- August 3, 2023
- Posted by: Destiny Young
- Category: News
The Oil and Gas Free Zones Authority said it remitted over N138bn revenue to the Federal Government between 2018 and 2021.
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.