OGFZA remits N138bn revenue to FG

The Oil and Gas Free Zones Authority said it remitted over N138bn revenue to the Federal Government between 2018 and 2021.

The agency also said it had attracted a total investment commitment of $15.97bn from new and existing investors in five oil and gas free zones between 2021 and 2022.

Speaking with journalists in Abuja on Wednesday, the Managing Director of OGFZA, Senator Tijjani Kaura, explained that the authority had contributed significantly to the nation’s GDP through foreign direct investment, transferred technical skills and employment in the last two decades.

He stated that the OGFZA had attracted FDI to the tune of $21.6bn, transferred technical skills to 35, 330 Nigerians while over 41,085 persons secured direct employment and 164,000 others indirect employment.

The managing director said, ‘’I am happy to inform you that the eight free zones are evolving well and making impactful contributions to our country’s economy. Between 2021 and 2022, OGFZA attracted a total investment commitment of $15.97bn from new and existing investors in five of the oil and gas free zones.

‘’They include Brass Oil and Gas Free Zone: Proposed investment, $3bn; Notore Oil and Gas Free Zone, $5.35bn; Liberty Oil and Gas Free Zone, $6.4bn; Bestaf Maritime and Industrial OGFZ, $485m and OGFZA-SBA Free Zone, $738m. The total commitments amount to $15.97bn.’’

In terms of revenue, Kaura said, ‘’In the area of revenue generation to government, OGFZA activities accounted for the following revenues to the Federal Government between 2018 and 2021:

‘’Customs duty of N119bn for goods exported from the free zones to customs territory; withholding tax of N10.4bn for transactions carried out between free zone enterprises and non-free zone licencees; Value Added Tax of N9.5bn for transactions carried out between free zone enterprises and non-free zone licensees.’’

On the number of firms operating in the free zones, the authority said several companies had left the zones due to various reasons.

Kaura disclosed that, “Over 200 companies were operating in the oil and gas free zones but for so many reasons; some of them had to leave. During COVID-19, some of them left and also due to elements of insecurity. But as of now, we have about 77 companies and they are doing very well. In Warri, we have about seven companies; in Liberty, we have about 12, Brass two, Bestaf two, Notore two and so on,’’

The authority disclosed that it contributed to the reduction in cost of governance by being partially self-funded since January 2021, thereby saving the FG over N2.3bn annually.

Facebook Comments


Author: Destiny Young
Destiny Young (He/Him) is a distinguished IT professional with over 17 years of industry expertise. His impressive academic portfolio includes an HND and BSc (Hons) in Computer Science, a Master of Technology in Information Technology from the University of South Africa (UNISA), an MBA with distinction and a first-class MSc in Digital Transformation from Nexford University, Washington, DC. He currently an MSc student at the Department of Computer Science and IT, Paul University, Awka, Anambra State, specialising in Cybersecurity and also pursuing doctoral degree in Business Administration (DBA) with a specialisation in Technology Management at ANAN University Business School. A Chartered IT Practitioner, Manager, and Administrator, Destiny's focus lies in Cybersecurity and Digital Transformation. His professional affiliations include membership in the Computer Professional Registration Council of Nigeria (CPN), Nigeria Computer and British Societies, Chartered Institute of Administration of Nigeria (CIA), and Nigerian Institute of Management (Chartered). He is a Fellow of the Institute of Information Management (IIM). Destiny's unique blend of academic excellence and practical experience positions him as a leading voice in the ever-evolving landscape of information technology and cybersecurity.

Leave a Reply

Positive SSL Wildcard