In a significant milestone, Nigeria’s Special Economic Zones (SEZ) Scheme has become a catalyst for economic growth, attracting an impressive $66 billion in Foreign Direct Investments (FDIs) and N620 billion of Domestic Direct Investments (DDIs). The disclosure, made by Chief Nabil Saleh, Chairman of Nigeria Economic Zones Association, during the Special Economic Zones Annual General Meeting 2023, marks a turning point in the nation’s socio-economic development.
Chief Saleh underscored the far-reaching impact of these investments, highlighting the creation of 35,000 direct and indirect employment opportunities. Breaking down the sectors, he revealed that the Manufacturing sector leads with a commanding 45% of total investments, followed closely by the Services sector at 30%. The Oil and Gas sector makes a significant contribution, accounting for 11%, while the Trading, Logistics, and Agriculture sectors also play vital roles.
The success of SEZs in Nigeria has paved the way for monumental projects, including Africa’s largest oil refinery, a Deep-Sea Port with a capacity of 6 million twenty-foot equivalent units (TEUs) of containers, a visionary Gas Processing Hub along the Atlantic Coast, and an Oil and Gas Downstream Manufacturing Hub.
Chief Saleh emphasized that SEZs, with their unique regulatory incentives and business-friendly environments, have emerged as powerful engines of economic growth and development. Drawing parallels with global success stories in countries like China, Singapore, and the United Arab Emirates, he highlighted the transformative potential of SEZs in attracting foreign direct investment, driving industrialization, and fostering innovation.
The theme of the AGM, “Unlocking Opportunities: Harnessing the Power of Nigeria’s Special Economic Zones Scheme,” encapsulates the mission to tap into the immense potential for the growth and development of Nigeria.
Dr. Olufemi Ogunyemi, Managing Director of Nigeria Export Processing Zones Authority (NEPZA), emphasized the need for re-engineering SEZs in light of the fourth industrial revolution, sustainable development, and the evolving global value chains. The two-day event aims to address challenges faced by operators in various Free Zones, fostering discussions on standardizing operations, tax administration, and sharing experiences to develop actionable solutions.
Alhaji Bamanga Jada, Managing Director of Oil and Gas Free Zones Authority (OGFZA), highlighted the global recognition of SEZs as vital instruments for facilitating long-term investments. Despite challenges, OGFZA has successfully attracted $24 billion in investment and oversees more than one hundred licensed companies in the free zones.
Dr. Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), acknowledged the successes of SEZs and called for a collaborative approach to address constraints, including regulatory complexities, infrastructure deficits, and inadequate access to finance. The governor’s plea underscores the importance of a unified effort to overcome challenges and ensure the sustained growth and sustainability of the SEZ Scheme in Nigeria.
