Dipo Olowookere
By Modupe Gbadeyanka
The issuance of licences for the operation of Free Trade Zones (FTZs) in Nigeria has been suspended by the federal government.
The suspension was announced on Monday by the Minister of Industry, Trade and Investment, Mr Niyi Adebayo, during the inauguration of the panel instituted to evaluate the performance of FTZs.
He explained that the committee was established to recommend to the government the strategy on FTZs based on a thorough evaluation of the current operations of the zones.
Mr Adebayo said until the team headed by him completes the assignment, there would not be a further issuance of operating licences for the FTZs.
According to him, at the moment, there are 33 licensed FTZ operators in Nigeria and because of poor implementation, only 12 of them are operational.
He argued that the main reason for a large number of licenced operators not operating would be looked into by the panel and come up with ways to make things better.
The Minister said it would be wrong for the government to issue more licences to operators when there are challenges affecting the sector persists.
He said in other climes, free trade zones have been used to boost their economies and said this is what the government hopes to achieve in Nigeria.
“It is important to note that FTZs in most developed countries have contributed successfully towards their industrialisation process.
“The model was adopted by the Asian Tigers and today most countries, including African countries are beginning to key into the idea.
“Nigeria through the Federal Ministry of Industry, Trade and Investment (FMITI) has begun delivery of world-class FTZs across the country.
“However, due to poor implementation, we are yet to take delivery of the dynamic potentials of FTZs as an instrument for economic growth,” Mr Adebayo said.
