‘ Inconsistent policies rob free trade zone of investors, benefits’
• FAAN suspends programme at airports
INCONSISTENCY in policies of the Federal Government has been blamed for the failure of the free trade zone programme and its potential benefits in the tra vel and tourism sector.
Stakeholders, who spoke from experience yesterday in Abuja, said mere designation of airport corridors as free trade zones, without commitment to steady policy and infrastructure development, would not attract good investors to yield economic gains.
Apparently in lieu of concerns, the Federal Airports Authority of Nigeria ( FAAN) has suspended the issuance of licences to applicants for the free trade zones at the nation’s airports, pending the resolution of conflicts in the regulator y framework between it and the Nigeria Export Processing
Zones Authority ( NEPZA).
General Manager, Vicven Integrated Services, Obinna Emeazo, who spoke at a panel session of the FAAN National Aviation Conference ( FNAC) in Abuja, noted that the misfortune of Tinapa Resort in Cross River State was a graphic example of what policy summersault could do to a noble initiative.
Emeazo noted that TINAPA was initially marketed under the agreement that domestic consumers could each make purchases valued up to $ 5000 from the zone without having to pay an import duty. However, after the project was already far gone in development, this allowance was decreased to $ 330. Obviously, this significantly reduced patronage to businesses located there and discouraged investors.
He said: “Tinapa Resort started well and so many investors were attracted by the benefits, but along the line, it was brought down to $ 330, which led to the dwindling of the growth of the resort.
“Everyone, especially tourists, go to Tinapa to shop and enjoy their holidays. So, it is inconsistent on the part of the government. You brought out policies that attracted investors and mid- way, you changed such policy. If they have to focus on the special economic zones, we have to make it right. NEPZA must stand its ground and make it strong. The regulations must be strong.
“If you cannot manufacture, you cannot export. How much are you able to attract? When was the last time y ou heard about Tinapa? It is still at the elementary stage and one would have expected that it would have gone beyond that,” he said.
Emeazo further decried multiple regulations between FAAN and NEPZA as one of the major factors slowing down the growth of free trade zones in the countr y, stressing that both agencies had to harmonise their policies for the progress of the country.
“NEPZA has to show strong leadership and must be able to show strong collaboration with other agencies. Y ou have the Federal Inland Revenue Service ( FIRS), which is tax; there is still an argument on the tax in vestors enjoy. Some states still come to tell investors to pay tax. They should be able to bring all the
states together.