NEPZA's Industrialization Digest

EDITORIAL BOARD

PROF. ADESOJI ADESUGBA MD/CEO, NEPZA

Publisher/Editor in Chief

MEMBERS

Hajiya Zainab Aliyu Director, Compliance & Monitoring

Mr. Ahmed Saleh Gurin Director, Calabar Free Trade Zone

Mr. S.K Lawal Director, Projects & Procurement

Mr. Innocent Uzoechi Director, Investment Promotion & Investor Services

Hajiya H.S Kamba Director, Corporate Services

Dr. Oyesola Oyekunle Director, Finance and Accounts

Editorial

Hurray! The Free Trade Zone in Nigeria is 30. Nothing stops the Nigeria Export Processing Zones Authority (NEPZA), the premier free trade zone regulatory body, established November 30, 1992 from rolling out the drums in pomp and pageantry. This special edition of the Industrialisation Digest is, therefore, replete with variety of takeaways and interesting news stories; feature articles; interviews; pictorials; tips/ information on the progress of the free zones in these past years. We also bring you special insightful economic quotes from some known CEOs and captain of industries. The Industrialisation Digest, arguably one of the best valued-added free zone scheme publications, continues to serve as the most valid signpost for reeling activities of NEPZA, zones, enterprises and other important global tips that can accelerate the growth of the scheme.

This edition, aside containing interesting feature on the 30th Anniversary of the Nigerian Free Zones, captures the visit of His Excellency, President Muhammadu Buhari GCFR to the Lekki Deep Sea Port; inauguration of NEPZA new Lagos office in Kofo Abayomi; maiden Stakeholder Forum organized by the Nigeria Economic Zones Association (NEZA); Road Show on the concession of the Calabar and Kano Free Trade Zones held in Eko Hotel and Suites, Lagos; as well as other key activities undertaken by the Authority to drive its mandate.

We, albeit, reckon with exactitude, the indefatigable strides of Prof. Adesoji Adesugba the Authority’s helmsman, in advancing the progress of the agency in all ramification. The edition also felicitates with two of the Authority’s enigmas, and institutional memories, Mr Daniel Dawuk, Hajia Yagana Hassan Abba, and Malam Mua’zu Hadi Muhamed erstwhile Directors of Finance & Account, Kano Free Trade Zones (KFTZ), and Zones respectively, who retired after their meritorious services both to the agency and nation. We like to at this juncture kindly appreciate our readership as always and further seek your unalloyed partnership and patronage in our renewed joint effort in promoting the free zone scheme for greater impact in our economy.

Martins Odeh Editor

To establish Industrial Zones of The highest quality That meet the needs Of investors and ensure a diversified economy”

To establish, licence, regulate and operate highly efficient Free Zones by providing Highly competitive Incentive schemes, Excellent support Services for the purpose of creating an enabling environment for export,manufacturing and other commercial activities

MY STEWARDSHIP

IN 28 MONTHS-PROF ADESOJI ADESUGBA

Today marks 28 months that I have been in the saddle of our great Authority, NEPZA. It has been deeply interesting, exciting, demanding, challenging. We have experienced high and low moments, palatable and not so palatable.

Expectedly, I have operated an open-door approachable policy. I have been gentle, calm and benevolent. I had use carrot and stick, hammer on velvet cloth. The different approaches are with the SOLE aim of realizing the purpose and reason for establishing NEPZA which is the primary basis of our working together. The model has yielded commonly beneficial outcomes for the mamagement and staff alike.

I have taken a number of initiatives which ironically have not gone down well with a number of us because of not fully comprehending the vision behind the initiative. I am using this medium to let this set of people to know that I have a pure heart and mean very well to everyone because

I have passed this path of Civil Service and come out unscathed. I solicit their deeper review of our policies to see the mutual and collective gains for us all. With your active support and encouragement, we have gained quite some traction since July, 2020 and I believe that with your continued unalloyed back up, we have a great potential to achieve much more so that when we look back, we will wonder at how much can be achieved through TEAMWORK, TOGETHERNESS and TRANSPRENCY.

While I will do a comprehensive mid-term review of my tenure in the next few weeks, I will summarize a few updates at this engagement.

ACHIEVEMENTS

1. NEW INITIATIVES

We established the Dispute Resolution Centre, the first of its kind for this subsector. This has resolved landmark outstanding disputes such as LADOL/ SHI-MCI which unlocked businesses worth $300 million. The Empower/ Lion FZ matter was amicably handled.

We set up the SEZ Security to pragmatically secure the multibillion dollars’ worth of investments in the SEZs. This is further bolstering investors’ confidence.

We created the SEZ Training Institute as a citadel for training of current and future operators of SEZ in Nigeria and outside its shores.

We established Nigeria Economic Zone Association as a peer group to address the common issues faced by SEZ stakeholders. Amongst other achievements of the Association are court injunction on the incursion from the National Assembly; liaison between NEPZA and FIRS on the MoU between the two agencies as well as the provision of a common voice for operators locally and globally.

We set up the Health, Safety and Environment Unit to deal with ensuring compliance with Health, Safety and Environment matters at the Free Zones and the Authority.

2. OPERATIONS/FINANCE

Within this area, a number of activities took place.

We signed Memorandum of Understanding with the Federal Inland Revenue Service. The MoU amongst others stipulates the procedure of tax administration in the FZs.

We have equally enhanced the annual capital appropriation from barely N2 billion per annum to N21 billion each in 2021 and 2022.

3. PROJECTS AND INFRASTRUCTURE

We completed and commissioned some projects and infrastructures within the period under review namely the commissioning of Lagos Office at 38, Kofo Abayomi, Victoria Island, Lagos; completion of Administrative Building and Investors’ Suites at Kano Free Trade Zone:

4. PERSONNEL

Under personnel which touches all of us, the following are the progress recorded:

a. Approval of disengagement package for all cadre of staff. b. Commencement of health insurance from September, 2022.

c. Payment of 50% Peculiar Allowance

for 2022 for officers from GL 6 to 10.

d. Monthly management and departmental meetings to keep personnel abreast of developments in the Authority.

e. Training of about 50% staff in 2022.

Going forward, all staff training must be channeled through Corporate Services. On no account should requests be made directly to the Managing Director.

f. Transparent process of promotion by training and examination being conducted by the Public Service Institute of Nigeria.

g. Re-designation of nomenclature to conform with Public Service description of cadre/position.

h. Conversion of some staff.

ONGOING ACTIVITIES

1.

OPERATIONS

a. Collaboration with the Securities and Exchange Commission(SEC) on the rules for FZs in the public listing of Free Zone Enterprises taking a cue from the practice in other climes, particularly, in the Emirate of Dubai.

b. Collaboration with the Private Sector on creation of Virtual Economic Zones also as obtains in the Emirate of Dubai.

c. Continued constructive engagement with stakeholders in SEZ operations like the Nigeria Customs Service (NCS); Nigeria Immigrations Service (NIS); Federal Inland Revenue Service (FIRS).

d. Diplomatic warding off of agencies that want to intrude like NDLEA, SON and NAFDAC.

2. PROJECTS AND INFRASTRUCTURE

We are developing infrastructure at SEZ located at Funtua ,Kwara, Lekki. There is an ongoing development of 25MW power at CFTZ and KFTZ respectively.

a. ERP – Enterprise Resource Planning

We are migrating our manual processes to digital in deploying the ERP System. The documentation of all departments’ processes has been completed. The vendor is at the stage of running the developments with the respective departments for concurrence. Thereafter, seamless handshake between departments and test-run will be done.

b. Concession of CFTZ and KFTZ

Contrary to widespread belief, the Concession of CFTZ and KFTZ will not adversely affect personnel. Indeed, from all indication, it is a win-win development which deploys private sector initiative to public sector asset.

3. LEGISLATION

A new law for the Authority that is in line with contemporary regulatory business environment is being developed in conjunction with the IFC and renowned external legal luminaries.

4. PERSONNEL

We are awaiting results from the Public Service Institute of Nigeria of the Promotion examinations held for GL 14 and below. We are also continuously engaging

with appropriate authorities on enhancement of the Conditions of Service of service. Also we are embarking on continuous training of personnel to maintain a gilt-edge workforce.

CHALLENGES

As usual within the national and global economic space, regulatory bodies are facing multiple issues. We are not left out. We have our own share of the fallouts of the national economic disruptions.

1. OPERATIONS

There is a Knowledge gap in understanding the SEZ Scheme by Stakeholders like the NCS, NIS. We are engaging in network building and education to create Synergy. We have recorded tremendous progress in this line.

a. Absence of offshore banking operations at the SEZ: We are engaging the Central Bank of Nigeria to expedite action on this crucial subject.

2. FINANCES

There is a strong consideration to remove the Authority from Personnel and Recurrent costs in the Federal Budget. We have made spirited presentation to retain the Authority in the Federal Budget. Whilst the spirited efforts may last for so long, all hands should be on deck to prepare for the eventuality.

These include diligence and expertise in harnessing all the fees due to the Authority, collection of all fees due to the Authority as at and when due; and curtailing costs as much as practicable.

3. PROJECTS AND INFRASTRUCTURE

As annual appropriation to the Authority is limited, it takes from seven to 10 years to develop a public FZ to the level of attracting investors. This constrains expansion and fees earnable from Zones. To complement our Internally Generated Revenue, we are considering PPP arrangement for infrastructure development of public zones.

Dear colleagues at work, let me conclude this address by once again commending your dedication to duty, your productive support for the management and your clear understanding of our policies and agenda. I can only reassure you of my continuous readiness for open administration and commitment to staff welfare and realisation of the mandate

His Excellency, the President and Commander-in-Chief, Muhammadu Buhari, arrives the Lekki Deep Seaport on inspection tour in company of top government officials, politicians and captains of industries.

CEO’s

Perspectives

The objectives of the Nigeria Data Protection Regulation are: data privacy protection; secure exchange of data; improve business environment and create sustainable jobs.

Dr Vincent Olatunji, Hon. National Commissioner, Nigeria Data Protection Bureau (NDPB)

One of the key aspects of our investment promotion drive is to constructively engage with source markets that can drive Foreign Direct Investments into Nigeria.

Mr. Dinesh Rathi, MD/CEO Lagos Free Trade Zone

The Lekki Deep Sea Port is another wonder of the world and Nigeria is proud to host this maritime project which will expand our maritime hubs.

Without a facility like LADOL, a drilling company might spend N10 billion as part of a production on a particular field, without even a single dollar passing through Nigeria.

Mr. Mohammed Bello Koko, MD National Port Authority (NPA)

Chief Oladipo Jadesimi, Executive Chairman, LADOL

Perspectives

We wish to commend Prof Adesoji Adesugba, MD NEPZA and his team for the recent spate of project development in the public zones and the renewed vigour in promoting investments into the private zone by the authority. Of particular mention is the recent dispute resolution bringing to an end years of business war between two of our prominent members Ladol and Samsung.

SHIN is deeply committed to on-going and future projects in Nigeria and as part of SHI-MCI, we plan to invest in future projects in the coming year and remain focused on creating and delivering mega deep offshore projects for Nigeria,

The movement for energy transition remains a global ideal even as the fossil fuel question stirs Nigeria in the face. Industry players must therefore, remain responsible member of the international community with commitment to the reduction of global emission.

Nigeria can also strike the right economic balance that enhances speedy attraction of Foreign Direct Investment (FDI) through tourism and hospitality.

Mr Oluwatoyin Elegbede, Executive-Secretary, Nigeria Economic Zones Association (NEZA)

Mr Adedayo Adesugba (FIH), MD Nexus Hospitality

Dr

Al-mujtaba Abubakar, President of Abuja Chamber of Commerce & Industry (ACCI)

Mr. Jejin Jeon, Former MD SHIN

Nigeria Free Trade Zone @30

Milestones and Prospects for Inclusive Industrialisation

By Martins Odeh/Golda Ukomadu,

The operation of the free trade zones is deliberately incentivized to stimulate Foreign Direct Investments (FDIs); Domestic Direct Investments (DDIs); employment generation; infrastructure development; technology transfer; skill transfer to boost the country prosperity profile.

The scheme was first adopted through the enactment of the Nigeria Export Processing Zones Authority (NEPZA) Act 63 of 1992 and this gave the Authority the mandate to license and administer the scheme in a manner to fast track economic growth and industrialization.

The scope of the model was thoughtfully widened with the enactment of the Oil and Gas Free Zones Act, CAP 05 Laws of the Federation of Nigeria, 2004), specifically bestowed with the mandate to license, regulate and administer investments in the oil and gas free zones in Nigeria.

These two regulatory agencies have kept to their mandates in a way that they have continued to spew the fortunes of the scheme for the growth of the economy.

The country may not have reaped bountifully from the scheme within the last 30 years, but the scheme has shown flashes of successes and achievements in providing backward linkages to the various production value chains in Nigeria,

Also, it can be seen that further milestones have been reached as a result of President Muhammadu Buhari’s unflinching commitment and support for the development of the scheme in the past seven years.

The government’s involvement in the promotion of the operations of the zones has led to the upsurge of interests of both zone owners, and enterprises alike to continually leverage on the country’s huge market to boost their profits exponentially.

For instance, NEPZA now manages 44 private and two public free trade zones with 625 enterprises providing 150,000 direct jobs and estimated 250,000 indirect jobs with total investment put at 26 billion-US-dollars.

In like manner, the Oil and Gas Free Zones which have become growth centers that compliment government’s efforts by enhancing job creation, have significantly contributed to the country’s GDP through the multiplier effect of its activities.

Since inception to date, OGFZA has attracted over 30 billion-US-dollars of FDI into the country. It has also created over 50,000 direct jobs and an estimated 160,000 indirect jobs. Furthermore, it has also attracted over 185 foreign and local companies to its controlled zones.

In addition, local capital investment in the free zones stands at N255.33 billion, facilitating both physical and economic developments in the locations of its free zones with 103 functional companies from 45 countries operating in the zones.

Culminatively, the scheme as at 2021 has so far generated about 620 billion naira of Domestic Direct Investments (DDIs) and 66 billion-US-dollars’ worth of Foreign Direct Investments.

It is therefore, important to state that the scheme, even with its unparalleled incentives that appear to be like a comprehensive tax holidays, remains a major lubricant of the Nigeria’s economy in all ramification.

The concept is beginning to make a lot more meaning as both NEPZA and OGFZA have resolved to seamlessly interpret government’s vision on using variant free zones to revamp the nation’s economy in a more expeditious manner.

Permit me, therefore, to draw an inference from one of the founding Directors of World Export Processing Zones Association (WEPZA), Richard Bolin, who said in 1988 conference in Flagstaff, Arizona USA, that ``Free Zones were not going to disappear, but that they could only undergo changes.’’ This is, however, coming through with the diversification and

The decision of our past governments leading to the adoption of the Free Trade Zones Scheme, a global economic model to aid widespread economic growth on November 30, 1992 has to this moment remained a legendary step toward fast tracking the country’s industrialization.

multiplication of unique zones based on the services they offer.

As can be seen, both NEPZA and OGFZA have continued to seamlessly interpret president’s vision on revamping the economy using the Special Economic Zones (SEZs), a free zone variant that allows for the licesing of specialized zones.

It will not be out of place to, therefore, commend this administration that has taken lofty steps to indeed begin genuine revamping of the economy by approving six new of those variant zones that will eventually obliterate the ugly tales of the country just being able to set up only two public free trade zones in almost 30 years.

These new special economic zones under NEPZA control are the Medical/ Pharmaceutical SEZ Lekki, Agro-Allied SEZ Ilorin, and the Integrated Cotton/ Textile/Garment SEZ Funtua, Katsina. The three others are to be located in Benue, Gombe and Ebonyi states respectively.

The federal government along similar thought earmarked the Murtala Muhammed International Airport, Lagos; Nnamdi Azikiwe International Airport, Abuja; Port/Harcourt International Airport as well as the Aminu Kano International Airport, Kano; as Free Trade Zones to be managed by NEPZA.

This pragmatic approach of the government to widen the horizon of the scheme is a testament to the president’s vision to more than ever before use this global business corridor to generate employment, attract both FDIs, and DDIs, and to further invigorate the building of a production-based economy for sustainable growth.

No doubt, the scheme holds greater prospects for our nation as it provides us the latitude to operate it in such a manner to have far-reaching positive impacts on the government and citizenry.

There is no gainsaying that the Lekki Deep Sea Port, a marquee project, at the Lagos Free Zone, that has been completed will have a huge positive impact on the Nigerian economy.

It has the capacity to contribute significantly in boosting the economy and to also bring about the desired global competition in the country’s shipping, logistics and all associated businesses.

The project which sits on 90 hectares of land and promoted by the Tolaram Group based in Singapore, the Nigerian Ports Authority (NPA) Lagos State Government and China Harbour Engineering Company (CHEC) is projected to generate over 170, 000 direct and indirect jobs.

Also located at the Lekki business axis, is the Dangote Free Zone Enterprise harbouring a world class multi-billion-naira Refinery touted to be the world’s biggest single-train facility aimed at reducing the country’s oil importation and saving government’s billions of dollars from importation.

It will not only provide over 70,000 direct and indirect jobs, but will remove the stigma of an oil producing country that is now compelled to import refined petroleum products for domestic use.

The Lekki corridor, which equally warehouses the Lekki Free Trade Zone and Alaro City plus other zones within the supervision of NEPZA including Ogunguandong, in Ogun State, Eko Atlantic City, LADOL Free Trade Zone, Enyimba City Free Trade Zone, are ostensibly national assets with capacity to unlock the country’s economic potentials.

So, you can see from the progress made, it isn’t just a wish for us to drive the nation’s economy using this scheme, but that the present administration has backed such wish by taking action to raise the ante in its funding, policy support and effective management of the scheme.

It is again important to state that the scheme, even with its unparalleled incentives that appear like a comprehensive tax holiday still remains the Nigeria’s economic fulcrum.

After all, the overall objective for the adoption of the scheme is to create an enabling environment for export-oriented manufacturing in both the oil and non-oil sectors of the economy, a role it is currently playing very well in spite of some avoidable challenges.

Ogun-Guangdong Free Trade zone

FTZS ECOSYSTEM: BETWEEN ECONOMIES OF SCALE AND TAXATION

Economists have defined economies of scale as cost advantages reaped by companies when production becomes efficient. Enterprises can, therefore, achieve economies of scale by increasing production and lowering cost.

The Nigerian Government has over the years tried to cash in on this economic determinant by adopting the Free Trade Zone modern which largely promotes economies of scale as opposed to capitalist market orientation that focuses on production based on tax regimes.

The imperative of the free zone modern in a developing economy such as ours cannot be overemphasized because it is a leveler used in balancing the country’s economies of scale with taxation. This is because in zones, production costs are effectively spread over large number of goods and services.

No wonder, the country’s pride asset of 43 zones harbouring 500 functional enterprises with variety of production lines remain positive testament of how tax regimes’ exempt on economic of production can fast track economic growth in a more sustainable manner.

For the umpteenth time, the Federal Government seeing that unimaginable benefits could accrue from the free trade zone ecosystem, approved of it and through the Act of Parliament, established the Nigeria Export Processing Zones (NEPZA) to regulate and manage the operation.

The Authority’s years of unflinching commitment to its mandate, mission and vision has no doubt positively influenced the continued sustenance of the scheme regardless of activated centripetal and centrifugal forces aimed at stunting its full development.

Prof. Adesoji Adesugba, NEPZA Managing Director has since his assumption July 1, 2020 as Chief Executive Officer of the Authority, devoted time toward correcting widely held conversations garbed with insinuations that make nonsense of the scheme.

Adesugba has during this period opened a wide contact channel with chief executive officers of relevant agencies of government, federal lawmakers and other key stakeholders to re-educate them on the tenets of the scheme which is more of a free tax regime for operators of zones and their enterprises.

The NEPZA boss at a Stakeholder Forum organized by the Nigeria Economic Zones Association recently in Lagos reiterated that: ``those business enclaves called zones are considered to be countries within a country with NEPZA as the gateway. It is a global economic system that offer free tax and duties’ regimes, it therefore, behooves us to appreciate these tenets to make the scheme rewarding to government.’’

Also, the NEPZA boss while on hand to receive President Muhammadu Buhari during the inspection of the Lekki Deep Sea Port, Lagos on March 22 explained that the cumulative revenue of the scheme to the country’s Gross Domestic Product (GDP) was unimaginable.

``We expect from the investment we have in this free zone to be worth 3.5 billion dollars. The projection is that in 45 years, we will be doing 461 billion dollars. The multiplier effects hinge on job creation and the direct impact on the GDP. These gains far outweigh taxes and duties that would have been collected and expended.

``The Lagos Free Zone is investing on the deep-sea port because of the attractive incentives we are offering

by Martins Odeh is Head, Corporate Communications, NEPZA

them as spelt out in our Act. The chase to open up the zone for taxes and duties as oppose to our incentives will only kill the scheme. In fact, it will be wrong to suggest that the scheme blocks its enterprises from paying local taxes.

``NEPZA, Nigeria Customs Service, Federal Inland Revenue Services, have records of taxes and duties paid by enterprises in the zones to the government. These enterprises are not frozen from local revenue laws when they extend their business activities to custom areas.’’ Adesugba said.

``The free zone is deemed to be a country within a country, where we do not have multi-simplicity of taxation. We operate free tax regime within the zones.

``In Lagos free trade zone alone, we have twenty-six (26) International companies. In three months’, time, we will be opening one of the biggest colligate company factory in the world. These incentives serve as baits for investors to come while their removal will be antithetical to our drive to fast track the country’s industrialization,’’ he said.

Collaborating the NEPZA MD at the inspection tour of the Lekki Deep Sea, the president described the ongoing construction works at the $1.5 billion project site as a defining moment for the country’s economy.

Buhari said that the federal government would continue to provide the right incentives and environment to attract Foreign Direct Investment (FDI), adding that the free trade zone scheme must be supported to thrive.

Also, Rt.Hon. Rotimi Amaechi, Minister of Transportation, at that event said that the project had greatly influenced the government’s decision to improve the status of other ports in Nigeria.

``The government needs to either rehabilitate ports like Warri, Port Harcourt or build new ones. In fact, work will commence in Bonny Deep Seaport before the end of this year,’’ Amaechi said.

The government must continue to lead its revenue agencies to understand the imperative of the free zone scheme which is more of incentivizing for long term economic development rather than for immediate revenue generation.

As earlier stated, the scheme, with all of its incentives still ensures marginal contribution to both the National Gross Product (NGP) and Domestic Gross Product (GDP) as contained in the Nigeria Export Processing Zones Authority 2021 Key Revenue Achievements/ Indicators from the scheme.

In that chart, a total of 27 Free Trade Zones Enterprises were registered while the value of attracted Foreign Direct Investment stood at $24.8 million and that of the Local Direct Investment amounting to N233.6 billion respectively. Furthermore, a total of $37.3 million attracted to the country from international export of goods and a total of N361.1 billion was generated from domestic export.

The record also shows that a total of N35.1 billion accrued to government as Custom Duty while N408.3 million was remitted as PAYE taxes.

In similar vein, a total of 19,125 employments were generated just as 3000 jobs skills were transferred to the country and revenue generation from Immigration matters standing at N746.5 million.

Also, Local Import which serves as backward linkage stood at N65.1 billion within the period under review while the cumulative investment in the free zones scheme in 2021 amounted to N14.1 trillion.

The above record further bestows greater credibility on the operation and management of the scheme by this new NEPZA management led by Adesugba, who on his assumption of the office made it clear to the workforce on his uncompromising stance to block all revenue leakages.

The NEPZA Chief Executive Officer has unrelentless showed capacity to open up the Authority for better partnership with the Central Bank of Nigeria, Nigeria Customs Service, Federal Inland Revenue Service, Standard Organisation of Nigeria and the Immigration for smooth tracking of revenues due to government.

Adesugba in his sensitization of these sisters’ agencies on the peculiarity of the zones operation said that the African Continental Free Trade Zones Area (AfCFTA) had given leverage to all countries in the continent to diversify their business catchments.

``As we speak, free trade zones are springing up everywhere in Africa. Nigeria must be concerned about competitions from Egypt; South Africa; Kenya; Benin Republic; Ghana; and Togo where huge investments have been committed to free trade zones development.

``The time to join the train is now, else we shall be counting our losses in a few years’ time. Enterprises in zones and zones operators are not to be taxed like companies operating in the country or custom areas. I urge us all to understand these dynamics to keep the scheme alive and competitive,’’ he said.

NEPZA and imperative of boosting economy via blockchain technology

by Martins Odeh is Head, Corporate Communications, NEPZA

The World Economic Forum (WEF), predicts that by 2022, 60 per cent of the world economy will be digital.

According to WEF, an estimated 60 per cent to 70 per cent of new value created in the economy over the next decade will be based on digitally-enabled platforms.

Companies need to re-imagine how to create, distribute and capture value in this new environment. Closing digital divides is not only conducive to economic growth for all sectors, but also critical for social and political stability in the decade ahead, it added.

The World Bank in a 2019 report noted that Nigeria is uniquely positioned to reap the benefits of a digital economy.

According to the report, Nigeria accounts for 47 per cent of West Africa’s population, and half of the country’s 200 million people are under the age of 30.

Nigeria has the largest mobile market in Sub-Saharan Africa, supported by strong mobile broadband infrastructure and improved international connectivity.

The bank says for Nigeria to meet the bold objective of creating 100 million jobs, the country needs to increase investment in infrastructure, create an enabling regulatory environment for digital economy to grow.

When President Muhammadu Buhari unveiled the National Digital Economy Policy, initiated by the Federal Ministry of Communications and Digital Economy, he directed the Ministry to ensure seamless and coordinated implementation

Unarguably, the Federal Government changed the name of the Federal Ministry of Communications to Federal Ministry of Communications and Digital Economy in order to be in tune with global trends and reality.

of projects, programmes and policies. The aim of the policy is to enable Nigeria maximizes the benefits enunciated by the World Bank and WEF from a digital-driven economy. It is in line with this policy, that the Nigerian Export Processing Zones Authority (NEPZA), is desirous of opening up Nigeria’s free zones to the digital space.

Prof. Adesoji Adesugba, the Managing Director of NEPZA said it was imperative to open up Nigeria’s free zones space to blockchain tech and crypto currency operations.

He spoke recently in Abuja when two blockchain firms visited him to make submissions on their proposals for blockchain operations in Nigerian free zones areas.

Adesugba said the consideration followed requests from local and international players.

He said that his team received multiple presentations on the need for crypto exchanges and hubs within the Nigerian special economic zones to tap into multi-billion-dollar revenue streams which currently eluded Nigeria.

“I have also been approached at various international gatherings and events on why Nigeria, in spite her fiscal pressure, is comfortable losing so much in capital gains tax to neighbouring nations.

“We are aware of various reports and studies that indeed confirm operations of blockchain technology in many special economic zones all over the world.

“Our management is, therefore, considering inaugurating policy consultation with sister agencies on the need for a regulating framework on this emerging field.

“It is worrisome that Nigeria is said to be losing billions of dollars annually in capital gains tax paid to other nations even though the crypto transactions

took place in Nigeria.’’

The NEPZA boss said that statistics on crypto operations pile up more pressure.

“Nigeria is currently the number one in terms of people searching for “Bitcoin” and “Crypto” keywords on Google, with more than 6.3 per cent of the entire population owning at least one type of crypto currency.

“In the Chainalysis 2021 Global Crypto Adoption Index, Nigeria is ranked sixth out of the top 20 countries in terms of crypto currency adoption.

“It is important for us to develop a robust blockchain policy in line with current international trends.

“And we hope to be able to consider interested organisations for capacity and development of blockchain tech within the free zones.

“In policy formulation and implementation, we shall definitely invite all the stakeholders including large crypto exchanges such as Binance, Coinbase, Crypto.com, and other young local operators.’’

Adesugba said that this would bring access to technology and expand the capacity of the sector to employ estimated 250, 000 youths.

“Leaving this vast field unregulated appears to constitute huge economic loss to the nation. We hope to come up with a draft perspective after due consultations,” Adesugba said.

Earlier, the Finlease in its submission sought the endorsement of NEPZA for the establishment of Lekki International Financial Centre at the Lekki Free Zone (LIFCFZ).

The Managing Director of Finlease, Dr Sunday Sijuade, said the planned Lekki International Financial Centre would cover offshore crypto zone to cater for crypto currencies. According to him, it is to become

an offshore destination for crypto exchanges, digital assets and virtual assets.

According to Sijuade, the proposal is in line with international trends across global special economic zones.

He cited examples of Chinese Financial free zones in Shanghai and the United Arab Emirates’ International Finance Centre where such innovation had been introduced into the free zones.

Adesugba, when he paid a courtesy visit on Mr Mohammed Nami, the Executive Chairman, Federal Revenue Inland Services (FIRS) reiterated the need to deploy novel digital technology to open up the Free Trade Zones (FTZs) space for operators of the multi-trillion-dollar block-chain technology businesses.

He re-emphasized the readiness of NEPZA to open the country’s free trade zones’ corridor for genuine global competitiveness.

According to him, the African Continental Free Trade Zones Area (AfCFTA) has given leverage to all countries in the continent to diverse their business catchments.

“As we speak, free trade zones are springing up everywhere in Africa. Nigeria must be concerned about competitions from Egypt; South Africa; Kenya; Benin Republic; Ghana; and Togo where huge investments have been committed to free trade zones development.

“For us, we are doing well with about 500 enterprises operating in 42 zones across the country, but we must expand the investment corridor to magnet operators of the blockchain technology which remains the future of global economy.

“The time to join the train is now, else we shall be counting our losses in a few years’ time. We are delighted that the Federal Government through the

Nigeria/UK trade mission 2022, a fallout of NEPZA’s adaptable Investment exchanges

By Onyinye Adigwe

The Nigeria Export Processing Zones Authority apparently remains one of the few agencies of government that ticks all the boxes as a genuine onestop-shop as it combines regulatory roles of the country’s Free Trade Zones Scheme, investment exchanges, trade drives and the industrialisation process with utmost fluidity.

The Authority does not only use its well-structured digital platform for these interfaces, it also ensures physical contacts through visitations and attendance of local and international trade missions, tradefairs and other such gatherings that can help promote the 46 special economic zone spaces it supervises.

The successes recorded on investment exchanges so far did not just come, it remains the handiwork of Prof. Adesoji Adesugba, who in his wisdom propelled the Investment Promotion and Investor Services (IPIS) Department to raise the bar as far as this arduous task is concerned.

In the last two years, the Authority through this department headed by Sir Innocent Ezeochi, an astute Director, equipped with sound free

zone and investment promotion knowledge has embarked on a variety of trade and investment conferences, exchanges and fairs locally and abroad.

The latest, being the UK/Nigeria Trade and Investment Mission 2022 organized by Cater and Merger Consult held in the United Kingdom between April 25 and 29 attracted a lot of promises, one of which aims to enhance trade and investment relations between Nigeria and the United Kingdom, post Brexit.

The focus of the trade and investment mission is to create the platform for more direct engagements and indepth discussions on the potential benefits of post-Brexit, Britain going global and Nigeria trade and investment opportunities, while analyzing the challenges of public sector led policies and harnessing private sector driven initiatives for

mutual economic growth and social development.

The program kicked off at the Nigerian High commission, where HE. Ambassador Tunji Isola welcomed all delegates to the event and urged them to engage with the UK Ministry of Trade and Businesses in UK to improve trade and investment relations between both countries.

Prof. Adesoji Adesugba, delivered a keynote address on behalf of the CEOs of Agencies present, stating that the approach to improving trade and investment between the two countries and utilizing the opportunity presented by Brexit should be on the basis of interaction that could led to the implementation of key policies that drive private sector growth.

The afternoon session was held at the House of Parliament where discussions were centered on legislation, rules and regulations of import/export relations between Nigeria/UK exports with emphasis on Agro products.

The discussion also explored ways to deepen bilateral trade and investment cooperation in a mutually beneficial manner and boost investment to further strengthen economic ties between both countries.

Business meetings were set up with different UK companies, UK Ministry of Trade, UK Business representatives, Industrial parks in London and Peterborough during this visit, availing delegates the opportunity to find ways of collaboration and partnerships between UK business and Nigeria which is expected to strengthen trade and high value investments between the two countries.

The mission, not only focused on raising investment for capital intensive businesses, but also placed premium on increasing support for small and medium scale enterprises in Nigeria.

The NEPZA boss during one of the

business meetings corroborated this in his paper on the opportunities of investing in the Free Zones with the theme `` Investing in Nigeria; Creating Viable Business Environment for Investors in Nigeria through Economic Zones,’’ noted that the aggregation of small and medium businesses is sine qua non to genuine economic growth the any nation.

The week-long activity can only be described as a huge success as rooms were created for networking to facilitate important business introductions between potential business partners for increased direct engagements in collaboration with key UK business groups like the British African Business Alliance, the Opportunity Peterborough and the Commonwealth Entrepreneurs Club UK.

Also, investors from the Agrobusiness, Fintech, Renewable Energy and Infrastructure sectors were in attendance.

The Nigeria’s team to the trade mission included His Excellency, Honorable Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo; the Minister of State for Budget and National Planning Mr. Clem Agba; His Excellency, the Nigerian High Commissioner to UK, Ambassador Tunji Isola; the Permanent Secretary, Industry, Trade and Investment Mrs. Evelyn Ngige; former Managing Director, Oil and Gas Free Zones Authority, Chief Umana Okon Umana; representative of the Managing Director, Nigeria Ports Authority, senior NEPZA and the MITI officials as well as members of the organised private sector.

Central Bank of Nigeria (CBN) recently approved and deployed the e-naira.’’ Adesugba said that Nigeria must key into the technology as more than 90 per cent of European and US banks were researching blockchain options.

He said that multinational organisations like JP Morgan, MTN, KFC, Tesla and many others have entered the crypto currency and metaverse digital blockchain sector with MTN said to have purchased 114 metaverse properties recently.

He said that NEPZA was aware on how the technology could revolutionaries’ government, finance, insurance and personal identity security, adding that trillions of naira could accrue to the Federal Government as revenue from this ecosystem.

The NEPZA chief executive also said that the decision to fully promote the blockchain technology hinged on its fast rate of revenue turnovers and the unlimited job space the technology had for the teeming youths.

He explained that the country’s tax net would be exponentially enlarged if the investment came alive, as according to him, Nigeria is currently rated as the 6th largest player in the world in the crypto and blockchain trade, especially amongst the youths.

” I, therefore, see no reason why we should not open up the space and attract the much-needed capital into the country, while government benefits from taxes, or management fees amounting to billions of naira as is done in countries like Canada and South Africa.

Adesugba also said that NEPZA was ready to deepen collaboration with relevant government agencies in order to fast track the country’s industrialization.

He explained that the visit to the FIRS was to prepare grounds for signing of a Memorandum of Understanding (MoU) aimed at ending indiscriminate

tax regime that had stunted the full development of the free trade zone scheme.

He said that the scheme was a global business policy that exempt operators of zones from all forms of taxes and duties, adding, however, that when goods and services from the zones were taken to the customs area, they then will be required to pay the required duty which is not necessary when exported elsewhere.

“You can see that the country is not losing any revenue, as most of the goods and services from the zones are now imported to the customs areas.

``FIRS and the Custom Services must wait until items from the zones are brought to the customs area before they can be taxed,’’ he said.

Adesugba also explained that it was imperative that the key agencies partnering with the NEPZA to drive the development of the scheme understand the dynamics of the scheme.

Undoubtedly, with zeal exhibited by Adesugba since his appointment, the Authority, established via NEPZA Act 63 of 1992, will deliver on its mandate. The mandate includes: licensing, regulating, monitoring and promoting the operations of all zones in Nigeria.

It also seeks to provide a conducive investment climate by offering a competitive incentive regime, streamlined administrative procedures and world class infrastructure. The current efforts of NEPZA are all geared towards delivering on the mandate of the Authority.

NEZ Stakeholders Forum

Prof. Adesoji Adesugba, MD/CEO, NEPZA, receives Mr. Abiodun Abayomi Oyebanji, the Executive Governor of Ekiti State to the Authority’s corporate headquarters, Abuja.

R-L: Prof. Adesoji Adesugba, MD/CEO, NEPZA; Mr. Abiodun Oyebanji, Executive Governor, Ekiti State; and Mr. Wale Ajakaye, in MD’s office during the Governor’s visit.

The NEPZA Boss, makes his remarks during Governor Oyebanji’s visit to NEPZA.

Prof. Adesoji Adesugba (right), presents the Authority’s VIP notepad to the visiting Ekiti State Governor, Abiodun Oyebanji.

Prof. Adesoji Adesugba, MD/CEO, NEPZA, is flanked by Mr. Abiodun Abayomi Oyebanji, the Executive Governor of Ekiti State, during a press interview.

L-R (front row): Sir. Innocent Okwudiri Uzoechi, Director, Investment Promotion and Investors’ Services (IPIS); Hajia Haleema Sani Kamba, Director, Corporate Services; Mr. Toyin Elegbede, ED, NEZ Association; Prof. Adesoji Adesugba, MD/CEO, NEPZA; Mr. Abiodun Abayomi Oyebanji, the Executive Governor of Ekiti State; Mr. Wale Ajakaye, SA to the Minister for Industry, Trade and Investment; Hajia Zainab Aliyu Musa, Director, Monitoring and Compliance; Mrs. Bernadette Akuye-Gbefwi, Head, Internal Audit; Mrs. Jane Tapgun, Company Secretary/Legal Adviser.

The Governor of Ekiti Visit to NEPZA

Prof. Adesoji Adesugba, MD/CEO, NEPZA, delivers his goodwill message at the Nigeria Free Zone Stakeholders’ forum.

Top management of the Federal Inland Revenue Service (FIRS), seated during the stakeholders’ forum.

Anti-Corruption and Transparent Unit, ACTU , Sensitization Exercise and Inauguration

Mr. Toyin Elegbede, ED, Nigeria Economic Zones Association, NEZA (left), presents the association’s certificate of registration to Mr. Dinesh Rathi, CEO, Lagos Free Zone.

Alhaji Yusuf Abdullahi, of the Snake Island Integrated Free Zone, SIIFZ (right), receives the association’s certificate of registration from Mr. Toyin Elegbede, ED, NEZ Association.

Prof. Adesoji Adesugba, MD/CEO, NEPZA, pose with Mr. Olayinka O. Akande, MD, Dangote Industries FZ, displays his zones association’s certificate of registration.

Top members of the Eko Atlantic FZ, at the event

Mrs. Ekekezie Kathleen Chinwe, DCG Excise FTZ & Industrial Incentives, Nigeria Customs Service (NCS), makes her remarks.

Mr. Nitin Shah, rep. of the AHL Energy FZ, makes his contribution

Mrs Adenekan Kehinde Sade, Chairperson, ACTU, NEPZA-Unit, also Deputy Director, NEPZA/Centenary Economic City FZ Administrator, delivers her opening speech.

The Chairperson receives a round of applause from the guest after her opening remarks.

Buhari visits Lekki Deep Seaport

L-R: Prince Adetokunbo Kayode, former Minister of Justice and Attorney-General of the Federation; Chief (Dr.) Joseph Oladele Sanusi, former Governor of the Central Bank of Nigeria (CBN); alongside Prof. Adesoji Adesugba, MD/CEO NEPZA, at the event.

The Anti-Corruption and Transparent Unit, ACTU (NEPZA-Unit), NEPZA-Unit new EXCO takes oath of office.

Mrs Adenekan Kehinde Sade, Chairperson, ACTU, NEPZA-Unit (centre), is flanked by other EXCO members and invited guest in a group photograph after their inauguration.

R-L: Mrs. Ismail Lawunmi, NEPZA official; Hayatu Garba, Deputy Director, NEPZA/LFZ Administrator; Martins Odeh, Head, Corporate Communications, NEPZA; Nsa Roland, Chief Protocol, NEPZA; Pate Jaafar, NEPZA official, at the event.

L-R: Prof. Adesoji Adesugba, MD/CEO, NEPZA; Mr. Dinesh Rathi, the CEO, Lagos Free Zone; and Rt. Hon. (Barr.) Emmanuel Jime, the Executive Secretary/CEO, Nigeria Shippers Council (NSC).

Prof. Adesoji Adesugba, MD/CEO, NEPZA, in a conversation with Mr. Lawrence Smith, Chief Operating Officer, Lekki Free Port (LFZE), at the event.

President Muhammadu Buhari GCFR, acknowledges cheers from supporters and workers at the Lekki Deep Seaport.

President Muhammadu Buhari GCFR (centre), flanked on his far right by Prof. Adesoji Adesugba, MD/CEO, NEPZA; immediate right, Chief Bisi Akande, (APC chieftain); immediate left, Mr. Haresh Aswani, Chairman, Lekki Free Zone and Group MD, Tolaram-Africa; and far left, Mr. Babajide Sanwo-Olu, Executive Governor of Lagos State, at the event.

Prof. Adesoji Adesugba MD/CEO NEPZA., Commandant-General, SEZSEC

Minister of Industry Trade and Investment Otunba Adeniyi Adebayo, addresses the new officers,

NEPZA board Chairman congratulates an officer after peeping him

Prof. Adesoji Adesugba MD NEPZA and Elder Toyin Elegbede, Executive Secretary, Nigeria Economic Zones Association decorate an officer, Deputy Controller-General of the Nigeria Customs Service in- Charge of Free

Mrs Catherine Ekekezie decorates an officer

The freshly decorated officers in a group picture with the minister, MD/ CEO NEPZA and other senior officials from the agency.

The minister (right) and Hon. Abdul Fanda, NEPZA Board Chairman decorate an officer

The minister along wife of an officer decorate him with his new rank Officers are full of smiles while waiting for their ranks

Ranking of SEZSEC

NEPZA NEWS STORIES

NASS urges FG to maximize CFTZ potentials to boost economy

The House Committee on Commerce says the ongoing process to concession the Calabar Free Trade Zone (CFTZ) is a positive approach in unleashing the full potentials of the zone to boost the country’s economy significantly.

Hon. Richard Gbande, Deputy Chairman of the committee said this on Wednesday when he led some members of the committee on an inspection tour of the zone in Calabar.

Recall that the management of the country’s only two public zones located in Calabar and Kano are on the verge of being handed over to private investors.

The lawmaker, representing KatsinaAla/Ukum Federal Constituency of Benue State, explained that the public must understand what led the Federal Government to adopt the free trade zone scheme, adding that it was basically aimed to spike industrialization and economic growth.

He, however, said that the scheme required a long period of sustained funding to yield any significant benefit to the country.

Gbande further said that the Nigeria Export Processing Zones Authority (NEPZA) had so far performed well within its limited resources, adding that the impact of the scheme had reflected positively on the country’s Gross Domestic Product (GDP).

``We are in the Calabar Free Trade Zone to see the progress the business ecosystem is making and I can say that NEPZA has done well so far for keeping the country’s pioneer free zone intact and working.

``The committee has noticed some of the challenges which include outside infrastructure and the dredging of the Calabar Port.

`` In spite of these challenges, the enterprises, most of which are foreign companies are still functioning and helping to provide employment

for the locals as well as serving the markets.’’ he said

Gbande explained that the zone would be brought to the required optimal level of competitiveness when handed over to private investors.

Prof. Adesoji Adesugba had used the occasion to express delight on President Muhammadu Buhari commitment and support in truly revamping the scheme to meet international standards.

The NEPZA boss explained that the Federal Government was committed to ensuring stable electricity supplies in the Calabar and Kano free trade zones, adding that the recent blackout in the Calabar zone had been addressed.

He further said that the government’s approval of funds for the development of infrastructure at the two public zones and two other new ones was an indicator of the president’s commitment to reposition the scheme.

According to him, the Authority has continued the execution of the power and other projects in Kano, Calabar, the Textile & Garment Park as well as the Medical Special Economic Zone in Lagos.

``Already, works are ongoing in these areas as infrastructure development remains the bait that can attract investors to the zones.’’ Adesugba.

REP. COMMITTEE DESCRIBES LEKKI FTZ QUADRANT AS COUNTRY’S NEW ECONOMIC POWERHOUSE.

Rep. Committee describes Lekki FTZ Quadrant as country’s new economic powerhouse, urges urgent rail-line construction to avoid Apapa Port tragic experience

The House of Representatives Committee on Commerce has described the Lekki Free Trade Zone Quadrant as the country’s new economic powerhouse harbouring 25 billion US dollar investment.

Hon. Richard Gbande, Deputy Chairman of the committee said this when he led some members of the committee on inspection of the Lagos Free Zone, Lekki Free Zone, and the Dangote Free Trade Zone Enterprises on Thursday in Lagos.

Gbande said that the concept of the free trade zone had revolutionised the development of the Lekki axis of Lagos once upon a time considered as an undeveloped ``peninsular’’.

The lawmaker explained that the Federal Government had incredibly used the Nigeria Export Processing Zones Authority (NEPZA) to promote the free zone scheme in an amazing manner.

Gbande also noted that the government’s relentless efforts in trying to diversify the economy

resulted in the development of the Lekki Quadrant which would undoubtedly become the country’s new economic powerhouse.

``We have gone round as part of our oversight functions to see this magical economic enclave called Lekki Quadrant and it is indeed a sight to behold.

``The committee is particularly enthused with the conversion of the peninsular to a majestic business city that boasts of the Deep Sea Port, Dangote Refinery, and over 200 other enterprises sustaining the country’s economy.

``For the umpteenth time, NEPZA’s inexorable push to carry out its mandate and mission of galvanising both the Foreign Direct Investment (FDI) and Local Direct Investment (LDI) must be supported. We can see how difficult these tasks are with the prevailing environment,’’ he said.

The deputy chairman of the house committee on commerce, further pointed out that the Ministry of Transport must hasten the construction of railway lines in the Lekki free zone area for seamless movement of cargoes.

Gbande also explained that the

new Minister of Transport should urgently move and work toward implementing the directive of President Muhammadu Buhari on the urgent need to construct road and rail infrastructure across that part of Lagos.

``The legislative body is prepared to appropriate funds for the construction of road and rail system for this important national economic gateway without delay. Already, we are late as both the deep sea port and the refinery shall open for operation by September and January respectively.

``The president may want to reissue that directive again to show the importance he attaches to the development of these all important outside infrastructure in the Lekki free zone quadrant.

``The government must avoid repeating the recurrent gory experience of failed Apapa Sea Port logistic system with the Lekki free zone quadrant,’’ Gbande said.

Prof. Adesoji Adesugba expressed delight on the inspection tour carried out by the committee members, adding that it had obviously spurred them to become advocates of the free zone scheme.

Adesugba said that the NEPZA was up to the task of using the scheme to industrialise the country for the greater good of the citizens.

He corroborated Gbande’s call for the development of both the road and rail infrastructure for the Lekki free zone corridor to avoid catastrophic logistic failures.

NEPZA NEWS

Committee completes inspections of NEPZA projects, expresses delight with executions

The Joint Projects Monitoring Committee that comprised officials from the Ministry of Industry, Trade & Investment and the Nigeria Export Processing Zones Authority (NEPZA) has rounded-off scheduled inspections of 112 approved projects for the Authority. These projects, captured under the NEPZA Tender Board of 2017-2021, direct Federal Executive Council approval and the Ministerial Tender Board of Capital Projects are located at Calabar Free Trade Zone (CFTZ), Kano Free Trade Zones (KFTZ) and the newly approved Lagos and Kwara Special Economic Zones respectively.

Out of the 112 ongoing projects, a total of 76 have been completed with the CFTZ accounting for 28; KFTZ 38; Lekki SEZ 5; and Ilorin SEZ 5 while others are at different levels of completion.

Some of the projects include: Erosion Control Works & Rehabilitation of Collapsed Perimeter Fence at CFTZ; Construction of Emergency Exit Gates & Access Road to the Jetties at CFTZ; Re-Asphalting of the Exiting Dual Carriageway Road Network at CTFZ; Consulting Services for Masterplan & Architectural Design at Kwara SEZ; Consulting Services for Engineering & Infrastructure Design at Kwara SEZ; Quantity Surveying for Feasibility Studies at Kwara SEZ; and the Development of initial 5MW Power Plant & Electrical Reticulation within the Ilorin SEZ.

They also include: The Construction of Roads with Associated Drainage Work at KFTZ; Construction of Four Standard Size Factory Building & Associated External Works at KFTZ;

The Purchase of Property at No.38 Kofo Abayomi Street, Victoria Island, Lagos; The Re-furbishing & Furnishing of the Newly acquired NEPZA new Lagos Zonal Office among others.

Speaking at the end of the tour in Calabar, Hajia Zainab Aliyu, NEPZA’s Director of Monitoring & Compliance, expressed satisfaction with the level of projects execution across the four zones, adding that the Federal Government had always ensured value-for-money in the execution of its contracts.

Hajia Aliyu, the Authority’s Team Lead, said that the approval for the projects’ inspection tours indicated government priority toward adequate provision of infrastructure in the free trade zones and Prof. Adesoji Adesugba led-management relentless commitment to the interpretation of President Muhammadu Buhari’s policy for a profitable and competitive zone scheme.

``As part of the statutory responsibility of NEPZA as provided in Section 4 of the Authority’s Act 63 of 1992 is the provision that ensures that all zones provide some of the basic infrastructure. We are also obliged to constantly monitor and evaluate both new and old infrastructure.

``The reasons for these monitoring and evaluation exercises were to ensure the right quality of materials were used and the the right quality of jobs are done, just as we also checked the percentage of work done in line with the amount assigned for the project.

``To this end, the Managing Director, Prof. Adesoji Adesugba decided to set up this committee to access all the projects that have been earmarked from the period he assumed leadership of the Authority.

``The Authority has, however, decided to carry out the task jointly with our supervising Ministry, which is the Ministry of Industry, Trade and Investment. So far, we were encouraged by the progress of executions.’’ She said.

Meanwhile, Mr Martins Odeomenem, Director of Procurement, who led the team members from the Ministry of Industry, Trade & Investment, described NEPZA as a serious agency of government that had always displayed uprightness in the conduct of its affairs.

Odeomenem explained that the ministry was, however, mostly concerned with those projects approved through the Ministerial Tender Board, adding that most of projects under the above category had been completed.

``It is not all about awarding contracts and executing contracts. There is also the need for every office that has the duty of awarding contracts to know that government is seriously after value-for-money.

``The inspections were aimed at ascertaining if the contracts the government awarded within the period under review are achieving the purpose for which they were awarded and executed. This is the essence of our assignment.

``I am fully aware that NEPZA is a serious establishment that abhors shoddy execution of its projects because of the strategic nature of the free zones in attracting foreign investment. We have gone around and I can say with all sense of responsibility that we are satisfied with what we have met on ground so far.’’ Odeomenem said.

The committee is, however, expected to submit a detailed technical report of its evaluation within 21days. In a related development, members of the House Committee on Commerce who are embarking on their Mid-Term Inspections of projects at free zones across the country concluded a twoday tour of the Kano Free Trade Zone on Monday.

Hon. Richard Gbande, Deputy Chairman of the committee expressed satisfaction on how the Authority had so managed the special economic ecosystem, describing it as a vital economic gateway that should fast track the industrialisation of the Northern region.

Gbande explained that the zone was lucrative going by the presence of 75 enterprises functioning night and day to increase production for the country’s highly competitive markets. ``We are sure production and competition among the enterprises in the zone would increase significantly if the Federal Government finally divests its equity to the private sector as planned. Doing so will help open the space more for job creation.’’ The Lawmaker said.

Virtual Free Zones: NEPZA, Binance in Partnership

In its drive to further deepen the country’s economy, the Nigeria Export Processing Zones Authority (NEPZA) is seeking partnership with Binance and Talent City for Nigeria to harbour the first Virtual Free Zone in West Africa.

Prof Adesoji Adesugba, NEPZA’s Managing Director gave the hint on Friday in Dubai, United Arab Emirates after holding meetings with officials of the two firms.

Adesugba, also Chief Executive Officer of the Authority, explained that the partnership when agreed would be similar to the Dubai Virtual Free Zone.

The NEPZA boss presented the vision of his management which centres on

expanding frontiers of innovations in the operations and management of free zones in Nigeria and Africa as a whole.

“ We seek to break new grounds to widen economic opportunities for our citizens in line with the mandate of the Authority, the directive of the Honourable Minister and the economic development agenda of President Muhammadu Buhari. Our goal is to engender a flourishing virtual free zones to take advantage of a near trillion dollar virtual economy in blockchains and digital economy,” Adesugba said.

Binance, a leading global digital, blockchain finance services firm operating worldwide with billions of dollars in operating capitalisation, was represented at the parley by Nadeem Ladki, its Executive Director, Regional Strategic Partnerships and Sameera Kimatrai, Binance Senior Legal Counsel.

Also in attendance were Luqman Edu, Chief Executive of Talent City and Engr. Sikiru Lawal, NEPZA’s Director of Projects & Procurement.

NEPZA SECURES $100M INVESTMENT IN FRESHLY

The Nigeria Export Processing Zones Authority (NEPZA) has secured an anchor tenant, Ash Biomedical Diagnostics Limited which is prepared to without delay invest initial 100-million-dollar capital in the production of variety of medical equipment in the freshly approved Medical/Pharmaceutical Special Free Zone in Lekki, Lagos. Prof. Adesoji Adesugba, NEPZA Managing Director, dropped the hint on Thursday after a meeting with the company’s team led by its Managing Director/CEO, Mr Ade Shodeinde in Abuja.

Adesugba said

turning point in our pursuit to bring in world class medical enterprises to the Lekki medical free zone.

``Recall that we announced in March 21 that scores of prospective anchor tenants came to us seeking to establish world class hospitals and pharmaceutical industries in the Lekki medical special free zone with the aim to end the unnecessary medical tourism abroad.

``Let me reiterate that we are indeed opened to bringing into the zone world class pharmaceutical companies to serve not only Nigeria, but Africa and the rest of the world from Lekki. The prospects of the zone are unimaginable and we are glad for securing an anchor tenant that will immediately open up the place for operation,’’ Adesugba said.

industrialisation.

In another development, the Authority has agreed to midwife the forthcoming Nigeria (Kano) and Chinese Business Forum aimed at bridging investment exchanges between Nigeria and China.

Adesugba said this when he played host to Mr Wu Bai Cai, Directory Officer from the Chinese Embassy in Abuja.

The NEPZA chief executive officer explained that it was about time Nigeria and China stepped up their economic relations to a more sophisticated height, adding that NEPZA was assiduously working hard to use the free trade zone to ignite development as done by China.

within and outside of the country.

The managing director explained that the company had scaled through series of tests and financial evaluations aimed at determining its capacity to carry out the expected tasks.

The NEPZA boss said that Ash Biomedical Diagnostics Limited had a solid investment capital base, adding, also, that the Authority became more convinced with the company’s capacity to deliver on the expectations after being exposed to its famous and worldclass foreign partners. ``Today can only be described as a

Adesugba further said that the Authority was still prepared to relax perceived stringent rules to ensure the comfort of anchor tenants, adding that the future gains that could accrue to investors who dared to first explore the zone usually would out-weigh the initial challenges.

The Lekki medical special free zone remains a business hotspot with opportunities for other business chains ranging from transport/logistics, electricity, estate development, tourism/hospitality among others.

The NEPZA chief executive officer further explained that investors should prospect similar zones in Katsina and Ilorin, adding that the Federal Government expected the sub-nationals to leverage on all free zone types to fast track the nation’s

Bao-Cai expressed delight in the meeting, adding that China had not hidden its interest in using its wealth, technology and human capital to assist in the development of the African continent.

He said, the forthcoming forum would be a platform where all areas of investment needs of the country should be evaluated for possible exploration.

``We have many Chinese businesses seeking to set up in Nigeria from where they can serve the rest of the world. Nigeria will become a hub for many Chinese manufacturing companies. For instance, we are looking for avenues to start the manufacturing of electric cars in Nigeria among others.

The Kano State Government and Hon. Adamu Fanda, Chairman NEPZA Board are among the long list of the facilitators of the forthcoming forum.

that the breakthrough hinged on the Authority’s relentless investment campaigns and drives across targeted investment potentials

NEPZA, FIRS AGREE TO ADJUST FTZs NEW TAX ADMINISTRATION PACT

stakeholders, adding the document was a flexible guideline on how to administer the MoU.

Nina, represented by Mr Mathew Gbonjubola, the Coordinating Director of the service, said that not all the concerns raised were genuine, adding that the FIRS was knowledgeable enough on issues around free trade zone tax administration.

Nina explained that the service would not unduly interrogate tax remittances of enterprises with full status of free trade zones, adding that the service would, however, always insist on remittances of returns, Valued Added Tax (VAT), and Withholding Tax, respectively.

The Nigeria Export Processing Zones Authority (NEPZA) and the Federal Inland Revenue Service (FIRS) have agreed to adjust some sections of the recently signed Memorandum of Understanding (MoU) on the efficient management of the free trade zones tax system in order to accommodate salient concerns of the stakeholders. Recall that the agencies on June 7 signed the tax pact to reconcile all grey areas in the administration on issues bordering tax deductions from free zones and enterprises operating in the zones respectively.

The agreement to adjust the MoU was reached on Wednesday during a roundatable where the document was formally presented to the stakeholders in Lagos.

A cross section of the Stakeholders had raised concerns on some sections of the guidelines as according to them, those sections contravened some provisions of the NEPZA Act for operators in the free zones.

Prof. Adesoji Adesugba, the Managing Director, NEPZA, explained that the event was to make adjustments where necessary on how the FIRS and NEPZA would treat tax issues relating to business interactions within the free trade zone ecosystem.

He noted that section 5 of the MoU had given parties the leverage to call for the amendment of the tax guidelines when necessary.

“The Authority’s recent diplomatic advances with sisters agencies, especially, the FIRS can only be described as a game changer. We now see ourselves as partners in progress. “We have always insisted that the free trade zone scheme must be allowed to succeed as that truly remains a potent economic instrument for widespread growth and development.

“Therefore, we have agreed to adjust the tax pact to capture some of the salient concerns of the stakeholders.

“The Authority will not sheer away from protecting the scheme and those who have invested billions of dollars in the scheme. We are delighted that the FIRS has become our advocate in this regard.

“ We are also happy that the administration of President Muhammad Buhari has given us the impetus through his favourable policies to deepen the growth of the scheme,” he said.

Alhaji Mohammed Nina, the Executive Chairman of the FIRS had promised to evaluate the concerns of the

He further noted that all other issues raised on the tax pact would be addressed within two months.

On his part, Chief Toyin Elegbede, the Executive-Secretary of the Nigeria Economic Zones Association (NESA), said that the forum became important to address the concerns of his members on the tax administration pact signed between NEPZA and FIRS. According to him, the discussions from forum elicited hopes and assurances on the commitment of government to support the in-flow of Foreign Direct Investment (FDI) through the free trade zone scheme.

The forum was attended by Chief Executives of free zones, enterprises, contractors, consultants and other key stakeholders.

Unmaking and tweaking Nigeria’s FTZs’ susceptibilities

By Martins Odeh

Gradually, but steadily, the grandiloquence narrations of the acclaimed outright under-performance of the Nigeria’s Free Trade Zones’ concept in the last 29 years of its adoption to drive the country’s industrialisation is been obliterated by new crop of data mavens using the latest digital infrastructure to capture, analyse and measure the contributions of this concept to the country’s Gross Domestic Product (GDP) and national growth more succinctly.

Indeed, the Federal Government having seen the way and manner China, Dubai in the United Arab Emirate and the western world had leveraged on this global economic model to speed up their socio-economic growth, embraced it in 1992 with an enactment that bestows NEPZA with the sole powers to monitor and manage the structure.

Successive management teams of the Authority had ensured that this concept that provides the filaments for this special business ecosystem is guided; leaving the country with two public zones and 43 private zones harbouring over 500 enterprises with cumulative investments worth over US 20 billion dollars, and accelerating employment generation hovering around 50,000 direct jobs and about 100,000 indirect jobs respectively.

Now with Prof. Adesoji Adesugba in the saddle as Managing Director and Chief Executive Officer, a more resilient and result oriented monitoring and management strategies are been deployed to reposition the zones’ operation for effective monitoring and measuring of the various contributory indices to national growth.

Adesugba, been a thoroughbred Professor of Business Administration and a tested Investment Promoter, has in the last one year focused on unmaking and tweaking the nation’s free zone susceptibilities by also widening the scope of search for innovation, business quality control mechanism and other forms of sophisticated approaches that could transform the country’s free zones into genuine business destination hot spots.

The public must come to the understanding that the free zone scheme is a global concept and not a Nigeria’s concept, and therefore, leaves us with no option but to strictly adhere to its modus operandi in order to fully reap

from the structure. No wonder, the new management has spent quality time in educating and sensitizing key stakeholders on the ideals of this business enclave.

``The choice of this topic stems from the backdrop of the knowledge gap that exists in the free trade zone scheme in our nation. This is not much to do with the lurks and perks of the scheme as it is with our inability to genuinely leverage on the pros and cons of the scheme like other nations that are making success of it.

``Free Trade Zone refers to an area enclosed by a fence or wall with supervised entry and exit points where certain economic fiscal advantages are granted to facilitate world market trade,’’ Adesugba said.

More than anything else, the managing director is pained that much of the strides made by the Authority over the years toward the country’s economic growth were not properly captured in the nation’s GDP.

This underscores why NEPZA struck the long-awaited partnership with the National Bureau for Statistics (NBS) in ensuring that data from zones and the Authority’s Headquarters are collated, computed and inputted into the national growth indices regularly.

Adesugba explained that the partnership with NBS was aimed at assisting the Authority at robustly re-defining the import and export data points for analysis and for decision making through the free trade zone gateways.

``This synergy is also directed at sharing relevant data between the two agencies in order to regularly highlight the zone scheme’s contribution to the country’s Gross Domestic Product (GDP), Foreign Direct Investment (FDI) and employment generation outlook,’’ he said.

Responding, Dr Yemi Kale, Statistician-General/CEO of the National Bureau for Statistics (NBS) said that the bureau was set up to monitor indices of the productive sector, adding that any contemplated partnership toward that direction was welcomed.

``NEPZA is a strategic agency of government established to use the zone scheme to drive industrialization. it is therefore imperative to keep statistical track of the Authority’ contribution to the economy,’’ the NBS boss said.

Similar partnership to ensure a uniform computation of indices generated from the free zones wad recently entered between the Authority and the Central bank of Nigeria (CBN) clearly epitomizes Adesugba’s virtue of Due process, transparency, accountability and open governance.

It is also imperative to further state that the Authority now brags of what one can term ``digital- wiz mavens’’ positioned to timeously collate data on import and export points for analysis and for decision making on a daily basis.

It is evident that this new NEPZA management is doing what has not been done before to unequivocally enable the agency spearhead both the country’s economic recovery and its industrialization process. Needless, however, to say that this rebranded Authority requires unflinching support of the presidency, the National Assembly and other sister agencies of government to pull through these daunting tasks.

No doubt, the continuous calls for the amendment of the NEPZA Act 63 of 1992

have become most expedient so as to weed out those legal frameworks that have continued to hamper the successful management of the concept once and for all.

For examples, key stakeholders in the sector have among other things suggested that NEPZA can become more virile and productive if it seized affiliation with the Ministry of Trade, Industry and Investment and brought under direct supervision of the presidency as with other successful zones’ regulatory bodies abroad.

The other concern raised hinges on the inadequate funding of the structure which have arguably left the zones less competitive for many years. However, credit must be given to President Muhammadu Buhari for jerking up the Authority’s capital appropriations substantially for consecutively six years now, nevertheless a lot more is needed to bring this special business ecosystem to a competitive level.

It is in this light that the Authority during the 2022 budget presentation on November 10 solicited the intervention of the National Assembly for a sustained and robust appropriation for the development of Special Economic Zones across the country.

Adesugba, who led the team of NEPZA management explained that ensuring improved system and the re-alignment of operations of the free trade zone could only be propelled by huge investments on infrastructure.

``Infrastructure development in the zones is the ultimate attraction to this concept. We shall not be dissipating too much energy in promoting the concept if the right infrastructure is in place.

``China has about 3000 state-of-theart free trade zones and has leveraged on them to transform its economy to an enviable form. This is indicative of

The Nigeria Export Processing Zones Authority (NEPZA) and its sister agency, Nigeria Investment Promotion Commission (NIPC) have agreed on a more robust collaborations that can unlock the country’s business opportunities.

This agreement was reached on Tuesday when Mr Emeka Offor, the Acting Executive Secretary of NIPC visited Prof. Adesoji Adesugba, Managing Director, NEPZA in Abuja. The meeting provided both chief executives the platform to share wider business investments plans and area of collaborations.

Adesugba, in his welcome address, described Offor as an astute investment promoter with the appropriate capacity to convert the country’s business opportunities into investment haven.

The NEPZA boss explained that NEPZA and NIPC had long standing relationship, adding that both agencies were prepared to deploy their expertise to unlock the country’s economic potentials.

Adesugba said that the Authority was ready to open its various channels which included the 500 enterprises currently operating in the 42 Free Trade Zones to the commission in order to showcase them to the world. The NEPZA boss also said that the Authority had in the last one year and half repositioned its operation approaches, stating that the development brought about a re-

branded NEPZA that was acting more as investment’s facilitator than just a regulator.

He said that the Authority had prioritized publicity, enlightenment, and sensitization of the public and key stakeholders to appreciate the magnitude of the agency’s contribution to the country’s Gross Domestic Product (GDP).

``The activity of the Authority is critical in fast tracking the industrialization process of the country. The realization of this enormous task propels us to seek collaboration. We are indeed enthused to enter an expanded partnership with the commission to grow the economy.

``All pending agreements and partnership calls between the two agencies to strengthen investment drive and investment promotion must be activated immediately for the sake of our nation,’’ Adesugba said. Offor on the other hand, said he was grateful to President Muhammadu Buhari who allowed him to superintend over the running of the commission after the exit of the former executive secretary, Ms Yewande Sadiku.

He, therefore, described Adesugba as a rare investment promoter whose expertise was helping NEPZA to become a strong free trade zone regulator and investment’s facilitator.

``I am not surprised by what he (Adesugba) has done so far to

NEPZA, NIPC AGREE ON ROBUST COLLABORATIONS TO UNLOCK BUSINESS OPPORTUNITIES

turnaround the fortunes of free trade zones in Nigeria because he was properly groomed while he was with us in the commission.

``Our visit today is to share the commission’s programme and plans for 2022 and further seek continued collaboration of NEPZA in the attraction of investment to Nigeria.

``Having listen to the MD/CEO, NEPZA, both agencies are now better positioned to work together to deepen growth of the economy,’’ the NIPC boss said.

He further said: ``in the bid to speed up investment drive, the commission is slated to organize stakeholders’ forum in Lagos and Kano and to attend a global investment forum in Dubai this year.’’

Offor explained that the commission was aggressively seeking to unlock investment in the agro-value-chain, adding that NIPC and NEPZA should leverage on existing free trade zones investors and enterprises within the zones to exploit the agro sector.

the socio-economic possibilities embedded in this global concept.

``We need to, therefore, rethink our strategies to improve appropriation and funding of the free trade zones if the country truly aims at using it to accelerate economic growth,’’ he said.

Meanwhile, Sen. Sa’idu Alkali, Senate Committee Chairman on Trade, Industry and Investment, described the free trade zone as a veritable economic intervention scheme that could fix the country’s many economic challenges if adequately funded.

He said that the committee was not averse to ensuring NEPZA got adequate funding for proper development of the scheme.

Similarly, Hon. Femi Fakeye, Chairman, House Committee on Commerce aligned himself with Sen. Alkali, stating that the committee had enormous powers of appropriation that could empower NEPZA to propel the development of the scheme for the overall benefit of citizens.

The present NEPZA management team under Adesugba has continued to score high points in sensitizing, educating and galvanizing both local and international business communities to invest in the zones.

In ensuring that the Special Economic Zones’ model is effectively deployed to close the deficits in sectors of the economy, the managing director enlisted to establish Medical & Pharmaceutical SEZ; Mining & Mineral SEZ; Agriculture & Allied Industries SEZ; as well as Information and Technology Parks SEZ across the country.

Already, the efforts are yielding results with above-mentioned zone types at various levels of development in Sokoto, Taraba, Katsina, Kwara, Ebonyi, Ekiti and Lagos states respectively.

On the international front, the Authority has invigorated collaborations with various bodies to help attract investments into the country’s zones with Adesugba promising to libralise some of its strict regulations, if need be, to ease entries into the zones.

The NEPZA boss on November 21, being the last day of the 2021 Intra-African Trade Fair held Durban in South Africa, specifically revealed that investors from the African continent shall be given consideration to ease their entries

into the Nigeria free zones landscape, as according to him, doing so will position the country to attracting chunk of the 40 billion US dollars projected trade and investment deals on the continent for 2022.

The fair was a key event meant to boost trade in Africa with a theme that focused on the newly launched African Continental Free Trade Area (AfCFTA) that sought a single market for goods and services across 55 African countries.

Adesugba further explained that there was no better time to leverage on the huge business opportunities provided by the IATF to speedily grow the Nigeria’s economy, adding that the Authority had seized the opportunity of the gathering to vigorously promote the country’s free zone ecosystem to rich African investors and enterprises. He added that: ``already, we have in our net some promising enterprises willing to either operate in established zones or apply to own their zones in the country.’’

In conclusion, one can firmly hold that this past one year of Adesugba as chief executive officer of NEPZA has truly been remarkable following his resoluteness in deconstructing inhibitive bureaucratic contexts that have prevented the country from reaping the great potentials of the free trade zone concept.

International Women’s Day: NEPZA reiterates stance on wider business corridor for women investors

The Nigeria Export Processing Zones Authority (NEPZA) has reiterated its stance on providing a wider business corridor for prospective women investors to access the country’s Free Trade Zones. Prof. Adesoji Adesugba, NEPZA

Managing Director made the remark to celebrate the International Women’s Day on Tuesday in Abuja. Adesugba said the Authority’s investment drive to fast track the country’s industrialization could be achieved even faster when huge

clusters of women investors were encouraged to leverage on the various incentives at special business enclaves.

He explained that the Authority was seriously mulling the expansion of the corridor to attract women to leverage

Minister pegs Nigeria’s free trade zone cumulative investments at $20bn

Otunba Adeniyi Adebayo, Minister of Industry, Trade and Investment, has estimated cumulative investments in the 30 years of operations of the free zone scheme in Nigeria at $20 billion.

The minister made the disclosure at the inauguration of the Nigeria Economic Processing Zones Authority (NEPZA) new Lagos office named “Adeniyi Adebayi House” on Friday.

Adebayo said that with the generous fiscal incentives associated with the free zone scheme remained a veritable source of economic development.

He said that the free zone, in 2021, generated N250 billion in both Foreign and Local Direct Investments; N35 billion in Customs duty payments and N65 billion in Local Import/backward linkage.

The minister further said that the scheme generated N500 million in Pay as You Earn (PAYE), 25,000 in new employment and 5,000 transfer of skills.

“I must commend you all for what you have been able to achieve within a short period of time, as it goes to show that with dedication and the right mix of human capital, of which NEPZA is sufficiently blessed, there are no limits to what can be achieved.

“Our mission is to formulate and implement policies and programmes to attract investments, boost industrialisation, increase trade and exports and develop enterprises.

“The Free Zone Scheme is one of the prime initiatives of the Federal

Government, for diversification of Nigeria’s economic base, in order to achieve our vision of growing the economy, creating jobs and generating wealth.

“I urge you not to relent in giving it your best in your service to promote the economic development of our great country, Nigeria,” he said.

Prof. Adesoji Adesugba, Managing Director, NEPZA, said that the choice of Lagos as its liaison office was based on pure economic considerations.

He explained that:” remember that 80 per cent of the special economic zones is located in Lagos and within 100km of its radius, making the city as the country’s most potent economic gateway.

“Accordingly, this is our way of bringing NEPZA closer to our investors for sustained customer service, to continually attract and retain investors.

“In addition, today’s events are a landmark as we are also commissioning the Special economic zones security unit.

“This was created to provide guard duties and enforcement services in all the zones ensuring the sanctity of economic activities therein,” the NEPZA boss said.

On his part, Alhaji Adamu Fanda, Chairman, NEPZA Board, reiterated the Authority’s commitments to repositioning Nigeria in the next few years as the number one free trade zone destination in Africa.

NEPZA to Tackle Emerging Traffic Gridlock at Lekki Free Zone axis

The management of Nigeria Export Processing Zones Authority (NEPZA) has concluded plan to nip in the bud emerging traffic gridlock arising from the operations of Pinnacle Oil & Gas FZE, one of the Free Zone Enterprises (FZE) registered in the Lekki Free Zone. The Managing Director of the Authority, Prof Adesoji Adesugba made this known on Monday in response to the Nigeria Economic Zones Association’s concern on increase in the movement of oil tankers in the Lekki axis after Pinnacle Oil & Gas FZE commenced its operations.

Mr Toyin Elegbede, Executive Secretary of the association had expressed frustration over gridlock, as according to him, efforts so far made by the association to get both Lekki Free Zone Development Company and Pinnacle Oil & Gas FZE to resolve the emerging traffic crisis has not yielded any results.

“This has led to scores of tankers parking on the road, effectively converting it into a truck park thereby affecting flow of traffic and throwing all stakeholders in the axis in a deep state of distress. The current shortage of fuel has exacerbated the issue as it has hampered the operations of other businesses operating from the axis.

“This situation, if not tackled early enough, will render the whole axis not conducive for businesses, and this will negatively affect the country’s drive for economic development through the Free Trade Zone scheme. Moreover, it poses significant security and safety threats to the residents in and around these parked tankers”, Elegbede stated.

The NEPZA CEO commended the association for its intervention, adding that the association was effectively playing its role as the industry trade association for economic zones in the country.

“We shall take up the matter immediately with the aim of resolving whatever constraints the parties are confronted with,” Adesugba said.

The NEPZA managing director also affirmed that the economy could not afford another Apapa-typed traffic challenges, questioning why the zone operator, Lekki Free Zone Development Company, did not make provision for a Truck Park before the commencement of operations.

“ I will summon a meeting on this matter. A Truck Park must be created within Lekki Free Zone to accommodate the number of trucks doing businesses in the Lekki Free Zone axis.

“As an immediate step, we will ensure that the Lekki Free Zone and Pinnacle Oil & Gas FZE operate in such manner that trucks are not parked on the road.

“ We are aware that the lasting solution is for the Lekki Free Zone to build a Truck Park within the shortest possible time. These details will be worked out with the stakeholders,” he said.

The NEPZA boss also said that Lekki axis was economically strategic to the Nigerian economy, adding, that any stakeholders that failed to take corrective action would be sanctioned appropriately.

The Nigeria Export Processing Zones Authority (NEPZA) said that policy development to drive novel digital technology is ongoing in order to open up the Free Trade Zones space for operators of the important multitrillion-dollar block-chain technology businesses.

Prof. Adesoji Adesugba, NEPZA Managing Director dropped the hint on Friday during a courtesy visit on the Executive Chairman of the Federal Revenue Inland Services (FIRS), Mr Mohammed Nami in Abuja.

Adesugba, also Chief Executive Officer of the Authority, said that NEPZA aimed at opening the country’s free trade zones’ corridor for genuine global competitiveness.

According to him, the African Continental Free Trade Zones Area (AfCFTA) has given leverage to all countries in the continent to diverse their business catchments.

``As we speak, free trade zones are springing up everywhere in Africa. Nigeria must be concerned about competitions from Egypt; South Africa; Kenya; Benin Republic; Ghana; and Togo where huge investments have been committed to free trade zones development.

``For us, we are doing well with about 500 enterprises operating in 42 zones across the country, but we must expand the investment corridor to magnet operators of the blockchain technology which remains the future of global economy.

``The time to join the train is now, else we shall be counting our losses in a few years’ time. We are delighted that the Federal Government through the Central Bank of Nigeria (CBN) recently approved and deployed the e-naira,’’ the NEPZA boss said.

Experts had opined that the country’s decision to approve the e-naira was akin to the fact that the blockchain business was becoming a legitimate disrupt in a myriad of industries. The technology has become so promising that international tech giants are investing millions of dollars in its research.

He further held that more than 90 per cent of European and US banks were researching blockchain options. According to Adesugba, nothing should stop the country from exploiting the multi trillion-dollar sector.

He stated that multinational organizations like JP Morgan, MTN, KFC, Tesla and many others have entered the crypto currency and metaverse digital blockchain sector with MTN said to have purchased 114 metaverse properties recently.

He explained further that the Authority was aware on how the technology could revolutionaries’ government; finance; insurance; and personal identity security, adding that trillions of naira could accrue to the federal government as revenue from this ecosystem.

``We hope to soon attract some of the top global blockchain companies and exchanges like Binance, Cardano, Crypto.com, Kukoin, Coinbase, and such high flying successful young algorithm-based tomb fork protocols like Darkcrypto; on why they should operate in the country’s zones,’’ Adesugba said.

The NEPZA chief executive also said that the decision to fully promote the blockchain technology hinged on its fast rate of revenue turnovers and the unlimited job space the technology had for the teeming youth.

NEPZA to attract multi-billion-dollar block-chain technology businesses into FTZs

NEPZA, foreign medical coys fasttracking Lekki medical zone’s take-off

The Nigeria Export Processing Zones Authority (NEPZA) says scores of prospective anchor tenants seeking to establish world class hospitals and pharmaceutical industries in the new Special Medical Free Zone in Lekki area of Lagos signal gradual end to unnecessary medical tourism abroad.

Prof. Adesoji Adesugba, NEPZA Managing Director made the remark while playing host to officials of two foreign Hospital Management Companies, Citizens Health Limited and Brown Brommel Medicals in Abuja.

The two health management companies are to invest in world class hospitals for cancer and kidney respectively.

The NEPZA boss described the development as a realisation of a joint dream, adding that the Authority was working toward using the special medical zones to end decades of medical tourism by Nigerians abroad. According to him, the frequent and sustained medical trips abroad by citizens continues to hurt the economy badly.

Adesugba explained that the newly approved special medical zone

located in Lekki was attracting expected attention.

He further said that the huge area overlooking large body of water and isolated swamps clustered by the Lekki Quadrant of Lagos Free Zone, Lekki Free Zone, Dangote Free Zone Enterprises as well as Alaro City Free Zone made it a hot-spot for investment chains.

Adesugba promised that the Authority was prepared to relax perceived stringent rules to ensure the comfort of anchor tenants, adding that the future gains that could accrued to investors who dared to first explore the zone usually would out-weigh the initial challenges.

``The Special Medical Zone in Lekki will be competitive as we are working toward the concentration of world class hospitals there. We are searching for anchor tenants to drive this revolution. Already, scores of prospective investors have come knocking on our door, so you are welcome to collaborate with us.

``I hope you are aware that the location is one of the best sites in the country with great opportunity for other business chains ranging from

transport/logistics, electricity, estate development, tourism/hospitality among others.

``We are also opened to bringing into the zone world class pharmaceutical companies to serve Africa and the rest of the world from Lekki. The prospect of the zone is unimaginable.’’ Adesugba said.

The NEPZA chief executive officer also explained that investors should prospect similar zones in Katsina and Ilorin, saying that the Federal Government was committed to using the special medical/pharmaceutical free zones to drastically reduce medical tourism abroad.

Mr Brain Barnes, Vice President of Brown Brommel Medicals said the company had come to explore the possibility of setting up of an advanced Modern Integrated Diagnostic and Dialysis Center at the zone, adding that the center proposed to sit on 10 hectares of land would also provide sundry medical services.

Barnes, who was represented by Mr Chris Obuekwe, Group Managing Director, said the company was delighted to take advantage of the country’s free trade zone scheme, adding that citizens deserved to enjoy the best of medical services the world could provide.

On her part, Ms Cynthia Okirie, a Director with the Citizen Health Limited said the company aimed at tapping into the free zone incentives to transfer the required health technology and services into the country.

She explained that Citizen Heath Limited UK was known for its proficiency in the treatment and management of cancer, adding that the Lekki special medical free zone would serve as the ideal lunch pad for the improvement of the health sector in Nigeria.

NEPZA to Launch Policy Consultation on Blockchain Operations at Free Zones

Following requests from local and international players, the Nigerian Export Processing Zones Authority (NEPZA) is considering the launching of policy consultation with other relevant agencies on the opening up of Nigerian free zones space to blockchain tech and crypto currency operations.

This was disclosed by the Managing Director of NEPZA, Prof Adesoji Adesugba while receiving in audience two blockchain firms who visited separately to make submissions on their proposals for blockchain operations in Nigerian free zones areas.

The Finlease in its submission seeks endorsement of NEPZA for the establishment of Lekki International Financial Centre at the Lekki Free Zone (LIFCFZ) while Araba Technology Limited is equally proposing the establishment of a high-tech digital infrastructure free zone to provide top end cyrpto and blockchain tech services.

The Managing Director of Finlease, Prince Dr. Sunday Sijuade told the management of NEPZA that the planned Lekki International Financial Centre is to cover offshore crypto zone to cater for crypto currencies and become an offshore destination crypto exchanges, digital assets and virtual assets.

According to Sijuade, the proposal is in line with international trends across global special economic zones,

citing examples of Chinese Financial free zones in Shanghai, the United Arab Emirates’ International Finance Centre and other parts of Europe and North America where such Innovation have been introduced into the free zones.

The Managing Director of Araba Tech in his submission noted that opening up the zoned to blockchain operations will provide necessary backbone to the development of digital economy in Nigeria and Africa.

While both firms advocated for blockchain operations and hubs at the free zones, they however called on the management of NEPZA to create a regulatory framework to enable seamless operation of the proposed block chain financial exchanges and centre.

``We are convinced that NEPZA should immediately open consultation with the Security and Exchange Commission, FIRS, Central Bank of Nigeria and other relevant agencies on the establishment of a policy framework to regulate the emerging sector”, Dr Sijaude posited. Responding, Prof Adesugba informed the firms that his team has received multiple presentations on the need for crypto exchanges and hubs within the Nigerian special economic zones to tap into multi-billion-dollar revenue streams which presently eluded Nigeria.

``I have also been approached at various international gatherings and events on why Nigeria, despite her fiscal pressure, is comfortable losing so much in capital gains tax to neighbouring nations. We are

aware of various reports and studies that indeed confirm operations of blockchain technology in many special economic zones all over the world.

``Our management is therefore considering launching policy consultation with sister agencies on the need for a regulating framework on this emerging field. It is worrisome that Nigeria is said to be losing billions of dollars annually in capital gains tax paid to other nations even though the crypto transactions took place in Nigeria.

``Statistics on crypto operations even pile up more pressure. Nigeria is currently the number one country in the world in terms of people searching for “Bitcoin” and “Crypto” keywords on Google, with over 6.3 percent of the entire population owning at least one type of cryptocurrency. In the Chainalysis 2021 Global Crypto Adoption Index, Nigeria is ranked sixth out of the top 20 countries in terms of cryptocurrency adoption.

``It is important for us to develop a robust blockchain policy in line with current international trends and we hope to be able to consider interested organisations for capacity and development of blockchain tech within the free zones. In policy formulation and implementation, we shall definitely invite all the stake holders including large crypto exchanges such as Binance, Coinbase, Crypto.com, and other young local operators. This will bring access to tech and expand the capacity of the sector to employ estimated over 250, 000 youths.

“We thank you for your submissions. We will start to sound out sister agencies on this development. Leaving this vast field unregulated appears to constitute huge economic loss to the nation. We hope to come up with a draft perspective after due consultations”, Adesugba said.

Malam Ahmed Gurin

Director Calabar Free Trade Zone

The Managing Director/Chief Executive Officer of the Authority, Prof. Adesoji Adesugba fondly calls directors of the Authority as ``Generals’’. He has not created this to militarize their psychic, but rather an accolade that commensurate the consistent display of dexterity, zest, and loyalty by these special breeds in helping to actualize his dreams for the Authority. This edition, therefore, focuses on one of the ``Generals’’, Malam Ahmed Gurin, Director Calabar Free Trade Zone (CFTZ), a consummate and quintessential free trade zone expert with unassailable managerial prowess. As one who is also vast in Nigeria’s jurisprudence being a Lawyer, and a former Magistrate, Gurin prides himself as a key custodian of the country’s free trade zone legal framework. Below are excerpts from interview with this spick-and-span director.

Ans: I am Barr. Ahmed Saleh Gurin, a native of Adamawa. I was born on the 23rd of March 1963 and I attended Mustapha Primary School, Yola, Adamawa State between 1969 and 1976. After my primary education, I proceeded to Murtala College, Yola from 1976 to 1981, where I obtained GCE/WASSCE. In late 1981, I was admitted to read Law at the University of Maiduguri where I graduated in 1986 with an LL. B Hons (degree) in Law (Common Law). Between 1987 and 1988, I got called up to serve in the mandatory Nigeria Youth Service Corp (NYSC) at the Federal Ministry of Justice, liaison office, Abuja. In late 1988, I joined the defunct Gongola (Adamawa) State Judiciary, serving in various capacities, including being Registrar of Courts and Principal Area Court Judge. In February 2001, I switched profession by joining the Nigerian Export Processing Zones Authority (NEPZA) as a manager where I acquired knowledge on Free Trade Zones Operations; Investment Promotion; Business Portfolio Management; International Trade; Special Economic Zones/Industrial Zones and their strategic roles in the attraction of Foreign Direct Investment (FDIs). I have at various times used my legal knowledge to guide the Authority’s regulatory corridor for effective control and supervision of the zones’ scheme. I had also served as General Manager, Public Private Partnership (PPP), and Assistant General Manager, Corporate Strategy & Planning at the Centenary Economic City, Abuja among others. I am a member of the Institute of Directors.

Q: What prompted your decision to switch your career when you could have become a senior member of the Bench?

Ans: The law profession is indeed a noble one and I am proud to have

studied law, but the truth is that I did it to satisfy my father who insisted that I became a lawyer. I can, therefore, emphatically say that my background in the Judiciary was an accident. I could say that I read law, but it was never my desire. While working as a Judicial official, I served through many courts both at the Area Courts and the High Courts. I had experienced both serving at the Bar and the Bench. The invisible hands that remotely influenced my decisions while being a Judge made me leave the system without hesitation. For instance, litigants and other interest groups would ceaselessly file petitions against you over pending cases, these inordinate actions have correlations with external influences on the court. These were some of the reasons why I opted to resign and as fate will have it, I joined NEPZA January 2001.

Q: What is your job schedule as the Director of CFTZ and what contribution is the zone making to the national economy?

Ans: I am simply the administrative head of the zone and I report to the Managing Director/Chief Executive of the Authority at the Headquarters in Abuja. The zone has a full complement of NEPZA staff strategically positioned to oversee the day-to-day operation of the operators and enterprises located in the ecosystem. Note that the Calabar Free Trade Zone is a public zone, and therefore, owned and operated by NEPZA on behalf of

the Federal Government. My job is to ensure seamless coordination of the activity-chain for effective and efficient management of the scheme here. For instance, we have the aspect of facilitation of trade that hovers around import and export of goods and services. The staff are well trained enough to insist on due process, probity and transparency while performing their duties. We would insist on total inspection of containers that come in or go out of the zone to guide against illicit transactions.

The operation unit of the zone is saddled with the task of processing and sending notification of import schedules of the companies. The notification contains items to bring in, country of origin among other specifications. In like manner, we also strictly adhere to our export mandate of monitoring sales to both local and international markets respectively.

We charge 1 per cent each on export to the local market; the space; the company; and the raw materials used for production. If the goods are meant for international market, we simply issue the certificate of origin, ascertain the type and quantity of goods, and country of destination.

We have always invited the Nigerian Custom Services (NCS), National Drug Law Enforcement Agency (NDLEA), Department of State Security (DSS) Nigerian Immigration Services, Standard Organisation of Nigeria

Q: Could you briefly tell us about yourself?

(SON) to be part of the inspection and monitoring. No doubt, the scheme is contributing its quota to the country’s Gross Domestic Product (GDP) because all the processes I have described above attract bills, duties, personal income tax, that accrue to the federal government as long as the scheme exists.

Q: What is your candid overview of the current NEPZA management’s drive to carry out its mandate?

Ans: Let the truth be told. First, I am not Public Relations man and therefore, I do not patronize people as such. Perhaps, that could be the reason, the Managing Director refer to some of us as ``Generals’’. I say things as I see them. Without any fears of being quoted, Prof. Adesoji Adesugba the MD is a likeable and thoroughbred Investment Promotion expert. His expertise in this regard is second to none. I had worked with up to five or six chief executives, our current MD is in a class of his own even though circumstances and time differ.

Whoever has been here for the last 15 to 20 years will attest to that fact, we have only had two chief executives that we could be extremely proud of; they are Dr Shina Agboluwaje and

Prof. Adesugba. The current managing director has turn around many ugly circumstances since his assumption July 1, 2020. I am not surprised with his achievements thus far because he came with rare experiences from different facets including academics, business, media, politics, law, public service as a former Customs Officer, Director in the Nigeria Investment Promotion Commission (NIPC) and former Technical Adviser to the Bureau for Public Enterprises (BPE). In the light of his experience coupled with what he has practically done so far, I can unequivocally grade him higher than all the others.

Q: What are the challenges with the current NEPZA Act that appear to inhibit the progress of the Free Trade Zone scheme?

Ans: It is a known fact that legal framework is the nucleus or better still, engine room of any legal entities; this means that the attractiveness or what guarantees the value of a legal entity like NEPZA hinges on its legal framework.

The NEPZA legal framework was officially consummated as an Act of Parliament in 1992; making it a 30-year-old Act having not been ever

amended. It is also correct to say that investments only locate where they are needed; and chief among things that encourage investment is the legal framework that sets up such an entity, in this instance NEPZA Act set up the manage the country’s free trade zone Scheme. The scheme as we know it today has evolved from being an Export Processing Zone (EPZ) and everything in between to Special Economic Zones (SEZs). This evolution which is associated with the zones’ ecosystem comes with variety of operation structures and types which is why the Act requires amendment to suit these dynamics. In our case, the system continues to evolve without requisite amendment to the Act. We are however hopeful that the situation will soon be ameliorated as the National Assembly is currently ensuring that the Act is eventually amended so as to empower the Authority to indeed fast track the industrialisation of the country through the Special Economic Zones model as can been seen with other climes that have adopted this global economic policy.

The NEPZA Boss, Prof. Adesoji Adesugba, ushers in the visiting Ekiti State governor, Mr. Abiodun Oyebanji, through the Authority’s corporate headquarters.

on the variety of value chains in agroallied; health; hospitality; estate; and gem stones among others.

``We are committed to assisting Nigerian Women and others from across the world who have the requisite financial capacity to explore the zones for businesses.

``Only recently, we met with the Women Business Group from the National Association of Chambers of Commerce Mines Industry and Agriculture (NACCIMA) to discuss business and collaboration possibilities.

``They have outlined their areas of interest and we are assiduously working on them. Approval for the establishment of Amazon Special Economic Zones is also been contemplated. The zone, when created will serve as hub for all women related businesses,’’ Adesugba said.

The NEPZA boss further said that the resilience nature of women coupled with their prudence management of resources set them apart as a huge human resource block that must be unleashed to speed up the country’s growth.

Adesugba, in expressing satisfaction with the manner women had positioned themselves to leverage on all-compassing opportunities, said that the women international day had always been an additional impetus to drum support for equal treatment of the gender.

Association Hails President, NEPZA on Ladol- Samsung rapprochement, others

promoting investments into the private zone by the authority.

“Of particular mention is the recent dispute resolution bringing to an end years of business war between two of our prominent members Ladol and Samsung.

“ Adesugba in carrying out the directive of the president to end the five years squabble, swung into action to ensure amicable settlement of the dispute that will unlock over 300 billion US Dollars Investment value in the long term and about 7 billion US Dollars in the short term in our dear country,” Elegbede said.

He further explained that “the end of the dispute will also reignite employment generation and economic development as promised by the president.

The Nigeria Economic Zones Association (NEZ association) says it is basking in the friendly business climate built around the country’s Free Trades Zones by President Muhammadu Buhari.

Chief Oluwatoyin Elegbede, Executive Director of the association made the remark after conducting routine visits on some of the zones across the country.

Elegbede explained that the new NEPZA management led by Prof. Adesoji Adesugba had instituted drastic turn-around of these special economic enclaves as directed by the president.

“We have watched with keen interest the management of the Free Zones in Nigeria under Prof. Adesoji Adesugba administration. The management of the Nigeria Export Processing Zones Authority is transforming to reality the vision of His Excellency, President Muhammadu Buhari.

“We wish to commend Prof Adesugba and his team for the recent spate of project development in the public zones and the renewed vigour in

“We therefore like to use this opportunity to specially thank the President for directing all the relevant agencies to find a solution to the disputes. Also, worthy of note for commendation are the Chief of Staff to the President, the Minister of Industry Trade and Investment, Otunba Niyi Adebayo, the Ministers of Transportation, RT.Hon. Rotimi Amaechi, the Attorney-General of the Federation, Mr Bello Koko, Acting Managing Director of the Nigeria Port Authority, the Nigerian Ambasador to South Korean, as well as that of South Korean to Nigeria for their immense contributions that ended the dispute,” he said.

Elegbede, however, said that the association was not surprised on the quick inroads made by the NEPZA’s chief executive in marshalling out the template that finally brought the dispute to an end, as according to him, Adesugba only displayed his experience as a former Chairman of the Nigerian Parastatal Industrial Arbitration Panel and as a Fellow of the Institute of Chartered Mediation and Conciliation.

FREE TRADE ZONES: FG INCREASE LICENSE VALIDITY PERIOD TO FIVE YEARS

Otunba Niyi Adebayo, Minister, Industry, Trade and Investment, has directed that the validity period of licenses for operators in free trade zone areas be increased to five years.

The Minister gave the directive at a Stakeholders Forum Organised by the Nigeria Economic Zones Association on Thursday in Lagos with the theme: “Streamlining Free Zone Operations for Global Competitiveness”.

Adebayo noted that the ministry had in 2020 temporarily suspended the issuance of new free trade zone licenses, due to the need to overhaul the system.

He, however, stressed that yearly returns must be made by the operators following the directive on license expansion.

The Minister also tasked the Nigeria Export Processing Zones Authority (NEPZA) and the Oil and Gas Free Zones Authority to fully digitalize its operations before the end of the year. He reiterated government’s

commitment to ensuring a more harmonised operating system for all stakeholders in the free trade zones across the country.

Adebayo added that the Federal Government was aggressively pursuing brilliant ways of driving industrialisation through the efficient and effective operationalization of the free trade zones.

“Globally free trade zones plays a critical role in stimulating industrial activities, boosting the manufacturing sector and growing the economy.

“Their performance impacts three main areas of job creation, diversifying government revenue and generating foreign exchange as a well functional free trade zone in Nigeria can create 300,000 direct jobs.

“Expanding Nigeria’s export capacity needs under the Africa Continental Free Trade Area (AfCFTA) mitigates the risk of Nigeria becoming a dumping ground for imports while also boosting our foreign currency

reserves.

“Therefore, it is absolutely necessary to adopt strategies that would transform them into a dynamic instrument for economic growth,” he said.

Prof. Adesoji Adesugba, Managing Director, NEPZA, has asked the stakeholders to come together in order to collectively work achieving the various objectives of the free trade zone scheme.

He revealed that over $25 billion had come in through the scheme so far and lauded the Federal Government for the 50 megawatts of electricity allotted to the free zone.

Meanwhile, some free trade zone stakeholders called for various interventions in line with international best practices to address the challenges facing special economic zone operators in Nigeria.

Mr Toyin Elegbede, Executive Director, Nigeria Economic Zones Association, stressed the need for sensitization of

stakeholders and interested investors to enable them have a better understanding of operations under the free trade zones.

“What also really matters is creating the right enabling environment for local and international investors to thrive as free zones have been proven to drive economic growth and development,” he said.

Mr Olayinka Akande, Managing Director, Dangote, Free Zone, highlighted the need to fine-tune current operations to include digitalized and more transparent systems that ensures that all stakeholders had same set of directions at all times.

To this, Akande said a holistic portal that addresses every issue must be created providing the same set of information to all stakeholders in real time to ease operations at the trade zones.

“Also, knowledge about free zones still very sketchy to many people and this calls for the need to sensitise people on what free zones are and what the expectations are to meet up.

Continued in page 35 ...

He explained that the country’s tax net would be exponentially enlarged if the investment came alive, as according to him, Nigeria is currently rated as the 6th largest player in the world in the crypto and blockchain trade especially amongst the youths.

“ I, therefore, see no reason why we should not open up the space and attract the much-needed capital into the country, while government benefits from taxes, or management fees amounting to billions of Naira as is done in countries like Canada and South Africa.

Adesugba, also said that the Authority was ready to deepen its collaborative efforts with relevant government agencies in order to fast track the country’s industrialization, noting that

“Measures that tilt towards trade liberalization than towards revenue generation must be adopted.

“Government and management must periodically look at the provided incentives and gauge their competitiveness elsewhere to preserve the incentives of the zones,” he said.

Mr Ashish khemka, Chief Financial Officer, Lagos Free Zone, noted that the success of many countries was based on development of free trade zones, said not enough had been done to make the values of the free trade zones in Nigeria emerge.

He explained that lack of understanding, overlapping interventions of regulatory authorities and agencies hindered the successes of free trade zones in Nigeria.

“There’s also need for the implementation of exchange policy into real action for the benefits of the trade zones to show,” he said. Mrs Chinwe Ekekezie, Deputy Controller General, Excise Free Trade Zone, Nigeria Customs Service, said that custom duty procedure was set

to be fully automated before the end of March.

Ekekezie said that going forward, the only time men and women of the service would go for physical checks at the free trade zones would be when in doubt.

She charged the public to draw the attention of the NCS to any illegalities by any of its officers to make sure the laws or reasons for creating the free zones are achieved.

“There is however need for synergy, tolerance and purpose in addressing administrative challenges and this brings me to call for inter-agency corporation among all stakeholders of the free trade zones,” she said.

However, Dr Vincent Olayinka, National Commissioner of the Nigeria Data Protection Bureau (NDPB) adviced the stakeholders to leverage on the country’s data protection regulation policy to safeguard their transactions, adding the bureau was established to provide security for all manner of security and non-security documents in the country.

the visit to the FIRS was to prepare grounds for signing of a Memorandum of Understanding (MoU) aimed at ending indiscriminate tax regime that had stunted the full development of the free trade zone scheme.

He said that the scheme was a global business policy that exempt operators of zones from all forms of taxes and duties, adding, however, that when goods and services from the zones were taken to the customs area, they then will be required to pay the required duty which is not necessary when exported elsewhere.

``You can see that the country is not losing any revenue as most of the goods and services from the zones are now imported to the customs areas. FIRS and the Custom Services must

wait until items from the zones are brought to the customs area before they can be taxed,’’ he said.

Adesugba also explained that it was imperative that the key agencies partnering with the Authority to drive the development of the scheme understand the dynamics of the scheme.

It is, therefore, incontrovertible to aver that the federal government has within the last 30 years benefited enormously from the free zone operations through the consistent inflow of FDIs; DDIs, employment; foreign exchange earnings; technology transfer; and special skills transfer as earlier mentioned.

Interestingly, the prospect of the country’s 30 years free zone is further brightened by the country signing off to the Africa Continental Free Trade Act (AfCFTA) in 2020. It is a new business and trade agreement with 54 African countries merging into a single market of 1.3 billion people.

This agreement, with the merit of enhancing sustainable markets, will create an economic bloc with a combined GDP of $3.4 trilliondollars while generating a combined consumer and business spending of $6.7 trillion-dollars by 2030.

Nigeria is, therefore, focused on using a variety of its economic frontiers, including the free zone to leverage on this agreement to expand its trading routes across the continent.

To this end, NEPZA and OGFZA are beginning to activate their individual action plans to ensure that the country’s free zone lead the citizens to economic prosperity going forward.

This resolve is already being displayed by Prof. Adesoji Adesugba, the NEPZA’s Managing Director/CEO, who shows no hesitation in drawing more investments into the Authority’s free zone net having recently agreed to a partnership deal with Binance and Talent City to float the first Virtual Free Trade Zone in Africa. The Authority is seeking to use this new brand zone to break new grounds to widen the country’s economic opportunities.

The NEPZA’s boss’ singular goal is to engender a flourishing virtual

free trade zone that will take advantage of the near $1 trillion-dollars virtual economy in blockchains and digital economy.

Adesugba’s performance and achievements within just two years as helmsman of the Authority are too numerous and commendable and these accomplishments occurred because of his firm focus and knowledge of the free zone concept.

This thoroughbred investment promoter has also recently encouraged the licensing of the Hydropolis Free Trade Zone in Kainji, Niger State where an initial capital of 1 billion-US-dollars shall be committed to its development.

The zone, described as first of its kind in the North Central region, shall be a replica of the Lekki industrial corridor. The positive impact this multi-billiondollar business ecosystem will bring on the economic and social life of the people can only be imagined.

In a similar vein, OGFZA has made an enormous impact on the development and economic growth of the country since its inception in 1996.

Basically, its vision is to be that premier agency of government responsible for promoting, securing and sustaining investments in the nation’s oil and gas free zone.

On the other hand, the Authority has the mission to facilitate public-private partnership investments as a vehicle for promoting accelerated growth and development.

So far, OGFZA has grown the number of its free zones and volume of investments by licensing more investors and new oil and gas free zones namely:

• Onne/Ikpokiri Oil and Gas Free Zone, Onne, Rivers State, 1996

• Warri Oil and Gas Free Zone, Warri Port, Delta State, 2011

• Brass Oil and Gas City, Brass Island, Bayelsa State, 2015

• Eko Support Services Oil and Gas Free Zone, Apapa Port, Lagos State, 2015

• Notore Industrial City, Onne, Rivers State, 2018

• Liberty Oil and Gas Free Zone, Akwa Ibom State, 2020

• Bestaf Maritime Industrial Oil and Gas Free Zone, Kirikiri, Lagos State, 2022.

LADOL free Trade Zone

Today, OGFZA boasts of having the largest Oil and Gas Free Zone in Africa. It has in its profile, the Liberty Oil and Gas Free Zone, located in Akwa Ibom State with 50, 216 hectares cutting across six local government areas. Also, OGFZA’s flagship Oil and Gas Free Zone Onne in Rivers State has been adjudged the “Most successful free zone in the world.’’

The Oil and Gas Free Zones (OGFZs) have helped to deepen the economy of Nigeria by providing specialized regulatory supervision and services, thereby repositioning the country as a leading player in oil and gas activities in Africa and have attracted major International Oil Companies (IOCs) who use the free zones as hubs for their business transactions covering the entire Gulf of Guinea to Southern Africa.

From the above, one can see how OGFZA has also ensured that enterprises under its supervision continued to lubricate the country’s

economic wheel.

For instance, as at 2015, investment inflow into the free zone represented 65.5 per cent of total investment of the nation. Little wonder the agency has its cabinet filled with local and international awards such as Specialism Award, Bespoke Incentives and Large Tenant Awards from 2017 to 2022. These are all fDi awards, a Magazine of the Financial Times of London.

In 2019, OGFZA also received the Award of Excellence in Productivity and Innovation in e-government from the National Productivity Centre. This year, OGFZA again, emerged tops alongside two other agencies on the PEBEC’s Ease of Doing Business ranking crowned as the most efficient agency of government; a feat the Authority has maintained these past years.

To further propel the Authority to deliver more, the president in July appointed Sen. Tijjani Kaura, MFR; as its Managing Director/CEO to succeed Chief Umana Okon Umana, now Minister of Niger Delta Affairs. Kaura has told everyone who cares to listen that his tenure would be to grow the inflow of investments in a torrential manner with strict focus on corporate governance, transparency, accountability and due process.

In conclusion, it is alright for these two agencies to roll out the drums to celebrate, but whilst doing so, the government and other vital collaborative agencies helping to nurture the scheme should brace up to eliminate all superfluous tendencies preventing the country from realizing the full potentials of this global business concept.

Odeh is Head, Corporate Communications, NEPZA Ukomadu, is Head, Corporate Communications, OGFZA

The Nigeria Export Processing Zones Authority (NEPZA) has vowed to call up contract bonds from contracted companies that decided to willfully prolong execution of assigned projects with the hope of triggering `variation clause’.

Prof. Adesoji Adesugba, Managing Director of the Authority, dropped the hint in Abuja after receiving Report of the NEPZA 2017-2021 Capital Projects from the Joint Capital Projects Monitoring Committee made up of members from the Authority and the Ministry of Industry, Trade and Investment.

Adesugba said that he had insisted in the transparent conducts of contracts bidding processes since assuming leadership of the agency in 2020, adding that the management would not hesitate in sounding out erring

contractors.

``I have for these past years stood on my resolve to ensure transparency and due process and probity in the manner in which all contracts are handled here.

``We shall, therefore, not waste time in retrieving contract bonds from contracted companies that needlessly breach agreed terms. We have to insist that the Federal Government obtains quality service from the huge spending it is making to improve the infrastructure of the country’s Free Trade Zone,’’ the NEPZA boss said.

He, therefore expressed delight on the supervision tours embarked by the committee, adding that the Report had brought out all the gray areas that required urgent handling.

Adesugba explained that the Report would serve as an evaluation guide,

adding that it was also opened to the public and all relevant institutions of government to study.

The NEPZA chief executive officer also said that the Report would be updated in February 2023 after a follow-up assessment of the remaining ongoing projects would be been conducted. Recall that the committee roundedoff scheduled inspections of 112 approved projects for the Authority in September.

These projects, came under the NEPZA Tender Board of 2017-2021, direct Federal Executive Council approval and the Ministerial Tender Board of Capital Projects respectively. Out of these 112 projects, a total of 76 have been completed with the CFTZ accounting for 28; KFTZ 38; Lekki SEZ 5; and Ilorin SEZ 5 while others are at different levels of completion.

NEPZA goes tough on contractors, warns on call-ups of contract bonds

NEPZA to partner with ministry, gemologist, Institute to reposition multibillion-naira precious stones’ industry

Gemological Institute of Nigeria and other experts in the industry to establish the right kind of partnership that can scale-up the efficient and effective management of the sector through training and certification of qualified gemologists.

``No doubt, we foresee an incredible impact of this initiative on the country’s Gross Domestic Product (GDP) when concretized as fresh jobs will be created and substantial illegal mining of the country’s precious stones will be dislocated.

Samsung, LADOL Reaffirm Truce, Partnership, Shareholders’ Agreement

In the bid to reposition the country’s jewelries and gemological industry, the Nigeria Export Processing Zones Authority (NEPZA) says it is on the verge of convincing the Ministry of Solid Minerals and the Gemological Institute of Nigeria to jointly adopt the free trade zone model to customise the exploration, refining, production and the marketing of variety of expensive gemstones.

Prof. Adesoji Adesugba, NEPZA’s Managing Director gave the hint while playing host to Mr Tom Cushman, a world-renowned Gemologist and Businessman in Abuja.

Adesugba, who is also the Chief Executive Officer of the agency, explained that the Authority had continued to embark on the exploration of the global business space with the view to attracting investors to all sectors of the economy, adding that steps were been taken to secure the commitment of critical stakeholders for this lofty initiative to come to fruition.

“In the light of this, the Authority is going to open discussion with the Ministry of Solid Minerals, the

``Let me, therefore, express my profound delight on the visit of Mr Tom Cushman, an American Gemologist and Businessman who is prepared to assist us popularise the Nigeria’s gemstones’ industry globally,’’ the managing director said.

In his remark, Cushman said the country was amazingly endowed with variety of solid mineral, adding that NEPZA’s decision to spearhead this initiative will help to attract huge Investments into the sector.

``Nigeria must leveraged on my expertise knowledge in the training, identification, grading, and marketing of jewelries/gems so as to boost the economy more sustainably,’’ Cushman said.

Recall that gemology is the science of studying, cutting, and valuing precious stones, however, the essence of gemology is in identifying the gemstones while the gemologists use microscopes, computerised tools, and various grading instruments to examine gemstones which underscores why this money-spinning industry must be brought to standard to become another dependable revenue base for government.

Samsung Heavy Industries Nigeria (SHIN) Limited and LADOL Integrated Logistics Free Zone Enterprise have reaffirmed their partnership and shareholders’ agreement. The development followed the recent final settlement of a dispute that had lasted for three years.

In a joint statement issued yesterday in Lagos, after signing the final settlement agreement, the two companies reaffirmed the existing shareholding structure in their joint venture, where SHIN owns 70 per cent equity while LADOL holds 30 per cent. The two partners also stated that they had resolved the outstanding issues that were subject of litigations in Nigerian and foreign courts.

The joint venture between SHIN and LADOL was established when SHIN was awarded the $3.3billion Egina FPSO project, which required the construction of the fabrication and integration yard to carry out the incountry aspect of the Egina project. However, the friction between the two parties, which began in 2018, led to a total breakdown of communications and engagements, resulting in court proceedings in Nigeria and UK.

SHIN and LADOL also thanked the Nigerian and South Korean governments for their assistance and interventions.

The statement explained, “This landmark agreement, which demonstrates SHIN’s on-going commitment to its subsidiary, SHI-MCI and Nigeria, and LADOL’s commitment to consolidating and continuing the development of LADOL Free Zone to help ensure that Nigeria becomes an African hub for industrialisation, ensures that SHIN and LADOL can work together as shareholders in SHI-MCI.”

SHIN and LADOL also welcomed the settlement agreement, which had been approved by the Nigerian Ports Authority (NPA) and the Nigerian Exports Processing Zones Authority (NEPZA), and would also be registered as judgement in the High Court in London, and courts in Nigeria.

The statement added, “The settlement agreement confirms that the Shareholders’ Agreement between SHIN, SHI-MCI, and MCI FZE Yard Development Limited (MCI), dated July 1, 2014, remains valid, and the current shareholding of SHI-MCI is held in the following proportions: SHIN controls 70 per cent and MCI, 30 per cent.

“The settlement agreement also provides for a new sublease agreement which has been executed between SHI-MCI and Global Resources Management Limited (GRML), with the NPA as the headlessor to GRML.

“Importantly, the new sublease agreement is long term and is one day less than the term of the head lease between the NPA and GRML.” The terms of the settlement also provided that NEPZA, as part of its statutory duties and role as administrator of all NEPZA free zone

areas in Nigeria, shall continue to be responsible for the issuance and renewal of SHI-MCI’s Operating License.

NEPZA had previously issued an Operating License to SHI-MCI in the form of a National Operating License dated October 4, 2021 valid for three years.

Chairman of LADOL, Mr. Ladi Jadesimi, confirmed that the disagreement between LADOL and Samsung was laid to rest in the interest of the Nigerian economy.

Jadesimi said, “This settlement brings to an end the dispute between the LADOL and SHI Groups, which has been lingering for a little while and it became critical that it be sorted out. Now it has been completely resolved. “The key thing is that we have been able to come back together peacefully cementing a far stronger joint venture going forward.

“LADOL will continue to invest in and support a range of developments and industries in LADOL Free Zone, from agriculture to green energy, ensuring Nigeria becomes a sustainable industrial Hub in Africa. “

Commenting on the successful resolution of the dispute, also, Managing Director of SHIN, Mr. Jejin Jeon, disclosed that after many years of legal proceedings that hindered SHIN’s ability to operate in Nigeria and threatened its contribution to the Nigerian economy, the settlement became a definitive statement in favour of SHI-MCI’s right to operate in the LADOL Free Zone.

“In recognising that Samsung Heavy Industries (Nigeria) lawfully holds

70 per cent of the shares in SHI-MCI, the settlement acknowledges our extraordinary contribution to the LADOL Free Zone and its role in the economic development of Nigeria,” Jeon said.

Jeon noted that before the Egina project, most maritime constructions for African oil and gas projects took place outside of Africa, stressing that Nigeria did not have the capacity to fabricate and integrate an FPSO locally.

He stressed, “Thanks to our investment in the SHI-MCI yard, we have established Nigeria as a fabrication and integration hub on the African continent. Over six years, SHIN has trained 600 Nigerians from disadvantaged backgrounds in a comprehensive welding qualification programme, in one of the most advanced welding academies in Nigeria.

“This has contributed to 560,000 man-hours of training in total. In addition, SHIN has directly employed 2,500 Nigerians with a further 5,000 employed by our suppliers, working in highly specialized skills and roles. This has moved the dial in practical terms – with the local contribution rising from one per cent to over 25 per cent.”

He reaffirmed SHIN’s commitment to Nigeria, its people and economy. According to Jeon, SHIN’s focus remains executing the plan to make Nigeria the hub for fabrication and integration works supporting the oil and gas industry and infrastructure development and ensuring SHI-MCI’s participation in future fabrication and integration projects.

“SHIN is deeply committed to ongoing and future projects in Nigeria and as part of SHI-MCI, we plan to invest in future projects in the coming year and remain focused on creating and delivering mega deep offshore projects for Nigeria,” he added.

PROJECT MONITORING

Prof.

Bernadette Akuye-Gbefwi, Head, Internal Audit; Engr. Sikiru Kola Lawal, Director, Projects and Procurement; Usman Zaki, Commander,

Adesoji Adesugba, MD/CEO, NEPZA (right), takes delivery of 2017-2021 Capital Projects Report from Hajia Zainab Aliyu Musa, Director, Monitoring and Compliance, NEPZA.

The Construction of Access Road with associated drainage works from Bode Saadu Babanlomo expressway to the special economic zone, Ilorin. Contractor: M/s Abilele Projects Nig. Ltd.

The construction the main entrance gate with perimeter fence into the Ilorin SEZ under construction. Contractor: M/s Real Concrete Nig. Ltd.

Construction workers at the Proportion Construction Works Nig. Ltd site, Lekki.

Members of the joint projects monitoring committees pose for a group photograph, during an inspection tour at the Lekki Textile and Garment SEZ, Lagos.

Prof. Adesoji Adesugba, MD/CEO, NEPZA (centre), flanked by Hon. Richard Gbande, Deputy Chairman, House of Representative Committee on Commerce (2nd right), other members of the committee and some NEPZA Directors in a photograph, during the committee visit to the Calabar Free Trade Zone.

Hajia Zainab Aliyu Musa, Director, Monitoring & Compliance, NEPZA (2nd left), engages a contractor during the committee’s visit to the Calabar Free Trade Zone (CFTZ).

R-L: Muhammad Hadi Mu’azu Ruma, Technical Assistant to the MD/CEO; Mr. Adewale Folowosele, Technical Assistant to the MD/CEO; Dr. Oyekunle Oyesola, Director, Finance and Accounts; Prof. Adesoji Adesugba, MD/CEO; Hajia Zainab Aliyu Musa, Director, Monitoring and Compliance; Mrs.

Special Economic Zones Security (SEZSEC).

FG decorates 37 officers to boost security measures at FTZs

The Federal Government has decorated 37 Special Economic Zones Security (SEZSEC) personnel to boost the security architecture of Nigeria’s free trade zones.

The Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo who performed the ceremony noted this on Thursday in Abuja said is a deliberate measure to further fortify the country’s 46 free trade zones against economic sabotage and for the protection of investments domiciled in those special business areas.

Adebayo explained that the outfit is to specialise in the security of investments and complement the wonderful services already provided by the DSS, Police, Civil Defense, the Nigeria Custom Service and the Nigeria Immigration service. According to him, the government will not hesitate in rewarding hard work, just as it will not relent in punishing any of you who runs foul of the law.

Earlier, Prof. Adesoji Adesugba, Managing Director, Nigeria Export Processing Zones Authority (NEPZA), said the issue of security and its attendant challenges have been of

serious concern in our beloved nation. “This bold step we took will help to build the confidence of investors, owners of enterprises in the zones and prospective investors alike in our management of the free zone scheme,’’ he said.

While commending Federal Government’s efforts in establishing six special economic zones in Lagos, Ilorin, Katsina, Benue, Gombe and Sokoto within seven years, Adesugba said that the new security structure was already providing the zones with surveillance and intel.

Committee completes inspections of NEPZA projects, expresses delight with executions

The Joint Projects Monitoring Committee that comprised officials from the Ministry of Industry, Trade & Investment and the Nigeria Export Processing Zones Authority (NEPZA) has rounded-off scheduled inspections of 112 approved projects for the Authority.

These projects, captured under the

NEPZA Tender Board of 2017-2021, direct Federal Executive Council approval and the Ministerial Tender Board of Capital Projects are located at Calabar Free Trade Zone (CFTZ), Kano Free Trade Zones (KFTZ) and the newly approved Lagos and Kwara Special Economic Zones respectively. Out of the 112 ongoing projects, a total of 76 have been completed with the

CFTZ accounting for 28; KFTZ 38; Lekki SEZ 5; and Ilorin SEZ 5 while others are at different levels of completion. Some of the projects include: Erosion Control Works & Rehabilitation of Collapsed Perimeter Fence at CFTZ; Construction of Emergency Exit Gates & Access Road to the Jetties at CFTZ; Re-Asphalting of the Exiting Dual

Continued in page 50 ...

Carriageway Road Network at CTFZ; Consulting Services for Masterplan & Architectural Design at Kwara SEZ; Consulting Services for Engineering & Infrastructure Design at Kwara SEZ; Quantity Surveying for Feasibility Studies at Kwara SEZ; and the Development of initial 5MW Power Plant & Electrical Reticulation within the Ilorin SEZ.

They also include: The Construction of Roads with Associated Drainage Work at KFTZ; Construction of Four Standard Size Factory Building & Associated External Works at KFTZ; The Purchase of Property at No.38 Kofo Abayomi Street, Victoria Island, Lagos; The Re-furbishing & Furnishing of the Newly acquired NEPZA new Lagos Zonal Office among others.

Speaking at the end of the tour in Calabar, Hajia Zainab Aliyu, NEPZA’s Director of Monitoring & Compliance, expressed satisfaction with the level of projects execution across the four zones, adding that the Federal Government had always ensured value-for-money in the execution of its contracts.

Hajia Aliyu, the Authority’s Team Lead, said that the approval for the projects’ inspection tours indicated government priority toward adequate provision of infrastructure in the free trade zones and Prof. Adesoji Adesugba led-management relentless commitment to the interpretation of President Muhammadu Buhari’s policy for a profitable and competitive zone scheme.

``As part of the statutory responsibility of NEPZA as provided in Section 4 of the Authority’s Act 63 of

1992 is the provision that ensures that all zones provide some of the basic infrastructure. We are also obliged to constantly monitor and evaluate both new and old infrastructure.

``The reasons for these monitoring and evaluation exercises were to ensure the right quality of materials were used and the right quality of jobs are done, just as we also checked the percentage of work done in line with the amount assigned for the project.

``To this end, the Managing Director, Prof. Adesoji Adesugba decided to set up this committee to access all the projects that have been earmarked from the period he assumed leadership of the Authority.

`` The Authority has, however, decided to carry out the task jointly with our supervising Ministry, which is the Ministry of Industry, Trade and Investment. So far, we were encouraged by the progress of executions.’’ She said.

Meanwhile, Mr Martins Odeomenem, Director of Procurement, who led the team members from the Ministry of Industry, Trade & Investment, described NEPZA as a serious agency of government that had always displayed uprightness in the conduct of its affairs.

Odeomenem explained that the ministry was, however, mostly concerned with those projects approved through the Ministerial Tender Board, adding that most of projects under the above category had been completed.

``It is not all about awarding contracts and executing contracts.

There is also the need for every office that has the duty of awarding contracts to know that government is seriously after value-for-money.

``The inspections were aimed at ascertaining if the contracts the government awarded within the period under review are achieving the purpose for which they were awarded and executed. This is the essence of our assignment.

``I am fully aware that NEPZA is a serious establishment that abhors shoddy execution of its projects because of the strategic nature of the free zones in attracting foreign investment. We have gone around and I can say with all sense of responsibility that we are satisfied with what we have met on ground so far.’’ Odeomenem said.

The committee is, however, expected to submit a detailed technical report of its evaluation within 21days. In a related development, members of the House Committee on Commerce who are embarking on their Mid-Term Inspections of projects at free zones across the country concluded a twoday tour of the Kano Free Trade Zone on Monday.

Hon. Richard Gbande, Deputy Chairman of the committee expressed satisfaction on how the Authority had so managed the special economic ecosystem, describing it as a vital economic gateway that should fast track the industrialisation of the Northern region.

Gbande explained that the zone was lucrative going by the presence of 75 enterprises functioning night and day to increase production for the country’s highly competitive markets. ``We are sure production and competition among the enterprises in the zone would increase significantly if the Federal Government finally divests its equity to the private sector as planned. Doing so will help open the space more for job creation.’’ The Lawmaker said.

Social Page

Hajia Zainab Aliyu Musa, Director, Monitoring and Compliance, celebrates another year of God’s faithfulness

Mr. Ahmadu Abdulkadiri, Deputy Director, Monitoring and Compliance, celebrates another year of splendour with his birthday cake… Thursday, June 23, 2022.

Sir. Innocent Okwudiri Uzoechi, Director, Investment Promotion and Investors’ Services (IPIS), celebrates his birthday as he poses with his birthday cake with an infectious smile… Tuesday, April 12, 2022.

Mr. Adewale Folowosele, Technical Assistant to the MD/CEO, is flanked on his immediate right by Prof. Adesoji Adesugba, MD/CEO, NEPZA, and some directors of the Authority, as he cuts his birthday cake… Wednesday, June 1, 2022.

Mrs. Ismail Lawunmi (2nd right), is flanked by some Directors of the Authority as she cuts her birthday cake… Thursday, September 8, 2022.

Joy Member Gyem, of the Internal Audit Unit, marks her birthday as she cheerily cuts her cake… Thursday, April 7, 2022.

Esther Adoo Gum, of the Corporate Communications Unit (CCU), is full of gratefulness to God as she marks her birthday… Wednesday, April 20, 2022.

Mrs. Inimfon Udoeyo, of Finance and Accounts Department, displays cheerful looks during her birthday celebration… Wednesday, June 22, 2022.

Muhammad Hadi Mu’azu Ruma, Director, Zones, NEPZA, acknowledges cheers from members of staff as he marks his 60th birthday… August 25, 2022.

Reps Call for Construction of Rail Line In Lekki Trade Zone To Avoid Gridlock

The House of Representatives Committee on Commerce has called for the urgent need to construct a rail line through the Lekki Free Trade Zone to avoid the traffic gridlock associated with the Apapa Port.

The deputy chairman of the committee, Hon. Richard Gbande, during an inspection of the Lagos Free Zone, Lekki Free Zone, and the Dangote Free Trade Zone Enterprises, described the Lekki FTZ as the country’s new economic powerhouse harbouring 25 billion US dollar investment.

In a statement by the Head, Corporate Communications, NEPZA, Martins Odeh, Gbande said the concept of free trade zone has revolutionized the development of the Lekki axis of Lagos once considered as an undeveloped peninsular.

He noted that the government’s relentless efforts in trying to diversify the economy has resulted in the development of the Lekki Quadrant which would undoubtedly become the country’s new economic powerhouse.

NEPZA boss hails Unilever Director’s appointment as MAN Chairman Export Trade Group

Prof. Adessoji Adesugba, the Managing Director of the Nigeria Export Processing Zones Authority (NEPZA) has described the appointment of the new Chairman, Manufacturer Association of Nigeria Export Group (MANEG) Mrs Oluwasoromidayo George, as a new dawn for the country’s export sector. Adesugba made the remark in a congratulatory message to the new appointee on Sunday in Abuja. Adesugba, also the Chief Executive Office of the Authority, said that it was time for the Organised Private Sector to re-organise itself more profoundly in order to increase collaborations with relevant government agencies to speed up the country’s economic growth.

He explained that the association had, however, consistently shown its capacity to assist government in driving production, adding that George’s appointment indicated the readiness of the group to commit to a competitive export arena.

`` Oluwasoromidayo George remains a fantastic asset for the country and for the organized private sector with incredible cognate experience in diverse areas of the economy. We are hopeful that her reign will increase the

country’s export profiles significantly.

``For us in NEPZA, we look forward to deepening our collaboration with her office to boost the country’s industrialization process as well.

``Let me, therefore, congratulate her on this new appointment and also to express my delight on the series of strides made by MAN over the years to grow the nation’s economy,’’ he said.

George is also the Corporate Affairs & Sustainable Business Director, Unilever, West Africa and the Chairperson of the UN Global Compact Network, Nigeria.

She is a Co-Chair of CEO Water Mandate Council, representing the Nigerian Economic Summit Group (NESG).

She was the first female Executive Director of the British American Tobacco Nigeria Foundation (BATN) and the Head of Corporate Affairs, British American Tobacco (BAT) in West and Central Africa.

CHECKLIST FOR SETTING UP A FREE ZONE IN NIGERIA

• Application letter indicating interest to establish a Free Zone, and its location in the country.

• Payment of US$1,000.00 or its Naira equivalent to NEPZA as application fee.

• Submit your application letter, indicating interest to establish a zone and its location, and relevant documents.

• Inspection of proposed site by NEPZA Officials.

• Recommendation for approval will be passed to the Minister of Industry, Trade and Investment by NEPZA.

• Recommendation will be passed to the President by Minister for final approval.

• Approval or comments from Presidency will be communicated back to the investor by NEPZA.

SUBMISSION OF THE FOLLOWING DOCUMENTS

• Acquisition and issuance of Certificate of Occupancy for the proposed site.

• Perimeter and topographic survey of the site.

• Survey plan for the site with beacon numbers.

• Master-plan for the proposed site (4 copies).

• Environmental Impact Assessment report (EIA, 4 copies).

Federal Ministry of Environment develop and regulate checklist for implementation and compliance.

• Detailed feasibility study (4 copies)- study guideline.

• A brief description of the project clearly defining the scope of business and the objective for the establishment of the zone.

• Name and resume of the promoter and detained definition of the zone management structure.

• Location and size of the zone as well as evidence of unencumbered title ie compensation plan/evidence of payment for compensation for existing inhabitants and farm lands and other economic value already present on the land.

• Location of the site.

• Proximity of the proposed zone to existing infrastructure/facilities. (e.g. Airport, Road, Rail, Seaport, Power, and settlements around etc) if any. Alternatively, plans for the provision and development of support infrastructure that would attract and sustain investment in the zone.

• Inventory of existing infrastructural facilities on the proposed yard for the zone, if any.

• Economic viability.

• A clear analysis of the economic costs and benefits of the project into its financial cost and benefits.

• Availability of raw materials

• Linkages between the FTZ industrial activities and domestic economy. The likely impact on domestic economy.

• Specific output. The output of the proposed project needs to be specified, i.e the likely number of enterprises that will be located in the zone and nature of their products in line with the expectations of the zone.

• Employment generation.

• Condition of service should be clearly spelt out.

• The projected number of employees that may be required (local and foreign) and the grade of labour needed.

• Projected profitability of investment.

• Risk Assessment of Project.

• Implementation strategy for the project.

• Details of Developmental pattern/Phasing of the proposed internal & external infrastructure facilities including land use distribution pattern supported with timelines of work schedule.

• Details of EPC (Engineering, Procurement and Construction) work packages, i.e. site preparation EPC, Process plant EPC etc.

• Health, Safety and Environmental (H.S.E) compliance program of proposed Zone.

• Evidence of Companies, if any, which have indicated interest in locating in the proposed Zone and future targeted prospective companies or clients that would be admitted in the Zone.

• Any other information such as Agreements, MoU and Concessions that will assist the consideration of the proposal.

Please note that upon receipt and study of the aforementioned documents, the Authority will commence project due diligence to evaluate the legitimacy of the venture within the ambit of the Free Trade Zone regulations and laws and any other legislations as may be applicable, consider proposed site enabling issues as well as socio-economic matters relating to the zone.

• Inspection of the proposed site by NEPZA officials.

• Upon review and approval of the project, the following fees shall apply:

• Licensing fees of USD $400,000-Free Zone status declaration Fee.

• Licensing fee of USD $500,000-Industrial City/Park status declaration Fee.

• USD $100,000 Operation Licence (OPL) Fee to be paid along with declaration fee in the first instance and thereafter as annual renewal fee.

• The amount stated above is subject to review by the Authority.

An officer being decorated