The Global Free Zone Alliance (GFZA), a network of investors, had called for caution against the amendment to the Local Content Act saying it was capable of violating investment protection and incentives guaranteed by the Free Zone Authority Act.
There is a bill to amend the Local Oil and Gas Content Act to create a local content commission. But GFZA in a statement said the draft bill contains provisions which if passed will destroy the spirit behind the free zone Act especially in promoting Foreign Direct Investments (FDI), among others.
In the statement, one of its officials, Erasmus David, said foreign investors who invested in the free zone did so, on the strength of the global free zone practices captured in the Nigerian Export Processing Zones Authority (NEPZA) Act.
“We urge the Nigerian presidency to act now by stopping the proposed amendment to the local content act as it negatively affects the free zones. More importantly, we call on Nigeria to establish a single free zone authority in line with international best practices.”
Meanwhile the Investment Protection Group (IPG), another group in a statement picked holes in the bill, saying some sections undermine NEPZA’s mandate and the Executive Order on Ease-of-Doing Business.
“Any provision in the Act, specifically relating to labour matters, incentives, supervision and monitoring activities by any government agency in the Free Zone should be removed. Anything done otherwise will not only impede FDI but will also increase the cost of doing business.”