Yemisi Izuora
Industry, Trade and Investment Ministry is driving regulatory collaboration with the Central Bank of Nigeria (CBN) to promote clement exporting environment to suit local manufacturing needs.
The Ministry is also working out other regulatory measures alongside other relevant stakeholders to ensure a conducive environment for exporters.
The Ministry confirmed working on the regulatory framework and opening discussions on policies with CBN and other stakeholders to make exporters comfortable and committed to bringing back their export proceeds to the Nigerian economy.
Industry Minister, Dr. Jumoke Oduwole, while speaking on the policy direction also assured manufacturers that the country’s free trade zones are designed to accelerate exports and not to harm local manufacturers.
Oduwole, went further to address concerns by local industrial stakeholders while speaking in Lagos, where she emphasised that the zones must operate within the intended guidelines to foster economic growth.
She noted, “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 explained that the fundamental purpose of free zones is to provide tax relief to facilitate exports, adding, “The essence of the free zones is to give you some tax relief, enable you to facilitate your exports,” she said, while also clarifying that 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.”
The minister 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.”
The Minister emphasised that compliance and discipline are essential in free trade zones’ operations, with the Nigerian Export Processing Zones Authority and the Oil and Gas Free Zones Authority under the ministry’s watch.
She explained, “It’s an opportunity to make sure that we all practice what we need to practice, and that there’s discipline in the system, and that every player is committed and has the opportunity, whether to be in a free trade zone or not.
“It’s time for everybody to make their decision. And indeed, people have the opportunity to do both. You can produce in the free trade zone and outside the free trade zone, depending on your business model.,” she explained.
Oduwole encouraged stakeholders to consider their business models carefully, noting that the government’s policies for 2025 will remain consistent and supportive of economic growth, remarking, “As a federal government, we’re aligned, and we’re going to make sure that the policies are consistent and well-implemented