OTUNBA Niyi Adebayo, Nigeria’s Minister of Industry, Trade, and Investment, has claimed that the free zone scheme had generated $20 billion in investments over its 30 years of operation.
Yesterday, the minister made the announcement at the ceremonial inauguration of the Nigeria Economic Processing Zones Authority office in Lagos, which bears his name.
The program, according to Adebayo, remained a true source of economic development due to the strong fiscal incentives linked with the free zone.
He claimed that by 2021, the free zone would have generated N250 billion in foreign and local direct investments, N35 billion in customs duties, and N65 billion in local import/backward linkage.
According to the minister, the scheme generated N500 million in Pay as You Earn, 25,000 new jobs, and 5,000 skill transfers.
“The Free Zone Scheme is one of the prime initiatives of the Federal Government, for diversification of Nigeria’s economic base, in order to achieve our vision of growing the economy, creating jobs and generating wealth.
“I urge you not to relent in giving it your best in your service to promote the economic development of our great country, Nigeria,” he said.
Prof. Adesoji Adesugba, NEPZA’s Managing Director, stated that the choice of Lagos as its liaison office was completely based on economic factors.
This, he explained, was due to the fact that 80 percent of the special economic zones were located in Lagos or within a 100-kilometer radius of the city.
“Accordingly, this is our way of bringing NEPZA closer to our investors for sustained customer service, to continually attract and retain investors”.
In the meantime, the Federal Government has ordered that the validity duration of operators’ licenses in free trade zone zones be increased to five years.
On Thursday, Adebayo gave the order at a stakeholders event hosted by the Nigeria Economic Zones Association in Lagos.
The theme of the event was “Streamlining Free Zone Operations for Global Competitiveness”.
According to Adebayo, due to the necessity to update the system, the ministry temporarily banned the issue of new free trade zone licenses in 2020.
A statement on Friday released by the Head, Corporate Communications, NEPZA, Martins Odeh quoted the minister as saying, “Globally, free trade zones plays a critical role in stimulating industrial activities, boosting the manufacturing sector and growing the economy.
“Their performance impacts three main areas of job creation, diversifying government revenue and generating foreign exchange as a well functional free trade zone in Nigeria can create 300,000 direct jobs.
“Expanding Nigeria’s export capacity needs under the Africa Continental Free Trade Area mitigates the risk of Nigeria becoming a dumping ground for imports while also boosting our foreign currency reserves.
“Therefore, it is absolutely necessary to adopt strategies that would transform them into a dynamic instrument for economic growth.”
The statement was titled,” Free Trade Zones: FG increase licence validity period to five years”
