Concerns are mounting within Nigeria’s steel and metals industry over what manufacturers describe as unchecked activities in Free Trade Zones, with industry leaders warning that the current situation could cripple local production if left unaddressed.
Manufacturers operating under the Manufacturers Association of Nigeria (MAN) say the incentive-driven FTZ framework has increasingly been exploited in ways that defeat its original purpose. Instead of serving as hubs for export-oriented manufacturing, some zones, they allege, have become entry points for finished imports that quietly filter into the domestic market.
Industry sources argue that weak enforcement has enabled the practice, allowing goods to be brought in under preferential terms meant for raw materials, only to be sold locally without substantial processing. The result, they say, is a distorted market where manufacturers outside the zones face higher costs, heavier taxes, and declining competitiveness.
At a media briefing in Abuja, the chairman of MAN’s Basic Metals, Iron and Steel group, Lekan Adewoye, warned that the imbalance is already forcing tough decisions across the sector. According to him, several firms are scaling down production, shelving expansion plans, and laying off workers as cheaper FTZ-linked products undercut locally made alternatives.
He said the steel industry, which supports construction, infrastructure and manufacturing value chains, cannot absorb sustained shocks without long-term damage. Adewoye urged the Federal Government to take direct control of the situation by setting up a focused, time-bound intervention team to audit FTZ operations, plug revenue leakages and restore a level playing field.
Regulators and zone operators have pushed back against claims of widespread abuse. The Nigeria Economic Zones Association (NEZA) maintains that its members are expected to comply fully with national laws and that regulatory agencies are embedded within many zones to monitor compliance.
Meanwhile, the Standards Organisation of Nigeria (SON) says it is tightening controls through a dedicated certification system for products originating from or passing through Free Trade Zones, aimed at ensuring only compliant goods reach Nigerian consumers.
Despite these assurances, manufacturers insist that piecemeal measures will not be enough. They argue that without decisive government action, the erosion of domestic steel production could accelerate—threatening jobs, investments and Nigeria’s broader industrial ambitions.
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