Iron Manufacturers Demand Sweeping Action To Halt Free Trade Zones Violations

The Basic Metals, Iron and Steel Manufacturers Group of the Manufacturers Association of Nigeria (MAN) has called for urgent federal action against widespread abuses in Nigeria’s Free Trade Zones (FTZs), warning that the activities are undermining local manufacturers, eroding economic value, and threatening industrial survival.Chairman of the group,Prince Lekan Adewoye, told journalists in Abuja that the metals and steel sector is the backbone of any nation’s industrial development and has consistently supported the Tinubu administration’s economic diversification agenda through import substitution, value addition, MSME growth, and job creation, despite persistent challenges.

He cited high borrowing costs, rising energy prices, smuggling, influx of substandard products, policy inconsistencies, and infrastructure gaps as major challenges for manufacturers. The situation has worsened, he said, as some FTZ operators “exploit loopholes by importing finished or semi-finished goods labeled as raw materials, selling them in the customs territory at prices local manufacturers cannot match.”

Adewoye highlighted cases where FTZ operators import products like roofing sheets, galvanised iron, aluminium, and wire coils without exporting anything, often at heavily under-invoiced values far below global market prices. “Many companies within our FTZs today do not export anything. Instead, they import substandard products and sell them directly into the customs territory, in clear violation of policy intent,” he said.

He warned that FTZ operators already enjoy zero import duty on inputs while legitimate manufacturers pay up to 25 per cent duty, creating a lopsided market that threatens industrial sustainability. Adewoye called for tighter quality-control measures, a comprehensive audit of FTZ operations in the metals and steel sector over the last decade, recovery of lost revenue, and prosecution of offending operators.

He also recommended a special enforcement task force including MAN, Customs, NEPZA, and the Ministry of Industry, Trade and Investment to ensure compliance and restore competitiveness.
Responding, Toyin Elegbede, executive secretary of the Nigeria Economic Zones Association (NEZA), affirmed NEZA’s commitment to FTZ objectives and disavowed sabotage by member organisations. Engr. Enebi Onucheyo, SON’s director of product certification, confirmed the nationwide rollout of the Special Economic Zones Conformity Assessment Programme (SEZCAP) to inspect and certify all goods moving into and out of FTZs.