The Nigeria Export Processing Zones Authority (NEPZA) has revealed that the country’s Free Zones remitted N11.11 trillion to the Federation Account as of October 2023.
NEPZA Managing Director, Olufemi Ogunyemi, shared this achievement during an oversight visit by the Senate Committee on Industry, Trade and Investment in Abuja. According to Ogunyemi, the SEZs have been instrumental in generating wealth and revenue for various states and federal agencies.
In 2023, the Nigeria Customs Service (NCS) generated N59.38 billion, Immigration Services received N828.7 million, the Nigerian Ports Authority (NPA) garnered N8.738 billion, and states collected N998 million in PAYEE. From 2019 to 2023, Foreign Direct Investments (FDIs) and Local Direct Investments (LDIs) reached $491.8 million and N1.15 trillion, respectively.
Ogunyemi stated that the Free Zones have significantly contributed to import substitution, saving scarce foreign exchange by importing over N1.62 trillion worth of cargo between 2019 and 2023. Additionally, these zones have created 38,429 direct jobs and 172,930 indirect jobs by the end of 2023, fostering skills development and empowering semi-trained artisans to start their ventures.
Despite these successes, Ogunyemi pointed out challenges such as an obsolete legal framework, regulatory incursions, and conflicting legislation, including the Finance Act and Customs Act. He urged the Senate Committee on Industries, Trade, and Investment to support addressing these issues to enhance the SEZ scheme’s effectiveness.
Sen. Sadiq Umar, Chairman of the Senate Committee on Trade and Investment, reiterated the National Assembly’s commitment to driving NEPZA’s mandate. He expressed willingness to sponsor necessary legal reforms, provided they meet legislative standards. Umar stated the importance of NEPZA’s transparency and alignment with its goals, noting that the committee would ensure the agency achieves its established objectives.
