FAAN suspends issuance of Airport free Trade Zone licence

The Federal Airports Authority of Nigeria has suspended the issuance of licenses to applicants on the free trade zones at the nation’s airports until the conflicts in the regulatory framework between it and the Nigeria Export Processing Zones Authority (NEPZA) are resolved.

Speaking on Thursday at the ongoing maiden edition of the Federal Airports Authority of Nigeria (FAAN) National Aviation Conferences (FNAC) with the theme: ‘Advancing the Frontiers of Possibilities for Safe, Secure and Profitable Air Transport,’ Rabiu Yadudu, the managing director, FAAN, said he had suspended the issuance of new licenses to intending free trade zone applicants at the airport areas.

According to him, at the Lagos Airport alone, there are presently two free trade zone operators, while additional two companies have applied.

He explained that as it stands today, all the five international airports in the country have been designated as free trade zones and warned that if not well-regulated, it may be a big challenge for the country in the future.

Besides, Yadudu, insisted that FAAN and other relevant authorities like the Nigerian Ports Authority (NPA) should be represented in the board of NEPZA to be able to address the challenges in the system.

This is also as stakeholders in the free trade zone in Nigeria have lamented that inconsistent government policies and lack of infrastructure led to the death of Tinapa Resort in Cross River State.

The participants decried the sorry state of Tinapa, which they said would have boosted the Foreign Direct Investments (FDIs) into the country if the government had been consistent with its policies on the resort.

Read also: FG lures airport investors with low production costs, premium on lands

Speaking on the topic: ‘Special Economic Zones at the Airports and Trade Facilitation: Growing Revenue and the National GDP,’ speakers said that there was a need for policy harmonization by government agencies in order to ensure smooth growth.

Obinna Emeazo, the general manager, of Vicven Integrated Services, and one of the panelists lamented the massive rots in Tinapa, which he said were simply due to government summersaults and lack of infrastructure at the resort.

According to him, Tinapa was designed to flourish with the approval of $5,000 worth of goods for local consumers but was later brought down to $330, thereby discouraging investors.

Emeazo decried that the change in policy by the government had negatively impacted the country’s Gross Domestic Product (GDP), especially in the area of exports.

He said: “Tinapa Resort started well and so many investors were attracted by the benefits, but along the line, it was brought down to $330, which led to the dwindling of the growth of the resort.

“Everyone especially tourists goes to Tinapa for shopping and to enjoy their holidays. So, it is inconsistent on the part of the government. You brought out policies that attracted investors and in mid-way, you change such policies. If they have to focus on the special economic zones, we have to make it right. NEPZA must stand its feet and make it strong. The regulations must be strong.

“If you cannot manufacture, you cannot export. How much are you able to attract? When last did you hear about Tinapa? It is still at the elementary stage and one would have expected that it would have gone beyond that.”

Emeazo further decried multiple regulations between FAAN and NEPZA as one of the major factors slowing down the growth of free trade zones in the country, stressing that both agencies had to harmonise their policies for the progress of the country.

Get real time updates directly on you device, subscribe now.