The revenue of the Nigeria Export Processing Zones Authority (NEPZA) has decreased by 25 percent over the past six months, amounting to N6 billion compared to the N8 billion it had generated in 2023.
Dr. Olufemi Ogunyemi, NEPZA's managing director, revealed
this information during an oversight visit in Abuja by the House of
Representatives Committee on Commerce and Investment, headed by Chairman Ahmed
Munir.Ogunyemi explained that of the N8 billion generated in 2023, the
authority remitted N4 billion to the federal government and retained N4 billion
in the agency’s coffers.
Upon assuming office, he clarified that he had inherited 52
free trade zones and had granted licenses to two more, which have shown a
commitment to invest approximately N3 billion dollars in Nigeria.
When discussing the challenges within the agency, he
expressed concern over conflicts between agencies, including the Federal Inland
Revenue Service, the Nigerian Customs Service, and NEPZA.
Nevertheless, he ascribed the disputes to the outdated NEPZA
Act of 1992.
The managing director emphasized the crucial role that free
trade zones play in the country's industrialization drive, but also noted that
inadequate infrastructure in the zones continues to be a challenge.
He stated that there are numerous security challenges, with
certain privately owned entities struggling to secure financing for their
infrastructure.
“Lot of states are trying to have zone licences, and some of
the zones that have failed have been state governments and private partnerships
where the state government has changed from one political party to another and
has been neglected.
”You are all aware of the issues at Centenary Park in
Abuja,” he said.
Ogunyemi also expressed concern about the inadequate funding
for the agency, and urged the National Assembly to help increase their budget
allocation.
The Chairman of the House Committee on Commerce has advised
the NEPZA boss to act promptly in order to facilitate speedy revisions to its
Act and help him fulfill his responsibilities.
Munir emphasized the importance of NEPZA sending specific
areas in the Act that required amendment to the House for prompt resolution, as
depending solely on the Executive Order could prolong and hinder
implementation. He further urged the authority to provide information on the
nonoperational trade zones to the House for assessment of their status and
planning for the future.
He further recommended that the NEPZA authorities
familiarize themselves with the regulations of the different agencies in order
to achieve more effective outcomes in resolving inter-agency conflicts.
Also, NEPZA Union Chairman Yahaya Halliru urged the House
Committee Chairman to update the NEPZA Act 63 of 1992 to align with
contemporary circumstances.
He additionally asked for a reassessment of the staff
salaries, noting that they had not undergone a review in over a decade.
“We appeal to the
National Assembly to appropriate more funds for the authority to provide
world-class infrastructural facilities in our special economic zones.
“This will enable the authority to attract more investors
and increase the inflow of foreign direct investments in the country and
economic growth.
“We also appeal to the NASS to repeal and amend conflicting
laws of our sister agencies to enable NEPZA to have a smooth operation in our
various free zones,” he said.