This is the concluding part of this discourse. The first part was published yesterday.
THE simple question the so-called Tinapa investors should answer is: Was there a time Nigeria closed two of its borders – Seme and Idiroko – in order to get at a few criminals operating within the borders? Have they heard other nations do that? It is indeed sad that some unscrupulous Nigerians will continue to sabotage every government incentive to boost trade and commerce and especially the manufacturing sector.

To encourage industrialization and boost local production, each administration in the past had rolled out fiscal policies and numerous incentives to kick-start the nation’s manufacturing sector in pursuit of economic growth, employment generation, increase industrial capacity and self sufficiency. Some of these policies are: •Constant Review of Import Prohibition List, •Import Duty Waivers and Concessions, •Establishment of Free Trade Zones, •Export Expansion Grant, •Negotiable Duty Credit Certificate Scheme, •Establishment of Nigeria Export Promotion Council and Nigeria Investment Promotion Commission.

These measures were introduced by the previous administrations with great expectations to protect local industries, stimulate new ones and attract foreign investments; all geared toward economic growth and employment generation. However, assessment of all these measures show that they have all failed to achieve desired objectives, as most of the targeted beneficiaries (both local and foreign) are in the habit of exploiting policy incentives to perpetrate import duty fraud, evade payment of levies and other related taxes. Some of these schemes are also being used by many unscrupulous, unpatriotic and criminal elements to smuggle prohibited items and high duty goods into the country, thereby defrauding government and increasing the county’s economic woes.

As a maritime watcher, my interest and decision to investigate the activities of the various Free Trade Zones, with special emphasis on Tinapa was sparked by the weighty allegation that Customs leadership is deliberately strangulating the economy of South-South region and that huge number of containers as high as 826 are released to enter Tinapa annually. The interest also is predicated on the fact, that if the leadership of Customs is actually constituting undue obstacle to smooth running of Tinapa, it would not only spell doom for investors, but also lead to loss of employment.

Investigation has revealed, however, that like other numerous industrial incentives and policies introduced to promote industrialization, economic growth and generation of employment, the laws contained in the Act setting up Nigeria Export Processing Zones and Free Trade Zones are serially manipulated and are complied with only in the breach, especially at Tinapa. It was discovered that about 90 per cent of imports into Tinapa and the processes of disposing them are not only against all known government fiscal policies and extant laws, but also constitute a conduit pipe for import duty evasion, smuggling and other criminal acts, which might include smuggling of dangerous weapon, considering the nation’s current security challenges.

The analysis of cargoes that were released to Tinapa in the last 32 months and study of Nigeria Export Processing Zone Act (CAP N 107 2004), Tinapa Free Zone And Resort Regulations, 2009 as articulated below, will no doubt lead one to the inescapable conclusion that the so- called investors at Tinapa are the real enemies of the nation.

A study of the Nigeria Export Processing Zone Act (CAP N, 107 2004) TINAPA Free Zone and Resort Regulation 2009, shows that the essence of establishing free trade zones is to create a place devoid of bureaucratic, infrastructural, legal and tax hindrances where investors will engage freely and seamlessly in manufacture and export of finished products without payment of local taxes and levies. The objective is to boost local production, increase industrial capacity, generate employment and boost non-oil export. In anticipation of the need to re-export some of the manufactured goods in the Free Zone back into Nigeria Customs Zones, the Act clearly states the procedures which are in Part 4 (General Regulations, Chapter 40 (incentives and concessions) of the Act.

Mr. Nyong’s assertion that Tinapa was actually established to boost export to countries within sub-region because of Calabar’s proximity to West and Central African countries is valid indeed. But what well-meaning Nigerians should demand from him and his group is documentary proof of the quantity of goods exported from Tinapa to these neighbouring African countries.

Investigations revealed that contrary to claims by the so-called investors, 95 per cent of goods imported into Tinapa find their way back to Nigerian market without compliance with the laws of the land. Mr. Nyong and his group should be asked to avail Nigerians all relevant export and shipping documents with which these goods were exported to the neighbouring countries.

Elsewhere, these funny investors have claimed in one breath that Tinapa is a hub for export to countries in West and Central Africa sub-region, in another they stated that “now the goods which are meant to service the South-South people in terms of providing them at cheap and affordable rates have been subjected to political acrimony, using a personal office to cause economic sabotage by killing economic activities in the Free Trade Zone and South-South region of the country.” Is this claim not enough evidence that virtually all the goods released to Tinapa are smuggled into Customs territory without due process?

While the brief case investors claim that Tinapa is a big source of very cheap and affordable goods to the people of South-South, research conducted by an organization reveals that this claim is very far from the truth. The market survey conducted in major South-South towns revealed that prices of goods, especially the smuggled ones from Tinapa are higher in Bayelsa, Akwa-Ibom, Rivers and Cross-RiverStates than any other parts of the country. The only explanation for this is that the illegal activities of these self serving elements are purely for dubious self enrichment. If they are actually indulging in these illegal activities for the benefit of South-South people, why are the prices of these goods higher in South-South?

Efforts by the “investors” to whip up tribal, political and regional sentiments to mask their highly illegal operations also inspired a check at the Corporate Affairs Commission which exposed the fact that over 90 per cent of the promoters of these companies are not from South-South. This is why the people of South-South should disclaim these impersonators who have brazenly and with impunity cause so much pain to Nigerian masses through their illegal activities at Tinapa.

Contrary to the claim that the economy of the South-South is being strangulated because of the action of the leadership of the Nigeria Customs Service, it is those that are crying wolf that are actually frustrating this administration’s drive to position Nigeria as an industrialized nation and economic power.

It must be noted that what the Customs has done is withhold further approval of container deliveries of certain goods until all such containers are scanned and the regulations guiding such transfers are observed. This action was informed by non-rendition, transparent disclosure and accounting of containers already delivered to Tinapa. It is not the intention of Customs to seize the containers and auction them as the group is alleging, neither is it one of the measures by customs to meet set revenue targets.

This action, one must agree, is not only in line with the Customs Service’s mandate of protecting the nation’s industries but also ensuring that customs duty is accounted for on all goods imported into the customs territory.

Notably, the economic saboteurs could not have succeeded in their dubious acts without the active connivance of some fraudulent customs officers, who are supposed to enforce guidelines on processes of releasing goods into TINAPA and re-exporting same into customs territory.

While efforts should be made to plug loopholes of revenue leakages and checkmate the activities of these unscrupulous importers, who are exploiting incentives granted Tinapa Free Trade Zone, the Nigeria Customs Service should equally sanction its officers, who might have compromised their statutory duties, in aiding the economic saboteurs to defraud government of much needed revenue.

By Okey Ibeke