Special economic zones have emerged as a powerhouse in Nigeria, attracting over $66 billion in Foreign Direct Investments (FDIs) and N620 billion of Domestic Direct Investments (DDIs).
Chairman of Nigeria Economic Zones Association, Nabil Saleh, who made the disclosure yesterday, said the investments have led to creation of 35,000 direct and indirect employment, and driven socio-economic development in the country.
Giving a sectoral breakdown, he said the manufacturing sector took the lead, commanding 45 per cent of the total investments, closely followed by the services sector at 30 per cent. The oil and gas sector accounts for 11 per cent, while the trading, logistics and agriculture sectors also made significant contributions.
Saleh noted that SEZs, with their unique regulatory incentives and business-friendly environment, have emerged as powerful engines of economic growth and development.
He added that the establishment of SEZs in Nigeria has led to development of Africa’s biggest oil refinery, a deep-sea port with the capacity to handle around six million 20-foot equivalent units (TEUs) of containers, an ambitious gas processing hub along the Atlantic Coast, and an oil and gas downstream manufacturing hub, among others.
“The success stories of countries with well-established SEZ schemes underscore the transformative potential of these zones. Nations such as China, Singapore and the United Arab Emirates have harnessed the power of SEZs to attract foreign direct investments, drive industrialisation and foster innovation. In these countries, SEZs have become beacons of economic progress, contributing significantly to their GDP and job creation,” he said.
Saleh observed that the theme of the yearly gathering, “Unlocking Opportunities: Harnessing the Power of Nigeria’s Special Economic Zones Scheme,” encapsulates the essence of its mission – to tap into the immense potential that the economic zones hold for the growth and development of Nigeria.
Managing Director of Nigeria Export Processing Zones Authority (NEPZA), Dr Olufemi Ogunyemi, said the two-day event was serve as an opportunity to gain in-depth understanding of the challenges faced by operators in the various free zones, and how they could be addressed headlong to ensure that the scheme continues to serve as a tool for economic growth and sustainability.
He argued that it has become imperative for SEZs to be re-engineered, bearing in mind unfolding of the fourth industrial revolution, heightened focus on sustainable development and new wave of global value chains.
On his part, Managing Director of Oil and Gas Free Zones Authority (OGFZA), Bamanga Jada, noted that SEZs are globally recognised as most important instrument by policy makers to facilitate, attract and scale-up long-term domestic and cross border investments, as well as to promote and enhance industrialisation, export-oriented investment, diversification, job creation and many more in most fast- growing economies around the world.
He stressed that despite challenges that confront operators and licensees, OGFZA has been able to attract $24 billion investment and has more than one hundred licensed companies in the free zones under its regulation.
In his goodwill message, Central Bank of Nigeria (CBN) Governor, Dr Olayemi Cardoso, while acknowledging successes of SEZs in Nigeria, called for a collaborative approach that engages both the public and private sectors to provide a more coherent and consistent operational environment in ameliorating the challenges faced by stakeholders in the scheme.
The challenges, he noted, are constraints in the areas of regulatory complexities, infrastructure deficits and inadequate access to finance, among others.
