The Free Trade Zones (FTZs) stakeholders have expressed reservations on certain provisions of the Nigeria Tax Bill, 2024, particularly the proposal to expunge some sections of Acts establishing both the Nigeria Export Processing Zones Authority (NEPZA) and Oil & Gas Free Zones Authority (OGFZA) which provided tax incentives for the Special Economic Zones Scheme.
This was contained in a communique released after the 3rd Special Economic Zones Annual Meeting organised by the Nigeria Economic Zones Association (NEZA) between February 19th and 20th.in Lagos.
The document was signed by Mr Toyin Elegbede, Executive Secretary of the association and made available to newsmen on Sunday in Abuja.
Stakeholders agreed that the Federal Government should only pass a tax law that promoted a sustained inflow of both local and foreign investment into the SEZs ecosystem.
They noted the willingness of the Chairman of the Presidential Committee on Fiscal and Tax Reform, Mr. Taiwo Oyedele to further engage stakeholders on their concerns with regards to some provisions in the Nigeria Tax Bill, 2024 affecting the SEZ scheme as a mark of responsibility to reposition the scheme for greater productivity.
They further noted, with delight, the current resolve by the federal government through the Federal Ministry of Industry, Trade and Investment (FMITI), to prioritize the scheme for rapid industrialization and economic transformation.
According to the communique, the participation of Dr Jumoke Oduwole, Minister of Industry, Trade and Investment in this year’s edition of the meeting was a testament to the government’s commitment to set a clearly defined policy environment that would inspire investor confidence and enhance greater business efficiency in SEZs.
The Stakeholders also acknowledged the substantial progress already made through the Ministry of Foreign Affairs to reposition the Economic Desk in the country’s Foreign Missions to deliver on Nigeria’s economic priorities and promote foreign direct investment into the SEZs.
The meeting urged SEZs operators to leverage on the much-improved collaboration with the Nigeria Customs Service (NCS) to massively produce export-oriented goods meant for the African market and take advantage of the Africa Continental Free Trade Area Agreement (AfCFTA) to boost Nigeria’s export earnings.
The stakeholders also acknowledged with delight, the progress regarding the circular by the Nigeria Customs Service on the movement of operational vehicles and procedure code for some capital goods in the SEZs.
The meeting urged the leadership of the association, NEPZA, and OGFZA to further engage with the Central Bank of Nigeria (CBN) to finalize on the guidelines for the implementation of Off-shore Banking in Special Economic Zones.
The stakeholders further urged the Free Zones Regulatory Authorities to improve on the existing collaborations with other government stakeholder agencies that exercise regulatory functions within the SEZs.
The operators resolved to promote cohesive synergy in enhancing the development of smart infrastructure, circular economy initiative, and advanced manufacturing technologies in collaboration with the International Business Community.
