How Nigeria’s Free Trade Zones Can Bring Foreign Direct Investment

Mr. Alex A. Okoh, DG, Bureau of Public Enterprises

Director General of the Bureau of Public Enterprises (BPE), Mr Alex. Okoh has said that if Nigeria’s Free Trade Zones (FTZs) are well harnessed, they could bring in Foreign Direct Investment (FDI) and manufacturing inflows like China.

This is contained in a press statement signed by Amina Tukur Othman, Head, Public Communications

Speaking at the sidelines recently after a meeting with the Kano State Governor, Dr. Abdullahi Umar Ganduje on the concession of the Kano Free Trade Zone (KFTZ) to be executed by the BPE, the Director General disclosed that in 2006 alone, Free Trade Zones, also known as Special Economic Zones (SEZs) accounted for 68 percent of China’s Gross Domestic Product (GDP) about $1.5trillion.

According to him, 87 percent of China’s exports are from FTZs while the national level zones attract $ 9.2B in FDI and provide access to more advanced technology, thereby boosting technological progress.

Giving an insight into the planned reform of the Kano FTZ, Okoh maintained that it would be a Property Holding Company (PropCo) with the Nigeria Export Processing Zones Authority (NEPZA), representing the Federal Government as the owner and regulator as well as guarantor of the concession.

He added that the Concessionaire would be responsible for the rehabilitation, operation and management of the FTZs.