Free Trade Zones Account for over 60% of Nigeria’s Foreign Direct Investment

The Federal Government’s decision to introduce Free Trade Zones in the country has yielded fruits, as these zones across the country account for more than 60 per cent Foreign Direct Investment FDI inflow.

Managing Director of the Oil and Gas Free Zone Authority, Victor Alabor, who spoke in an interview in Onne, Rivers State over the weekend, attributed this feat to the consistent of government policy on these trade zones, which comes with both tax and fiscal incentives.

Alabor also said that the ingenuity deployed in the management of these zones has also contributed in no small way in retaining the confidence of these investors, saying that there is a monthly stakeholders’ forum where the investors disclose their challenges, which steps are taken to address promptly.

Records show that the Onne Oil and Gas Free Zone, one of the zones under the authority, which has variously been described as the fastest growing zone in the world, has attracted FDI worth over $60bn, N19.2tn to the nation’s economy since it was created in 1978.

The managing director, who also said that nearly 200 companies including some oil majors in the country operate in the Onne Free Zone, however disclosed that it has created in excess of 30, 000 jobs comprising both direct and indirect jobs for many Nigerians in addition to promoting technology transfer.

“One the greatest benefits the nation derives from these foreign direct investments is in the area of building infrastructure, which Nigeria is in dire need of because when these companies want to go return their home countries, they will not go with the infrastructure they have put in place”, Alabo said.