Free Trade Zones Remitted Only N11.1bn In 3 Years – NEPZA

The Nigeria Export Process Zones of Authority (NEPZA) has said that the Free Trade Zones only generated N11.1 billion between 2020 and 2023 as against the earlier N11.11 trillion erroneously captured in the Authority’s submission to the Senate Committee on Trade and Investment.

Managing director of the Authority, Dr Olufemi Ogunyemi, on Monday in Abuja described the initial quoted figure as a regrettable `typographical mishap.’

Also the chief executive officer of NEPZA, Dr Ogunyemi, therefore, stated that the sum of N377.33 million was generated in 2020 while N3.11 billion accrued to the Federation Account in 2021 from the scheme.

According to him in a statement by the spokesman of NEPZA, Martins Odeh,the total remittances from the scheme in 2022 stood at N3.44 billion while an impressive N4.170 billion came through in 2023.

“The attention of the management has been brought to the news making that the Authority remitted a whopping sum of N11.11 trillion to the Federation Account as at October 2023. This piece of information was a classical typography error and it is regrettable.

“Let me emphatically state that the remittances from the Free Trade Zones from 2020 to 2023 stood at N11.1 billion only. We are, however, making good progress to take the scheme to that point where it can generate such huge revenue for the government.

“For instance, in 2023, the Nigeria Customs Service (NCS) generated N59.38 billion, and the Immigration Services received N828.7 million from the free trade zones while the Nigerian Ports Authority (NPA) garnered N8.738 billion from the sub-sector,’’ he said.

Dr Ogunyemi also explained that the Authority was gradually transforming the scheme to become the country’s sustainable economic gateways, adding that more efforts and support were needed to position the scheme for greater exploitation.

“The Nigeria Export Processing Zones Authority (NEPZA) is the major driver of the government’s initiative to diversify the Nigerian economy. With attractive investment packages and a focus on economy-driven sectors, NEPZA provides investment opportunities in different sectors across the country.

“At the moment, the scheme focuses on three critical investment areas which included Manufacturing 45 per cent, Services 30 per cent, and Oil & Gas with 11 per cent active investment exploitation,’’ Dr Ogunyemi said.

The scheme currently has 53 Free Trade Zones harbouring 580 enterprises with a cumulative $30 billion.

The Authority collects 20 types of revenues ranging from 500,000 USD-Declaration fees, 60,000 USD Annually as Operation License (OPL) and 300 USD to 500 USD Registration fees in line with extant regulations on IGR.

There is also 100 USD to 300 USD Examination and Documentation fees per transaction, which occurs on a daily basis.