Yemisi Izuora
The managing director and chief executive officer of the Oil and Gas Free Zones Authority, OGFZA, Umana Okon Umana has said the authority henceforth would not issue fresh licenses for the establishment of new Zones except a detailed and verifiable economic plan is submitted by potential developers.
Umana said this step has become necessary owing to not viability of many existing zones in the country.
He noted that the intention of establishing such Zones is to serve as vehicles for promoting accelerated growth and sustainable economic development.
Speaking as a panelist at the 2017 Nigeria Business RoundTable, NBR, in Lagos, the MD, that every Zone is expected to facilitate exports to drive economic development.
He said over time, the Zones have faced challenges because there were no clear economic strategy or business support initiatives thus leading to under utilisation of the facilities.
Owing to these shortcomings the Authority will give more considerations to expanding existing viable Zones so that they will realise their targets, he said.
Umana however, disclosed that six new Zones would be developed in locations that will attract the needed investment.
The new Zones would be located Ibaka in Akwa Ibom state andBrass in Bayelsa state.
In his remarks, the managing director of Lekki Worldwide Investments Limited, Mr. Tunde Sodade, stated that in economic terms, Oil and Gas Free Zones should be able to attract Foreign Direct Investment, FDI, generate foreign exchange for the country, help in skill transfer and create new jobs.
Unfortunately, he said that of the 33 Free Trade Zones registered in Nigeria, less than 5 are viable.
Sodade traced their challenges to lack of business plan and inability to assess opportunities that can thrive around the project.
Also in his view, Mr. Chris Asoluka, former Regional Ambassador, Africa, World Free Zones Convention, WFZC, observed that lack of infrastructure has contributed to under utilisation of the facilities.
Asoluka, said lack of power, roads and security have posed serious challenges to operations of the Zones.
He therefore urged that considerations should center on such critical areas to enable the country benefit from such projects.
He also advised the OGFZA to help address the some of the challenges that inhibits Small and Medium Enterprises, SME’s from keying into the project.