Reps frown at sharp practices in FTZs

August 7, 2025 by Tony Akowe, Abuja

The House of Representatives Committee on Customs and Excise has said several companies operating in the Free Trade Zones (FTZs) of the country were engaged in sharp practices leading to loss of several billions of naira in revenue to the government.

Speaking during an oversight visit to the Kano/Jigawa Command of the Nigeria Customs Service (NCS), Chairman of the Committee, Leke Abejide said companies operating in the free zone are supposed to sell only 25 per cent of their products in the local market while exporting 75 per cent to generate foreign exchange for the country.

Abejide said by the law establishing the free trade zones, they are supposed to import their raw materials duty free and produce for export, adding that any of such companies that wants to sell their locally will be required to pay duty on the imported raw materials on such manufactured products.

He spoke just as the Comptroller of the Kano/Jigawa Command, Abubakar Dalhat said it generated over N10 billion between January and June 2025 from the Kano free trade zone as against about N1 billion it generated within the same period of 2024.

He said while some of the companies operating in the free zones have resorted to bringing finished products into the free zone instead of raw materials, others have resorted to selling their manufactured products 100 percent in the local market rather than exporting majority of them.

He said the sharp increase in revenue from the Kano Free Trade Zone within six months is a war indication that when adequate measures are taken, the country will gain a lot from the revenue.

Read Also: States seek to bypass DisCos to buy energy directly from GenCos

He said the House Committee plan to conduct an investigation spaning the last five years with a view to recovering all revenue lost by the government due to such sharp practices.

He also disclosed that the committee plan to introduce an amendment to the pension reform Act to introduce a Pension Fund Administrator for the Customs and other paramilitary agencies as well as ensuring that the Comptroller General is appointed on a four year tenure basis.

Comptroller of the Command, Abubakar Dalhat informed the Lawmakers that the command siezed about 1,662,300 dollars, 441,050 Saudi Riyals, 560,000 CFA Franc, 200 Euros, 5,825 Pounds Sterling’s among other foreign currencies in three separate operations at the Mallam Aminu Kano International Airport between January and June 2025.

He said the command generated about N18.439 million from. Baggage operation, N1.173billion from the Maugatari border post, N10.824 billion from the Kano Free Trade Zone and N3. 070 billion from excise operation within the first six months of the year.

He said the command siezed 17 cartons kf camera drones, 16,082 cartons of foreign spagetti, 582 bales of smuggled used clothes, 491,100 tablets of tramadol, 172 parcels of cannabis sativa, 1430 cartons of banned paraquat herbicides among others within the same period.

At the Kano Free Trade Zone, the Head of the Office, Richard Bassey told the lawmakers that the zone has so far attracted about 2.2 billion dollars in Direct Foreign Investment, with about 45 foreign investment in the zone.