Investors operating in the Calabar Free Trade Zone are facing increasing concerns over taxation policies that they say undermine the incentives designed for Free Trade Zones, according to the zone’s outgoing director, Princess Binta Saeed.
Saeed said enterprises within the zone had complained about what they described as double taxation and increased activities of some government agencies in the zone.
She attributed part of the problem to inadequate public understanding of the Free Trade Zone scheme and its contribution to the national economy.
According to her, Free Trade Zones have become major sources of revenue for the Federal Government, particularly through customs-related activities, and should not be viewed as avenues through which government loses revenue.
The director commended NEPZA Managing Director, Dr Olufemi Ogunyemi, for engaging stakeholder agencies and promoting greater awareness of the benefits of the Free Trade Zone programme.
She warned that policy inconsistencies and weakening incentives could discourage investors and push businesses to relocate to countries with more favourable operating environments.
Saeed cited examples of textile companies that had left Nigeria for neighbouring Ghana, stressing the need for Nigeria to improve its competitiveness.
She urged the Federal Government to strengthen incentives for investors, improve infrastructure within and around the zone, and address the poor condition of access roads.
The outgoing director also advocated stronger cooperation between host communities and investors, noting that companies in the zone were creating jobs and undertaking corporate social responsibility projects for local residents.
She expressed confidence that with the right policies and infrastructure, the Calabar Free Trade Zone could continue contributing significantly to employment generation, foreign exchange earnings and economic growth.
