The Minister of Industry, Trade and Investment, Otunba Niyi Adebayo, has directed that the validity period of licences for operators in free trade zone areas be increased to five years.
He gave the directive at a Stakeholders’ Forum Organised by the Nigeria Economic Zones Association Thursday in Lagos with the theme: “Streamlining Free Zone Operations for Global Competitiveness.”
Adebayo noted that the ministry had in 2020 temporarily suspended the issuance of new free trade zone licences due to the need to overhaul the system.
He, however, stressed that yearly returns must be made by the operators following the directive on licence expansion.
The minister also charged the Nigeria Export Processing Zones Authority (NEPZA) and the Oil and Gas Free Zones Authority to fully digitalise its operations before the end of the year.
“Globally free trade zones play a critical role in stimulating industrial activities, boosting the manufacturing sector and growing the economy.
“Their performance impacts three main areas of job creation, diversifying government revenue and generating foreign exchange as a well functional free trade zone in Nigeria can create 300,000 direct jobs.
“Expanding Nigeria’s export capacity needs under the Africa Continental Free Trade Area (AfCFTA) mitigates the risk of Nigeria becoming a dumping ground for imports while also boosting our foreign currency reserves.
“Therefore, it is absolutely necessary to adopt strategies that would transform them into a dynamic instrument for economic growth,” he said.
Responding, the managing director, NEPZA, Prof. Adesoji Adesugba, charged stakeholders to come together in order to collectively work towards achieving the various objectives of the free trade zone scheme.
He revealed that over $25 billion had come in through the scheme so far and lauded the federal government for the 50 megawatts of electricity allotted to the free zone.
