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Tag: NEPZA

  • NEPZA, NDLEA partner on free trade zones

    NEPZA, NDLEA partner on free trade zones

    The Nigeria Export Processing Zones Authority (NEPZA) in partnership with the Nigeria Drug Law Enforcement Agency (NDLEA) have decided to support the One-Stop-Shop framework of the Federal Government across all Free Trade Zones.

    In a statement signed by Head, Corporate Communications NEPZA, Dr. Martins Odeh, an agreement was reached by the two heads of agencies, MD/CEO of NEPZA, Dr. Olufemi Ogunyemi, and Chairman/CEO of NDLEA, Gen. Buba Marwa (rtd).

    This was after the NEPZA MD/CEO requested an explanation on alleged insistence of some drug-law officers inspecting all containers destined for certain Free Trade Zones. Dr. Ogunyemi stressed the importance of all key government agencies in the free trade zones’ ecosystem actively promoting the country’s one-stop shop framework to support economic revitalization through the scheme.

    The MD said: “As you know, the Nigeria Export Processing Zones Authority is a government agency responsible for licensing, monitoring, regulating, and facilitating investment into Nigeria’s Free Trade Zone. The Authority has been performing these duties for over 30 years.

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    “In recognition of the vital role that key sister agencies like the NDLEA play in maintaining order in drug-related issues in Nigeria, we find it necessary to insist on the agency’s presence in the free zones whenever required.”

    The MD quoted the NEPZA Act, saying involvement in the Free Trade Zones operations by some agencies of government should be on a need basis.

    The NEPZA Act mandates the Authority to invite NDLEA for a joint inspection of goods and containers in areas where suspicions are raised to ensure transparency.

    He further affirmed a shared commitment to eliminate any violations of Nigeria’s laws within Free Trade Zones, while expressing deep appreciation to the NDLEA boss for his dedicated and thorough service to the country, adding that the drug law agency had performed well under his leadership so far.

    Speaking, the NDLEA, Gen Marwa, called for greater cooperation between NDLEA and NEPZA to continually promote a healthy and drug-free business environment in the Free Trade Zones. Both agencies must henceforth intensify collaboration to fulfil their mandates without interfering with each other’s work.

    Both organisations agreed to carry out their duties within the framework of the Renewed Hope Agenda, which aims to promote agency cooperation, integrity, and good corporate governance.

  • NEPZA, House Committee to enforce regulations on FTZs businesses

    NEPZA, House Committee to enforce regulations on FTZs businesses

    The Nigeria Export Processing Zones Authority (NEPZA) and the House Committee on Public Account have resolved to activate regulations on Free Trade Zones and Enterprises within the zones to enforce maximum remittances to the Federation Account.

    NEPZA and the committee arrived at the decision after the committee’s oversight tour of the Dangote Refinery and Petrochemicals FZE, and the Lagos Free Zone.

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    Dr Olufemi Ogunyemi, NEPZA’s Managing Director, assured that the Authority is committed to the transparent application of its regulatory powers.

    In a statement signed by Martins Ode, Head, Corporate Communications, NEPZA, he said, Ogunyemi explained that most of the zones that were functional along with their enterprises had been making remittances to the government, adding however that regulation had to be strictly activated for prompt compliance by all.

    “`The Authority has again notified all operators of its readiness to strictly apply the regulation to achieve maximum compliance in this regard.”

  • Tinubu congratulates NEPZA boss on election to WFZO Board

    Tinubu congratulates NEPZA boss on election to WFZO Board

    President Bola Ahmed Tinubu has congratulated the Managing Director of the Nigerian Export Processing Zone Authority (NEPZA), Dr. Olufemi Ogunyemi, on his election to the Board of the World Free Zone Organisation (WFZO). 

    In a statement by his Special Adviser on Information and Strategy, Bayo Onanuga, the President praised Ogunyemi’s bold initiatives in making NEPZA globally competitive, creating more export platforms, and opening up investment opportunities. 

    Tinubu noted that Ogunyemi’s election validates the Renewed Hope Agenda reforms, focused on long-term and sustainable growth through foreign direct investment in the real sector.

    He urged Ogunyemi to leverage his new position to promote Nigeria’s image, showcase the Renewed Hope Agenda globally, and integrate the Nigerian economy into the global economic ecosystem.

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    “President Bola Tinubu rejoices with the Managing Director and Chief Executive Officer of the Nigerian Export Processing Zone Authority (NEPZA), Dr Olufemi Ogunyemi, on his election to the Board of World Free Zone Organisation (WFZO), a significant achievement that makes us all proud.

    “The President notes that Ogunyemi’s election to the board of the international body is a testament to the ongoing reforms. These reforms are set to reposition the economy, bringing about a brighter future for all Nigerians.

    “President Tinubu commends the Chief Executive Officer of NEPZA for his bold initiatives in making the institution globally competitive and creating more export platforms by opening up more investment opportunities.

    “President Tinubu believes Ogunyemi’s election further validates the Renewed Hope Agenda reforms, which are focused on long-term and sustainable growth, by attracting foreign direct investment into the real sector.

    “The President urges him to seize the moment of his elevation to burnish the country’s image, showcase the Renewed Hope Agenda on the global stage, and integrate the Nigerian economy into the highly rewarding global economic ecosystem,” the statement reads.

  • NEPZA generates N6b in Q1, assures on job creation

    NEPZA generates N6b in Q1, assures on job creation

    Things may be looking up for the Nigerian Export Processing Zone Authority, NEPZA, as the agency generated a whooping N6billion in revenue in the half year of 2024.

    The Managing Director of NEPZA, Dr. Olufemi Odunyemi, who gave this hint recently, expressed optimism that said the agency would certainly improve on its financials at the year end.

    The agency’s revenue generation profile for 2023 was N8billion.

    According to the NEPZA boss, with an upgrade of the free zones and creation of more industries it will scale up availability of jobs across the country.

    Also speaking at a stakeholders’ forum, the Chairman, Technical Committee on Business Roundtable, stakeholders’ forum on free trade zones, special economic zones, Dr. Umar Abdulmutallab has called on the government to prioritize creation of more industries through the establishment of specialised free trade zones.

    He also suggested streamlining regulations and infrastructural upgrade to enhance competitiveness with international global free trade zones.

    This, he said, will increase investment, jobs creation and export growth and will contribute to economic diversification.

    Abdulmutallab who later addressed a press briefing on Business Roundtable Stakeholders forum on Free Trade and Special Economic Zones in Abuja, assured that the aim is to finalise the framework within the next quarter with implementation phased over the next two years.

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    He said there will be an established and dedicated secretariat to facilitate collaboration and regular progress monitoring of this framework.

    “With these recommendations put in place we are confident that it will drive economic growth and enhance Nigeria’s competitiveness globally.”

    On potential environmental and social impacts, Abdulmutallab said environmental impact assessments, social responsibility initiatives to ensure responsible development have all been added.  “With the establishment of more Specialised Free Trade zones, there will be availability of jobs.”

  • NEPZA generates N6billion in six months – Ogunyemi

    NEPZA generates N6billion in six months – Ogunyemi

    The Managing Director of Nigerian Export Processing Zone Authority, (NEPZA) Dr. Olufemi Ogunyey, said the agency has so far generated N6billion in the first quarter of 2024. 

    Ogunyemi said the Authority in 2023 generated N8billion, Giving a breakdown of how the N8billion was used, he said N4b was sent to Federal Government account while N4billion was set aside for running of the agency. 

    The MD spoke during an oversight visit by House of Representative led by the Chairman, Ahmed Munir in Abuja, stating the authority is looking forward to surpassing the N8billion of last year this 2024. 

    He stated: “The challenges in Free Trade Zones  are enormous, as there are lots of conflicts between agencies operating in the zone.  Agencies like Federal Inland revenue Service, Customs and NEPZA are all at loggerhead with each other, this is majorly due to the obsolete Act establishing NEPZA since 1992”.

    He mentioned another important challenge facing the zone as lack of adequate infrastructure and appeals to the government to address this issue. 

    He also said  when he took over in 2023, he inherited 52 zones, and licenced two more companies, Indorama and Arise. 

    Read Also: ‘NEPZA intensifying efforts to retain companies in Nigeria

    He called on the National Assembly to help review the NEPZA Act, which  has been in existence since 1992, 

    Munir noted the urgency to reposition NEPZA is now, as he speaks on the National Assembly working on the NEPZA Act. He added that so many bills are piling up, ‘the earlier the House of Representative gets information to work on NEPZA Act the better. 

    He noted that waiting for Presidential order from Presidency on Act amendment may linger, out of the 52 free trade zones not functioning, we will investigate and get the reason why they are not functioning, we will redirect the operation of the zone to organizations willing to make it work. 

  • ‘NEPZA intensifying efforts to retain companies in Nigeria

    ‘NEPZA intensifying efforts to retain companies in Nigeria

    The Nigeria Export Processing Zones Authority (NEPZA) is intensifying efforts to retain businesses in Nigeria amid foreign exchange constraints and unreliable power supply.

    Managing Director Olufemi Ogunyemi said NEPZA was supporting businesses within its free trade zones and enclaves.

    He said: “We are witnessing an unfortunate trend where companies are relocating due to issues like foreign exchange access and power supply. To mitigate these challenges, NEPZA is actively involved in providing power generation solutions tailored to the needs of businesses operating within its zones.

    “This initiative aims to reduce production costs and incentivise companies to maintain operations in Nigeria. We offer a range of incentives designed to attract and retain foreign direct investment. These incentives include customs duty waivers, tax breaks, and deferred payments to the government at the start-up phase of businesses,”.

    According to the managing director, the investors, upon getting the incentives, are also expected to give back to society in the form of Corporate Social Responsibility (CSR).

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    “Now, on the flip side, it’s a handshake, so we give, and then we take. Therefore, NEPZA requests from these foreign direct investors that they employ Nigerians. They train Nigerians on skilled, semi-skilled, even sometimes up to professional level. These are statutory requirements that are part of this handshake.

    “And on top of that, there is something people call CSR but I call it Community Social Regeneration. I think that is a more accurate description. And it is part of the requirements we have on all these investors,” he noted.

    According to Ogunyemi, the authority also operates as a one-stop shop for investors, streamlining interactions with government agencies to enhance the ease of doing business within NEPZA zones.

  • Ex-NEPZA CEO bows out in style

    Ex-NEPZA CEO bows out in style

    The immediate past MD/CEO of The Nigerian Export Processing Zones Authority NEPZA, Prof. Adesoji Adesugba, is more than a happy man.

    Adesugba’s joy knew no bounds when members of the Nigeria Economic Zones Association hosted him and his family to a send forth dinner and award ceremony for his giant strides in the agency on November 11, at the Eko Hotels and Suites.

    The dinner had NEPZA members of staff, colleagues, business moguls and family members extolling his virtues as a man with vision who performed excellently in repositioning the agency.

    When Adesugba was appointed by former President Muhammadu Buhari in June, 2020, he repositioned the agency to meet global practice through increased output in export and production targets.

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    The lawyer and academic infused his arbitration skills and knowledge while serving in the Nigerian Customs to establish many units that contributed to the success of the economic zones.

     He supervised the establishment of the Special Economic Zones Training institutes and Security outfits, Dispute resolution centers. He also ended the long dispute between Ladol Free Trade Zone and Samsung Enterprise, secured approval for four international airports as free zones, facilitated operational license for 10 fee trade zones, upgrade and development of approved special economic zones, provision of digital registration platform and a host of others.

    While addressing his guests, Prof Adesoji disclosed that it has been a pleasure serving Nigeria and contributing his quota to the development of the country which was recognised by a letter from the then President Buhari who noted his exemplary performance.

  • NEPZA assures investors of safety

    The Nigeria Export Processing Zone Authority (NEPZA) has assured investors both local and foreign operating under the Free Zone Scheme of adequate security of their lives and safety of their investments.

    Its  Acting Managing Director, Engr Terhemba David Nongo  gave the assurance when he led a delegation on condolence visit to the management of LADOL Free Zone at Tarkwa Bay, Lagos, SCH-MCI Free Zone Enterprise and the Commandant General NSCDC over the killing of their  personnel.

    A Korean National, Mr. Taekun Kang, a Manager with SHI-MCI Free Zone Enterprise and a Civil Defence personnel were allegedly shot to death on April 10  by an operative of NSCDC identified as Mr. Innocent Oshemi, who was on guard-duty in the Free Zone at the time of the incident.

    Represented by the General Manager, Zones Operations (Public) Dr. Oyesola Oyenle, the NEPZA chief pledged the agency’s support for full and thorough investigation into the matter. He called for calm to enable the relevant security agencies complete their investigation.

     

     

     

  • Addressing human cost of mismanagement of LADOL Free Zone

    On Monday April 8, 2019, an operative of the Nigerian Security and Civil Defence Corps (NSCDC) in the LADOL Free Zone in Lagos shot and killed his colleague during an argument.

    He then shot and seriously injured a Korean employee of SHI-MCI FZE, who later died at the hospital as a result of injuries he suffered.

    This was an entirely unprovoked attack and there would have been more casualties if the other guards and SHI-MCI employees did not display act of bravery by detaining the gunman as he tried to leave the yard.

    The NSCDC gunman was contracted to LADOL at the time of the incident. LADOL is obliged to provide security over the free-zone via its affiliate and the Zone Manager, Global Resources Management Free Zone Company, in accordance with the NEPZA regulations. However, this shooting is a major security breach by LADOL of NEPZA regulations.

    According to media reports, SHI-MCI FZE was said to have reported several security incidents to LADOL relating to disorderly and dangerous conduct of armed guards and how their employees were vulnerable and subject to any imminent life-threatening danger but no action was taken, which led to this fatal incident.

    Following the shooting, the head of the NSCDC, Abdullahi Gana, made a public statement expressing sympathy for the victims but claiming that that shooting was “an accidental discharge.”

    But eyewitness accounts showed that the position of  NSCDC boss that the shooting was “in error” was false as two people were shot by the NSCDC gunman in two different locations far apart.

    The Korean employee was performing maintenance on a crane at the time and was shot in a completely unprovoked attack inside the crane.

    This is the most serious failing yet by the Free Zone operator.  The armed guards are supposed to be properly trained to protect Nigerian and foreign workers, who should feel empowered to promote Nigeria with pride.

    It is vital that there is a thorough and independent investigation into this incident, and that those responsible for such a serious failing that has resulted in deaths are held to account. If obviously false statements, such as those issued by the NSCDC, are accepted then more lives may be lost in future occurrences.

    READ ALSO: Korean dies from LADOL shooting incident

    This incident was a violent act in a Free Zone, which is supposed to be a safe zone for foreign nationals, investors and Nigerian workers conducting their daily business.

    NEPZA Regulations clearly states: “The Authority or Management of a Free Zone shall provide security over the premises, properties and facilities within the Free Zones.”

    In the same vein, LADOL Regulations states:  “The Zone Management shall provide security over the premises, property and facilities within the Zone”.

    To avoid this kind of incident, Zone operators like GRMFZC (LADOL Group) should have measures in place to ensure the safety and security of all their subleases at the zone and if those measures fail there should be contingencies.

    There is no doubt that this incident will have a further deterrent effect on foreign businesses looking to invest in Nigeria.

    Akpan-Etukudo, an investment advisor, writes from Warri

  • ‘NEPZA crying wolf over N14.3bn NSEZCO fund’

    A policy group in Nigeria has described the N14.3 billion diversions claims by the Nigeria Export Processing Zones Authority (NEPZA) as an attempt to mislead and misinform the public.

    The Global Economic Policy Initiative (GEPIn) said NEPZA is the clearest form of corruption in Nigeria and should be immediately investigated by Nigeria’s anti-graft agencies, EFCC and ICPC.

    Speaking to journalists in Asaba, Delta state, GEPIn President, Bernard Okri explained the N14.3 billion budgeted for Nigerian SEZ Investment Company Limited (NSEZCO) by the Federal Government is only a fraction of what is required for it to take off.

    “NEPZA is deliberately trying to mislead Nigerians with the false stories they are putting in the public space and as a seasoned economist, I can tell you that they have managed to get the Senate Committee on Trade and Investment to do their bidding at the detriment of Nigeria’s progress.

    Okri explained that NEPZA is a regulatory agency and cannot perform the duties of a facilitator. “NEPZA was established by Act No. 63 of 1992 as an agency of government with responsibility for licensing Free Zones and regulating the Free Zone Scheme in Nigeria. Does their power translate to poking their nose in NSEZCO beyond licensing? That is the questions Nigeria should be asking.”

    He noted that not many know that NSEZCO the Ministry of Finance Incorporated (MOFI) is the shareholder, holding the Federal Government’s interest of 25% in NSEZCO while the balance of 75% is currently held in trust on behalf of other prospective shareholders.

    “AfDB and other big institutions hold the 75 percent stake in NSEZCO and they are instrumental to achieving the goals of industrialization in Nigeria.

    “NEPZA is crying wolf over the N14 billion put down by the federal government who owns only 25%, the owners of 75% are going to invest ten times that amount.”

    Okri explained that because it is a PPP the federal government and the private entities involved must commit financially to the cause.

    “What we have here is an agency of government trying to sabotage one of the laudable projects of this administration and I think those behind this should be punished immediately.

    “This government cannot say it is fighting corruption and an agency like NEPZA will be allowed to run a corrupt agenda. The agency must be put in its place.”

    He warned the agency is frustrating pilot projects in their first phase like Enyimba Economic City in Abia State; Lekki Model Industrial Park in Lagos State and Funtua Cotton Cluster in Katsina State.

    Read also: Reps insist on Trade Minister’s appearance over N14b transfer to NEPZA

    “One of the Federal Government’s Economic Recovery & Growth Plan (ERGP) identified the development of Special Economic Zones (SEZs) as a major strategic tool to accelerate the implementation of the Nigeria Industrial Revolution Plan (NIRP) but what do we have, an agency of government frustrating the ERGP.

    “Even worse is the fact the agency is trying to override the Federal Ministry of Industry Trade and Investment.

    “The leadership of NEPZA should be suspended in the interest and growth of Nigeria.”

    Okri argued the action of NEPZA has sent many investors packing from Nigeria.

    “How can we grow our FDI when agencies with little or no knowledge of their scope of work frustrating investors? This bottleneck should be removed immediately,” he said.