Oil, Gas Free Zone Rakes in $5 Bn FDI - FG

The federal government disclosed last week that the Oil and Gas Free Zone Authority (OGFZA) has recorded up to $5 billion (about N585 billion) in private Foreign Direct Investment, just as it has provided over 5,000 skilled and semi skilled jobs.
The government also explained that the value of non-oil products increased from $957.305 million in 2006 to $1.398 billion in 2007 and now stands at $1.4 billion dollars.
According to Aliyu Idi Hong, supervising minister in charge of the Commerce and Industry Ministry, OGFZA which has licensed over 120 companies, from 2000 to date representing about 80 percent increase in the number of firms over the last 10 years said the government has equally successfully elevated the free zone into a unique and preferred destination for key players in the oil and Gas Sub-sector of the economy, adding that the Zone provides a full package of incentives and combines the effectiveness of the private sector with the support of the federal government.
The minister who noted that there has been an increase in the revenue earning from the zone by government, stressed that Nigeria Customs Service (NSC) alone realized N5 billion from the zone during the 2006 fiscal year through the collection of goods either manufactured or moving from the zone to customs territory, adding that the Nigerian Export Processing Zones Authority (Nepza), which was set up as an investment facilitation agency responsible for implementing export policies, has so far licensed 23 Free Zones in Nigeria geared towards fostering industrial growth.
Hong stressed that the free zones located in the six geo-political zones of the country have so far created over 40,000 direct and 160,000 indirect jobs, while over N200 billion revenue has been generated through the collection of Customs Duties on goods either manufactured or transiting from there to custom territories. He informed that more than 70 percent of the N55 billion required to develop the Tinapa Free Zone and resort came by way of FDI.
According to him the OKLNG project in Olokola Free Zone commissioned last year is worth $6.7 billion while $2.1 billion of FDI was being presently expended in the Lagos Free Trade Zone by a Singaporean company, adding that more than $120 million would be expended on the Snake Island free zone.
As part of government’s efforts to promote sustainable economic development through exportation facilitated by Nigerian Export Promotion Council (NEPC), Hong said the government last year generated about N1.4 billion, while N957.4 million was realized in 2006, adding that the major products that were exported in the years under review were cocoa, processed leather, rubber, cashew nuts and edible fruits, plastic and polybags, sesame seed and oil, aluminum and articles, sea foods, cotton yarns, woven fabrics, among others.