Daily Independent Online.
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Wednesday, July 21, 2004.
Nigeria to lose N40.8b at CFTZ over import ban
•25 firms may fold up
By Bassey Inyang
Correspondent, Calabar
Twenty-five
companies in the Calabar Free Trade Zone (CFTZ) whose total investment stood at
more than $300 million (N40.8 billion) are on the verge of collapse following
the Federal Government ban on the importation of some commodities.
Consequently, the CFTZ has been witnessing low activity thus undermining the
purpose of its establishment.
Also, Nigeria may
lose about $100 million (N13.6 billion) from the export of commodities from the
zone to foreign countries and another N1.5 billion from sales into the domestic
market.
Unlike last year
when more than N300 million was generated from the zone into the federations
account in form of customs duties, an improvement was not being expected this
year as a result of the ban.
Stakeholders who
gave these graphic details described the situation as frightening. The
management of the Nigeria Export Processing Zones Authority (NEPZA) on Monday
raised an alarm in Calabar when the presidential implementation committee on
the restructuring of the Nigeria Customs Services visited the zone to assess
things.
NEPZA Managing
Director, Mrs. Ify Umenyi, told members of the committee that the ban was
affecting the actualisation of the objectives for which the Calabar Free Trade
zone was created.
Her words:
“As at today, we have 25 companies producing and exporting both to the
foreign countries and the domestic economy of Nigeria.
“These 25
companies represent a net worth of investment of more than $300 million (N40.8
billion). Export to foreign countries in 2003, alone was in the neighbourhood
of $100 million, while sales in the domestic economy was about N1.5 billion.
The domestic sales attracted duty revenue of N300 million into the federation
account through the Nigerian Customs Service and the total employment of these
companies is about 3,000.
