FTZ is a designated duty-free area within a nation’s territory in which production and trade take place. It also provides tax incentives and up to 100 percent foreign ownership of a business.
Trade experts who spoke at the first conclave of free trade zones connect – FTZ 2010 Nigeria, concluded that free trade zones offer opportunities for Nigeria to diversify its economy from the present mono-economy highly dependent on oil and gas.
Mr Kenneth Odusola-Stevenson, the Chief Executive Officer (CEO) of 21 Century 21 Systems Limited, the organisers of the event, said, “Oil and gas is still important both for foreign and local investors but the commerce and industrial sector is of critical importance and will offer opportunities to investors for short and long term. And Nigeria already has the incentives in the FTZ.”
Also Mrs Mobolaji Oshomo, former Minister for Works, Housing and Urban Development, said she has seen the benefits of FTZ and the FTZs will provide opportunity to local producers to develop global best practices to compete with foreign markets.
According to her, it is important for Nigeria to begin to take full advantage of the FTZs opportunities.
In a presentation entitled, “Promoting Free Trade Zones to Domestic Investors,” Anada Sivaram, the Managing Director, Lagos Free Trade Zone Company, said as an insider and a practitioner in FTZ operations, FTZ has proved to be a catalyst for sustainable economic development.
He said FTZ guarantees free import of raw materials and components, duty free import of equipment, machinery and spares adding that it also guarantees no import or export restrictions among other benefits.
