The Nigeria Export Processing Zones Authority (NEPZA) has opposed some sections of the proposed Custom Service Reform Bill, citing three reasons why amendment to give the Customs Service powers to make regulations in Free Zones will weaken and subvert Nigeria’s Special Economic Zones.
According to a statement by Head, Corporate Communications, NEPZA, Martins Odeh, in a submission to the ongoing public hearing on the Custom reform bill at the House of Representatives, NEPZA said “Free Zones are areas designated as such by the President to serve as one-stop-shop investment hub, wherein incentives are provided in form of tax holidays, simplified Customs and Immigration processes, amongst others, with a view to attracting investors.
“The One-Stop-Shop concept, in furtherance of which regulations were made for all the active Free Zones with the involvement of the Nigerian Customs Service and all relevant stakeholders, would be eroded if the provisions of the bill are allowed”, the Authority noted.
It added that: “By providing regulations for the free zones, the Nigeria Customs Service would be setting a dangerous precedent, as other agencies would want to do same.”
The Authority, in its response, also held that the development if not nipped on the board would result in either multiple regulations that might be contradictory thereby creating avoidable legal tussles or make registration of enterprises unnecessarily cumbersome and unattractive.
The Authority further submitted that: “the proposed sections of the bill which seek to make the Free Zones Customs- Controlled Zones invariably seek to create antithetical Free Zones Customs Territory alien to the global free trade zone model used around the world.
While listing specific areas of the Bill it finds objectionable, the Authority stated that it had through the operations of the free zones contributed tremendously to the national economy, noting that the Lekki Free Zone Quadrant that comprised Lekki Free Trade Zone, Lagos Free Zone, Dangote Free Zone Enterprises and the Alaro City Free Zone as well as the Calabar Free Zone and the Kano Free Zone were alluring testaments of how it continued to fast track the country’s Industrialisation.
