Manufacturers accuse EPZ operators of selling prohibited goods

Manufacturers Association of Nigeria (MAN), the umbrella body of all manufacturers in the country, has accused some operators in the export processing zones (EPZs) of producing and selling prohibited products.

Export processing zones are barrier-free areas where incentives are offered, with the view of attracting foreign investment for export-oriented production.

“There is a need to accelerate the review of the Act establishing EPZs as there are abuses in their operations,” said MAN, in an industrial memorandum sent to Muhammadu Buhari, newly- sworn-in president of Nigeria, dated April 8, 2015.

“Currently, some operators in the zones produce goods prohibited in Nigeria and sell them in our local markets – a situation that is against the spirit and purpose of the laws setting up the PEZs,” MAN, headed by Frank Udemba Jacobs, said.

According to MAN, the implication of this is that operators in the zones have undue advantage over their counterparts in customs zones, leading to factory closures and loss of jobs.

EPZs are managed by the Nigerian Export Processing Zones Authority, which is a parastatal under the Ministry of Industry, Trade and Investment. Some of the EPZs in the country include Calabar Free Trade Zone, Calabar, Cross River State; Kano Free Trade Zone, Kano; Snake Island International Free Zone, Lagos; ALSCON EPZ, Akwa Ibom; Imo Guangdong FTZ, and Living Spring Free Zone, Osun State, among others.

MAN also urges Buhari to turn down the Economic Partnership Agreement (EPA) between Europe and the Economic Community of West African States (ECOWAS) or any partnership agreement that will undermine the industrialisation and growth of the economy or that could negatively affect existing local investment and job creation. The general sentiment among Nigerian manufacturers is that EPA, which will open borders of West Africa to European products and vice versa, is an agreement between two unequal halves, which could destroy industrialisation of the country.

“The Federal Government should be wary of endorsing the EPA Agreement in its current form,” said MAN, in its trade recommendation.

The real sector players further said the unavailability of quality and cost effective domestic inputs is a challenge to many companies, stressing that high cost of inputs and support services such as transport and telecommunications negatively impact on the cost of production.

“Various regulatory authorities should be made to perform optimally by ensuring that illegal and non-conforming activities going on are checked as they are inimical to economic growth,” MAN said.

Odinaka Anudu