·Visit excites new hopes
By Our Reporter
President Bola Ahmed Tinubu’s Special Adviser on Trade and Investment, Mr John Ugochukwu Uwajumogu, has unveiled the president’s plans on free trade zones especially thon on oil and gas.
The SA spoke authoritatively on Monday in Onne when he visited to get first hand grip on the state of affairs in the world’s biggest and fastest oil and gas free trade zone.
Details:
Investors and stakeholders in the Onne Oil & Gas Free Trade Zone (OOGFTZA) have remained demoralized over the years.
Prospects have remained huge but apathy in topmost government circles, intrigues of office, collapsed roads that indicate government lack of concern, insecurity and decaying infrastructure have seemed to send negative signals to investors over the years.
Government functionaries from Abuja have been visiting over the years but the visit Monday, August 7, 2023, by Mr Uwajumogu, Special Adviser (SA) to President Tinubu, seems to ignite unusual excitement.
The managing director/chief executive officer who was host (actually also a visitor; he flew in from Abuja where he stays), Sen Tijjani Kaura, told the stakeholders to brace up for a new hope because the kind of person they had looked for was on the saddle. In fact, he said the guest had the ears of Mr President and that they should take it that they were with the president himself. This seemed to instantly galvanise the atmosphere.
This prompted the press to ask the SA what was different in his visit to a people that had grown weary with promises unfulfilled. He said the president has an agenda to use free trade zones to boots industrialization and that the number one agenda of the new government is trade and investment.
Welcoming Mr Uwajumogu, the OGFZA CEO, Kaura, said the SA is very versed in trade and energy matters in Nigeria. “For the president to pick him means a lot. The man we have been looking for is here. He can listen to investors and talk with the president because he has the ears of Mr President.”
Briefing the august visitor, an official, Mr Morgan Mmahi, an assistant GM, said OGFZA was established in 1976 and has expanded to create a total of nine other oil and gas free zones such as Warri Oil and Gas Free Zone, Eko/Apapa, Notore, Onne Subzone, Liberty in Akwa Ibom, one in Tin Can/Apapa, and an Oil and Gas Free Zone Offshore. He said states and local council authorities are hosts of the free zones.
He reported that frictions were no more part of their problems. “Cooperation is now going on with Customs, Immigration Service, Federal Inland Revenue Service (FIRS), etc. Incentives are guaranteed to investors in the free zones.”
He said agreement (MoU) has been reached on taxes with states.
He gave hints on existing and expected investments, saying there is $3Bn investment coming in Brass and $5Bn coming in Notore section in Onne, and mentioned some $15Bn investments coming. The report also mentioned $21Bn investments between 2001 and 2021.
“Since 2021, the Authority is self-funding, and from 2026, capital projects are to be self-funded. OGFZA scored very highly in ministerial performance assessment and presidential committee assessment visits.”
The authority came first thrice in 2018, 2019 and 2022 in some aspects and came over all 3rd in 2022.
Challenges: He said Customs was unable to implement Ministry of Finance directives which brough issues but that efforts were ongoing to solve this.
Bad roads have sentenced the three free zones in Onne to sufferings, he said. Other problems were power, pollution, etc.
On solution, he said MoU has been reached with some groups such as the FIRS and also with the Rivers State government on taxes and PAYEE. “Authority has submitted five initiatives including co-location strategy. Committee has been set up to find solutions has drafted its Report, just remaining signatures by the OGFZA, Customs, etc. Customs issues will soon be resolved.”
SA speaks: Speaking to an eager audience, the SA said: “It is important to note that this facility is attracting $15Bn investments. It goes into very important areas. Trade facilitation is key to the Bola Ahmed Tinubu (BAT) administration in bolstering a robust local market.
“This concept is bedrock of emerging markets around the world. This is how they did it; trade facilitation and creating robust local market. Free trade zone system has helped most emerging markets including China, Taiwan, Singapore. Others such as Ethiopia are joining.
“These free trade zones work within the ecosystem (ports, Customs, etc). These facilities boost competitiveness of a given economy. Our story for decades has been on comparative analysis; now, it has to change to competitiveness.
“Government is to be facilitator. We must operate from the mindset that capital is a coward. It flees from violence and threat.”
He said the present stage in the economy is about energy transition, Ukraine war, post-COVID-19, etc. “Lessons from these especially Ukraine situation: Build your local market because of global shocks. Ensure strong industrialization built from strong trade and investment policy framework. Let goods flow in and out of an economic belt. Let there be ease of doing business in your economic jurisdiction.
“Trade Free zones can be used to stimulate industrialization. It can be used to create strong linkages with communities
Connection from oil and gas to Gross Domestic Product (GDP) so far is small. Investment mobilization is ideal. West Africa market of over 400 million people is our target. Robust talks are on-going. Road to Onne is one of the issues that need attention.”
