Discover how the Trade Ministry and CBN are collaborating to create a favorable export environment for manufacturers in Nigeria, fostering economic growth through strategic policies.
Boosting Exports: Trade Ministry and CBN Collaborate to Empower Local Manufacturers
The Ministry of Industry, Trade, and Investment has unveiled efforts to strengthen collaboration with the Central Bank of Nigeria (CBN) to create a supportive export environment tailored to local manufacturers’ needs.
According to Dr. Jumoke Oduwole, the Minister of Industry, Trade, and Investment, these efforts include refining regulatory frameworks and engaging stakeholders, including the CBN, to ensure exporters feel encouraged to reinvest their proceeds into the Nigerian economy.
Supporting Free Trade Zones and Local Manufacturers
Dr. Oduwole emphasized that Nigeria’s free trade zones are designed to boost exports while safeguarding local manufacturers. Speaking at a stakeholder meeting in Lagos, she addressed concerns regarding the misuse of free trade zones, stating:
“Nigeria is facing a situation where some operators in free trade zones export 100% of their products to the domestic market, which disrupts the competitive environment for tax-paying local manufacturers.”
To maintain fairness, she clarified that only 25% of goods produced in free trade zones are permitted for local market sales without incurring taxes.
“The essence of free zones is to provide tax relief that facilitates exports,” Oduwole reiterated, assuring local manufacturers that the ministry is committed to balancing their interests while fostering economic growth.
Commitment to Export Growth
The Minister reaffirmed the ministry’s dedication to driving exponential export growth, particularly in dollar terms. She highlighted the importance of ensuring export proceeds are reinvested in the Nigerian economy, saying:
“We are committed to increasing exports exponentially in dollar terms and ensuring that these proceeds are repatriated to strengthen our economy.”
Dr. Oduwole also stressed the need for compliance and discipline within free trade zones, overseen by the Nigerian Export Processing Zones Authority and the Oil and Gas Free Zones Authority.
“This is an opportunity to instill discipline, ensure all players adhere to regulations, and support manufacturers in and outside the free trade zones,” she concluded.
With these collaborative efforts, Nigeria aims to create a conducive environment for exports, empowering local manufacturers and contributing to long-term economic growth.
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