Nigeria To Reap $2bn In Export Value From Kano FTZ by 2027
The Federal Government’s effort in turning the Kano Free Trade Zone (KFTZ) from its present poor state to world-class standard as the projects would bring well over $2 billion export value by 2027, the Director-General, Bureau of Public Enterprises, Alex Okoh has said.
Okoh stated this during the presentation of the Planned Concession on Kano Free Trade Zone to Kano State Governor, Abdullahi Umar Ganduje on Wednesday.
According to him, the Zone could become a location of choice for agri-business, textile companies and leather industries, as the concession strategy involves no divestiture of shares in any form.
“Integrated textile and garment manufacturing, fully integrated and reliable supplier network, partner of choice with large agri-business companies and integrated and strong logistics and distribution capabilities to urban centres in the South.”
Okoh said further that the Bureau of Public Enterprise has copied the blueprint it used on key national assets that are doing well and contributing their quotas to the national economy.
“The concession strategy involves no divestiture of shares in any form. BPE has adopted this strategy for some of the key national facilities that are performing well and contributing massively to the country’s economy, these are The Nigerian Ports Terminal and Hydro Power Generating Plants.
“The proposed concession of the FTZs are therefore intended to be used to transform the two FTZs (Kano and Calabar) into world-class standard facilities as obtainable in other regions like Asia, etc.
“To create massive job opportunities for the teeming youths in the immediate locality and to promote exports, attract foreign direct investment, improve infrastructure amongst other benefits,” Okoh noted.
Ganduje appreciated the BPE for its efforts, assuring that Kano would do everything to make the project a viable one for the country.
“We are really commending all the strategies you put in place. Like issues that have to do with the concession. I am also assuring you that as a state, we will do our best to see how we can move things to work very well.
“It is very important for Kano to play a vital role in the concession. We are also urging that all your parts are done with urgent consideration. As politicians and leaders, we have our timeline, so it becomes imperative to complete this project in record time,” Ganduje said.
He also reminded the BPE that Kano is a hub of commercial activities by history and antecedents, whilst calling on all stakeholders to work assiduously in making sure that the aim of the project is achieved for the overall development of the state and the country.
Nasiru Sani Gwarzo, Permanent Secretary of the Federal Ministry of Trade and Investment, who represented the Minister of Trade and Investment, commended the state government for the commitment displayed.
“We are in Kano to rub minds with all the stakeholders. We are excited by this project and its viability and we look forward to fruitful deliberations regarding this wonderful project that would reposition Kano State and the country economically,” Gwarzo concluded.
FTZs in Nigeria are regulated by the Nigeria Export Processing Zones Authority (NEPZA). NEPZA oversees all the activities of FTZs by being the one-stop-shop or coordinator of other government agencies in their relations with enterprises or businesses approved to operate in FTZs.
The sweeping attraction of Nigeria’s FTZs is to be found in Sections 8 and 18(1) of NEPZA’s establishing statute, the NEPZA Act, which exempts Approved Enterprises from all Federal, State and Local Government taxes, levies rates and foreign exchange regulations. Section 24 of the Act makes all other laws applicable, unless they have been specifically exempted by the NEPZA Act or the relevant law.
The Federal Government had in February 2021 signed a 25-megawatt Independent Power Project (IPP) agreement, to enhance electricity supply to industries in the Kano Free Trade Zone (KFTZ).
The initiative is to fast-track infrastructure development and provision of other facilities to encourage investment in the KFTZ.
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