Nigeria’s Free Trade Zones to Drive Exports, Not Undermine Local Manufacturers
The Federal Minister of Industry, Trade, and Investment, Dr Jumoke Oduwole, has assured manufacturers that Nigeria’s free trade zones are structured to promote exports and stimulate economic growth, not to disadvantage local producers.
Addressing industrial stakeholders at a press briefing in Lagos, Dr Oduwole sought to ease concerns over the misuse of free trade zones, which some claim has disrupted the domestic market by allowing untaxed imports to compete with locally manufactured goods.
“Nigeria is in a situation where some, not all, but some players in the free trade zone have been exporting 100 per cent into the domestic market, which, of course, distorts things for the manufacturers within Nigeria who are paying taxes,” she noted.
Balancing Free Zones and Domestic Industry
Dr Oduwole reiterated that the core purpose of free trade zones is to facilitate exports through tax relief, not to flood the local market. She clarified that only 25 per cent of goods produced in these zones may legally enter the domestic market without incurring taxes.
“The essence of the free zones is to give you some tax relief, enabling you to facilitate your exports,” she explained.
She acknowledged the concerns raised by the Manufacturers Association of Nigeria and other stakeholders, emphasising the government’s commitment to striking a balance: “We’re one economy. What we want for the Nigerian economy is the same, wherever anybody is.”
Boosting Exports and Ensuring Compliance
Dr Oduwole highlighted the ministry’s broader goal of driving exponential growth in exports, particularly in dollar terms, while ensuring that export proceeds are reinvested in the Nigerian economy.
“We want exports to increase exponentially, in dollar terms in particular. We also want to make sure that those export proceeds come back,” she said.
The minister outlined ongoing collaborations with the Central Bank of Nigeria and other stakeholders to create a regulatory framework that encourages exporters to comply with repatriation requirements.
“It’s an opportunity to make sure that we all practice what we need to practice, that there’s discipline in the system, and that every player is committed,” Dr Oduwole stated, underscoring the importance of regulatory adherence within the Nigerian Export Processing Zones Authority and the Oil and Gas Free Zones Authority.
Looking Ahead
Encouraging businesses to align their models with government policies, Dr Oduwole stressed the need for consistency and strategic planning as the country moves into 2025.
“As a federal government, we’re aligned, and we’re going to make sure that the policies are consistent and well-implemented,” she concluded.
The minister’s assurances come as the government intensifies efforts to enhance Nigeria’s global competitiveness and foster sustainable economic growth, leveraging free trade zones as a catalyst for export-led development.
