Nigeria realised $2billion from Onne free zone in 6 years

Nigeria has realised $2 billion revenue from the operation of Onne oil and gas free trade zone through the Nigerian Ports Authority within the last six years, says Umana Okon Umana, managing director of Oil and Gas Free Zones Authority.

Speaking at a business round table conference, Umana, outlined the importance of having a free trade zone to drive growth and development in Nigeria.

Umana said one of the keys to attaining greater productivity and growth in the Nigerian economy is making use of the potentials of a free trade zone which offers an increase in investment, job creation and exports.

Free trade zones also provide companies with streamlined regulations, reduced tax obligations and state-of-the-art infrastructure. However, the NPA has concluded plans to break the monopoly hitherto enjoyed by some oil and gas logistics firms, by liberalising operations of these oil and gas free trade zones, development operators have faulted.

Nigeria is introducing further reforms into the operation of its free trade zones culminating in the reduction of days of license renewal from 14 days to 48 hours if investors meet all requirements in line with the ease of doing business policy of the Federal Government.

There are also plans to establish new zones to complement 33 free zones registered in the country of which barely half are functional. The first free trade zone in Calabar was established in 1992 and Umanna says opening new ones have become a priority.

“Statistics shows that there are 3 million companies arising from over 5,000 free trade zones around the world which accounts for over 45 million jobs, all showing efficacy of having an effective free trade zones in a global perspective. FTZ in developing countries can drive growth in different sectors not only in Oil & Gas, attract increased foreign investment inflow, creation of employment, transfer of skills and technology, etc.,” Umana said while making a case for new FTZs.

According to Ogho Okiti, the CEO of Time Economics, Free Trade Zone has great potentials of increasing growth using China in 1980’s and 90s and Dubai recently as examples.

“China used its free trade zones to attract foreign capital and technical know-how, and to experiment with new economic policies which were then implemented in the rest of the country (if they were found to be successful); this means that it is imperative that

Nigeria gets its design and implementation of free trade zones right,” he said.

Nigeria’s 2017 budget allocates N43billion for six special economic zones. The country will hope that this would be enough to fight off the threat from neighbouring countries like Mozambique.

ISAAC ANYAOGU