Senate Says Free Trade Zones Are A Failure

The Senate has expressed disappointment that the nation’s Free Trade Zones have failed to stimulate economic growth due to weak regulatory framework.
Various Senators who spoke at a public hearing on the Oil and Gas Export Free Zones Authority Act, 2011 (amendment Bill) 2014, in Abuja expressed total disappointment at the implementation of the Act and the performance of the Free Trade Zones
The Oil and Gas Export Free Zone Act which seeks to make consequential provision to the Act for greater effectiveness and efficiency has been in existence for about 18 years.
In his address at the occasion, the President of the Senate, David Mark, explained that the main ideology behind legislative support for the establishment of the FTZs was to make economically viable laws to act as catalysts for economic growth.

If properly applied, he said the law would empower individuals, the private and public sectors with the autonomy to use resources and capital efficiently, and ensure generation of foreign exchange, foreign capital and attraction of foreign direct investment.
The Chairman, Senate Committee on Trade, Senator Odion Ugbesia, decried the abysmal performance of the trade zones in the country.
He said the abysmal performance, which was due in part to weak regulatory framework, informed the decision by the Senate to embark on the amendment of the Act.
According to him, FTZs across the world are instrumental to boosting industrial and economic growth.
This, he noted, was the reason why the Federal Government established the Onne Oil and Gas Free Trade Zone to provide a greater level of foreign direct investment, technology transfer, manpower development, provision of employment opportunities and greater economic self reliance.
Ugbesia said, “Simply put, the amendment bill on the Oil and Gas Export Free Zone Act CAP 05 LFN seeks to make consequential provision to the Act for greater effectiveness and efficiency.
“Having operated the Act for about 18 years, some inherent inadequacies and operational challenges were noticed. Hence the need to repeal the existing Act to correct these inadequacies and challenges.
“The amendment bill, therefore, seeks to address some of the deficiencies in the principal Act by creating a more robust legislative framework to regulate and promote effective operation of the Oil and Gas Free Zones Authority.
“The most attractive features of a free zone anywhere in the world is the tax holiday, which investors enjoy as incentive and encouragement for investment, and this amendment provides just that.”http://shippingposition.com.ng/article/senate-says-free-trade-zones-are-failure