Industrialization Digest NEPZA

Vol. 3 No. 2 A Quarterly magazine of the Nigeria Export Processing Zones Authority Third/Fourth Quarter, June - December, 2020

Reinvigorating FTZs/ The Free Trade Zone SEZs Operations Concept: Through Research Gains & Prospects

NEPZA and The Changing Nigeria’s Economic Trajectory

Leveraging Special Economic Zones for African Industrialisation and Integration

HOW WE ARE RETOOLING NEPZA Prof. Adesoji Adesugba

Checklist For Setting Up Impact of COVID-19 on NEPZA–ASCSN: In Pursuit A Free Zone In Nigeria NEPZA Workplace Ethics of Development Unionism WELCOME TO THE CITY OF THE FUTURE

CENTENARY ECONOMIC CITY FREE ZONE

2

www.centenarycityfze.com CONTENTS

06 How we are Retooling NEPZA Prof. Adesoji Adesugba reveals in an interview with our crew ...

10 Checklist For Setting Up 15 NEPZA News in Brief 22 Leveraging A Free Zone In Nigeria New NEPZA Boss Assumes Office, Special Economic Charges Staff on Improved Productivity Zones for African 40 Companies Bid For NEPZA Industrialisation and Constituency Projects Integration

28 Impact of COVID-19 32 Responding to AfCFTA, 36 Chief Executive on NEPZA Workplace Post-Pandemic Officers’ Desks Ethics Through SEZs 3 EDITORIAL captures some of the vitally important systemic reviews, repositioning, and reorganization of the agency based on the new helmsman strategic plan hitherto engraved in the mandate, vision, and mission of the Authority. In the spirit of the Managing Director’s 100 days in office, Adesugba in an interview with our crew reveals what he met on the ground, his strategic plan, and approach to free trade zone EDITORIAL ADVISORY development and management. The BOARD essence of the free trade zone scheme The Industrialization Digest remains with an overall focus on leading Publisher/Editor-In-Chief: the official purveyor of quarterly news Nigeria’s industrialization process Prof. Adesoji Adesugba information of the Nigeria Export is further underpinned by mouth- Processing Zones Authority (NEPZA). watering analysis by our writers, guest Members: First, we would like to apologize writers, and contributors. This edition Bitrus Dawuk to the stakeholders and the entire also critically enunciates the positive Oyekunle Oyesola Ph.D readership space to have skipped the inputs of private zones operators Yagana Abba Hassan production of the first and second and enterprises in the country’s Mohammed Hadi Ruma quarters. This edition is, however, economic growth in the pre-and Zainab Aliyu in place to compensate for the loss post-Covid-19 pandemic. Albeit, the grounds considering the weight of the Covid-19 pandemic has continued content anchored on the 100 days in to ravage the human and economies EDITORIAL CREW office of the new Managing Director, of countries, we remain hopeful that Prof. Adesoji Adesugba. Stakeholders the country is on its way to economic Editor: across both the Free Trade Zone and recovery. We, therefore, ensure that Martins O Odeh (mnipr) investment promotion spectrum this edition is an assemblage of the have described the appointment of public and private sectors as well as Editorial Support: the new NEPZA Chief Executive Office individual thoughts and suggestions Onyinye Adigwe (mnipr) by President Muhammadu Buhari as on practicable approaches to return Esther Adoo Gum an uncommon decision with grave the country to the path of economic Adewale Asmau Kume exactitude. This edition, therefore, growth. Sherifat Salihu Omeneke (NYSC)

Editorial Support Service Sahel Standard Media Limited MISSION Photographer “To establish, licence, Lawrence Udeh Yaiko VISION regulate and operate “To establish highly efficient Free Industrial Zones of Industrialization Digest, published Zones by providing highly the highest quality by the Corporate Communications competitive Incentive Unit (CCU), is the official In-House that meet the needs schemes, excellent support Magazine of the Nigeria Export of investors and services for the purpose Processing Zones Authority (NEPZA). ensure a diversified of creating an enabling No. 2, Zambesi Cresent, Off Aguyi economy” environment for export, Ironsi Street, Maitama Abuja. manufacturing and other Tel: +234 978007, +234 701 683 4729 commercial activities” All Rights Reserved

4 5 COVER STORY

How we are Retooling NEPZA... Prof. Adesoji Adesugba reveals in an interview with our crew

Prof. Adesoji Adesugba Managing Director, Nigeria Export Processing Zone Agency (NEPZA)

rof. Adesoji Adesugba, an accomplished investment promotion expert, appointment by His Excellency, President Muhammadu Buhari assumed office as Managing Director of the Nigeria Export Processing Zones Authority (NEPZA) on July 1, 2020. This quintessential Chief Executive POfficer of one of Nigeria’s strategic agency to ignite and sustain the growth of the country’s economic ecosystem has settled down in 100 days to tenaciously carry out the onerous task of spurring the Authority to drive the country’s industrialization.

Adesugba obtained his doctorate in Business Administration with the highest distinction from the California Southern University in the USA. He has an M.Sc. degree in Investment Promotion and Economic Development from the Edinburgh Napier University in Scotland, UK, and his MBA from the Ogun State University in Nigeria. He obtained his Bachelor of Science degree in Business Administration from the University of Lagos in 1981.

The new NEPZA chief executive officer is an accomplished specialist in Investment Promotion and Economic Development, a lawyer. This top captain of a global industry is known for his proficiency in organizational development and institutional reforms. He has combined the best in private sector entrepreneurial acumen with an expert ability to navigate public sector practice. Prof. Adesugba remains our top personality for this edition as we join the rest of the NEPZA family, stakeholders, friends, and associates to celebrate his 100 days in office. In an interview with our crew, the managing director tells us why he is retooling the Authority and the free trade zone scheme for job creation, revenue generation, economic growth, as well as for industrialization in line with President Muhammadu Buhari’s directives. Below are excerpts from the questions and answers as compiled by Martins Odeh, Head, Corporate Communications/Editor.

6 COVER STORY How do you see your appointment as place since my resumption. These have Managing Director/CEO of the Nigeria helped to provide a clearer understanding Export Processing Zones Authority, of our mandate and have improved the NEPZA? relationship with our stakeholders to It seems like I have been prepared for enable us jointly work towards the success this time throughout my whole career of the free trade / special economic as a public servant. From my days in zone industry in Nigeria. Another key the Nigerian Customs Service where I priority is to increase the number of gained my first leadership experience in “functional and optimal SEZ’s” and supervising new recruits, to Bureau for our strategic plan over the next three Public Enterprise (BPE) and the Nigeria years will focus on the revitalization the Investment Promotion Commission existing zones under NEPZA’s purview. (NIPC). It is an honour and a privilege We have 42 registered zones and only to be called to serve in NEPZA. As one 22 are functional so we seek to change of the major parastatals contributing this narrative. Our plans also include to Nigeria’s economic development, the creation of SEZ models of global my appointment as the MD/CEO is an best practice by establishing world class opportunity to use my experience and “plug and play” technically driven zones expertise to support the industrialization an providing an enabling environment agenda of His Excellency, President for business in the following thematic Muhammadu Buhari, who pronounced areas; MEDICAL, MINING, TECHNOLOGY, Prof Adésojí Adésugbà DBA,MBA, FCIArb(UK) the use of Special Economic Zones AGRICULTURE. Discussions are currently (SEZ’s) as a policy tool to drive Nigeria’s underway with stakeholders and industrialization agenda. potential investors for the creation of Over 15,000 direct and 30,000 indirect a Medical and Pharmaceutical SEZ as jobs have been created. Despite this, Can you tell us your strategic plans part of the post COVID-19 interventions. challenges still affect optimal operations and the positive changes you want see As the first medical SEZ in Nigeria, it within the zones which is a risk to happen in the Authority under your will provide world class, in-country current investors and could deter future watch? healthcare comparable to the standards investments. Poor infrastructure, such With the support of the dedicated and that Nigerians seek abroad. It will help as access roads, power and water are a competent management team of NEPZA, reduce the high levels of medical tourism common challenge across the zones and we are focused on building Nigeria’s from Nigeria and also service the African consideration is being given to engage competitive advantage, broadening market. in PPP arrangements to address these the scope of industry in order to create challenges. Another key challenge is the jobs and promoting exports, to facilitate You have gone on the first round of lack of understanding of the concept of economic growth. We aim to improve inspection tours of free trade zones in “free” as it relates to free zone operations the investment climate in Nigeria by Kano, Lagos and Calabar. What can you by some government agencies whose providing incentives and world class say are the prospects and challenges of services affect NEPZA operations in the infrastructure that will attract both local free scheme in Nigeria? area of taxes, levies and charges. Examples and foreign direct investments. The free zone/ special economic zones are the Nigerian Customs Service (NCS), Improving the perception of the landscape in Nigeria remains one of the Federal Inland Revenue Service (FIRS) authority through strategic and routine most attractive to investors and to date and Standards Organization of Nigeria communication is key priority for NEPZA has brought in over $16 billion foreign (SON). These have has negatively affected and several strategies have been put in and N270 billion domestic investment. the businesses of many zone operators

“We aim to improve the investment “climate in Nigeria by providing incentives and world class infrastructure...”

7 and enterprises and NEPZA is currently cost of production thus distorting the in Kano, Lagos, Ogun and Calabar. These working with the Presidential Enabling final market price of such products visits were litmus tests to gauge the health Business Environment Council (PEBEC) in relation to goods produced in the status of the scheme and we are using the to engage with the affected agencies in non SEZ area – Customs Area. It would experiences from the field to reposition order to reach common ground. then be detrimental to Africa at large to the zones for optimal performance. Below exclude products manufactured in SEZs are highlight of some of what I consider How can NEPZA intensify effort to deliver from benefiting from AfCFTA preferential our inroads into a holistic approach to on its mandate in order to speed up the treatment as this action would undermine make the sector function better. industrialization of the country? industrial development and socio- Improved engagement with zone The management of NEPZA is focused economic growth. Nigeria is considered operators. on the rebranding and improving the a lower middle-income economy with a Improved communication on NEPZA’s perception of the Authority in order to GDP per capita of about US$2,000 with activities and plans. achieve its mandate. We will intensify industry contributing about 24% to GDP Initiated discussions on the prospective efforts in stakeholder engagement and out of which manufacturing captures partnership between NEPZA and GACN strategic communications aimed at jointly approximately 9%. Exports in Nigeria for power supply to Kano and Calabar working together for the common interest accounted for US$47 Billion as of 2017 Zones. of the investors and the government. when compared with South Africa having Obtained approval in principal for the an export value worth US$ 108 billion development of two new specialized The Federal Government continues to within the same period. It is therefore Special Economic Zones in Lagos and insist that the African Continental Free pertinent to consider the adoption of a Kwara States. Approval was also given Trade Area (ACFTA) should be such that flexible ROO for Nigeria and especially for the commencement of feasibility allows balancing of trade protocols for products manufactured in the SEZs in studies in Gombe State and Funtua, with a continental manufacturing order to increase industrial capacity and Katsina State agenda. How should this agreement boost exports. Initiated discussions with key be implemented to give leverages to stakeholders on the establishment of enterprises operating in free trade zones What are some of the modest the 1st medical and pharmaceutical in Nigeria? achievements you have made in 100 SEZ in Nigeria. Article 23 of the ACFTA recognizes the days as CEO of this agency? Induction and training of new staff. critical role of SEZs in African countries The successes which I would prefer to Establishment of Heath Security for the purpose of accelerating credit to my wonderful team, which Environment (HSE) units in NEPZA and development. The Rules of Origin (ROO) includes the management staff, my across all zones. remains a key issue of concern regarding advisers and supporting staff have really Setting up of a standing committee the implementation of the AfCFTA based been modest. The task is doubtlessly on Freedom of Information (FOI) for on the debate on how to treat goods daunting and, therefore, we may not accountability and transparency. produced from Special Economic Zones/ have a very profound success stories to Free Zones. The Special Economic Zone tell in 100 days, but we have surely taken Scheme provides for liberal tax incentives practical steps to inject life into the sector and benefits that would ordinarily lower through my inspection tours of the zones

8 9 CHECKLIST CHECKLIST FOR SETTING UP A FREE ZONE IN NIGERIA Application letter indicating interest to establish a Free Zone, and its location in the country.

Payment of USD 1000 processing fee. SUBMISSION OF THE FOLLOWING DOCUMENTS Acquisition and issuance of Certificate of and farm lands and other economic value Occupancy for the proposed site. already present on the land.

Perimeter and topographic survey of the Location of the site. site. Proximity of the proposed zone to Survey plan for the site with beacon existing infrastructure/facilities. (e.g. numbers. Airport, Road, Rail, Seaport, Power, and settlements around etc) if any. Master-plan for the proposed site (4 Alternatively, plans for the provision and copies). development of support infrastructure that would attract and sustain investment Environmental Impact Assessment report in the zone. (EIA, 4 copies). Federal Ministry of Environment develop Inventory of existing infrastructural and regulate checklist for implementation facilities on the proposed yard for the and compliance. zone, if any.

Detailed feasibility study (4 copies)- study Economic viability. guideline. A clear analysis of the economic costs and A brief description of the project clearly benefits of the project into its financial defining the scope of business and the cost and benefits. objective for the establishment of the zone. Availability of raw materials

Name and resume of the promoter Linkages between the FTZ industrial and detained definition of the zone activities and domestic economy. The management structure. likely impact on domestic economy.

Location and size of the zone as well Specific output. The output of the as evidence of unencumbered title ie proposed project needs to be specified, i.e compensation plan/evidence of payment the likely number of enterprises that will for compensation for existing inhabitants be located in the zone and nature of their

10 products in line with the expectations of the zone.

Employment generation.

Condition of service should be clearly spelt out.

The projected number of employees that may be required (local and foreign) and the grade of labour needed. Please note that upon receipt and study Projected profitability of investment. of the aforementioned documents, the Authority will commence project due Risk Assessment of Project. diligence to evaluate the legitimacy of the venture within the ambit of the Free Trade Implementation strategy for the project. Zone regulations and laws and any other legislations as may be applicable, consider Details of Developmental pattern/ proposed site enabling issues as well as Phasing of the proposed internal & socio-economic matters relating to the external infrastructure facilities including zone. land use distribution pattern supported with timelines of work schedule. Inspection of the proposed site by NEPZA officials. Details of EPC (Engineering, Procurement Upon review and approval of the project, and Construction) work packages, i.e. site the following fees shall apply: preparation EPC, Process plant EPC etc. Licensing fees of USD $400,000-Free Zone Health, Safety and Environmental (H.S.E) status declaration Fee. compliance program of proposed Zone. Licensing fee of USD $500,000-Industrial Evidence of Companies, if any, which City/Park status declaration Fee. have indicated interest in locating in the proposed Zone and future targeted USD $100,000 Operation Licence (OPL) Fee prospective companies or clients that to be paid along with declaration fee in would be admitted in the Zone. the first instance and thereafter as annual renewal fee. Any other information such as Agreements, MoU and Concessions The amount stated above is subject to that will assist the consideration of the review by the Authority. proposal 11 NEPZA GALLERY

The MD, Prof. Adesoji Adesugba (left), receives the Chairman, NEPZA Board, Hon. Adamu The MD, Prof. Adesoji Adesugba (on black cap), and his team, pose for a group photograph Abdu Fanda, at the Authurity’s Headquarters, Maitama, Abuja…Tuesday, October 13, 2020. with the management of Eko Atlantic City FZ, during the MD’s visits to the zone in Lagos State…Tuesday, August 18, 2020.

L-R: The NEPZA rep. at Lagos Free Zone, Mr. Wilfred Odega; the MD, NEPZA, Prof. Adesoji R-L: The CEO of Lagos Free Zone, Mr Dinesh Rathi, expounds the the Lagos Free Zone model Adesugba; and officials of the Nigeria Customs Service (NCS), during the MD’s visits to the to the MD, NEPZA, Prof. Adesoji Adesugba, during the latter’s tour of the zone. Lagos FZ, Lekki, Lagos State…Monday, August 17, 2020.

The MD, Prof. Adesoji Adesugba (centre), inspects facilities at The MD, Prof. Adesugba, in a tête-à-tête with Mr. OP Olowoy- the Snake Island Integrated Free Zone (SIIFZ), during his tour eye, of the Nigeria Immigration Service (NIS), during the MD’s of Free Zones in Lagos State…Tuesday, August 18, 2020. visits to Ladol FZ, Lagos State…Tuesday, August 18, 2020

L-R: The MD, Prof. Adesugba; the MD, M.Salah Engineering FZE/member, NEPZA Board, The MD, Prof. Adesoji Adesugba (seated left), dialogs with the MD, Ladol FZ, Dr. Amy Jadesi- Chief Engr, Nabil Ahmed Saleh; the Director, Planning, Research and Statistics (NEPZA), Dr. mi, while the Director, Zones (NEPZA), Muhammad Hadi Mua’zu Ruma (left), pays attention, Oyesola Oyekunle, during the MD’s visit to SKYRUN Nigeria FZE, in Calabar Free Trade Zone during the MD, NEPZA’s tour of Free Zones in Lagos State…August 18, 2020. (CFTZ), Cross River State…Wednesday, September 23, 2020. 12 NEPZA GALLERY

The MD, NEPZA, Prof. Adesoji Adesugba, presents a made in Kano Free Trade Zone (KFTZ) The MD, Prof. Adesoji Adesugba (on black caftan), presents the NEPZA VIP plaque to the product to the visiting Ekiti State governor and Chairman, Nigeria Governor’s forum (NGF), deputy governor of Cross River State, Prof. Ivara Esu, during the MD’s visits to the Calabar Dr. Kayode Fayemi, at the NEPZA’s corporate head office, Abuja…Friday, September 4, 2020. Free Trade Zone (CFTZ), in Cross River State…Thursday, September 24, 2020.

The Executive Governor of Lagos State, Mr. Babajide Sanwo-Olu (right), receives the MD, The governor of Lagos State, Mr. Babajide Sanwo-Olu, presents the Lagos VIP plaque to the NEPZA, Prof. Adesoji Adesugba, at the Lagos House, Marina, during the latter’s tour of Free MD, Prof. Adesoji Adesugba, at the Lagos House, Marina. Zones in Lagos State…Thursday, August 20, 2020.

The MD, Prof. Adesoji Adesugba, shows great excitement while being presented made in The MD, Prof. Adesoji Adesugba (left), presents NEPZA VIP visitor’s plaque to the governor Taraba Highland Tea by the governor, Arch. Darius Dickson Ishaku, at the NEPZA’s head office, Taraba State, Arch. Darius Dickson Ishaku, during the latter’s courtesy visit on the MD at the Abuja. NEPZA’s head office, Abuja…Wednesday, November 5, 2020.

The MD, Prof. Adesoji Adesugba and his team, pose for a group photograph with the MD, Ladol FZ, Dr. Amy Jadesimi, and the management of Eko Atlantic City FZ, during the MD’s visits to the zone in Lagos State…Tuesday, August 18, 2020.with

13 SOCIAL GALLERY

Mr. B.D Dawuk (on white caftan), flanked on his right by the Assistant Director, Internal The MD, Prof. Adesoji Adesugba (centre), celebrates with the Director, Zones, Audit, Mrs. Akuye-Gbefwi Bernadette, and other staff members. Muhammad Hadi Mua’zu Ruma, during the latter’s birthday bash, put together by the management of Alaro City FZ, Lekki, Lagos state.

The celebrant, Muhammad Hadi Ruma, receives a birthday present from the The Assistant Director, Internal Audit, Mrs. Akuye-Gbefwi Bernadette, mark her birthday management of the Alaro City FZ. as she is seen cutting her cake on Wednesday, August 19, 2020, in Ogun-Guangdong FZ, Igbesa, Ogun State.

The Director, Finance/Accounts, Mr. Bitrus Daniel Dawuk The Assistant Director, Investment Promotion A mini-send-forth ceremony and 60th birthday of the Deputy (centre), assisted by his two daughters, to cut his birthday and Investor Services, Mrs. Madu Teresa, is full of Director, Monitoring and Compliance, Mrs. Ofodile Tina Nkiru, cake cake…Thursday, October 15, 2020. gratitude and excitement, as she celebrates her on Wednesday, September 16, 2020, as she cuts her cake at birthday with a beautiful cake, in her office, at the the NEPZA’s head office, Abuja. NEPZA’s Headquarters, Abuja.

“For he is a jolly good fellow…and so said all of us”. The Assistant Director, Managing Director’s office, Mr. George Okoh, cuts his birthday cake. He is flanked by the MD, Prof. Adesoji Adesugba (on his immediate left), and other excited top management staff of the Authority… Monday, September 14, 2020.

14 INTERNAL NEWS New NEPZA Boss Assumes Office, Charges Staff on Improved Productivity

Prof. Adesoji Adesugba, new Managing Director of the Nigeria Export Processing Zones Authority (NEPZA), has urged staff of the agency to improve on their work ethics to optimise NEPZA’s contribution to Gross Domestic Product (GDP) growth. Adesugba, made the remark while addressing the Management staff on Wednesday, July 1, 2020 in Abuja.

The new MD explained that NEPZA “I shall be bringing my experience to bear would take steps to galvanise support for provided the country with a sufficient so that we can support the government to the MD to lessen his workload. escape route for economic recovery Post improve on its revenue derive, especially COVID-19. in the non-oil sector. The Minister of Industry, Trade and Investment, Mr Niyi Adebayo during Adesugba, also said the authority’s “I am prepared to run an open process the MD’s formal inauguration earlier, success or failure would be measured where the contribution of all shall be expressed confidence in Adesugba’s by its actions or in-actions in this crucial measured, tested, and applied for the capacity to deliver on the job. period of the economic downturn caused overall good of the Authority,’’ Adesugba by the prevailing pandemic. said. According to Adebayo, NEPZA requires close supervision to drive the country’s He, therefore, appealed to the He also advised the management economy. management staff of the organisation to to ensure strict compliance with the see his appointment as a blessing to the National Center for Disease Control “I once again congratulate the new NEPZA sector, adding that the workforce must (NCDC) cautionary instruction to avoid the MD on his appointment and we hope that work as a team and one family to achieve spread of COVID-19 among the workforce, you would not disappoint the ministry. any meaningful results. adding that the pandemic was wreaking “Remember that NEPZA is a parastatal havoc on the human population. under the ministry, and therefore, must “I have years of experience working with carry out aspirations of the ministry that government establishments. Mr. Bitrus Dawuk, the immediate past would help in growing our economy. “My exposure to agencies like Customs, Acting Managing-Director, said the Nigeria Export Promotion Council, Nigeria management staff and the workforce “NEPZA’s successes or failures would Investment Promotion Commission, would cooperate with the new MD to take always naturally rob-off on the ministry, National Association of Commerce, NEPZA to the zenith. so the ministry will not be quiet when Industry, Mines and Agriculture and as a things are going wrong,’’ the minister said. Legal Practitioner has indeed made me Dawuk expressed his appreciation for an industry player. the opportunity to serve, adding that he 15 INTERNAL NEWS

Free Trade Zone Scheme Remains A Presidential Initiative – MD NEPZA

The Managing Director of the Nigeria of the problems negating the smooth “The scheme could affect government Export Processing Zones Authority operations of the scheme in the country. revenue generation in a short term, but (NEPZA), Prof. Adesoji Adesugba According to him, arrangement to upgrade would boost local production, create had reiterated that the free trade electricity supplies to both Calabar and employment, attract Foreign Direct zone scheme in the country was Kano free trade zones directly managed Investment (FDI) for industrialisation in a presidential initiative aimed at by the government has reached advance the long run’’, the managing director said. propelling economic growth through stage. Furthermore, the NEPZA boss urged local production. the staff of the Authority in the zone to “The private zones are gradually out- develop a renewed vigour toward helping Adesugba said this while speaking growing the challenges of power and in executing the agency’s mandate, with some operators of enterprises water supplies; the president is, therefore, adding that the management would no in the Calabar Free Trade Zone on committed to making the public zones longer condone ineptitude behaviour Wednesday, September 23, 2020 in the enjoy similar infrastructural stability’’, he from any members of the workforce. Cross Rivers State Capital, Calabar. said. Adesugba, who assumed office as Chief The managing director, who is on Adesugba also said enterprises in the Executive Officer of the Authority about official tour of the zone, said President zones must be allowed to enjoy free tax three months ago, had embarked on Muhammadu Buhari was fully committed regime as espoused by the drafters of the similar familiarisation tour to Kano and to ensuring the success of the scheme. concept. Lagos zones respectively. He explained that the Federal Government was aware of the challenges associated “We must ensure that the public The managing director’s Wednesday’s with zones’ operations, adding, however, understands the true meaning of the activity was climaxed by a dinner that it considered the prospects and gains scheme which is simply a business where zone operators, stakeholders, to far out-weigh those challenges. enclave out of the customs area. The and representatives of some security enterprises operating in the zones are agencies including the Nigerian Customs Adesugba, however, said the public not taxable. This is an aspect where the Service and the Nigeria Police Force met and private sectors must agree to work various tax agencies must come to terms to suggest ways that could optimize the together in order to jointly solve some with. gains of the scheme.

16 INTERNAL NEWS Ayade, said the Calabar free trade zone NEPZA, Cross-Rivers Government was meant to be the flagship of the country’s zones scheme, adding that the Agree On Steps To Revamp Calabar state was prepared to partner with NEPZA to tackle some of the challenges facing Free Trade Zone the zone.

The governor explained that the zone was a huge investment of the federal government that the state had helped to protect over the years, adding that urgent measures were truly required to salvage the zone. “We are committed to join forces with NEPZA and other relevant stakeholders to remodel the zone’s operations with a view to eliminating the encumbrances that continue to force investors out of the place,’’ Ayade said.

Meanwhile, the Authority had also The Nigeria Export Processing Zones first place, but the worst has happened agreed to partner with the Cross Rivers Authority (NEPZA) and the Cross here. It is about time we came together State Chamber of Commerce and the Rivers Government had agreed to take to change the narrative as the zone still state branch of National Association of steps to immediately commence the holds a lot of promises’’, he said. Chambers of Commerce, Industry, Mines revamping of the Calabar free trade and Agriculture (NACCIMA) to leverage zone. Adesugba said the Authority was prepared on the platform provided by the Gulf of to partner with the state to develop a Guinea Commission to attract investment The two authorities agreed on the workable strategy to reposition the zone, into the Calabar zone without further measures to restore the status of the adding that a joint committee could be delay. zone when Prof. Adesoji Adesugba, the constituted to midwife the process. Managing Director of the Authority paid “We have done similar thing with the The NEPZA managing director made the the Cross Rivers State Governor, Prof. Lagos State Government and that has remarks when Rt.Hon. John Gaul Lebo, Ben Ayade a courtesy visit on Thursday in deepened the trust level between us and the Cross Rivers State Special Envoy to Calabar. the state significantly. We will through this the commission paid him a courtesy visit. Adesugba had embarked on a three-day synergy begin to appreciate the free trade Adesugba said the commission was working visit to Calabar to ascertain the zone concept better. a union of countries within the gulf of state of the zone, Tuesday, September 25, guinea region that had agreed to trade 2020. “I will like to reiterate that the scheme among themselves, adding that the state is a global economic concept and not and country could use the commission The managing director said there was a Nigerian creation. If we can tame the to improve trade relations with other urgent need to restore the status of the zone very well, both the state and the members of the group. zone in line with the initial thoughts of the country would experience unimaginable Federal Government for it to be a special economic growth. The Cross Rivers State On his part, Lebo said the state business enclave to spark up economic government must seek to leverage on the government took its membership of the growth and industrialisation of both the gains inherent in the scheme’’, he said. commission seriously, adding that the southern region and the country as a On the deplorable state of some of the commission was helping to open several whole. federal roads in the state, the NEPZA Chief business frontiers for the state. Executive said President Muhammadu Adesugba explained that the zone was had demonstrated the political will to Lebo said the Calabar free trade zone was now a shadow of it former state, adding rehabilitate most of the roads, adding strategically positioned to habour foreign that a total of 33 enterprises out of the that the state could also intervene to investors lurking around the state, noting about 65 in the zone had left. reduce the infrastructural deficit outside that such investment cross fertilizations “What we have seen is a sad commentary of the zone. were direct gains from the commission to and measures must be taken very urgently the member states. by both the state and the Authority to In his remarks, the governor, who was “There are investors from Guinea Bisau, revamp the zone. represented by his Deputy, Prof. Ivara Liberia, Soa Tome and Principe as well Esu, had commended the president for as Angola already in the state looking for “The status of Calabar as the first capital appointing Adesugba as head of NEPZA, investment opportunities. The zone with of the country and its location as a adding that the development had re- its lofty incentives remains the best place coastal city had encouraged the federal awaken the interest of many investors in to receive these investments’’, Lebo said. government to site the zone here in the the scheme.

17 INTERNAL NEWS Firms’ Huge Investments In FTZs Constitute Positive Economic Growth Indicator – NEPZA Boss

The Managing Director of the Nigeria and igniting industrialization process, seamless access to forex. The zone is a Export Processing Zones Authority, adding that the system had a longer peculiar business community. In fact, NEPZA, Prof. Adesoji Adesugba has gestation period. it’s like a country of its own that requires reiterated that the present huge the presence of all types of financial investments in the nation’s economy He explained that the Authority was institutions to function optimally’’, by private operators of the Free Trade strategic in executing its mandate, adding Adesugba said. Zones, (FTZs) remained a positive however that the agency was prepared to indicator of the scheme’s capacity to partner with the private sector for speedy Adetuntan had expressed delight on significantly contribute to growth and execution of outlined strategic plans. Adesugba’s appointment as the NEPZA development. chief executive, adding that he (Adesugba) “NEPZA will remain strategic in executing was an accomplished investment Adesugba made the remark when the its plans to ensure smooth transition promotion expert. Managing Director and Chief Executive of our strategic plans. From the indices Officer of the First Bank Nigeria Plc, Dr before us, we can do better. Our staffers He also said that many countries had Adesola Adetuntan paid him a courtesy have been made to understand that the leveraged on the free trade zone scheme call on Tuesday, September 16, 2020 in government relies on us to show the to steer growth and development, adding Abuja. direction toward the industrialization of that Nigeria was on the right track to the country’’, he said. achieving same. The NEPZA boss explained that there was great prospect to scale up the investment Also, the NEZPA chief executive reiterated The chief executive of First bank further profile speedily when the ideals of the the need for the approval of offshore said that the bank would be pleased to scheme were better promoted. banking for enterprises operating in the partner with the Authority for mutual zones, adding that the current practice benefits. The managing director said the system where they competed with firms outside could attract more investors and work of the zones for foreign exchange was better when enterprises operating in the affecting their operations. zones were not threatened with tariffs, “I am aware the Central Bank of Nigeria, duties and other sundry taxes, adding CBN is working to ensure that happens. that such development could truncate We are hoping that the committee the essence of the scheme. handling that process could expedient action on it. Adesugba also said the free trade zone concept was aimed at encouraging local “The zone cannot function without production, stimulating job creation, the presence of banks that provide the attracting Foreign Direct Investment (FDI) enterprises with peculiar needs such as

18 INTERNAL NEWS NEPZA, NASS Agree on Critical Roles in Country’s Industrialisation Process

agency for whatever free zone you have created automatically people will be free to exercise their right there and things will move.

“As regard us, we are ready to work with the executive arm and by extension, the Authority to ensure whatever laws we are going to amend to assist you to bring innovation that will make you to do things differently is given priority,’’ the acting chairman of the committee said.

Fadahunsi also said: “with your experience, we hope that foreign business partners will come to Nigeria very soon. The Nigeria Export Processing Zones impacts of the prevailing hash economic On this note if there is any enabling law Authority (NEPZA) and the Senate outlook brought by the Covid-19 you are thinking of, that can be brought Committee on Trade, Industry pandemic could be quickly ameliorated up”. and Investment had agreed to using the strategy of free zone. strengthen synergy on critical roles According to the acting committee aimed at expediting the country’s The managing director explained that: chairman, the country is losing huge industrialization process. “in this respect, we have looked at what revenues from lack of foresight in the is on ground especially the Special management of the free trade zone This agreement was reached when Sen. Economic Zones that the government scheme. Francis Fadahunsi, Acting Chairman of had created and we intend to give life to the committee led other of his colleagues for full operations to commence in those “There is now a respite that you have to pay courtesy visit on the Managing locations as this a sure way to create the come to manage the agency. We expect Director of the Authority, Prof. Adesoji much needed employment and to spark positive changes in many areas. We Adesugba on Thursday, September 11, genuine industrialisation’’. shall also support you in the creation of 2020 in Abuja. “I hope and pray that this committee helps additional or new free trade zones. galvanise the required support for the Adesugba had said: “this occasion is very Authority by taking us into consideration “We will support such initiative as important to me because I am sure you when issues relating to assisting us comes that will provide opportunities for our know I have just been recently appointed into play at the national assembly’’. teeming youth population to be gainfully and this will be the first major interaction employed. Such development will help in that I am having with your distinguished Fadahunsi had expressed delight in taming the current high crime rate. personalities. Adesugba’s appointment as the Chief Executive of the agency, adding that Fadahunsi further explained that: “we are “The role of the senate and the entire President Muhamadu Buhari had going to back you on behalf of the 9th National Assembly in enabling us to reach picked the right person to reposition the senate for you to have new trade zones’’. our mandate is very critical to us. Authority. “As soon as you set some good foundations others will follow but you “I have no doubt that we will be working “We are happy to be here and with your have to have synergy with all the relevant very closely with your committee to appointment we hope strongly with the agencies so that the economy will move. ensure that NEPZA attains its objective cooperation of the 9th senate things will NEPZA is one of the pillars of the country’s in playing a very critical role in the move I believe because you have been an economy. industrialization of Nigeria. achiever. “On behalf of my distinguished “We are all part of the downturn in the “What we need in NEPZA is renovation colleagues, we welcome you on board as global economy and that also which upon renovation, infrastructural facilities we urge you to come up with innovations is affecting Nigeria we are looking in- for economic growth, just provide and we are ready to partner with you so house at the possibilities of NEPZA been infrastructural facilities and security in that Nigeria can get out of its lingering a catalyst to propel the economy from the zones that can attract investors, they economy problem’’, Fadahunsi said. where it is now. will come. Sen. Sabo Nakudu, and Sen. Tolu Adebi were the other committee members at The NEPZA boss further said the negative “You have to have synergy with security the event.

19 INTERNAL NEWS Buhari, NEPZA, Extoled for Approving SEZ for Ebonyi State Constituency of the state at the House of with world class infrastructure for the Representatives said the president had by benefit of the country’’, Umahi said. this action finally accorded the region the He also said the industrial base would be capacity to live up to its bragging right as fully exploited by the region as according a true industrial hub in Africa. to him, the zone will create jobs, spark export of industrial goods, attract both The governor explained that the Buhari’s Local/Foreign Direct Investments and administration was now energizing NEPZA reduce poverty among the people. to drive the country’s industrialization, Meanwhile, the NEPZA Chief Executive adding that the zeal and commitment Officer, said he was elated to witness of the new managing director to ensure the delivery of the original copy of the the realization of this goal had been C-of-O of the proposed site of the zone, legendary. adding that he was also ecstatic with The Ebonyi State Government has the commitment of the state toward the described the approval given to it for “Let me unequivocally state that, the project so far. the establishment of Special Economic Government and the people of Ebonyi Zone in the state by President State shall forever remain grateful to Adesugba reiterated that the President Muhammadu Buhari as a worthy His Excellency, President Muhammadu Muhammadu Buhari had bestowed parts overture capable of harnessing the Buhari for considering the state worthy of the Post-Covid-19 economic recovery economic potentials of the entire to be among the six states to benefit from plans and industrialization process of eastern region. this wonderful initiative. the country on NEPZA, adding that the “We are equally grateful to NEPZA Authority had the mandate of ensuring the Gov. David Umahi said this while handing Management led by Prof. Adesoji buying-ins of all the state governments to over the original copy of the Certificate Adesugba for ensuring that our dream of achieve these noble targets. of Occupancy of the site where the zone having a special business enclave like the “The Ebonyi State Government has would be located to Prof. Adesoji Adsugba, free trade zone came to fruition. shown to us that when there is a will, Managing Director of the Nigeria Export there must be a way. I therefore, add my Processing Zones Authority (NEPZA) on “The state will in collaboration with voice to thank His Excellency, President Monday, November 16, 2020 in Abuja. the federal government, NEPZA, the Muhammadu Buhari for enlisting the Umahi, represented by Hon. Sylvester Organised Private Sector, enterprises and state into free trade zone family’’, NEPZA Ogbaga, a Federal Lawmaker, investors from across the world ensure boss said. representing Abakaliki/Izzi Federal that this business ecosystem is developed

NEPZA Boss Tasks New Staff on Positive Work Ethics The Managing Director of the Nigeria Zones Development’’, “Rational for Free “This is a frontline agency that the Export Processing Authority (NEPZA), Prof. Trade Zone Development’’, “Modeling Free government relies on for economic Adesoji Adesugba has urged new staff Trade Zone with Business Opportunities’’, growth and industrialization, so for of the Authority to without delay align “X-ray the Law Establishing Free Trade you to be relevant here you must seek their thinking with the agency’s vision, Zones In Nigeria’’, and “Investors Services to continually build your skills and mission and mandate for sustainable and Investment Promotion’’. knowledge on how to operate on this turf. high productivity. Others include: “ICT in the Free Trade “You will be confronted with all manner Zone Ecosystem’’, “Service Delivery Policy of challenges as you prospect investors, Adesugba gave the advice in his address in Public Service’’, “Communication nurture and manage them in line with to flag-off a 4-day Induction and Training Process’’ as well as “Programme and NEPZA Act. You will also have to contend programme organized for the new staff Project Cycle’’. with some sisters’ agencies who may on Monday, October 6, 2020 in Abuja. want to trespass the zones and so on. Your The programme is aimed at a proper The NEPZA Chief Executive, therefore, responsibility, therefore, is to educate and indoctrination of the 270 persons said it was incumbent on the Authority sensitize them on the free zone concept. employed by the Authority in July 2019. to build the capacity of the new crop of The event which is billed to also take place staff for effective management of tasks, “The knowledge you would obtain from in Lagos, Calabar and Kano respectively adding that the staff must, however, this laudable training and induction would expose the fresh staff to the apply their faculties to learn, retain and would come handy someday very soon. operations of Free Trade Zone scheme in display expertise in free zone matters. We are committed to repositioning the accordance with global standard. He explained that the Authority would Authority for effective performance and not be patience with any workers who nothing less than this shall be tolerated’’, Some of the deliverables to be considered displaced indolence, and worked to Adesugba said. include: “Introduction to the rudiments of destroy the system instead of helping to Free Zone Scheme’’, “Major Trends in Free build it.

20 SPECIAL FEATURES

CCECC Builds a Positive Role in Nigeria Construction Market f 97 countries in which China Harcourt and Abuja, are operational, and by step we became larger and diversified, Civil Engineering Construction two, in Kano and Lagos, are expected to including design and surveying work,” Corp. operates, it has its be completed in late 2019. said Michael Jiang, managing director of Ostrongest presence in Nigeria, with CCECC Nigeria Ltd. “We branched out in all over 19,600 employees. One of the company’s most high- types of investment, such as developing profile achievements was constructing the Lekki Free Zone in Lagos.” “CCECC has signed contracts on more than a 44kilometer light rail system in the 120 projects in Nigeria, but construction capital, Abuja — the first mass transit The company is also focused on social has only started on half of them, while system in West Africa. It began operating responsibilities. “A CCECC scholarship funding issues are being worked out in July 2018. program has sent 150 Nigerians to on the others,” says Zhou Dongping, study civil engineering at Central South business development manager. The firm is in discussions with the University in Hunan Province and Ministry of Transportation over two major Chang’an University in Xi’an Province,” Most CCECC clients are federal ministries long-range projects: the remaining four says Zhou. and state governments, and the work the segments of the Lagos-Kano standard- company performs includes highways, gauge line, and the 1,400-km east-west “In addition, CCECC started a railroad buildings, ports and water supply Lagos-Calabar line. university program in 2018, involving projects. Second in scale behind the three years of study in Nigeria and two in Lagos-Ibadan rail line are four massive The company’s scope has broadened China.” airport terminals. Of those, two, in Port during its 38-year tenure in Nigeria. “Step Source-ENR

21 SPECIAL FEATURES Leveraging Special Economic Zones for African Industrialisation and Integration — By Prof Adesoji Adesugba SEZ’S AND THE INDUSTRIALIZATION AGENDA

Regarding industrialization in Nigeria, the SEZ model is being sought to accelerate implementation of the Nigerian Industrial Revolution Plan (NIRP), a four (4) year road map on industrialization in order to create jobs and promote exports, which in turn will facilitate economic growth. The aim is to build Nigeria’s competitive advantage, to broaden the scope of industry, and to accelerate expansion of the manufacturing sector. Specifically, the plan sets out to increase the contribution of manufacturing from current 4% of GDP to over 10% in the next 5 years which translates to about N5 trillion annually.

ree Trade Areas are special Zones in Nigeria. The Act empowered In 2017, the Federal Government initiated creation that propels the growth the Nigeria Export Processing Zone Project Made in Nigeria for Export and advancement of many Authority as the sole government agency (MINE) in 2017 to develop and upgrade Feconomies worldwide. The FTZ has responsible for establishing, licensing, existing Free Trade Zones to Special been successfully deployed from North regulating and monitoring of Free Zones/ Economic Zones aimed at contributing America to Europe to Asia. Africa’s Export Processing Zones in Nigeria. to meaningful industrial and export embrace of the model is now more development in Nigeria. than critical in view of the advent of The main goal for establishing the Special the Africa Continental Free Trade Zone. Economic Zone scheme in Nigeria is Agressive adoption of free zone model to improve the investment climate by THE ROLE OF NEPZA and its best practices are compulsory providing a competitive incentive regime, for Africa to realize the continent’s streamline administrative procedures As the agency with the mandate to desire to advance industrially. and offer world class infrastructure establish and oversee the operations of aimed at attracting capital investment for all zones in Nigeria, NEPZA has a total of 42 Free Zones are forms of economic industrial development. zones under its purview. Whilst a few have integration wherein all barriers of trade recorded relative success in operations, are eliminated; however, each country Other Objectives include; most have not operated at their full is allowed to retain its own barriers with • Job creation potential due to several challenges such non-members otherwise known as third • Attraction of foreign direct investment as a lack of adequate funding, poor countries. Generally speaking, there are • Technology/skills transfer infrastructure, accessibility, inconsistent various kinds of economic integration • Export development power supply and management. ranging from free trade areas to customs • Encourage backward linkages and union, common markets and economic • Socio-economic development of the In continuation of the President’s agenda unions. The practice is for countries to immediate host community. of industrialization using the SEZ model, start with the lowest form and graduate NEPZA has recently revised its strategic to higher stages over time. The Federal Government of Nigeria plan to include “to increase the number identified the Special Economic Zone of functional and optimal SEZ’s” as one There are expected benefits to a Free scheme as a key policy instrument in of its key goals targeted at developing Trade Area formation. Nations are likely the realization of the industrialization the SEZ sphere in Nigeria. In this regard, to receive benefits through increased agenda following a visit by President NEPZA seeks to establish world class competition, economies of scale, stimulus Muhammadu Buhari, GCFR to the Peoples “plug and play” technically driven zones to investment and better utilization of Republic of China in 2016. This is in the that will attract foreign direct investments resources. context of the experience in China where the deployment of SEZs in 1980 propelled Stakeholder discussions are currently In Nigeria, the Free Zone Program was her GDP from $191 billion at the time to underway for the creation of SEZ’s in the introduced in 1992 through the enactment $11 trillion in 2016, a staggering increase following thematic areas; of Act No. 63 of 1992 which provided for of 5,764%. the establishment of Special Economic

22 SPECIAL FEATURES - Nigerian - Cameroon Regional Cooperation

Sharing so long a border, Cameroon and Nigeria potentially have a lot to gain by extending cooperation through free trade zone. While such bilateral creation has not occurred, the Calabar Free Trade Zone in Cross River state can serve that purpose.

Regional Cooperation as Key Response Response to the Covid-19 Implications

The coronavirus 2019 (COVID-19) pandemic has taken a toll on the economies and healthcare systems of even the most developed countries. Despite the low level of cases and death in • Medical and Pharma Industrial Parks - Nigeria-Benin Regional Cooperation Africa, the pandemic showcased the lack • Mining and Minerals Special Economic of infrastructure, expertise and manpower Zone At the moment, Nigeria does not have required to deal with the fallout of a major • Agric and Food Parks any SEZ cooperation with the Republic surge should it occur. The closure of • Information and Technology Parks of Benin. However, there are efforts international borders also highlighted the from the FGN to formalize border trade. need for Nigeria and Africa as a whole to Implications of AFCTA on SEZ’s Across Focus discussions are on infrastructure look inwards and become self-sufficient Africa development and the setting up of in the provision of services to its citizens relevant government border agencies. especially as it relates to healthcare. The Rules of Origin (ROO) debate remains a key discussion point regarding the Three borders have been identified for implications of the AfCTFA on SEZ this purpose which are: NIGERIAN RESPONSE operations in Africa. There must be ways • Idiroko Transnational Border Market – to accommodate the SEZ’s within the Ogun State The recently released NIGERIA ECONOMIC Rules of Origin (ROO) to support the • Okerete Transnational Border Market – SUSTAINABILITY PLAN OF 2020 (NESP) objectives of the AfCFTA. Consideration Oyo State was created to address the health and should be given to regional and specific • Bafana Transnational Border Market – economic emergencies caused by the country objectives during the negotiation Niger State COVID-19 pandemic through the granting process to ensure industrialization of many incentives including support to agenda of each country is achieved. However, it is important to note that the the development of the healthcare sector Ogun-Guangdon Free Trade zone one of in Nigeria. The private sector, with these Market access and the ROO value the eight (8) China- Africa co-operation incentives are being mobilized to support criteria are some of the issues that have zones, focused on manufacturing, lies infrastructure development. implications on the operations of SEZ’s. In in close proximity of Idiroko and could relation to market access, the law on free potentially service the Benin Republic NEPZA seeks to play its role in the zones allow up to 100% importation of market. development of the healthcare sector inputs and raw materials which negates by establishing a fully equipped and the principle of origin. Most African - Nigeria-Niger Regional Cooperation functional Medical SEZ in Nigeria that will countries have a low-level industrial base provide world class, in-country healthcare making accessing inputs from African The Maigatari Border Free Zone, Jigawa comparable to the standards that nations difficult, resulting in the need to State, was licenced in the year 2000, at Nigerians seek abroad. The zone will help import from third countries hence the the border town of Maigatari / Niger. The to reduce medical tourism from Nigeria case for a flexible ROO. zone covers 220 hectares. To date, there and also service the African market. are three (3) Free Zone Enterprises (FZE) operational. Professor Adesoji Adesugba, the CROSS BORDER SEZ AS VEHICLES FOR Managing Director of NEPZA, delivered REGIONAL INTEGRATION • Tricycle Assembling Machine FZE this paper at the 3rd AU Symposium • Gum Arabic Testing Laboratory & on Special Economic Zones and Green Experimentation with cross border free Warehousing FZE Industrialisation held on September zones for regional Integration is a smart • WACOT Sesame Seed Processing 28th. His presentation was under session route for Africa. For Nigeria, various Company FZE. 2 with the theme: “SEZ’s and Regional scenario are reviewed below: Cooperation in Africa: State of Play and Major Guidelines”

23 24 SPECIAL FEATURES Free Zones Route to Economic Recovery

ncreased focus on industrialisation can stay afloat,” Prof. Adesugba said. seen at Alaro City as underscored by the and trade in Nigeria’s free trade Chairman of Alaro City, Ayo Gbeleyi, number of businesses and individuals we zones would hasten the country’s said the event was organised as part have welcomed to our city in such a short Ieconomic recovery, experts said at of efforts to sustain conversations, time. It is also evidence that the market is an event organised by Alaro City, the especially between the government and ready for high-quality, inclusive city-scale mixed-use city being built in the Lekki private sector, on effective ways of urgent developments designed for business and Free Zone. economic revitalisation. living. We at Alaro City and Rendeavour believe free zones will play – indeed are Speakers at the event titled: Free Zones He said: “We must think of our economy playing – a pivotal role in accelerating as Engines of Growth: A Spotlight on Alaro beyond oil, and that is why we need free economic growth and development in City – included the Managing Director, trade zones to generate export revenue. Africa. In fact, we believe our cities across Nigerian Export Processing Zones We need to expand our industrial base in Africa will be home to the entrepreneurs Authority, Prof. Adesoji Adesugba; the a strategic way, and I think that the place and enterprises that will propel Africa into Deputy Comptroller-General of Customs, to be is in the Lekki Free Zone, where the a new age.” Dr. Patience K. Iferi; Managing Director of Lagos State Government and all relevant Rosettee Construction, Mr Maroun Awad; agencies are present to breakdown all Launched in January 2019, Alaro City is Managing Director, Omar Gardens, Mrs. bottlenecks. Alaro City is a product of a planned as a 2,000-hectare mixed-income, Mimi Ade-Odiachi; and the CEO of ASB great partnership, a partnership that has city-scale development with industrial Valiant, Mr. Ayo Ikumapayi. achieved remarkable success in such a and logistics locations, complemented short time. Alaro City is serving as a major by offices, homes, schools, healthcare Prof Adesugba said free trade zones attraction for foreign direct investment to facilities, hotels, entertainment and provide protection against the disruptions the state and the country. 150 hectares (370 acres) of parks and and strain on global transportation and open spaces. Alaro City is a partnership logistics systems caused by COVID-19. “Every day at Alaro City, we see how the between Rendeavour, Africa’s largest He urged the business community to numerous benefits of a free zone and new city builder and Lagos State, the partner with Nigeria’s 42 free trade zones our work in building the perfect home economic and financial nerve centre of to reduce the economic impact of the for businesses have catalysed growth. Nigeria. pandemic on the nation. As Alaro City grows, it is becoming a model for effective urban development More than 30 companies are operational, “The pandemic, as we are aware, and a demonstration of how free designing or building their facilities in the continues to distort business logistics zones benefits aggressively engineer city, and 3.5km of initial road networks globally, and so global investors are industrialisation, employment and and a modular 50MVA power plant are looking for workable free trade zones to economic development. Our partnership under construction. One of the companies move into. Doing so would guarantee with Rendeavour is one of which we are in Alaro City, Ariel Foods FZE, is the largest the preservation of the supply chains proud and will continue to work hard to and most technically advanced ready-to- and their investments. The supply chain sustain.” eat therapeutic foods producer in Africa, management is going to be critical as with an annual production facility of COVID-19 has changed business logistics, Founder and CEO of Rendeavour, Stephen 18,000 metric tonnes. but if we can take advantage of the various Jennings, said: “Alaro City is a symbol of incentives which include tax holiday, our commitment to Nigeria, and of the Culled from https://thenationonlineng. absence of customs duties and absence continuity of a partnership anchored net/free-zones-route-to-economic- of several other multiple taxes charged in three administrations of the Lagos recovery outside of the zones, then our businesses State government. The progress we have

25 SPECIAL FEATURES Reinvigorating FTZs/SEZs Operations Through Research — By Oyesola Oyekunle PhD (Director, Planning, Research & Statistics)

ailure rate for start-ups in Nigeria, Africa’s biggest economy, has averaged 61 percent from 2010 – F2018, according to the latest The Better Africa report by Weetracker, an African digital media company published March 18, 2020 by local dailies.

The top 10 countries that experienced the highest shutdown rates among start- ups were Ethiopia (75%), Rwanda (75%), Ghana (73.91%), Zimbabwe (66.7%), The Democratic Republic of the Congo (66.7%), Tanzania (62.50%), Nigeria (61.05%), Senegal (58.3%), Somalia (60.0%), and Kenya (58.7%).

The methodology was simple. GreenTec Capital Africa Foundation used a sample of 500 start-ups either headquartered or operating in Africa. The sampled start- ups founded in or after 2010 were from Oyesola Oyekunle PhD (Director, Planning, Research & Statistics) 32 African countries spanning across 23 industries. sophisticated workforce in the area of projects’ conceptualization, monitoring The above reports show Nigeria as “...the ultimate aim and evaluation. having 61.05 per cent of mortality for new businesses, leaving us with the huge was to groom a He further said: “with the reconstitution, task of engaging on impact assessment highly sophisticated repositioning and upgrading of the of the business environment with a view workforce in the Planning, Research and Statistics unit to to deploying research methodologies to “ a department, it becomes necessary to reinvigorate specifically our free trade area of projects’ upscale the skill level of the staff of the zone scheme and enterprises in zones. conceptualization, department.

The imperative of using business forecast monitoring and The new focus of the DPRS requires a and research to run the country’s free trade evaluation.” structure that is robust and responsive zone scheme cannot be overemphasized to the demands of a fast growing and as doing so would avail the government complex Special Economic Zone Scheme. the required parameters to approving those of zones/enterprises to leverage on This requires that personnel of the operating licensing and daily monitoring the opportunity provided by research department be competent and have for the purpose of data gathering. to restore vitality to the free trade zone skills to ensure reliance, cohesion, scheme which remains a vital part of the effectiveness, efficiency, impact and The task is to ensure the sustenance of country’s economic fiber. sustainability of the scheme’’. regular studies on zone births, deaths and survival rates by carrying out demography One cannot help but be enthused with I cannot accept more with the managing of zones/enterprises to ascertain active the mileage so far achieved in the attempt director as the importance of the training zones, new registrations, cessation of by the new NEPZA boss to reposition the could not have been overemphasized. activity (deaths), and duration of activity PR&S department. The 2-day training Good a thing, the staff of the department (survival rate) respectively. on Monitoring and Evaluation (M&E) have now come to term with the fact that organized for the staff of the department planning and research constitute the Prof. Adesoji Adesugba, the Authority’s on Wednesday, Nov.20 was a pointer on brainbox of the agency. new chief executive officer has wasted how prepared the new management is no time to also see the importance of to drive the agency through research It is therefore the general agreement that researching on key activities of the agency outcomes. exposing the staff to M&E and several to throw up useful indicators. other research methodologies would The Authority would more than ever Adesugba, had in his opening address help to retool the Authority towards before partner with other relevant to participants at the training, said the conducting its affairs more scientifically departments, units of the agency and with ultimate aim was to groom a highly and with precision. 26 SPECIAL FEATURES The Free Trade Zone Concept: Gains & Prospects — By Mu’Azu MH Ruma, Director (Zones) zones remained a positive indicator of Doubtlessly, this concept avails not the scheme’s capacity to significantly only the business community, but state contribute to growth and development. governments the opportunity to leverage The NEPZA boss went on to also reiterate on their comparative advantages to that diversifying the operations of the free stimulate wealth which would improve trade zone into Special Economic Zone, standard of life of the people. and Industrial Parks has great prospect to It is about time we obliterated the popular scale up Nigeria investment profile. saying in Nigeria that: ``government has To achieve this lofty vision, however, no business in doing business’’. With the the ideals of the scheme must be better zone scheme, government at all levels promoted and accepted by government can indeed do business. agencies especially, Nigerian Customs Service, Nigerian Immigration, and The new leadership of the Authority is Federal Inland Revenue Services (FIRS) as working assiduously to provide the ease well as state governments. of doing business environment under the SEZ and by equally taking advantage The sector could only attract more of the Covid-19 challenges to open up he Federal Government of investors and work better when the Health and Medical sector, Aviation, Nigeria’s decision in 1992 enterprises are not encumbered with Mining and Tourism SEZ. to embrace Free Trade Zone tariffs, duties and other sundry taxes TScheme, as business model aimed at and levies as presently the case in states In line with the Authority’s ongoing reform, fast tracking Economic Development where the zones are locate zone operations are presently being via export and import substitution, Suffice, to say that, Nigeria has been repositioned to ensure efficient service into free zone enclaves, remains a experimenting with the Free Zone delivery so that investors and the nation policy that can chart the pathway Scheme. The fact is that the much as a whole will reap the much expected for employment generation, wealth expected benefits have not been fully gains of the Free Zone scheme as does creation, industrialization, foreign realized due to some constraints ranging by countries like China, Singapore, exchange earnings and consolidation from supply corridor road, infrastructure, Dubai, Brazil, Indonesia, Malaysia who of the country external reserve. electricity, gas supply, uncooperative have successfully utilized the scheme to attitude of some government agencies, transform their economies from relatively The mission and vision of the Nigeria conflict of laws, and arguably lack of under developed to emerging economic Export Processing Zones Authority proper understanding of the Free Zone powers. (NEPZA) is clearly an encapsulation concept. of the country’s discernible road map The new thinking is that all legitimate using the zone scheme to grow both the The special economic zone as relative businesses with definable and Gross Domestic Product (GDP) and Gross economic development that stimulates sustainable value chains can constitute National Product (GNP) respectively. policy tool is predicated on improving on fulcrum for special economic zones. It is evident, therefore, that NEPZA, with a import and export substitution potential The aim is to more than ever before statutory mandate to drive this concept of Nigeria. encourage both local and foreign has in the last three decades licensed, investors to leverage on this new facilitated 32 Free Trade Zones housing Already this policy tool is yielding the approach to boost local production, hundreds of enterprises. right results with most of the states and create employment for the teeming youth the organized private sector jostling to population, and to widen the frontiers The scheme has continued to contribute investing to cash as can be seen with for Foreign Direct Investment (FDI)/ Local its quota to the country’s economy. In the recent steps taken by the Ekiti State Direct Investment. fact, enterprises’ investments in FTZs Governor, Dr Kayode Fayemi by suing for constitute positive economic growth Education/Agriculture SEZ. It is imperative to see the above indicator. For example, the Foreign Direct enunciated gains and prospects of the Investment (FDI) profile from the zones in Interestingly too, while the Katsina State zone scheme as inestimable economic the first, second and third quarter of the is keying into the Cotton value chain values that the country would continue year 2020 stands at 225,764,550.69 US SEZ, the Lagos State is showing similar to encourage, reposition and manage for dollar and the Local Direct Investment commitment in the establishment of economic growth. Furthermore, NEPZA (LDI) at N20, 353,328,120.20. Health and Medical SEZ just as the Cross ongoing restructuring which is aimed Prof. Adesoji Adesugba, Managing River State has commenced negotiation at enhancing corporate governance, Director/CEO of the Authority with NEPZA for the creation of Gulf of transparency/accountability eliminating corroborated this position when he Guinea Trade hub by leveraging on red-tape and addressing the infrastructure recently reiterated that the present huge Tinapa and the Cross River Free Trade deficit constitute the major requirement investments in the nation’s economy Zone (CFTZ). for effective and efficient management of by private operators of the free trade the scheme. 27 SPECIAL FEATURES Impact of COVID-19 on NEPZA Workplace Ethics: A Retrospective Analysis — By Hajia Haleema Kamba (Acting Director, Corporate Services)

ith the nauseating spread of to be taken to avoid a second wave of the one of the world’s deadliest It was not long before we were all proved disease. virus codenamed “Covid-19’’ wrong with the country registering its Wwhich at its earliest stage ravaged, index victim, an Italian expatriate. From In the light of this, the department has crippled and literally shut down human that moment on, the virus became gone ahead to introduce staff resumption activities across the world including domiciled, spreading across the country on alternate days to avoid overcrowding. Nigeria, the Corporate Services like whirlwind claiming more victims. This is required to ensure continued Department that oversees general adherence to physical distancing administration of the Nigeria Export The somewhat quick intervention of the practices, reduce the density and traffic in Processing Zones Authority (NEPZA) Federal Government in shutting down all offices and the entire premises. has continued to ensure preventive, its offices was the reason for the near safety and protective measures zero record of victims amongst public The corporate services department is especially now that workplace servants. For us in NEPZA, we still have no currently being repositioned by the activities are gradually returning to record of victims of this deadly virus as we new Managing Director, Prof. Adesoji normal. firmly hold on to our staff population. Adesugba to seamlessly execute all directives aimed at re-invigorating the At first, the general notion in workplace However, as Nigeria joins the league commitment of the workforce to deliver was that the virus which emanated in of countries to experiment the gradual on the Authority’s mandate, vision and China and later spreading to Europe and easing of the Coronavirus lockdown mission more effectively and efficiently the Americas had little or no survival by the resumption of Grade Level 12 even in the face of this raging pandemic. chance in Africa, let alone Nigeria, perhaps and below back to work in the Federal It is vitally important, therefore, to state because of the largely arid nature of our Civil Service, there are concerns that that the department is very much in tune weather. appropriate preventive measures needs with the managing director’s positive

28 SPECIAL FEATURES mindset toward welfare of the employees HEALTH AND SAFETY OF STAFF as we believe that that has direct link with staff productivity. Nevertheless, The safety of staff has been a priority the pandemic has so far either forcefully to the department, health and safety skewed, delayed or redirected some of guidelines are already in place. The the Authority’s ritual activities as captured Authority will continue to comply by below. building relevant environmental and regulatory requirements into the business operations. All staff are advised to take STAFF PROMOTION personal responsibility of their health, including living healthy, exercise, eating The department no doubt is saddled healthy and routine medical check-up. with the task of organizing promotion Employee who fall ill or display any form of examination for the staff, but the symptoms of the virus are not required to 2020 promotion and confirmation be at the office, rather he/she should work examinations have yet to be conducted from home and where any employees due to the prevailing fact of Covid-19 tested positive, he/she is required and facing us as an organization. Preparations advised to notify the department and are, nonetheless, underway to ensure the the Head of the department shall report process does not suffer further delay. such case to the relevant Public Health Authority. Hajia Haleema Kamba ANNUAL STAFF TRAINING (Acting Director, Corporate Services) MEETING IN THE FACE OF COVID-19 The department is also responsible for appropriate preventive measures are not manpower development of staff through The department has to cancel all physical in place, if that be the case, an impending training and retraining: which includes meetings and have to go virtual and worst case scenario might take place. To initiating, organizing and implementation this include management meetings this effect, the department has insisted of induction, in-house training and chaired by the managing director. on the use of face mask, ensuring retreats. These items have also suffered As much as possible, all meetings temperature checks, use of sanitizers, some measures of interferences because including negotiations with vendors maintaining physical distancing as well of the pandemic. We have been largely were conducted via video conferencing as washing of hand always. smart not to allow the entire system to platforms. Everyone is advised to crash as online trainings, retreats were observe telephone etiquete and adhere COVID-19 has changed the Authority, conducted more frequently. We have also to application privacy during meetings. COVID-19 has changed the Country and ensured that protocols related to the use Online meetings are not to be recorded, COVID-19 has changed the World until of conference rooms in the Authority is if need for such, the consent of the such a time that a cure or vaccine against observed where there is need for physical attendees must be sought. this dreaded virus is found. In the interim attendance. staff, and visitors to the Authority must As Nigeria joins the league of countries strictly adhere to the Nigeria Centre for to experiment the gradual easing of Disease Control (NCDC) protocols as the restrictions, there are concerns that “New Normal’’.

29 SPECIAL FEATURES NEPZA and The Changing Nigeria’s Economic Trajectory: Re-Engineering FTZs/SEZs for Far Reaching Growth — By Martins Odeh (Head, Corporate Communications)

ne could recount several Groundnuts Pyramid; the huge reservoir Border Free Trade; Calabar Free Trade economic policies of the Federal of oil palm and Palm plantations in the Zone; Centenary Economic City Abuja; Government that clearly show Eastern part of the country; the Cocoa Onne Oil and Gas Free Trade Zone; Kano Othat it is no longer comfortable with of the West; textile industry and car Free Trade Zone; Lekki Free Trade Zone; the over reliance on the downstream manufacturing plants in both Lagos and Ogun-Guangdong Free Trade Zone; Ladol sector as key economic indicators Kaduna, as well as active mining across Free Trade Zone, Snake Island Free Trade are pointers to how the development the country. Zone; Tinapa Resort & Leisure Free Trade continues to unsettle both the Zone as well as Dangote Free Trade Zone, country’s Gross National Product (GNP) These aforementioned economic Lagos are among the active free trade and Gross Domestic Product (GDP). prospects if maintained should have zones in the country. today formed major constituents of free The inexplicable abandonment of the trade zones for the country economic President Muhammadu Buhari has been non-oil sector had surfaced after the growth. consistently faithful with such economic discovery of crude oil, thereby, allowing policies that could leapfrog the country’s Agriculture and the entire extractive What then is Free Trade Zone? Free Trade economy to a monolithic state as the industry to get less attention. Zone (FTZs) also called Export Processing government continually leverages on the Zones (EPZs) are specific areas which have pathways created by the Nigeria Export Doubtlessly, Nigeria over the years had a different set of rules than the rest of the Processing Zones Authority (NEPZA). enjoyed so much accouterment and country in order to attract Foreign Direct respect as one of Africa’s riches nation as a Investment (FDI) and to also enhance The Nigeria Export Processing Zones result of huge earnings from the crude oil, local production for foreign exchange Authority is a Federal Government but currently faced with the challenge of earnings. Agency under the supervision of the tweaking the several available economic Federal Ministry of Industry, Trade and models to yield results. An entrepreneur has the latitude to Investment. It was established in 1992 choose the free trade zones in Nigeria in following the enactment of the Nigeria We must, however, realise that the era which he or she wishes to incorporate Export Processing Zones Act 63, of 1992. of “oil boom’’ has long gone, leaving the business venture according to the services country with no option than to espouse provided in the trade zone. The agency is responsible for promoting economic policies that could speak to the and facilitating local and international narrative of “a country beyond oil’’. Some of the free trade zones are more investments into licenced Free Zone/ suitable to a particular kind of industry Special Economic Zones in Nigeria. We can only view with nostalgia, the Kano whereas others are more general.

30 SPECIAL FEATURES

the country, the Federal Government and the Private Sector must ensure that the We must, however, free zone scheme was greatly supported and strengthened using improved legal realise that the era framework, sustained investments and of “oil boom’’ has insisting on global best practices. long gone, leaving “ The newly appointed Chairman of the the country with Board of Nigerian Export Processing Zones no option than to Authority (NEPZA), Hon. Adamu Fanda has made this remark on his first official espouse economic visit to the Authority’s headquarters on policies that could October 13 in Abuja. speak to the narrative In re-aligning himself with the managing of “a country beyond director’s thoughts for the agency, Fanda oil.” believed that the NEPZA could use the Martins Odeh free trade zone scheme to fast track the (Head, Corporate Communications) economic growth and industrialization of the country. The appointment of Prof. Adesoji enormously from operators of these Adesugba as Managing Director and Chief zones. Fanda noted that a well implemented Executive Officer of the Authority on July 1 Let truth be told, Adesugba with a set of free trade zone regime had proven to be a could be described as the stroke to finally discernible strategic plans has continued catalyst for manufacturing and economic re-align the agency to function in line with to make the right impressions, including growth in several parts of the world. global dictates of free trade zone and insistence on building the capacity of Special Economic Zone management NEPZA’s human resource and maintaining Fanda explained that the country must and operations. high welfare standards as a key motivating ramp up its empowerment of NEPZA factor. through urgent legal reforms and Adesugba, a seasoned investments compliance by all government agencies promoter assumed office with focus on The Professor of Business Administration to the provision of the Authority’s Act that the transformation of the establishment has a blueprint that priorities training allowed operations in zones to be tax free. to be able to deliver on its mandates, and re-training of staff, as doing so would vision and mission, ostensibly crafted position the workforce for effective “China, Dubai, Japan, and South Korea to power local production, job creation, interpretation of management policies are great examples of how special Foreign Direct Investment (FDI) and and tasks effectively. economic zones can be used to increase industrialisation of the country. manufacturing capacity and deepen The NEPZA boss has been able to back up foreign exchange earnings. African The free trade zone scheme was set up his plans with actions as this is evident countries like Ethiopia, South Africa, to strategically improve the investment from his recent approval for the induction Egypt, Kenya and our neighbour, climate by stimulating export oriented and training of the 270 staff employed a Ghana are deploying the model to business activities through strengthening year ago but left on the fringes without great advantage. Nigeria cannot be an strategic national economic policies. been properly absorbed into the system. exception’’. The scheme also streamlines Like a father who is not prepared to administrative approval processes and :spear the rod and spoil the child’’ the “The free zones must work to fulfill the providing a one-stop-shop service for managing director reeled out a riot act agenda of President Muhammadu Buhari the businesses both within and outside that ensures that the Authority does not for an industrialised Nigeria”, Fanda said. Nigeria. condone indolence, and all acts aimed at destroying the system rather than In conclusion, going by his antecedent Pursuant to the vibrant transformative building it. and records of both Adesugba and Fanda, economic programmes of the federal the public must see their appointments government, the activities of the agency “This is a frontline agency that the by President Muhammadu Buhari and have been strengthened which has led to government relies on for economic the Minister of Industry, Trade and the establishment of 42 free zones across growth and industrialization, so for Investment, Otumba Adeniyi Adebayo the country. you to be relevant here you must seek respectively as deliberate actions aimed to continually build your skills and at retooling the free trade zone scheme The NEPZA boss had in the last 100 days knowledge on how to operate on this for all-encompassing growth of the retooled the thinking of the workforce turf,’’ Adesugba said. nation. END with the agency’s vision, mission and mandate for sustainable high productivity For Nigeria to catch up on genuine which could see the country benefitting economic growth and industrialisation of 31 SPECIAL FEATURES NIGERIA: Responding to AfCFTA, Post-Pandemic Through SEZs — By Olawale Rasheed

igeria is systematically and creation of employment and expansion of generate almost 300,000 direct jobs and fundamentally responding national earnings. over 350,000 indirect jobs. Second gain to new economic challenges is Nigeria meeting her export capacity Nthrough a coordinated revival and The pandemic was however a game needs under AFCTA. Goods of Nigerian expansion of special economic zones changer as it jolted government leaders origin from the FTZs will ensure Nigeria’s (SEZ) across the country. A renewed to an economic emergency requiring as maximum gain from the AFCTA. attention is being paid to the reform one of the most potent tool responses of SEZ to cope with demands of post- the revival of the FTZs. The paralysis of All stakeholders now accept that Nigeria’s pandemic recovery and requirements world economic and the hard impact quick gain ahead of the expected AFCTA of African Continental Free Trade Area on oil-based economies promoted a regime is a revival, reform and expansion (AFCTA). A feverish acceptance of fresh look into the FTZs, starting with the of the SEZs. Guided by Presidency and SEZ’s critical role is pervading federal appointment of a true investor service the minister, the Adesugba leadership and states governments including professional, Prof Adesoji Adesugba, has repositioned the management of associated federal agencies. as the new Managing Director of the NEPZA as an investment facilitating team, Nigerian Export Processing Zones launched action programme to make Nigeria is challenged on several fronts Authority (NEPZA). Implementing the inactive FTZs functional while ensuring with economic handicaps as the most overall economic reform agenda of removal of bottlenecks in the operations biting of them all. For long, development Buhari administration, Nigeria through of currently active SEZs. An advocacy and expansion of manufacturing NEPZA is driving Nigeria’s response to initiative is enlightening all about the capacities was neglected even with post-pandemic recovery and demands of FTZs and its importance if Nigeria is to more than 40 free trade zones in the AFCTA. cope with the AFCTA. country. The lapses range from non- adherence to international best practices The FTZ is key to revival of Nigerian At a time, South Africa, East Africa and in the running and management of FTZs economy on two main grounds. First is the North Africa are ramping up their FTZs to a dysfunctional legal framework. capacity of the FTZ to generate direct and in anticipation of the AFCTA, Nigeria as More instructive is the lack of deeper indirect jobs at a time unemployment is the biggest economy on the continent is understanding of what an SEZs stand for threatening the corporate existence of the compelled to have a rethink on its FTZs. If as well how strategic the model is to ramp nation. Industry analysts predicted that Nigeria’s FTZs are not allowed to function up development of industrial capacities, a well-functioning FTZS in Nigeria can in line with standard practice, the country

32 SPECIAL FEATURES

“...Nigeria is expanding her FTZs. New zones are springing up covering niche areas like knowledge FTZ, Health FTZ, “Solid Minerals FTZ, Agriculture FTZ among others.”

over the world is duty free territory. The her FTZs. There is an urgent need to create early the custom service fully endorses an FTZ police with dedicated personnel the FTZ as an international model, the to regularize security arrangement. This better for Nigeria that has little time is the standard requirement worldwide. under AFCTA will be flooded with goods in view of mounting pressure from Additionally, the question of offshore from FTZs based in South Africa and other the AFCTA and the imperative of post- banking should be addressed urgently regions of Africa. This fact is now adopted pandemic recovery. The Federal Inland by the Central Bank of Nigeria. Offshore as a strategic reality within the Nigerian Revenue Service (FIIRS) has moved a banking is a major component of FTZs Presidency and associated MDAs such step further to sign an MOU with NEPZA worldwide. Fast tracking decision on this as the Custom service, the tax agency to allow for smooth management of matter by the apex bank will complement among others, hence a new lease of life tax issues. Sister agencies are yielding ongoing efforts to attract investors into for investors and prospects across Nigeria ground and hopefully, comprehensive Nigerian FTZs. FTZs. synergy will emerge, placing SEZs at the On a last note, Nigeria can learn from heart of Nigeria economic revival agenda. China in the area of SEZs. Despite her As part of strategic response, Nigeria rapid economic strength, the Chinese is expanding her FTZs. New zones are But it is not yet uhuru. The Buhari administration is widening her SEZ springing up covering niche areas administration should support further through enhanced benefits for investors like knowledge FTZ, Health FTZ, Solid reforms in the area of renewed legal and generous state support for her SEZ Minerals FTZ, Agriculture FTZ among framework to create a single FTZ authority. authority. SEZ is the backbone of Chinese others. Partnerships are being forged with Multiple agencies competing with NEPZA economic miracle; same can happen here international investors with involvement creates impediment for foreign investors. in Nigeria. of international finance bodies including In any case, the new trend is to have the World Bank among others. Efforts are a single authority as a coordinating Olawale Rasheed is the Director, Policy also on to ease the red-tapism under a platform for licensing FTZs. Investors Advocacy Centre (PAC), Abuja Chamber new system that prioritize expansion with need certainty of legal order and safety of of Commerce and Industry (ACCI). guaranteed security of investment. The existing investment in functioning FTZs. He can be reached on: reform message is permeating the State Nigeria also needs to act further by “[email protected]” levels of state administration. Several regulating security arrangement within states are keying into the FTZs model, accepting the model as the quickest route to enhancing industrial production capacity and create jobs for millions of agitated youths.

Much more dramatic and encouraging is the response of sister federal agencies. There are positive signals from federal agencies to comprehend the whole essence of FTZs. “A free-trade zone (FTZ) is a class of special economic zone It is a geographic area where goods may be landed, stored, handled, manufactured, or reconfigured and re-exported under specific customs regulation and generally not subject to customs duty”, so is a generally accepted definition of FTZ.

It is exciting that the Nigerian Custom Service is gradually realizing that FTZ all

33 SPECIAL FEATURES NEPZA–ASCSN: In Pursuit of Development Unionism — By Comrade Samari Yakubu Isah (Chairman ASCSN NEPZA Unit) he Association of Senior Civil `What stands our union out is the fact recreational facilities. Servants of Nigeria (ASCSN) is a that members do not only look out for body of workers in the Federal their welfare but also aggressively work One of the main targets of trade unions TGovernment payroll. As we are aware, towards assisting the management to is to negotiate with employers about workers do not bear the power to defy achieve the mandate, vision and mission the matters affecting their members and top management, hence, they are of using the free trade zone scheme to other employees at work. If a union is organized in group to seek to institute industrialise Nigeria. formally recognised by an employer, it their terms and conditions largely can negotiate with the employer over aimed specifically at welfare. The leadership of the union has also terms and conditions. These negotiations insisted that the members undertake best are commonly known as ‘collective The NEPZA branch of the association practices in executing all tasks assigned bargaining’. is ever vibrant and committed to to them. This matching order derives out ensuring the wellbeing of its members. of the understanding that the success or Upon my assumption as Chairman, NEPZA It is on record that the association has a failure of the Authority eventually robs-off ASCSN Unit in 2015, a four year tenure milestone in defending and protecting on us all. which I also won in 2019 to commence the rights of both members and the second tenure, I have with the support Authority when such rights are breached. Even as we pledge to be committed of all exco members ensure industrial to responsible unionism, we are also harmony not for want of reasons to apply Often time, the employers or even mandated by ILO Convention to be activism but out of sheer disposition to the publics have misconstrued the responsive in tackling unpalatable development unionism, which however, objectives of labour union as provided circumstances inhibiting the welfare of even though it is a rare approach in our by the International Labour Organisation members headlong. clime. (ILO) which are to promote rights at work, encourage decent employment Broadly speaking, trade unions perform The union even has the reason to opportunities, enhance social protection two major types of functions which continue with this approach in greater and strengthen dialogue on work-related include Militant/Activism and Fraternal measure now that we have Prof. Adesoji issues. functions. Adesugba, a comrade Chief Executive.

It is however, vitally important to state Militant Function The new NEPZA Managing Director, that miscomprehension of the ideals of The essence of unionism is ensuring being an active official of the National unionism is near absent in NEPZA as both betterment of position of their members Association of Retired Paramilitary the management and the union have in relation to their employment. The aim Officers (NARPO) and whose father was inexorably tried to build trust, mutual of such activities is to ensure that all the Secretary-General of Railway Workers respect and stability in the entire gamut clauses of the hiring and psychological Union firmly confirmed to us that we of industrial relations, leaving us with contract are respected. When the union have a ``brother comrade’’ at the helms what can describe as ``development fails to accomplish these aims through of affairs. unionism’’. collective bargaining and negotiation, in extreme conditions they adopt drastic This greatly accelerated our trust level for measures in the form of go-slow, boycott, the new management and commitment strike, work sabotage amongst other of the entire workforce to make the hash actions. comrade chief executive succeed in repositioning the organization.

FRATERNAL FUNCTION The MD did not wait long to validate our expectations of him as he swiftly called a This function is also crucial as the union is meeting with the union on July 14 after he mandated to provide help to its members assumed office on July 1. The speed with in needy times, and improving their which he sought the union’s face was efficiency. Trade union, therefore, tries exemplary and legendary. to nurture a spirit of cooperation, mutual aid and promote friendly relationships At that meeting, we did not hesitate and sharing of knowledge and culture to raise our fears on the proposed among their colleagues. In some cases, concession of the Kano and Calabar Free they also arrange for legal assistance. Trade Zones. We are of the opinion that Besides, these, they can undertake other some unseen individuals were pressuring Comrade Samari Yakubu Isah welfare programes for their members, e.g. the Federal Government to sell those two (Chairman ASCSN NEPZA Unit) 34 SPECIAL FEATURES

public zones. the contemplation of the government According to him, both the new condition to concession the Kano and Calabar of service for the workers and upward The meeting also provided us the free trade zones had been put on hold. review of salaries are achievable but opportunity to advance our position on Whatever undercurrent that led to that that efforts will be scaled up to get both the delay to approve a new condition decision is better left imagined. demands across the line. of service for NEPZA workers, just as the issues bordering on the upward review of He did also inform us that arrangement to In conclusion, I will count it more gain salaries, 2019 and 2020 staff promotion conduct the promotion examination had to engage in constructive dialogue and examinations were respectively reached advance stage. This information negotiation as the union strives to better canvassed. was further confirmed when workers the lots of its members as exemplified arrived work on Nov.30 morning to above. However, I will count it a loss the Amazingly, the managing director at read from the notice board on cogent moment our union becomes docile like the second meeting with the exco of the information that preludes the conduct of a lamed dock when it fails to strike when union on November 24, reported that the promotion examinations left with the only option to do so.

Kano Emir, Alhaji Aminu Bayero Says EPZ Will Spur National Industrial Development mir of Kano, Alhaji Aminu Bayero, improving its operations. says effective utilization of the Export Processing Zone (EPZ) will Adesugba announced plans Eaccelerate Nigeria’s quest for industrial by the Agency to provide development. Bayero stated this when incentives and loans to woo Prof. Adesoji Adesugba, Managing foreign investments in the Director, Nigeria Export Processing FTZ in the country. Authority (NEPZA), paid him a courtesy visit on August 6, in Kano. He disclosed that the Federal Government had The Emir, represented by Alhaji approved power projects Muhammad Dankadai, the Sarkin Shanu to boost energy supply to of Kano, said that establishment of enterprises operating in the Free Trade Zone (FTZ) would encourage FTZ Kano. production, reduce importation and The Managing Director said enhance wealth creation in the society. the Agency would upgrade Bayero said that it was not good for the water reticulation system investors to source for raw materials to enhance water supply locally, export it for production in their to the enterprises and countries and import to Nigeria. improved infrastructure as He said: “I am committed to the well as construct security principles and ideals of EPZ; it encourages and investors’ residence in production, reduce dependence on the Kano zone. import and alleviate poverty. According to him, the investments in the country. Federal Government accords priority “FTZ is important in attracting industries, “The important aspect we cherish most to the development of the FTZ to fast hitherto operating in other countries, is for the investors to come, produce and track sustainable industrial, social and close to our borders or within our territory export from our country.” economic development in the county. to stimulate transfer of technology, The monarch noted that operations of encourage competition and employment the EPZ would assist Nigeria to address Adesugba said: “Free Trade Zone is the generation.” economic challenges occasioned by the strategy used by many countries to global COVID-19 pandemic. industrialised themselves. Adesugba added that FTZ would protect “The FTZ Kano can be used to showcase Nigeria from becoming a dumping Bayero pledged Kano Emirate Council the possibilities in Nigeria, and we are grounds for countries with strong base support to the Agency to enable it achieve working to see that it takes its rightful investments. its objectives. place in the African Free Trade Zone. Also speaking, Adesugba said he was on a familiarization tour of the FTZ Kano, “The Federal Government is keen to to assess facilities and suggest ways of use the FTZ to attract foreign direct

35 FROM CEO’s DESKS

Chief Executive Officers’ Desks Perspectives Uncut

“We shall leverage on the stupendous opportunities associated with Free Trade Zone operations by ensuring Lagos and NEPZA widen the scope of their partnership to optimize the gains from this venture’’ Gov. Babajide Sanwo-Olu, Lagos State

“Nigeria is the hope of Africa, and LADOL aspires to give that hope by creating an industrial platform... this is the path to getting Nigeria into the G20 and NEPZA’s role in that direction is crucial” Amy Jadesimi MD (LADOL)

“We want to be the first state in the country to establish Economic Special Zone that would warehouse Education and Agriculture. Ondo State doubtlessly has comparative advantage in these two sectors’’ Gov. Kayode Fayemi, Ondo State 36 FROM CEO’s DESKS

“The Cross River Government will not hesitate in partnering with NEPZA to remodel the Calabar Free Trade Zone to become the right economic ecosystem that can attract investments to the state and greater good of the nation’’ Gov. Ben Ayade, Cross River State

“Alaro City, part of the Lekki Free Trade Zone quadrant is focused on making enormous inroads the production of Medical/Pharmaceutical products including HIV test kits and other confessionary products for daily use for local and international markets. Thanks to the Nigerian Government for giving NEPZA the free hands to drive the country’s imdustrialisation through zone operations’’ Mr Odunayo Ojo, CEO of Alaro City

“I have visited the Nigeria Export Processing Zones Authority, NEPZA to seek partnership and to request that Taraba State be given the opportunity to establish an Economic Special Zone for Agriculture, Mining and Tourism. We can generate USD $1billion annually when these three sectors are harnessed using the zone’’ Gov. Darius Ishiaku of Taraba State

“The relationship between the Zone and NEPZA is rewarding, achieving, fruitful and fantastic” Joe Boulus GM (SIIFZ)

“Ogun Guangdon FTZ is jointly owned by Ogun State Government and Guangdon Province in China. It covers 2000 hectares of land harboruing 76 registered enterprises with 38 operational and have employed 4000 Nigerians and creating 6,000 other jobs for the local. The FZ is dynamic and has remained successful. This success belongs to NEPZA and Nigerians’’ MD Ogun Guangdong 37 FROM CEO’s DESKS

“Quits Aviation has continue and will continue to offer the best services to our clients. This zone is now a household name around the globe when it comes to servicing of jet planes. We are beginning to get steady offers from abroad because they trust what we are doing’’ Chief Samuel Iwuajoku, MD/CEO Quits Aviation Free Trade Zone, Lagos

“We are urging the new Managing Director/Chief Executive Officer of the Nigeria Export Processing Zones Authority, Prof. Adesoji Adesugba to help zone operators push the Central Bank of Nigeria to without further delay approve off-shore banking operations’’ Xigong Huang, MD Lekki Free Zone Development Company

“Dangote refinery is a 650,000 barrels per day (bpd) integrated refinery and petrochemical project under construction in the Lekki Free Zone near Lagos, Nigeria. It is expected to be the Africa’s biggest oil refinery and the world’s biggest single-train facility, upon completion in 2020’” Edwin Devakumar, the Group Executive Director of the Dangote Group

“The Centenary City is a massive-planned development by Front Range Developers, owned by a private investment company, headquartered in Dubai, as part of a joint venture agreement with Centenary City, an initiative by the Government of Nigeria to create the city of the future’’ Dr Michael Odenigwe, Managing Director, Centenary City Plc

“When fully developed, LFZ will host more than 100 major businesses and is set to contribute around 2 per cent of Nigeria’s GDP. Current tenants of the Lagos Free Zone include Kellogg’s (USA), Colgate (USA), Salim Group (Indonesia), Arla Food (Denmark), BASF (Germany) and SBS LFTZ (Nigeria)’’ Dinesh Rathi, Managing Director, Lagos Free Zone 38 39 THE WORLD’S FIRST SUSTAINABLE INDUSTRIAL SPECIAL ECONOMIC ZONE

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