The Nigeria Export Processing Zones Authority (NEPZA) and the House of Representatives Committee on Public Accounts have initiated a collaborative effort to bolster regulatory oversight and enforcement within Nigeria’s Free Trade Zones (FTZs). This initiative aims to ensure that all operating enterprises within these zones adhere to stipulated regulations, particularly concerning the timely and complete remittance of dues into the Federation Account. This renewed focus on compliance arose from concerns over potential revenue leakages and a desire to maximize the economic benefits derived from FTZ operations.
The impetus for this intensified regulatory drive stemmed from an oversight visit conducted by the House Committee to two prominent FTZs: the Dangote Refinery and Petrochemicals Free Zone Enterprise and the Lagos Free Zone, both located in Ibeju-Lekki, Lagos. These zones were chosen due to their significant contributions to the national economy and their status as flagship examples of FTZ operations in Nigeria. The visit allowed the committee to assess firsthand the operational landscape within these zones and engage with key stakeholders, including NEPZA officials and enterprise representatives.
During the oversight visit, Dr. Olufemi Ogunyemi, the Managing Director/Chief Executive Officer of NEPZA, reiterated the authority’s unwavering commitment to promoting transparency, accountability, and regulatory compliance across all FTZs under its purview. He acknowledged that while some zones and their resident enterprises had demonstrated commendable adherence to remittance regulations, there remained a need for stricter enforcement to ensure universal compliance. Ogunyemi emphasized that NEPZA would proactively engage with all operators to ensure they understand and fulfill their obligations, thereby enhancing the overall integrity and effectiveness of the FTZ scheme.
Bamidele Salam, Chairman of the House Committee on Public Accounts, expressed satisfaction with the substantial investments and robust industrial activities observed at the Dangote Refinery and Lagos Free Zone. He recognized the crucial role these zones play in attracting both domestic and foreign investment, thereby contributing significantly to Nigeria’s economic growth. However, Salam emphasized the importance of continuous refinement of the FTZ scheme to ensure it remains aligned with its core objective of accelerating national economic development and industrialization. He called for ongoing evaluation and adaptation of regulations to address emerging challenges and optimize the scheme’s performance.
A critical aspect highlighted during the visit was the need for broader geographical distribution of FTZs across the country. Salam urged NEPZA to prioritize the expansion of the FTZ scheme to other regions to promote equitable industrial development and avoid concentrating economic activities in specific areas. This strategic expansion, he argued, would foster balanced regional growth and maximize the overall benefits of the FTZ program for the entire nation. He emphasized the importance of ensuring that all regions have the opportunity to participate in and benefit from the economic opportunities generated by FTZs.
The oversight visit underscored the significance of regulatory compliance as a cornerstone of successful FTZ operations. The committee emphasized the necessity of activating and rigorously enforcing all existing regulations to ensure transparency and proper conduct of business within the zones. This robust regulatory framework, they stressed, is essential to guarantee the appropriate remittance of dues to the Federation Account, a critical source of revenue for national development. Both NEPZA and the House Committee agreed on the need for ongoing monitoring and evaluation to ensure the effectiveness of these measures. Furthermore, the committee urged NEPZA to address the issue of inactive licenses and ensure that these licenses are not held by non-FTZ operators, thus maintaining the integrity and purpose of the scheme. The collaboration between NEPZA and the House Committee signals a strengthened commitment to optimizing the performance of Nigeria’s FTZs and maximizing their contribution to the nation’s economic growth.
