NEPZA: Free trade zones generated N11.1bn in three years — NOT N11.1trn

June 25, 2024 12:46 pm

The Nigeria Export Processing Zones Authority (NEPZA) says the country’s free trade zones generated N11.1 billion between 2020 and 2023.

Olufemi Ogunyemi, managing director of NEPZA, spoke on Monday in a statement signed by Martins Odeh, head of corporate communications, in Abuja.

Ogunyemi said the sum contradicted the earlier N11.11 trillion erroneously captured in the authority’s submission to the senate committee on trade and investments.

According to the managing director, the sum of N377.33 million was generated in 2020, while N3.11 billion accrued to the federation account in 2021 from the scheme.

Ogunyemi said the total remittances from the scheme in 2022 stood at N3.44 billion, while N4.17 billion was generated in 2023.

“The management’s attention has been drawn to the news that it remitted a whopping N11.11 trillion to the federation account as of October 2023,” he said.

“This 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 stand 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.”

Ogunyemi said in 2023, the Nigeria Customs Service (NCS) collected N59.38 billion, the Immigration Services raked in N828.7 million, and the Nigerian Ports Authority (NPA) garnered N8.738 billion from the free trade zones.

He said NEPZA was gradually transforming the scheme into the country’s sustainable economic gateway while calling for more support to position it for greater exploitation.

“NEPZA is the major driver of the Government’s initiative to diversify the Nigerian economy,” he added.

“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, namely, Manufacturing 45 percent, Services 30 per cent, and Oil and Gas with 11 percent active investment exploitation.”

Currently, Nigeria has 53 free trade zones, harbouring 580 enterprises with a cumulative $30 billion in value.

The authority collects 20 types of revenues, ranging from $500,000 declaration fees, $60,000 annually as operation license (OPL) and $300 to $500 registration fees in line with extant regulations on internally generated revenue (IGR).