By Ekunkonye Junior, Abuja
The Basic Metals, Iron and Steel Manufacturers Sectoral Group of the Manufacturers Association of Nigeria (MAN) has called on the Federal Government to establish a Special Task Force to recover revenue lost through untoward activities of some Free Trade Zones (FTZs) operators.
Speaking to journalists in Abuja at the weekend, Chairman of the group, Prince Lekan Adewoye, lamented weak regulatory oversight in FTZs, particularly regarding value addition to imported raw materials and their subsequent export into the Customs territory.
He said the government is losing significant revenue due to flagrant under-invoicing of finished and semi-finished products imported as purported raw materials into the zones, which eventually find their way into the Customs territory without any value addition.
Prince Adewoye warned that these practices undermine genuine local manufacturers operating in the Customs territory, leading to shutdowns and massive job losses.
He cited a member company of the sectoral group in Ogun State that scrapped nearly 80% of its installed capacity due to unfair competition with operators in the Igbesa FTZ.
“If this situation persists, many more steel manufacturers will collapse, and we risk losing not just investments but also jobs and industrial capacity built over decades,” he said.
The MAN Sectoral Group Chairman emphasized that the Basic Metals and Iron & Steel sector is the backbone of any nation’s industrial development, noting that it has meaningfully supported the Tinubu administration’s economic diversification and industrialization goals through import substitution, value addition, employment generation, MSME development, and local production despite daunting challenges.
In response, Nigeria Economic Zones Association (NEZA) Executive Secretary Toyin Elegbede assured that NEZA would not support any sabotage by its member organizations, stressing that the association’s focus is on realizing the objectives for which FTZs were created.
He noted that the Standards Organisation of Nigeria (SON) is represented in FTZs to inspect, certify, and issue certificates of conformity for goods sold to the Customs territory.
SON Director of Product Certification, Engr. Enebi Onucheyo, confirmed that SON developed a “Special Economic Zones Conformity Assessment Programme (SEZCAP)” in 2024 to certify goods moving into and out of FTZs into the Customs territory.
He said SEZCAP aims to enhance production, importation, sales, and distribution of quality and safe manufactured products in special economic zones into Nigeria and for export.
Engr. Onucheyo added that SEZCAP is being implemented through SON State Offices with jurisdiction over FTZs across the country, marking a step towards curbing revenue loss and ensuring compliance with standards.
