AFBTE Appeals to FG to Consider Elevating Industrial Estates to Free Trade Zones
In order to ensure the continuity of businesses especially at this period of uncertain, the Association of Food, Beverage and Tobacco Employers (AFBTE) have appealed to the federal government to consider the possibility of elevating industrial estates to free trade zones across the country.
This was as the association equally urged the federal government to allow businesses deduct unrealised exchange losses for tax purposes.
Speaking at the 45th Annual General Meeting (AGM) of the association, the President, AFBTE, Mr. Chinedum Okereke, highlighted several areas that the federal government could support the sector to continue in business.
Specifically, he said part of the support required would include a deliberate reconsideration on issues like varying rate for clearance at the ports, addressing foreign exchange (FX) scarcity, creation of more free trade zones by elevating existing industrial zones, among others.
He explained:“We appeal to the government to consider the possibility of elevating the various existing industrial estates to the status of free trade zones. The point is made because there are companies that were established in the past and that have contributed immensely to economic growth but are disadvantaged compared with those that are in the existing Free Trade Zone.
“The constant variation in the exchange rate for the clearing of goods at the port; the issue of the devaluation of the naira, companies have had to revalue their fixed loans on their balance sheets as a result of the devaluation of the Naira.
“Government needs to provide support to member-companies including multinational companies that are still in the country and are investing more. This will require some additional consideration in the form of reliefs/allowances as incentive for them to continue to invest in Nigeria.This will no doubt promote the country as an investment destination.”
However, for the guest speaker, Dr. MudaYusuf, who spoke on“Current Economic Reforms: Implications for the Food, Beverage andTobacco,” the sector contributed N39 trillion to the country’s Gross Domestic Product (GDP) in 2023, citing the National Bureau of Statistics data.
This, he said, has a corresponding impact on employment generation, adding that the sector currently plays a leading role in deepening backward integration in the Nigerian economy.
According to him, I am giving this background to underline the strategic importance of the food and beverage sector to the Nigerian economy.
“It is also to underscore the imperative of deliberate policy actions to support the sector because of the socio economic and political ramifications of the sector’s contribution to the economy.”
Earlier, Okereke commended some steps taken by the present administration of the federal government.