Renowned Economist Musa Audu Abubakar Raises Concerns Over Alleged Unlawful Activities at Kano Free Trade Zone

Renowned economist Musa Audu Abubakar has sounded the alarm regarding alleged unlawful activities taking place at the Free Trade Zone of the Nigerian Export Processing Zone Authority (NEPZA) in Kano State. These activities, as claimed by Audu Abubakar, have led to significant revenue losses for the federal government, potentially amounting to billions of Naira. According to him, certain unscrupulous businessmen are diverting finished products to the NEPZA, where they exploit favorable customs duty rates, paying as little as 30% of the actual dues. This exploitation not only deprives the government of its rightful revenue but also undermines the integrity of the trade zone.

Audu Abubakar highlighted the gravity of the situation, emphasizing that these practices are detrimental to the economy. During his recent visit to the NEPZA in Kano, he observed numerous containers of finished products being cleared in the evening, raising questions about the purpose and legitimacy of such transactions within a designated export processing zone. He urged the federal government to take swift action to enforce regulations and hold accountable those responsible for jeopardizing revenue generation efforts.

Impact on Government Revenue and Economy

The alleged malpractices at the Kano Free Trade Zone not only pose a threat to government revenue but also have broader implications for the economy. The failure to collect rightful customs duties deprives the government of essential funds needed for public services, infrastructure development, and social welfare programs. Furthermore, it creates an uneven playing field for businesses that abide by regulations, fostering unfair competition and distorting market dynamics.

Moreover, the unchecked diversion of finished products to the NEPZA undermines the objectives of export processing zones, which are intended to promote economic growth, attract foreign investment, and boost exports. Instead, it encourages rent-seeking behavior and compromises the integrity of these designated trade areas. The loss of revenue and the erosion of trust in the regulatory framework could deter potential investors and hinder the long-term sustainability of the Free Trade Zone.

Audu Abubakar Calls for Government Intervention and Enforcement

In response to these alarming revelations, economist Musa Audu Abubakar has called on the federal government to intervene decisively and enforce strict regulatory measures at the Kano Free Trade Zone. He emphasized the need for swift action to curb unlawful activities and hold accountable those found guilty of undermining revenue generation efforts. Audu-Abubakar stressed that the government must prioritize the protection of public funds and the integrity of trade zones to safeguard economic stability and promote investor confidence.

Additionally, there is a growing consensus among stakeholders that collaborative efforts are essential to address systemic challenges and ensure compliance with regulations. Enhanced monitoring mechanisms, increased transparency, and stronger enforcement measures are imperative to prevent further revenue losses and restore trust in the integrity of export processing zones. As Nigeria seeks to position itself as a competitive player in the global economy, it is imperative that regulatory authorities take proactive steps to address malpractices and uphold the rule of law within its trade zones.

Government Urged to Take Swift Action

The urgent call to action by economist Musa Audu Abubakar has placed mounting pressure on the government to tackle the illicit activities plaguing the Kano Free Trade Zone. With significant revenue losses estimated in the billions of Naira, there is a pressing need for decisive measures to curb this economic hemorrhage.

Audu Abubakar’s assertion that it is the government’s responsibility to safeguard against vulnerabilities resonates strongly in the current context. As businesses exploit regulatory loopholes and engage in illegal practices, it falls upon governmental authorities to fortify oversight mechanisms and ensure compliance with trade regulations.

In light of these revelations, stakeholders are eagerly awaiting the government’s response. Swift and effective action, including rigorous enforcement of customs regulations and prosecution of wrongdoers, is imperative to restore trust in the integrity of the Kano Free Trade Zone and safeguard the nation’s economic interests. Failure to act decisively risks perpetuating a culture of impunity and undermining the credibility of regulatory institutions.