By Martins Odeh


The African Continental Free Trade Area (AfCFTA) has given leverage to all countries in the continent to diverse their business catchments.


Many countries have done this through strengthening their Free Trade Zones (FTZs) and for now, free trade zones are springing up everywhere in Africa.


Stakeholders say that Nigeria must be concerned about competition from Egypt, South Africa, Kenya, Benin Republic, Ghana and Togo, where huge investments have been committed to free trade zones development.


Undoubtedly,the recent decision of the Nigeria Export Processing Zones Authority (NEPZA) to concession the Calabar and Kano FTZs remains government’s best economic approach to accelerate Nigeria’s industrialisation agenda.


The primary purpose of a free trade zone is to remove from a seaport, airport, or border those hindrances to trade caused by high tariffs and complex customs regulations.


Among the advantages of the system are the quicker turnaround of ships and planes through the reduction in formalities of customs examinations and also the ability to fabricate, refinish, and store goods freely.


A road show was recently held in Lagos on the planned concession of the two public export processing zones.


Prof. Adesoji Adesugba, Managing Director of NEPZA, said the planned handshake with the would-be concessionaires would positively impact on the operation of the 30-year-old public facilities for global competition.

 

“The two zones are highly viable because of many reasons, including their vital locations, easy access to raw materials, seaports, airports, outside infrastructure, labour and more importantly the boisterous nature of the two commercial cities.


“The Authority is, therefore, available to support and assist the new owners, to speedily surmount challenges that may come with taking up the management of this kind of business.


“I want to assure the private sector and particularly, companies that are set to file their bids, to count themselves lucky because of the great requisite return on investment the facilities will be offering,’’ he said.


Adesugba added that the scheme offered complete tax holiday from all federal, state and local government taxes, rates, customs duties and levies.


He said the duty-free on import of capital goods, consumer goods, machinery, equipment and furniture were guaranteed, adding that the scheme also permitted 100 per cent foreign ownership of investments.


The NEPZA chief executive said duty on exports into the customs territory was calculated on the value of originally imported component raw materials and not on the value of finished goods.


He added He added that the scheme provided opportunity to export items on Nigeria’s import prohibition list, provided that it could be proven that at least 35 per cent value had been added to promote local content.


“The scheme offers permission to sell 100 per cent of manufactured, assembled or imported goods into the domestic market and it guarantees 100 per cent repatriation of capital and profit.


“It was imperative for the private sector to now leverage on these incentives as the scheme allows them to ride on the AfCFTA framework to freely access the continent’s huge market,” he said.


Otunba Adeniyi Adebayo, Minister of Industry, Trade and Investment, said the unrelenting efforts of the National Council on Privatisation had made the process leading to the concession of the two zones seamless so far.


The minister said that the decision to privatise them was hinged on the Federal Government’s preparedness to produce world-class free zones that the country could use to solve some of its economic challenges.


“Government’s stance to allow for a transparent process that would bring up virile concessionaires, with the right capacity, expertise and finance to convert the zones to national economic asset, capable of generating employment for the teeming youth and Foreign Direct Investment (FDI) is topmost.”


Mr Alex Okoh, Director-General, Bureau of Public Enterprises (BPE), said the concession model to be used would be that of “build, rehabilitate, operate and handover,’” over a period.


He added that the Lagos road-show was part of the process leading to the final concession of the two facilities by December.


Before the road show, Adesugba had reiterated the commitment of NEPZA to live up to its mandate by providing wider business corridor for investors to access the country’s free trade zones.

He spoke when the staff union members of the authority staged a peaceful demonstration to support his efforts in transforming NEPZA.


Adesugba, who emphasised on the need to explore the benefits provided by the free trade zones to grow Nigeria’s economy, 


NAN