The Managing Director, Oil and Gas Free Zones Authority (OGFZA), Mr. Umana Okon Umana has called on the Buhari administration to support the authority in repositioning the oil and gas free zones in its development efforts to diversify the economy.
Umana who made this call in a paper titled,”Oil & Gas Free Zones As A Catalyst To Economic Diversification” which he delivered at the just concluded All Nigerian Maritime Journalists’ Retreat organized in Lagos by the Association of Maritime Journalists of Nigeria (AMJON) stated that the call became pertinent because OGFZs had the potential of stimulating growth and general economic activities.
Represented by the Head of Trade and Investment Department of the Authority, Adamu Mamman Kontangora, Umana opined that Oil and Gas Free Zones were very fundamental key for economic growth, diversification and development.
According to him,”I wish to suggest that the present administration should support the Authority in repositioning of the oil and gas free zones in its development efforts to diversify the economy. This is so because OGFZs have the potential of stimulating growth and the general economic activities.
“Evidences are available to show that all OGFZs under OGFZA are successful and successful free trade zone development has the ability to completely change the economy and lifestyle of local communities. We have seen such in countries like UAE, Malaysia, Asia, India etc”.
He observed that in the case of Nigeria, the oil and gas had made enormous contributions to the national economy as it had accounted for 90% of its total export and 80% of government revenue.
“The government therefore, in an effort at developing the economy with objective of maximizing the potential of oil and gas products considering the importance of this sector, it was clearly apparent that more dedicated specialized avenues be created to encourage skill, transfer of technology, local content participation, enhance foreign exchange earnings and backward integration to the local economy. All these components are maximizing and diversifying the economy through the OGFZs activities”, he said.
The Managing Director disclosed that following the level of investment in the sector and its continuous rapid investment, the OGFZs had created a positive impact in the Nigerian economy.
He listed the achievements in the sector to include; attraction of huge amount of Foreign Direct Investment (FDI), capital growth, employment opportunities, skills acquisition, revenue generation, increase export, trade facilitation and support, industry diversification, promote foreign exchange earning as well as acting as hub for sub-Saharan African region.
On the implementation Industrial Revolution Plan, Mr. Umana posited that OGFZA could be repositioned as Oil and Gas Development Agency for proper implementation of Industrial Revolution Plan adding that the role of the agency would be to promote industrialization in Nigeria by facilitating the development of oil and gas manufacturing hub, zones and cities across the country.
He added,”The agency through conceptualizing and executing transformational oil and gas industrial zones and center for the benefit of maximizing and diversifying the nation’s economy will develop industrial cities, industrial parks and industrial hubs, facilitating infrastructural development for the hubs”.
The OGFZA boss recalled that OGFZs had place Nigeria as leading player in the oil & gas activities in the whole sub-Saharan Africa even as he maintained that investment inflow to Free Zones represented about 65.5% of total investment into Nigeria within the last 10 years.
“The Financial Times of London Magazine on FDI regards one of our Free Zones (Onne) as most successful in Africa”, he said.
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