The Nigeria Export Processing Zone Authority (NEPZA) has disclosed that Nigeria may have lost about $250 billion, no thanks to corruption, multiple charges and other challenges working against agro-export produce in the country.
Managing Director/CEO of NEPZA, Prof. Adesoji Adesugba, made this disclosure at the second edition of Aviation and Cargo Conference (Chinet) held in Lagos recently.
He said that government agencies in the airport have done a disservice to import and export in the country by mounting complicated roadblocks in the form of extortions, harassment and multiple charges on agro-export goods to the country alone.
According to him, eleven out of sixteen sundry charges within the supply chain are illegal, stressing that some of these charges have caused international cargo airlines to prefer flying out of Nigeria empty.
Presenting his paper at the event, Adesugba who was represented by the Assistant Director Investor Promotion, NEPZA, Augustine Onyekwere highlighted some challenges that are militating against import and exports in the country.
He said: “Among the 16 sundry charges tracked for goods coming in or departing the country via airports, only five are officially recognised. Nigeria’s import-to-export airfreight ratio imbalance stood at 87:13 from available statistics.
“The implication according to cargo agencies is loss of at least about $250 billon on agro-export produce to the country.
He identified other challenges to include, lack of modern infrastructure, lack of corporate governance, policy and regulation, high cost of aviation fuel, inadequate funding and resources, high cost of operation, insecurity, insurance and corruption.
He said the Federal Government of Nigeria in order to support the aviation industry and stimulate multiplier effects in the economy in May 2021 designated the four major international airports (Lagos, Abuja, Kano and Port Harcourt) respectively as Special Economic Zones (SEZs) to enable the companies operating at these airports enjoy the benefits of the Free Zone scheme.
He stated that SEZs are designed to accelerate investment in the aviation sector and its value chain, improve the utilisation of the airports, generate more revenues for the federal government as well as attract more local and foreign direct investment and increase aviation contribution to the Gross Domestic Product (GDP).
According to him, SEZ can grow the aviation and cargo export in Nigeria with the incentives and concessions available in the Nigeria Free Zones with concepts like tax holidays, one stop approvals as well as 100 per cent foreign ownership of businesses.
“Complete tax holiday from all federal, state and local government taxes, rates, customs duties and levies, one-stop approvals for all permits, operating licenses and incorporation papers. Duty-free, tax-free import of raw materials and components for goods destined for re-export.
“Duty-free importation of capital goods, consumer goods, machinery, equipment, and furniture.
“Permission to sell 100 per cent of manufactured, assembled or imported goods into the domestic Nigerian market and meeting the 35 per cent value addition,” Adesugba explained.
“Export duty into the custom territory is calculated based on the value of the raw material or components used in assembling the product, not on the finished product’s value.
“100 per cent foreign ownership of investments. 100 per cent repatriation of capital, profits and dividends as well as waiver on all import and export licenses, waiver on all expatriate quotas for companies operating in the zones,” he urged.