Newsfront Online …Telling the Public as it is
The vice president of the Manufacturers Association of Nigeria (MAN), South-West Zone, Dr. Kamoru Yusuf has called for immediate review of the policy surrounding operations at the free trade zones in Nigeria, which has been subjected to serious abuses with little or no value addition to the economy.
Yusuf, who made this call during an interview with journalists, said the government needs to investigate the comprehensive list of the companies who registered under the free trade zone; including the claimed value of their investments as Nigeria Customs Service is losing about N300 billion which is supposed to be generated through Duty Revenues every month.
According to him, we wish to appeal to the President, Asiwaju Bola Tinubu through the Minister of Industry, Trade and Investment to institute an inquiry into the operations of the FTZ with a view to auditing the number of companies registered under free trade zone, their business activities/model and their initial claim when registered and compare this with the data with the Nigerian Customs for the value of goods coming into the country through the FTZ which is expected to serve as part of their KPI with the Ministry within a time frame as decided by the President.
“It is observed that 60 per cent of the goods coming into the country from Asia are finished products which can be valued around $800 million of which some of them are substandard. As a result of this, the Nigeria Customs Service is losing about N300 billion which is supposed to be generated through Duty Revenues every month but which some of the products mentioned earlier, were imported under the disguise of the free trade zone investments.
“Whereas, the law governing the Free Trade Zone prevents the Federal Inland Revenue Service (FIRS) from generating taxes on all the goods brought in through the Free Trade Zones.”
He noted that “these goods will be sold in naira and the importers are always wanting to repatriate the money back to their country in dollars and as they have no other source of getting the money, they then resolve to go to the black market since the goods were brought into the country in a dishonest manner. It is therefore evident that they can afford to buy the dollar at any rate because they already have export rebates from their country for the finished goods exported to Nigeria; hence their patronage of black market.”
He added, “it is worrisome that most of the importers in FTZ claiming to be manufacturers/investors are part causing of the problem in the FX black market as they are bringing products of their parent companies into Nigeria under the guise of free trade zone without paying appropriate taxes and duties, while all the goods ended up being sold within custom territories.”
Meanwhile, Yusuf, also the Group managing director of KAM Holding Limited stated that “there is no doubt that the Nigerian economy is facing challenges just like every other nation of the world, especially developing countries or what we regard as third world nations. All efforts put in place by successive governments are always met with numerous challenges especially when a new administration is inaugurated.”
He said that there are always errors in decision making techniques of new administrations due to lack of far reaching consultation and non-inclusion of appropriate stakeholders that can further provide genuine working ideas and templates for the good of the nation.
(leadership.ng)
