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FG assures manufacturers free trade zones will boost exports

Dr. Jumoke Oduwole, the Federal Minister of Industry, Trade, and Investment, has assured manufacturers that Nigeria's free trade zones will boost exports rather than undermine local industries.

During a press briefing in Lagos, she emphasised that the zones are intended to operate within guidelines that promote economic growth and address stakeholders' concerns.

She said: "Nigeria is 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 that are paying taxes."

She explained that the primary goal of free zones is to provide tax relief in order to facilitate exports, adding, "The essence of the free zones is to give you some tax relief, enable you to facilitate your exports," while also clarifying that only 25% of goods produced in these zones may be sold in the local market without incurring taxes.

Oduwole allayed local manufacturers' concerns about abuse by emphasising the ministry's commitment to balancing interests: "So, I understand the issues between the Manufacturers Association of Nigeria and other stakeholders. But just to be clear, we are one economy. We are one economy. What we want for the Nigerian economy is the same no matter where you are.

The minister reaffirmed the Federal Ministry of Industry, Trade, and Investment's commitment to driving exponential export growth, particularly in dollar terms, saying, "The Federal Ministry of Industry, Trade, and Investment is committed to driving exports." So we want exports to grow exponentially, particularly in dollar terms. We also want to ensure that those export proceeds are returned.

Oduwole emphasised the ministry's collaboration with the Central Bank of Nigeria and other key stakeholders in implementing regulatory measures that promote a favourable environment for exporters.

"We are working on a regulatory framework. We have discussed policies with the CBN and other stakeholders to ensure that exporters are comfortable, happy, and committed to returning their export proceeds to the Nigerian economy," she stated.

The minister emphasised the importance of compliance and discipline in the effective operation of free trade zones, which are overseen by the Nigerian Export Processing Zones Authority and the Oil and Gas Free Zones Authority, both of which fall under the ministry's jurisdiction.

She explained, "It's an opportunity to ensure that we all practise what we need to practise, that the system is disciplined, and that every player is committed and has the opportunity, whether we're in a free trade zone or not."

"It's time for everyone to make a decision. People have the opportunity to do both. Depending on your business model, you can produce both inside and outside of the free trade zone.

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