Nigeria’s Special Economic Zones have led to the creation of 35,000 direct and indirect employments, driving socioeconomic development in the country Nabil Saleh has revealed.
Nabil Saleh, the chairman of the Nigeria Economic Zones Association, disclosed this at the association’s annual general meeting yesterday (Wednesday) in Lagos.
He also noted that Nigeria’s Special Economic Zones have attracted over $66bn in Foreign Direct Investments and N620bn in Domestic Direct Investments.
The sectoral analysis and breakdown of the investments revealed that the manufacturing sector led with 45 percent of the total investments, followed by the service sector at 30 percent.
Accordingly, the oil and gas sector accounts for 11 percent of investments while the trading, logistics, and agriculture sectors also made significant contributions.
Saleh said the establishment of SEZs in Nigeria has led to the development of Africa’s biggest oil refinery, a deep sea port with the capacity to handle around 6 million twenty-foot equivalent units of containers, a 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 investment, drive industrialization, and foster innovation.
“In these countries, SEZs have become beacons of economic progress, contributing significantly to their GDP and job creation,” he said.
In Nigeria, the Free Zone program was introduced in 1992 through the enactment of Act No. 63 of 1992, which provided for the establishment of Special Economic Zones in the country.
The Act empowered the Nigeria Export Processing Zone Authority as the sole government agency responsible for establishing, licensing, regulating, and monitoring of Free Zones/Export Processing Zones in Nigeria.
Some of the most prominent free zones in the country include the Lekki Free Trade Zone in Lagos, Ogun-Guangdong Free Trade Zone, Abuja Technology Village in FCTA, KoKo Free Zone, Delta State; Warri Industrial Business Park, Delta State; and The ICT Park Asaba, Delta State.
He noted that the theme of the AGM, “Unlocking Opportunities: Harnessing the Power of Nigeria’s Special Economic Zones Scheme”, speaks to the essence of its mission—to tap into the immense potential that the economic zones hold for the growth and development of Nigeria.
According to Olufemi Ogunyemi, the managing director of Nigeria Export Processing Zones Authority, it has become imperative for SEZs to be re-engineered, bearing in mind the unfolding of the fourth industrial revolution, the heightened focus on sustainable development, and the new wave of global value chains.
“Accordingly, it is envisaged that the interactive sessions will provide an opportunity for stakeholders to discuss critical issues in more detail as it concerns standardising free zone operations; tax administration in the free zones; sharing experiences on free zone policies and operations, and developing actionable solutions.
“With the advent of global, continental, and regional economic realities, it is envisaged that outcomes from this two-day event will therefore serve as critical inputs to be adopted by SEZs regulators and other key stakeholders, and Nigeria as we all aspire to chart a new course,” he asserted.
