Nigeria’s Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, has assured manufacturers that the country’s free trade zones are designed to accelerate exports and not to harm local manufacturers.
Addressing the concerns by local industrial stakeholders at a press briefing in Lagos, Dr. Oduwole emphasised that the zones must operate within the intended guidelines to foster economic growth.
“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 said.
The minister explained that the fundamental purpose of free zones is to provide tax relief to facilitate exports.
She added that the essence of the free zones is to give the manufacturers some tax relief, enable them to facilitate their exports.
According to her, only 25 per cent of goods produced in these zones may be sold at the local market without incurring taxes.
Oduwole allayed local manufacturers’ fears of abuse, stressing the ministry’s commitment to balancing interests: “So I understand the issues between the Manufacturers Association of Nigeria and other stakeholders. But just to say that we’re one economy. We’re one economy. What we want for the Nigerian economy is the same, wherever anybody is.”
She reiterated that the Federal Ministry of Industry, Trade and Investment aims to drive exponential export growth, especially in dollar terms, saying, “The Federal Ministry of Industry, Trade and Investment is committed to driving exports. And so we want exports to increase exponentially, in dollar terms in particular. We also want to make sure that those export proceeds come back.”
GIK/APA