The Federal Government of Nigeria has revealed that 46 of the 240 Free Trade Zones (FTZs) in Africa are in Nigeria. The FG says that the number could further increase as more states apply for FTZ licenses. The Managing Director of the Nigeria Export Processing Zones Authority (NEPZA), Prof. Adesoji Adesugba, disclosed this to the press. He said that 30 of the 46 FTZs in Nigeria are currently functional. The NEPZA chief also responded to claims that Akwa Ibom state had difficulties obtaining a license. On the contrary, Prof. Adesugba emphasized that they never applied for one.
A Free-Trade Zone (FTZ) is a class of Special Economic Zones (SEZ) – an area in which the business and trade laws are different from the rest of the country. SEZs are located within a country’s national borders, and their aims include increasing trade balance, employment, increased investment, job creation and effective administration. However, an FTZ is a geographic area where goods may be imported, stored, handled, manufactured, or reconfigured and re-exported under specific customs regulations. These goods are generally not subject to customs duty.
Developing countries like Nigeria run EPZs.
These zones are usually organized around major seaports, international airports, and national frontiers, generally areas with many geographic advantages for trade. This is because FTZs are established for economic development. Nigeria runs Export-Processing Zones (EPZs), majority of which are situated in developing countries. An EPZ is a specific type of zone which is usually set up in developing countries by their governments to promote industrial and commercial exports. An EPZ offers enterprises free trade conditions and a relaxed regulatory environment.
Its objectives are to attract foreign investors, collaborators, and buyers who can facilitate entry into the world market for some of the economy’s industrial goods. Thus, it generates employment and foreign exchange for the country. Countries, such as China, India, Brazil, etc., have EPZ programs. Also, the regulations used in FTZs are usually quite different from those used in EPZs. For instance, China’s specific rules that differentiate an EPZ from an FTZ is that 70 percent of goods in EPZs must be exported. No such quota exists for FTZs.
China uses zones as a strategy for economic development.
Prof. Adesugba said that there are more than 1,300 FTZs in China, which is what China uses as a strategy to ensure economic development. He added that Africa can imitate China, with Nigeria taking the lead in propagating FTZs. He said that the widespread FTZs is why most Chinese firms are very competitive. As part of the stakeholders, they want to replicate the same in Africa. He lamented that Africa only has 240 FTZs and there are only 46 under the NEPZA scheme. In fact, only 30 of those 46 FTZs are currently working.
He said that the organization is still encouraging states and private investors to consider utilizing the scheme. Reacting to reports that Akwa Ibom is currently facing difficulties in getting an FTZ license, he said, “I am not sure we have records of Akwa Ibom applying for any free zone license and we are inviting them if they so desire to have a free zone.” He further said that NEPZA’s desire is to have a free zone in each state of the country regardless of who is the political head.
Nigeria’s FTZs attracted $30billion in investments.
President Muhammadu Buhari stated that FTZs in Nigeria have attracted over $30 billion in investments. This is expected to increase in the next few years with sustained incentives and an aggressive investment drive. Incentives in the free trade zones include tax-free operations, free fiscal duty for imported goods, machinery and equipment, exemption from levies. The presence of key enterprises in the zones is an attestation to the fact that FTZs are contributing immensely to the growth and industrialization of the Nigerian economy.
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FG says Nigeria has 46 of 240 FTZs in Africa – Experts have posited that Africa needs more FTZ to enable economic growth. – Express your point of view.
According to the FG, the number may continue to rise as a growing number of states submit applications for FTZ permits, and that is a good thing.
Within the borders of a nation is where special economic zones are established; the goals of these zones include boosting a nation’s trade balance, employment, greater investment, job creation, and efficient administration.
The head of NEPZA also addressed rumors that residents of Akwa Ibom state had a tough time getting licenses.
Free trade conditions and a regulatory atmosphere with fewer restrictions are available to businesses operating within an EPZ.
Its goals are to entice foreign investors, collaborators, and buyers who can facilitate the economy’s industrial goods’ entry into the global market. Additionally, it hopes to collaborate with foreign investors.
Special economic zones are created within the borders of a country with the intention of improving the economy of that country in various ways, such as through increased commerce, employment, investment, and the development of new jobs, as well as through more streamlined government.
FG says Nigeria has 46 of 240 FTZs in Africa. Encouraging states and private investors to consider utilizing the scheme.
It is anticipated that this will expand over the course of the subsequent several years as a result of ongoing incentives and a vigorous investment drive.
The FG thinks that this positive trend will continue as more and more states apply for FTZ authorization.
The group is continuing to urge both state governments and private investors to consider making use of the scheme.
Applying in FTZ will improve and boost the country economy state and private should be encouraged and participate in this scheme positive things come up out from this is well used
This is expected to grow over the next few years thanks to persistent incentives and a robust investment push.
Considering the options and objectives available. I’m my opinion, the government go for the one best, suitable and profitable to the country.
State and private entities should be encouraged to take part in the Foreign Trade Zone program because of the favorable effects it will have on the national economy.
If Nigeria is having 46 free trade zone out of240 need by Africa to enter economic growth in which 30 are functioning then Nigeria will do well economical in the nearest future.
Nigeria is making significant progress economical if truly we have 30 functioning free trade zones from the 46 and we are also seeking for more. Meanwhile Africa only 240 free trade zones to attain economical development. Then we are there already.
Its goals are to draw in international investors, partners, and customers who can help some of the economy’s industrial goods enter the global market.
We really need to get more zones from the 240 zones in Africa. Just 46 is too small. We really need to get more zones to help us trade maximally.
Within a nation’s borders, special economic zones are established with the goal of enhancing that nation’s economy in a variety of ways, including through increased trade, employment, investment, and the creation of new jobs, as well as through more efficient governance.