The Ministry of Industry, Trade, and Investment has stated that it is pursuing regulatory coordination with the Central Bank of Nigeria (CBN) to establish a favourable exporting environment to meet local manufacturing demands.
The Ministry also claimed that it is developing a regulatory framework and engaging in policy discussions with the CBN and other stakeholders to ensure that exporters are comfortable and committed to returning their export revenues to the Nigerian economy.
While speaking on policy direction, Dr. Jumoke Oduwole, Minister of Industry, Trade, and Investment, told manufacturers that the country’s free trade zones are intended to accelerate exports rather than harm local manufacturers. Oduwole went on to address concerns raised by local industry stakeholders while speaking in Lagos, emphasising that the zones must adhere to the intended standards in order to stimulate economic progress.
She elaborated: “Nigeria is a situation where some,not all,but some players in the free tradezone have beenexporting 100 per cent into the domesticmarket, which of coursedistortsthings for the manufacturers within Nigeria that are payingtaxes.”
She explained that the primary purpose of free zones is to provide tax relief to facilitate exports, saying, “The essence of the freezones 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 assuaged local manufacturers’ concerns about abuse by emphasising the ministry’s commitment to balancing interests: “So I understand the challenges between the Manufacturers Association of Nigeria and other stakeholders. But just to be clear, we are one economy. We are one economy.
The minister emphasised the Federal Ministry of Industry, Trade, and Investment’s goal of driving exponential export growth, particularly in dollar terms, saying, “The Federal Ministry of Industry, Trade, and Investment is committed to driving exports. And so we want exports to grow enormously, particularly in dollar terms.We also want to ensure that those export revenues are returned.
The Minister stressed the need of compliance and discipline in free trade zone operations, noting that the Nigerian Export Processing Zones Authority and the Oil and Gas Free Zones Authority are overseen by the ministry. She also stated: “It’s an opportunity to make sure that we all practise what we need to practise, and that there’s discipline inthesystem, and that every player iscommitted and has the opportunity, whether to be in a free trade zone or not”.
