore, he is committed to nurturing it to full maturity’’, Dr Ogunyemi said.
The NEPZA boss, also said the association’s annual gathering highlighted stakeholders shared commitment to advancing the prosperity of Nigeria through the efficient operation and strategic utilization of our Special Economic Zones.
“The country’s economy is navigating challenging times that demand innovative thinking and strategic tools. The Renewed Hope Agenda of President Bola Ahmed Tinubu has laid out a robust framework to guide our economy toward revival through the 8 Presidential Priorities.
“ SEZs are positioned as a pivotal economic instrument to expedite the realization of 5 of these priorities, which are food security, poverty eradication, economic growth and job creation, inclusivity, and indirectly, security,’’ he said.
Dr Ogunyemi stated further that: “today’s event provides a critical platform to examine key issues, foster collaboration, and strengthen the synergies necessary to align SEZs with these Presidential priorities.
“Achieving this alignment calls for a concentrated focus on skill enhancement, industrialization, economic diversification, and export promotion. SEZs remain central to our mission to attract investment, create jobs, and establish globally competitive industries, he said.
He said: “this event convenes some of the brightest minds and most influential stakeholders to address transformative issues. Our agenda reflects the complexity and strategic importance of the SEZ ecosystem, covering topics vital to Nigeria’s economic trajectory’’.
According to him, enhanced collaboration between government agencies is key to improving SEZ operations and delivering world-class services.
“Notably, AfCFTA data highlights Nigeria’s strategic role as a central hub in Africa’s trade routes, emphasizing the need for concerted efforts to ensure the country does not become a dumping ground for goods from other African nations.
“Nigeria has nurtured the SEZ scheme for more than three decades, and the fruits are just starting to manifest. The SEZ average cumulative annual growth rate for export stands at 0.79% while domestic export is 3.26%.
Additionally, FDI has grown at an average annual rate of 3.68%, while LDI shows a growth rate of 1.49%.
“Other key indicators include backward linkage at 2.80%, duty (Custom Duty and VAT) at 3.34%, and PAYE at 4.21%. It is now imperative to focus on executing strategic reforms that accelerate this growth trajectory while safeguarding its progress,’’ Dr Ogunyemi said.
According to him, these reforms must foster a symbiotic relationship between investors and the nation.
“In light of AfCFTA’s acceptance of SEZ-produced goods, Nigeria must adopt policies that attract FDI, enhance investor trust, and make investment processes competitive and seamless.
“I reiterate NEPZA’s unwavering commitment to collaborating with all stakeholders to build a thriving SEZ ecosystem. Together, we can position Nigeria as a leader in industrialization and trade, fostering sustainable economic growth for generations to come,’’ he said.
