Poor releases of capital budgetary allocation to agencies have continued to have negative effects on the performances of government agencies to deliver dividends of democracy to the people.
In this case, the Nigeria Export Processing Zones Authority (NEPZA) appears to be a victim as it received only N5,351,974,733 out of N6,622,099,060 approved total capital allocation in 2023.
It, however, received all the 2023 approved N1, 023,246,713 personnel votes.
Notwithstanding the shortfall in capital releases, Managing Director of NEPZA, Dr Olufemi Ogunyemi, said the agency succeeded in attracting over $491,8m Foreign Direct and Local Investment into the country year-end 2023.
It also generates over 211,359 direct and indirect jobs for Nigerians during the period under review.
Recall that NEPZ was established with the enactment of Decree [now Act] 63 of 1992 as a Special Economic Zones Scheme both for policy and economic tools to jump-start and propel the nation’s economy.
Currently, it has two funded public zones in Calabar and Kano, two more are in construction stages while over twenty-five equally functioning private zones are spread across the country.
NEPZA Managing Director gave the details when he received in audience the Senate Committee on Industry Trade and Investment led by Senator Umar Sadiqu on oversight function to the agency in Abuja.
Ogunyemi said, “Wealth has been created in the Customs territory as a result of the Free Zones Operations for example, between 2019—2023, a total of over N1.62trn worth of cargo has been imported from free zones, scarce Nigeria forex would have been expended if this were not done.”
The NEPZA Chief Executive Officer explained that remittances to the Federation Account as of October 2023 stood at N11.11trn while transfers to Consolidated Revenue Fund from 2013 to October 2023 stood at over N5.73bn.
According to him, ‘’Wealth and Revenue generation by other states and agencies in Nigeria as a result of the operations of the Scheme have been encouraging adding, ‘’In the year 2023 alone, NCS generated N59.38bn, Immigration Service got N8.73bn while states got N998m as PAYE respectively.”
He appealed to the committee to help address its challenges such as those of obsolete legal framework, incursions from other uninformed Nigeria Regulators, and too many invitations from the National Assembly among others.
Responding, the Chairman of the Senate Committee on Industry, Trade, and Investment, Senator Umar Sadique told the NEPZA boss that the committee’s hands are tied especially, in the area of continued invitations by NASS.
Sadique said, “I must be frank with you, we can’t do anything about your frequent invitation by the National Assembly because of the principles of checks and balances, would only advise you put your house in order, keep your records up to date and you’re good to go.”
He, however, assured the NEPZA Chief Executive Officer that the committee will do its best to ensure that all obsolete Acts establishing the agency are revisited and amended accordingly to meet present-day realities.
