Categories: Business

FG promises to provide incentives for operators in free trade zones

Okey Enelamah, minister of industry, trade and investment, says the Nigerian Industrial Council is set to review fiscal arrangements and incentives for operators of free trade zones (FTZs).

In a statement on Wednesday, Bisi Daniels, spokesperson of the ministry, said the council is embarking on the review with the view to ensure competitiveness of goods produced in the FTZs in the local and export markets.

He said there are many free trade zones at different stages of development in the country.

According to him, 14 are operational, 12 under construction, while the development of 11 others is yet to commence.

In addition, six special economic zones are being developed across the geopolitical zones.

Daniels said approved enterprises within federal government-owned FTZs are entitled to certain incentives like exemption from legislative provisions pertaining to taxes, levies, duties and foreign exchange regulations, full repatriation of foreign capital investment with capital appreciation of the investment at any time, up to 100 percent of foreign ownership allowable; and no import or export licences required for operations; among others.

Enelamah, who is also the vice-chairman of the council, said, “A study by the council has identified some areas that need redress. For example, manufacturers outside the zones have complained about unfair competition as the tax concessions available to FTZ operators do not take into cognizance the fact that up to 100% of goods produced in the free zones can be sold into the Nigeria customs territory; inadequate definition of value addition and certification; and cash flow advantage to free zone operators who pay duties on constituent raw materials equivalent of finished goods after production and processing, while manufacturers outside the zones pay duties and other relevant levies upfront.

“However, in the study, free zone operators raised concerns over their inability to effectively compete in the export market, high administrative charges on turnover and exclusion from export incentives.”

Recent Posts

  • On the Go
  • The Nation

Drama as FAAN official ‘steals $600’ from pilgrim

Ramatu Luka, an official of the Federal Airport Authority of Nigeria (FAAN), has been arrested for allegedly stealing $600 belonging…

6 hours ago
  • On the Go
  • Top Stories

North-west governors grant amnesty to bandits 

Bandits, cattle rustlers have been granted amnesty by governors in the north-west.  This was disclosed by Aminu Masari, governor of…

6 hours ago
  • On the Go
  • The Nation

Alaafin: Why senate under Saraki frustrated Magu

Lamidi Adeyemi III, the alaafin of Oyo, says the senate under Bukola Saraki frustrated the confirmation of Ibrahim Magu as…

7 hours ago
  • Life and Living
  • On the Go

The many fallacies about Fela Anikulapo-Kuti

BY VICTOR AKHIDENOR One of Fela Anikulapo-Kuti’s tracks, Open and Close, starts with an antithesis: “I wan to tell you…

7 hours ago
  • Business
  • On the Go

ALERT: You can no longer claim your pension benefits without data recapture

The Pension Fund Operators Association of Nigeria (PenOP) says contributors will be unable to claim their retirement benefits if they…

8 hours ago
  • Inside Nigeria
  • Kano

Ganduje: 95 percent of Almajiri roaming streets of Kano are foreigners

Abdullahi Ganduje, governor of Kano state, says 95 percent of Almajiri roaming the streets of Kano are foreigners. He disclosed…

9 hours ago