Private Sector Response

The Private sector has clearly demonstrated its willingness to take up the challenge and opportunities offered by the Free Zone.

REALISATION OF GOVERNMENT’S OBJECTIVES:

Investments & Capital:

• More than $300m has so far been invested by the Private sector into the Free Zone.
• Ministry of Commerce’s direct investment within the Free Zone is less than $12m.
• Port Authority’s considerable investment in the new facilities completed in the last six years, have all been self-financing.

Employment:

• More than 4,000 people are now employed by the private sector, Free Zone Licensees, at Onne.
• More than 700 public servants are working at Onne for government agencies and authorities.

Skills and Transfer of Technology:

• Several of the Free Zone Licensees have taken the Onne Free Zone opportunity to transfer to Nigeria some of the activities previously performed overseas.
• Such transfers have thereby contributed greatly to the increase of “local content” within the Oil Industry.
• These include: equipment stockist; pipe coating; cement plants; waste management; dry dock; specialised maintenance services.

Revenue:

• Cost of Oil –indirect, but very substantial, revenue savings by government.
• Made through large savings in the cost of Logistics in the exploration and development of Nigeria’s oil fields.

Port Authority Revenue:

• Substantial revenue generation for NPA. Including the creation and control of new sources of revenue within the Oil Industry.
• These are self-financing all NPA infrastructure improvements and developments at Onne.

Customs (NCS) Revenue:

• Improved control and revenue “facilitation” for the Nigerian Customs Service.

Free Zone Management Revenue:

• Progressively increasing, enabling the Free Zone Management to be self-financing by 2003.