NEPZA Celebrates Massive Import Reduction: Free Zones Record Over N1.62 Trillion in Import Substitution

According to the Nigerian Export Processing Zones Authority (NEPZA), the country’s free zones last year remitted N11.11 trillion to the federation account as of October 2023.
NEPZA Managing Director Olufemi Ogunyemi, who said this during an oversight tour to members of the Senate Committee on Industry, Trade, and Investment in Abuja, said the achievement highlights the importance of Special Economic Zones (SEZs) in the Nigerian economic landscape.
The Nigerian Special Economic Zones Programme under the NEPZA Act allows for public, private, or public-private activities within these zones. He said the zones have contributed to wealth and revenue generation for various states and government agencies.

“In 2023 alone, the Nigerian Customs Service (NCS) generated N59.38 billion, the Immigration Service received N828.7 million, the Nigerian Ports Authority (NPA) collected N8.738 billion and states pocketed N998 million.
“From 2019 to 2023, Foreign Direct Investment (FDI) and Domestic Direct Investment (LDI) reached US$491.8 million and NGN1.15 trillion, respectively.
“Free trade zones have also contributed significantly to import substitution. Between 2019 and 2023, goods worth NGN1.62 trillion were imported from these zones, saving scarce foreign exchange,” he explained.
However, he noted that the direct jobs created by the zones were 38,429, with another 172,930 indirect jobs to be created by the end of 2023.
He further explained that the program also promoted skills development, with many semi-trained artisans gaining expertise to start their own businesses. He added that despite these successes, the authority faces challenges such as an outdated legal framework, regulatory interference, numerous requests from Parliament, and conflicting laws such as the Finance Act and the Customs Act.

He noted that addressing these challenges and improving the effectiveness of the Special Economic Zones program requires the support of the Senate Committee on Industry, Trade, and Investment. He reiterated the transformative potential of Special Economic Zones but also noted the economic success of countries such as China and the United Arab Emirates, making the case for the continued and expanded implementation of Special Economic Zones in Nigeria.
The NEPZA chief also reiterated the agency’s commitment to revitalizing the country’s economy. Chairman of the Senate Committee on Trade and Investment, Senator Sadiq Umar, in response, reiterated NASS’s determination to advance the NEPZA mission.
On the legal framework, he said, “If it is presented as an executive bill, I will be happy to support it as my own bill, but it must be consistent with my thinking on the bill. “On the large number of invitations, Umar said that the National Assembly has the power to invite whoever it wants, but he called on the authorities to ensure that they act in accordance with the set objectives.
“We will help you make sure that you are doing the right thing and that your books are clean. When you are invited, you can answer questions with confidence,” he said. The chairman lamented that some zones are unable to meet the set targets and called on NEPZA to ensure that this issue is improved. More needs to be done in the agency.
“The committee will look into this to ensure that this agency is well-positioned to meet the real reasons for its establishment,” Umar said.