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Stakeholders have suggested that the Free Trade Zones in the country has the possibility of generating over N11.11 trillion, which they had already transferred to the Federation Account by October 2023.
During a recent presentation to the Senate Committee on Industry, Trade, and Investment, Olufemi Ogunyemi, the Managing Director of Nigeria Export Processing Zones Authority, highlighted how the zones have brought economic prosperity to the states where they are located and have contributed to the financial growth of various agencies.
According to Ogunyemi, various agencies such as the Nigeria Customs Service, the Immigration Services, and the Nigerian Ports Authority collectively generated a total of N59.38 billion, N828.7 million, and N8.738 billion, respectively. Additionally, states contributed N998 million through Pay As You Earn remittances.
Following the enactment of the Nigeria Export Processing Zones Authority Act 63 of 1992, which designated NEPZA as a federal agency with regulatory authority, additional free zone laws were introduced. These included the 1996 Oil and Gas Export Free Zone Decree, the 2003 Oil and Gas Free Zone Regulations, and other relevant legal provisions.
As per the Managing Director of NEPZA, the free zones in Nigeria, which totaled 46 licensed zones by 2022, have created 38,429 direct employment opportunities and an extra 172,930 indirect jobs by the conclusion of 2023.
He further mentioned that the free zones had attracted foreign direct investment totaling $491.8 million and domestic direct investment amounting to N1.15 trillion, while also saving scarce Nigerian foreign exchange through the importation of goods valued at N1.62 trillion from these zones between 2019 and 2023.
