A whopping sum of about US$250 billion may have been lost in Nigeria due to issues that have to do with corruption, multiple charges and other challenges working against agro-export produce in the country .
Nigeria Export Processing Zone Authority (NEPZA) which disclosed the huge loss 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 NEPZA ,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.
In his presentation, Aviation; Cargo Export in Nigeria, at the 2nd Edition of Aviation and Cargo Conference Managing Director/CEO – NEPZA, Prof. Adesoji Adesugba made this known highlighting some challenges that are militating against import and exports in the country.
Prof Adesugba was represented by Assistant Director Investor Promotion, Augustine Onyekwere who presented his paper at the event.
Professor Adesugba 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 USD 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.
Stating 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 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% foreign ownership of businesses.
He said, “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% of manufactured, assembled or imported goods into the domestic Nigerian market and meeting the 35% value addition.
He also said, “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.
He also said, “100% foreign ownership of investments. 100% 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.
About the Author
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
