Reps, NEPZA Task FTZs on Prompt FAAC Remittances

The House of Representatives and the Nigeria Export Processing Zones Authority (NEPZA) have jointly called on operators within Nigeria’s Free Trade Zones (FTZs) to ensure timely remittance of statutory payments to the Federation Account Allocation Committee (FAAC). The move comes amid growing concerns about transparency and accountability in the financial contributions of these zones to the national treasury.

Speaking during an oversight visit to NEPZA’s headquarters in Abuja, the House Committee on Commerce emphasized the importance of aligning FTZ operations with national economic goals. The committee expressed concerns that many operators may not be fully complying with remittance obligations, which are essential for equitable revenue sharing across the country.

The Chairman of the Committee, Hon. Femi Fakeye, noted that while the free zones have contributed to industrial growth and employment, there is a need for better coordination and fiscal discipline. He stressed that prompt FAAC remittances by FTZ operators are crucial for the government’s revenue distribution process, which supports state and local governments across Nigeria.

NEPZA’s Managing Director, Dr. Olufemi Ogunyemi, assured lawmakers of the agency’s commitment to strengthening oversight and ensuring that operators within the zones meet their obligations. He stated that NEPZA is already working on an audit and compliance framework that will enforce regular financial reporting and remittance practices among companies operating in the zones.

Ogunyemi also highlighted the positive impact of FTZs on the Nigerian economy, including job creation, foreign direct investment, and export promotion. However, he acknowledged the challenges in monitoring financial flows within some zones and welcomed the legislative push for stricter compliance.

Operators within the FTZs, meanwhile, have called for clearer guidelines and improved communication from regulatory authorities. Some companies have raised concerns over inconsistent policies and a lack of clarity on remittance procedures, which they say could hamper their operations and investment planning.

The lawmakers encouraged NEPZA to work closely with the Central Bank of Nigeria (CBN), the Federal Inland Revenue Service (FIRS), and other relevant bodies to streamline payment systems and eliminate bottlenecks. They also proposed setting up a joint monitoring task force that will track remittances in real time and ensure compliance.

This latest call to action underscores a broader government effort to enhance non-oil revenue sources and boost accountability in public finance. As Nigeria grapples with fiscal pressures and rising debt levels, ensuring that all sectors contribute fairly to national revenue is becoming increasingly vital.

The House Committee pledged continued support for NEPZA’s efforts and promised to push for legislative amendments that will empower the agency to carry out stricter enforcement where needed. Both parties agreed that with better cooperation, FTZs can live up to their full potential without compromising the nation’s revenue base.