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Business Analysis

Prospecting Nigeria’s Free Trade Zone Under Tinubu Administration

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By Martins Odeh

Lagos State occupies a vital space in Nigeria; first, as a megacity with an estimated 20 million population and second, as a coastal city with endless maritime routes that connect international waters that have positioned it as the country’s most viable commercial hub.

Various governments have utilised these somewhat nature gifts to impact not only the development of the state but the entire nation.

Suffice, therefore, to say that the state’s importance in spiking the country’s development process and industrialisation has remained highly pivotal.

It is, however, amazing how the state has completely leveraged the Federal Government Free Trade Zone scheme managed by the Nigeria Export Processing Zones Authority (NEPZA) to further drive the national economy.

It is common knowledge that President Bola Tinubu laid the foundation for the progress the state is currently making with the free zone scheme.

Currently, 18 out of the 52 free trade zones in the country are located in Lagos. They are Lagos Free Zone (LFZ), Snake Island Integrated Free Zone (SIIFZ), Lekki Free Trade Zone (LFTZ), LADOL FTZ, Newsrest ASL Services & Logistics, Dangote Industries and Alaro City Development Free Zone.

Others are Badagry Creek Integrated Plant, Nigeria Aviation Handling Company (NAHCO), Eko Atlantic, Ogororo Industrial Park, Tomaro Industrial Park, NASCO Town FZ and Quit Aviation Services.

The rest are the Maritime Services FTZ, Cocoa Beach & Walness Valued-Chain Resort, Flour Mills FZ, as well as the Oils Integrated Logistics Services FZ.

These free zones with an estimated investment value of $25 billion are harbouring some of the most renowned international brands.

For instance, the Lagos Free Zone started in 2002 with 215 hectares. Later in 2012, around 590 hectares were given by the state government with the construction handled by Lagos Free Trade Zone Company.

This zone prides itself on some world-class enterprises like Colgate; Lekki Port; BASF; Insignia; Power Oil; Arla; HEC; Westminster; Boskalis; CNC; SBS; Kellogg’s among others. The impact these enterprises are making on the economy cannot be overemphasised.

It is worthy of note that the Lekki Deep Sea Port, owned by the Lagos Free Zone, remains a world-class maritime infrastructure worth $1.2 billion with the capacity to mainstream the entire African trade and logistic businesses into the global economy for profitability.

It was on the heels of these unmatchable achievements that Prof. Adesoji Adesugba, the Managing Director of NEPZA, recently described the country’s modern free trade zone visioner, President Tinubu, as the undisputed “brain behind modern Free Trade Zone in Nigeria”.

The NEPZA managing director alluded further that the president had laid the foundation for the establishment of the leading free zones in the country that had attracted over $30 billion from the non-oil sector and generated over 170,000 direct and indirect employments.

“Eko Atlantic and the four quadrants of Lekki Free Zone and over 100 other enterprises, including the newly-commissioned Deep Sea Port and the Dangote Refinery operating in the enclaves are Tinubu’s exclusive initiatives.

“Tinubu’s presidency will be a new dawn as we hope that the scheme will be used to speedily drive national growth.

“We are optimistic that the excellent progress made by former President Muhammadu Buhari in the sector will be expanded and sustained,” Adesugba said.

The NEPZA boss is not alone in acknowledging Tinubu’s contribution to investment. Some experts recall how, as governor, his intervention on the old Lagos Bar Beach saved investments in Victoria Island estimated at over $170 billion from perennial ocean surges.

Today, Eko Atlantic, also a free trade zone, is an international hot belt with well-laid landscape and modern architecture and portends a great revenue spot for the nation.

The tourism worthiness of Eko Atlantic is been further accentuated by the citing of the United States of America’s biggest Embassy in the world there.

The receptiveness of the Lagos State Government under Tinubu towards sound economic growth created the right ambiance for the Private Public Partnership that also birthed the multi-billion-dollar Dangote Refinery, a free trade zone located in the Lekki.

In 2006 the state conceived an idea to develop some parts of the Lekki Peninsula into a blue-green, eco-friendly environment.

The proposed area covered an area of 60,000 hectares stretching from Victoria Island in the west to Refuge Island and some parts of Lekki town in the east.

The blue-green concept was primarily to create a comprehensive new town with important public facilities and infrastructure in the North and South peninsulas.

The free trade zone scheme has rightly helped to propel this laudable vision to become a reality.

While the free trade zones and their enterprises are slithering in Lagos state, the same cannot be said of those located in other parts of Nigeria.

Stakeholders identify a poor understanding of the concept by other state governments, infrastructure deficit, lethargic disposition of local investors, and insecurity as reasons for this shortcoming.

Adesugba, an investment promotion expert, has in the last three years devoted time to addressing some of these systemic challenges that have limited the country from realising the full potential of the scheme.

Specifically, the free zones in Calabar and Kano have been facing the challenges of poor infrastructure, inter-agency rivalry, undue interference, inadequate NEPZA Act and dysfunctional system of operation.

NEPZA is making tremendous efforts to obliterate some of these challenges and is leading the charge to promote and manage the scheme in accordance with global standards.

For instance, the adoption of E-NEPZA has greatly fenced off some of the teething challenges of accountability, transparency and probity.

There are many reasons to believe that the new administration has inherited a solid free zone scheme to drive the growth of the economy.

Earmarking the country’s four major international airports as Special Economic Zones, and approvals for other specialised public zones in Lagos, Katsina, Benue, Gombe Ebonyi and Ilorin, can be avenues for the new government to begin a widespread development across the six geopolitical zones.

The establishment of seven privately-driven zones is a great stimulant of the economy with palpable benefits in both employment and revenue generations.

The zones include Bonny Kingdom Free Trade Zone, Rivers; Hydropolis Niger; Premier Industrial Free Trade Zone, Rivers; Koko Walness Value Change Resort, Lagos; GC Exports, Kogi; Ekiti Knowledge Zone, Ado Ekiti, as well as Flour Mills Free Zone, Lagos.

NEPZA also identified licensing of federal universities of education as free zones to break the cycle of contention on funding leading to endless protests and industrial action.

The University of Abuja, in collaboration with the Abuja Chamber of Commerce and Industry (ACCI), has applied to use the university as a pilot study.

As part of its strategic approach to ensure that citizens benefit more directly from the scheme, the NEPZA is on the verge of concluding the legal frameworks for listing zones and their enterprises on the Nigeria Stock Exchange.

Also, efforts are on to leverage the global over $1 trillion Virtual and Crypto investment portfolios as the authority has concluded arrangements to partner with Talent City to establish Africa’s first Virtual Free Zone.

Stakeholders expect that the new administration would place the free trade zone on a first-line charge, being a veritable economic instrument to fast-track the country’s industrialisation. (NAN) 

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Business Analysis

Nigeria Customs Generates over N1.75trn Revenue in 2025

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By Joel Oladele, Abuja

The Nigeria Customs Service (NSC) has generated an impressive N1,751,502,252,298.05 in revenue during the first quarter of 2025.

The Comptroller-General (CG) of the Service, Bashir Adeniyi, disclosed this yesterday, during a press briefing in Abuja.

According to Adeniyi, the achievement not only surpasses the quarterly target but also marks a substantial increase compared to the same period last year, reflecting the effectiveness of recent reforms and the dedication of customs officers across the nation.

“This first quarter of 2025 has seen our officers working tirelessly at borders and ports across the nation.

I’m proud to report we’ve made real progress on multiple fronts—from increasing revenue collections to intercepting dangerous shipments,” Adeniyi stated.

He attributed this success to the reforms initiated under President Bola Tinubu’s administration and the guidance of the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun.

The CG noted that the revenue collection for Q1 2025 exceeded the quarterly benchmark of N1,645,000,000,000.00 by N106.5 billion, achieving 106.47% of the target. This performance represents a remarkable 29.96% increase compared to the N1,347,705,251,658.31 collected in Q1 2024.

Adeniyi highlighted the month-by-month growth, noting that January’s collection of N647,880,245,243.67 surpassed its target by 18.12%, while February and March also showed positive trends.

 “I’m pleased to report the Service’s revenue collection for Q1 2025 totaled N1,751,502,252,298.05.

“Against our annual target of N6,580,000,000,000.00, the first quarter’s proportional benchmark stood at N1,645,000,000,000.00. I’m proud to announce we’ve exceeded this target by N106.5 billion, achieving 106.47% of our quarterly projection. This outstanding performance represents a substantial 29.96% increase  compared  to  the  same  period  in  2024,  where  we  collected N1,347,705,251,658.31.

“Our month-by-month analysis reveals even more encouraging details of this growth trajectory,” Adeniyi said.

In addition to revenue collection, Adeniyi said the NCS maintained robust anti-smuggling operations, recording 298 seizures with a total Duty Paid Value (DPV) of ₦7,698,557,347.67.

He stated that rice was the most seized commodity, with 135,474 bags intercepted, followed by petroleum products and narcotics.

“From rice to wildlife, these seizures show our targeted approach,” Adeniyi remarked, noting the NCS’s commitment to combating smuggling and protecting national revenue.

Adeniyi also highlighted key initiatives, including the expansion of the B’Odogwu customs clearance platform and the launch of the Authorized Economic Operators Programme, which aims to streamline processes for compliant businesses. The NCS’s Corporate Social Responsibility Programme, “Customs Cares,” was also launched, focusing on education, health, and environmental sustainability.

Despite these achievements, the CG noted that the NCS faced challenges, including exchange rate volatility and non-compliance issues. Adeniyi acknowledged the need for ongoing adaptation and collaboration with stakeholders to address these challenges effectively.

Looking ahead, the NCS aims to continue its modernization efforts and enhance service delivery, ensuring that it remains a critical institution in Nigeria’s economic and security landscape.

“Results speak louder than plans; faster clearances through B’Odogwu, trusted traders in the AEO program, and measurable food price relief from our exemptions. We’ll keep scaling what works,” he concluded.

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BUSINESS

NSIA Net Assets Hit N4.35trn in 2024

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By Tony Obiechina Abuja

The Nigeria Sovereign Investment Authority (NSIA) yesterday disclosed that its net assets grew from N156bn in 2013 to N4.35 trillion in 2024.

Similarly, the Authority has remained profitable for 12 consecutive years, leading to cumulative retained earnings of N3.

74 trillion in 2024.

Managing Director and Chief Executive Officer of NSIA, Aminu Umar- Sadiq made these disclosures at a media engagement in Abuja, highlighting its audited financial results for the 2024 fiscal year.

According to him, the results underscored the resilience of the authority’s investment strategy and the strength of its earnings, driven by a well-diversified revenue base and robust risk management practices, despite a challenging global macroeconomic and geopolitical environment.

Total operating profits, excluding share of profits from associates and Joint Venture (JV) entities, increased from N1.17 trillion in 2023 to N1.86 trillion in 2024, driven by the strong performance of

NSIA’s diversified investment portfolio, infrastructure assets, gains from foreign exchange movements, and derivative valuations.

In addition, Total Comprehensive Income (TCI), inclusive of share of profits from associates and JV entities, reached N1.89 trillion in 2024, reflecting a 59 per cent increase from N1.18 trillion in 2023.

Core TCI (excluding foreign exchange and derivative valuation gains) rose by 148 per cent to N407.9 billion in 2024 compared to N164.7 billion in 2023, supported by robust returns on financial assets measured at fair value through profit and loss, including collateralised securities, private equity, hedge funds, and Exchange-Traded Funds (ETFs).

Umar-Sadiq said the authority’s outstanding financial performance in 2024 reflected the “strength of our strategic vision, disciplined execution and unwavering commitment to sustainable socio-economic advancement.”

He said, “By leveraging innovation, strategic partnerships and sound risk management, we have not only delivered strong returns but also created value for our stakeholders

“As we move forward, we remain focused on driving economic transformation, expanding opportunities, scaling transformative impact and ensuring long-term prosperity for current and future generations of Nigerians.”

The CEO reaffirmed the authority’s commitment to managing the country’s SWF, and delivering the mandates enshrined in the NSIA Act.

He said NSIA remained poised to continually create long-term value for its stakeholders by delivering excellent risk-adjusted financial results, developing a healthy and well-diversified portfolio of assets and large-scale infrastructure projects, and enhancing the desired social outcomes.

He noted that NSIA was committed to its mandate of prudent management and investment of Nigeria’s sovereign wealth.

“In adherence to its Establishment Act, NSIA prioritises transparency, disclosure, and effective communication with all stakeholders and counterparties,” he said.

He pointed out that in the year under review, a new board, led by Olusegun Ogunsanya as Chairman, was appointed by President Bola Tinubu, in accordance with the provisions of the NSIA Act.

The new board will provide strategic direction and oversight, in addition to playing a pivotal role in critical decision making.

He remarked that under the guidance of the Board, the Authority will retain focus on its primary mandate of creating shared value for all stakeholders based on its continued adoption of corporate governance practices.

“NSIA prides itself an investment institution of the federation established to manage funds in excess of budgeted oil revenues and its mission is to play a pivotal role in driving sustained economic development for the benefit of all Nigerians through building a savings base for the Nigerian people, enhancing the development of the county’s infrastructure, and providing stabilisation support in times of economic misadventure,” he added.

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Business Analysis

A Peep Into Dangote’s Refinery, The World’s Engineering Wonder

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By Cletus Akwaya

Call it Dangote Republic and you would not be wrong, for that is what it means in real sense.

The ultra-modern Dangote Refinery and Petrochemical complex located at the Lekki Free Trade Zone in Lagos is the World’s Engineering wonder.

A guided tour for top Media executives in the country  by the President,  Dangote Industries Group himself, Alhaji Aliko Dangote on July 14, provided a rare privilege and opportunity to appreciate the project that has emerged as the World’s largest  single train petroleum refinery.

Dangote, the Kano-born business mogul and Africa’s richest man, whose vision for the industrial transformation of Nigeria led to the initiation of this project is certainly a fulfilled person, having accomplished such a gargantuan task in the spelt of just about 10 years.

The refinery, which is  built and equipped with the latest technology in the industry. It is a behemoth sitting on a huge land space of 2, 735 hectares, approximately seven times, the size of Victoria Island, the octane section of Lagos, which has become the abode for the very rich in the nation’s commercial nerve – centre over the decades.

The land was provided by the Lagos state government after the payment of $100million dollars by the Dangote Group as cost of the land.

The edifice didn’t come easy as the engineers had to reclaim 65million cubic metres of sand  through dredging of the Atlantic coastline to pave way for the construction of the refinery and its accompanying facilities especially the Jetty.

The Dangote refinery is not a stand-alone project as it has a coterie of associated industries and infrastructure making it a self-reliant complex.

For instance, the company has a fully developed port (jetty)for maritime operations for both in-take of crude and discharge of refined products. This perfectly compliments the huge pipeline network that lands into the Atlantic for intake of crude and loading of refined products to ships.  Its Jetty, which stretches 9KM into the international waters in the Atlantic Ocean and 12.5 KM from the refinery is perhaps one of the most modern in the world built with sand piles that shield the final landing points from the violent oceanic waves, thus providing for safety and stability of ships, barges and oil tankers.

The complex is accessed by 200KM network of concrete under-lay and well asphalted road network to ease vehicular traffic. The refinery has its dedicated steam and power generation system with standby units to adequately support operations of the various plants in the complex.

 It has successfully completed a 435 MW power generating plant for its operations. The power generated from this plant surpasses the entire distribution capacity of Ibadan Electricity Distribution company, which supplies electricity to five states of the Federation including Oyo, Osun, Ondo, Ekiti and Kwara.

The Dangote refinery with a capacity of 650,000 bpd of crude oil is designed to handle the crude from many of the African countries, the Middle East and the US light crude. Its petrochemical plant is designed to produce 77 different high-performance grades of polypropylene, which is the major raw material for numerous industries and other refineries. With a huge refining capacity, Alhaji Dangote said the products from the refinery company would easily meet 100 per cent the needs of  Nigeria’s demand for gasoline, diesel, Petrol and Aviation Jet with 56 per cent surplus for export, from which the company projects to earn a princely $25billion  per annum from 2025.

The company has facility to load 2,900 trucks with its various products in a day by land and millions of litres of products through the waters depending on where the orders come from. The $25million projected revenue in 2025 could translate to a huge relieve for the nation in dire need of foreign earnings to shore-up the value of the nation’s currency.

The associated industry, the Dangote Fertilizers Limited also situated in the complex utilises the raw materials from petrochemicals to produce different varieties of fertilzers especially Urea, NPK and Amonia grades of fertilizers. Apart from the local market, Dangote is already exporting its fertilizers to other countries including Mexico, a testament to its high quality that meets world standards.

This feta,  the President of Dangote industries explained was possible because of the high quality, the company has opted to pursue. In between the refinery and the fertilizers complex lies a 50,000 housing estate, which provided accommodation for the construction workers at the time of construction especially during the COVID-19 lockdowns of 2020, when workers remained encamped on the project site to continue with the work.

What stands out the Dangote Refinery is perhaps not in its sheer size and capacity but in the fact that  it is  perhaps the only of such projects whose Engineering, Procurement and construction(EPC) was done directly by the company without engaging the world renowned refinery constriction companies  like Technip Bechtel (USA)Technip (France)Aker Solutions (Norway)Chiyoda Corporation (Japan)SNC-Lavalin Group (Canada)J. Ray McDermott (USA)JGC Corporation (Japan)Hyundai Heavy Industries (South Korea)Foster Wheeler (USA) and Daelim Industrial Company (South Korea)

“The design of the refinery was handled by dozens of Engineers and technical experts assembled in India and Houston, Texas, USA to execute engineering designs of the refinery,” said Edwin Kumar, the Executive vice President, Oil and Gas for the Dangote Group who midwifed  the birth of the refinery complex.

“We didn’t give out contracts to anybody, we bought every single bolt and equipment ourselves and had it shipped into the country,” Dangote explained to his guests.

Part of the equipment imported into the country was the procurement of over 3,000 cranes to handle the evacuation of huge consignments of machinery from the wharf and for subsequent installation at the construction site. The cranes have become an unusual assemblage of such equipment to be found in one place on the African continent.

If there was any doubt that Alhaji Aliko Dangote is Africa’s richest man, the successful completion of the refinery and petrochemical complex at the cost of about $20billion has further confirmed his status as Africa’s leading businessman and entrepreneur.

However, Dangote does not really accept that he is the richest man on the continent,
“When you are rich, you accumulate cash, but when you  wealthy, you create wealth” he told the top Media executives on tour of the huge project, explaining that he would rather  prefer to be referred to as a “Wealthy man.”

And consistent with his business philosophy, Dangote hinted of plans to list the refinery on the Nation’s stock exchange by the first quarter of 2025. His vision is to avail the public of 20 per cent of the shares so as to ensure participation by Nigerians and even international portfolio investors.

The refinery company and the entire of Dangote Group at the moment provides direct employment to about 20,000 Nigerians and much indirect jobs to Nigerians, making it the highest employer of labour outside the government.

Most interestingly, the highly technical operations of Dangote refinery is operated by over 70 per cent of local manpower who work in the refinery control, centre, the numerous production and quality control laboratories among others. Some of the staff who explained their tasks to the visiting media executives said they were graduates of Engineering and allied disciplines recruited mostly from Nigerian universities and trained in various institutions abroad for periods ranging from sixth months – one year to master refinery operations. Through this strategy, Dangote has ensured transfer of technology to thousands of Nigerian youths.

“We don’t  know where they come from as long as they are Nigerians and if they decide to leave and join international oil companies for better job opportunities, we have no problem with that,” Dangote responded to a question on the strategy to retain the technical manpower for stability of the refinery’s operations.

The Dangote Refinery is a Republic of some kind,  at least an economic or industrial Republic.

But the man who presides over this ‘industrial empire’, Alhaji Dangote says his only ambition is to boot the nation’s economy and ensure netter life for Nigerians.

“When you import any product into Nigeria, you are importing poverty and exporting our jobs to those countries from where you are importing” Dangote said  adding “this is why I want economic nationalism in Nigeria.”

Dangote’s vision even goes beyond Nigeria as he has cement factories and other business concerns in about 13 African countries including Ghana, Ethiopia, Tanzania, Uganda, etc. This signifies his continent-wide  dream to transform Africa’s economies.

There has been attempts by some international oil companies to frustrate the successful take-off of the refinery, through over pricing and in some instances outright  denial of crude supplies for processing. This made Dangote to commence importation of crude from the US. However, the cheering news that the Nigerian National Petroleum Company Limited (NNPC) has finally approved a supply arrangement has raised hopes that full operations will commence and that the long-awaited Dangote oil products will reach consumers around the country from August.

At last, the Dangote Group may have achieved its objective to serve as the elixir to Nigeria’s industrialisation effort. This is perhaps the greatest legacy of Africa’s richest man to his country of birth.

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