Benefits of designation of airports as special economic zones, by Sirika

Sen. Hadi Sirika, Aviation Minister

 

Posted by Sade Williams 

 

The Minister of Aviation, Hadi Sirika has outlined benefits of designating major airports as special economic zones.

According ti him, it is a means of harnessing the socio-economic benefits derivable from Civil Aviation, generating revenues for Government and creating avenues to mobilize local and foreign direct investment for overall growth of the economy.

The designation is also expected to attract more international and domestic Airlines and world class organisations into the Nigerian Aviation Industry thereby fast tracking the upgrade and development of new infrastructure/facilities at the airports.

The Special Economic Zones, according to him, would also help to reduce the tax burden on Aviation Companies to enable them compete internationally and create around the airports a more efficient and business-friendly trade environment comparable to other countries, with less bureaucratic red tape because of the associated fiscal incentives and packages.

“The operation of the airports as special economic zones would also help to generate employment opportunities and human capital development, improve the overall ease of doing business in Nigeria which is in line with Federal Government’s commitments towards national economic development” , he said in a  statement signed by James Odaudu, Director, Public Affairs, Ministry of Aviation.

Another benefit he highlighted  is the generation of additional non-aeronautical sources of revenue for the Aviation Industry.

“As promised at the inception of the Buhari administration, the government remains committed to the development of an investment-friendly Aviation sector that will not only make Nigeria a regional hub for air transportation, but increase its contribution to the national gross domestic product (GDP).” , added.

irika therefore appeals for the cooperation of all relevant stakeholders in the new development in order to achieve the desired goals.h

It would be recalled that Minister of Aviation announced the designation of four international Airports, the Murtala Muhammad International Airport, Lagos, Nnamdi Azikiwe International Airport, Abuja, Port-Harcourt international Airport, and the Mallam Aminu Kano International Airports as special economic zones.

The announcement followed the approval granted by President Muhammadu Buhari to that effect.

The Ministry of Aviation had said that in its desire to address issues concerning taxation, custom duties and fiscal issues in the Nigerian Aviation industry which require a holistic solution, it requested the Nigerian Export Processing Zone Authority (NEPZA) to designate the four major international Airports under NEPZA Act.

It added that the request was made so that the benefits of such zones can be accorded all airlines, airport operators, Aviation support companies etc. that reside within the zones which the President noted, and approved.

 

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