How Free Trade Zone generated N35.1bn in 2021 – NEPZA

Bisola David
Bisola David
How Free Trade Zone generated N35.1bn in 2020 - NEPZA

The Nigeria Export Processing Zones Authority has reported that the Free Trade Zones scheme brought in a total of N35.1 billion in customs duties for the government in 2021.

According to Premium Times, the organization said that in 2021, N408.3 million was also remitted as Pay As You Earn taxes.

The managing director of NEPZA, Adesoji Adesugba, stated in an interview on Sunday in Abuja that the organization assured the efficient generation of customs duty and administration of taxes applicable to the operation of zones.

The PAYE tax is one of the essential taxes that individuals must pay to the Federal Inland Revenue Service in their particular state of residency in Nigeria.

The NEPZA Act’s Section 19 requires FTZ businesses to submit reports for statistics and data, while Section 8 specifies that businesses operating in zones be exempt from paying taxes to the federal, state, and local governments.

As they expand their enterprises within the customs territories, they must pay all deferred taxes and duties.

The head of NEPZA added that the program produced a total of 19,125 jobs in 2021.

He claims that as of 2021, Nigerians had received training for 3,000 different jobs.

The managing director outlined how the federal government had given its approval for NEPZA to establish and run the Special Economic Zones Security.

He said that the Nigerian government approved the FTZ concept and established NEPZA with Act 63 of the parliament in 1992 to regulate and manage it precisely to generate a viable revenue source to lessen over-dependency on the downstream industry.

“I can state with confidence that the authority did a good job of carrying out its mandate.

“In the previous seven years of President Muhammadu Buhari’s administration, we have seen a turnaround as he continues to demonstrate commitment and passion through the Federal Government’s unwavering support for the scheme’s success.

According to the Economic Recovery and Growth Plan, “the current administration, for example, buttressed the importance of special economic zones in Nigeria’s industrialization program in 2017,” the man added.

The Nigerian Industrial Revolution Plan, a four-year road map on industrialization to create jobs and encourage exports, which in turn would help economic growth, he claimed, was being implemented more quickly thanks to the SEZ model.

“The entry of private investors has in the previous few years made visible the triumphs and potential of the program,” Mr. Adesugba added.

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