The Federal Government says the need to expand business in the West Africa sub-region, through strategic production of goods and services to optimize the vast potential of industrial axis is its reason for the concession of the Calabar and Kano Free Trade Zones (FTZs).
The Director General of the Bureau of Public Enterprises (BPE), Mr. Alex Okoh revealed this during a Roadshow organised by the Bureau in conjunction with the Ministry of Industry, Trade and Investment (FMIT&I) and Nigeria Export Processing Zones Authority (NEPZA) in Lagos.
Okoh also said another expectation of the Federal Government is to make them world-class special economic zones comparable to their counterparts globally.
According to the Director General, the Roadshow was to showcase the Federal Government’s plan to unlock the potentials of two of its assets through the injection of private sector capital, as well as the deployment of technical expertise.
He commended the President Muhammadu Buhari led Government for its willingness to improve its service delivery level and infrastructure stock by partnering with the private sector in a mutually beneficial relationship that would incentivise private sector investors and deliver economic benefits to the Nigerian people.
Okoh recalled that the Bureau had in the last 18 months organised a series of webinars and investors’ fora targeted at the Ministries, Department and Agencies (MDAs) of government; the global investment community; financial institutions and other key stakeholders of the Federal Government’s policy directive on the administration of Public-Private Partnership (PPP) in Nigeria.
The policy, he added, vests the BPE with the mandate to superintend all PPP infrastructure project procurements in Nigeria, in collaboration with the MDAs, who are the owners of the assets and Infrastructure Concession Regulatory Commission (ICRC), the regulator of concessions in Nigeria.
He said it was in that regard that the Bureau, desirous of showcasing the two government free trade zones that require private sector investment as well as innovative capacity to unlock their full potential, that have hitherto been sub-optimally utilised, organised the Roadshow.
While stating that the event provides an opportunity to not only showcase the two zones but also to interact with potential investors, receive some feedbacks and provide some clarifications as regards the transaction, Okoh added that the Requests for Qualifications (RfQs) were ongoing and would end on May 25, 2022.
Managing Director of NEPZA, Prof. Adesoji Adesugba, who was represented by Director, Zones, Muazu Hadi Ruma, highlighted the significance of investing in the two FTZs and revealed that free duty, tax exemptions and import substitution drive, among others are some of the incentives and benefits of investing in the zones. He assured prospective concessioners of a safe environment.
The transaction advisers of the FTZs, Ernst and Young, represented by Damilola Aloba, said the two-tier concession structure which involves a property holding company and the concessionaire would be adopted for the purpose of the transaction.