Prince Lekan Adewoye, Chairman, Basic Metals, Iron and Steel Manufacturers Sectoral Group
pThe Basic Metals, Iron and Steel Manufacturers Sectoral Group of the Manufacturers Association of Nigeria (MAN) has called on the Federal Government to urgently constitute a Special Task Force to investigate and recover billions of naira in lost revenue linked to alleged abuses by some operators within Nigeria’s Free Trade Zones (FTZs).
The Chairman of the Group, Prince Lekan Adewoye, made the appeal during an interaction with journalists in Abuja, warning that persistent regulatory failures in certain FTZs have enabled widespread malpractice that undermines national revenue, distorts competition, and threatens Nigeria’s industrial base.
Massive Revenue Losses Over Under-Invoicing and Zero Value Addition
According to Adewoye, the government has for years suffered significant revenue losses from under-invoicing of finished and semi-finished metal products, which are routinely imported into FTZs but declared as raw materials. These products, he said, often bypass value-addition requirements and are diverted into the Customs territory without paying appropriate duties.
“These activities blatantly violate the spirit of the FTZs and put the country at a financial disadvantage,” he said. “With operators importing finished goods under false classifications—and enjoying incentives meant for value-adding industries—the government loses revenue while local manufacturers are unfairly pushed out of business.”
Local Manufacturers on the Brink
The ripple effect on the domestic steel industry is already severe, Adewoye noted. He cited a member company in Ogun State that had to shut down nearly 80% of its production capacity due to overwhelming competition from FTZ-based operators allegedly engaging in unfair trade practices.
“If this trend continues, more steel manufacturers will collapse. We risk losing not only investments but thousands of jobs and the industrial capacity the country has built over decades,” he cautioned. “The Federal Government must act now to restore fairness, competitiveness, and sanity across the FTZ system.”
He stressed that the Basic Metals and Iron & Steel sector is fundamental to Nigeria’s industrial development, contributing to the Tinubu administration’s economic diversification drive through import substitution, MSME development, job creation, industrial integration, and enhanced local production.
NEZA: “We Don’t Support Sabotage”
Responding to the allegations, Toyin Elegbede, Executive Secretary of the Nigeria Economic Zones Association (NEZA), said the association remains committed to ensuring fair and transparent operations within the zones. He insisted NEZA would never support practices that sabotage the Nigerian economy.
Elegbede added that the Standards Organisation of Nigeria (SON) maintains regulatory presence inside the zones to inspect, certify, and issue conformity documentation for goods heading into the Customs territory.
SON Confirms New Certification Regime for FTZ Operations
Further checks with SON revealed that the agency has rolled out a strengthened compliance framework. The Director of Product Certification, Engr. Enebi Onucheyo, confirmed that in 2024 SON introduced the Special Economic Zones Conformity Assessment Programme (SEZCAP).
SEZCAP, he explained, ensures that goods entering and leaving FTZs meet national and international standards for safety and quality. The programme is being implemented across SON’s state offices that oversee FTZ operations nationwide.
He identified SEZCAP as a critical tool for shutting down loopholes that previously allowed substandard or improperly documented products to flow into the Nigerian market.
The Basic Metals, Iron & Steel Manufacturers Sectoral Group of MAN has urged the Federal Government to establish a Special Task Force to curb alleged abuses in Nigeria’s Free Trade Zones. The group warns of massive revenue losses and threats to local manufacturers as NEZA and SON outline new compliance measures.
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