Mohammed Shosanya

The Federal Government has established a steering committee to drive the promotion and establishment of a digital free zone in Nigeria to accommodate the peculiar needs of innovative digital trade and service businesses.

The steering committee is chaired by His Excellency Mr President, supported by the Honourable Minister of Finance and the Coordinating Minister of the Economy as Vice Chairman.

Other members are the Honourable Attorney General of the Federation and Minister of Justice; the Honourable Ministers of Industry, Trade and Investment; Communications, Innovation and Digital Economy; and Interior; the heads of relevant Government Agencies and Committees; and the Initiative for the Promotion of Digital Free Zones in Nigeria (DiFZIN) as the private-sector stakeholders’ representative and technical advisers.

DiFZIN is a non-profit advocacy and policy research organisation supported by a consortium of private sector development-focused and advisory institutions including Africa Finance Corporation, PwC Nigeria, Charter Cities Institute, Future Africa, and Itana.

The mission of the organisation is to see Nigeria’s free zones ecosystem fulfil its full potential as Africa’s major hub for global technology and service businesses.

This Committee will work collaboratively with relevant agencies of government and private stakeholders to review and align Nigeria’s free zone policies, technology and processes with global standards, then develop and publish policy and operational frameworks to enable qualified global and local technology and service businesses to establish Pan-African or global operations from Nigeria.

Businesses that take advantage of the zone will benefit from competitive business incentives provided by modernized free zones regulations, including tax, immigration and banking incentives, simplified government compliance processes, clear and predictable business regulation and an enabling business environment.

As part of the Federal Government’s strategic growth objectives, it aims to boost foreign direct investment, create employment opportunities, and facilitate the capital flow into Nigeria’s economy, through an innovative and future-oriented approach to the free zones ecosystem.

The Minister stated that: “the pivotal role of free zones to catalysing and sustaining economic growth in an emerging market such as Nigeria cannot be overemphasised. Its implementation in this digital age must not only encompass manufacturing undertakings but also integrate the central role of technology-focused businesses in attracting investments and making available to the global markets, our domestic talents under a liberal regulatory framework. These and more are what the Government aims to deliver through the digital free zones.”

Dr. Olufemi Ogunyemi, MD/CEO of NEPZA (Nigeria Export Processing Zones Authority), emphasized the Authority’s commitment to digital transformation. He highlighted the e-NEPZA platform, which will streamline government services and comply with the Federal Government’s ease of doing business policy.

He also noted the importance of data privacy, with data stored locally in local servers as well as the ability of small businesses to access global markets, addressing the need for digital infrastructure like fibre optics. “We look forward to partnering with DiFZIN to advance our digital processes,” he stated.

NEPZA’s support for Digital Free Zones signals a move towards a digitally driven economy, unlocking new opportunities for small and medium-scale enterprises as well as large corporations in Nigeria.

Mr. Luqman Edu (Executive Director of DiFZIN and CEO of Itana) and the DiFZIN consortium, aim to support the Federal Government in positioning Nigeria as a hub for regional expansion across Africa.

These efforts,he said,are designed to contribute to the growth of Nigeria’s GDP, government revenue, capital importation, and foreign exchange availability, while simultaneously generating employment opportunities for the burgeoning Nigerian youth population.

“DiFZIN is committed to driving the agenda for reforms to the regulatory frameworks for taxation, banking, immigration, and ease of doing business, among others, within the free zones ecosystem,” said Mr Edu. “Our goal is to create a conducive environment for global technology and services-based businesses to thrive, facilitating remote operations and banking from Nigeria for Africa, thereby positioning Nigeria as a hub for Africa, akin to what Delaware is for the US, and Dubai is for Asia.”

Speaking on the partnership with DiFZIN, Banji Fehintola, Head of Financial Services at AFC said “AFC’s advisory team is uniquely skilled in providing tailored financial and technical advice to public and private sector players across Africa. We look forward to collaborating with DiFZIN and all other partners to modernize Nigeria’s free trade zones, attract much-needed investment, create local jobs, and boost trade and commerce in Nigeria and Africa.”

Mohammed Shosanya

Oyo state governor,Seyi Makinde has faulted Federal Government’s claim that the sum of N570 billion naira was released to the 36 state governors and the FCT as grant to cushion the effects of economic hardship in the country.

He disclosed that the money was a World Bank interest free loan repayable over time.

He disclosed this in a Newsletter No 95 during the week with a view to setting the record straight in the public.

Makinde,who noted that the recent protests across the country against food inflation and general hardship reflect the broader issues Nigeria currently faces emphasized that the action by Nigerians has again, brought forward the need to focus on reshaping approach to overcoming economic challenges bedeviling the nation.

He also disclosed that the position of the federal government on the said funds was a case of misrepresentation of facts.

He said the funds were part of the World Bank-assisted NG-CARES project—a Programme for Results intervention.

According to him,the Federal Government did not give Oyo any money,adding that state government merely received reimbursed funds to the tune of N5.98 billion in the first instance and N822 million in the second instance.

He added that the received funds were invested in the three result areas of NG-CARES, which includes inputs distribution to small holder farmers within the state, noting that when the World Bank saw Oyo state model for the distribution of inputs which was preceded by biometric capturing of beneficiary farmers, the world financial body adopted it as the NG-CARES model.

He said:“Before I speak more on further actions we have taken to show our commitment to productivity and sustainability, let me respond to a long message I received earlier in the week from a concerned citizen.

“The message was about a purported N570 billion Hardship Fund “given” to the 36 states by the federal government. I was queried about what I used the money for.

“Let me state categorically that this is yet another case of misrepresentation of facts. The said funds were part of the World Bank-assisted NG-CARES project—a Programme for Results intervention.

“The World Bank facilitated an intervention to states in Nigeria with COVID-19 Recovery. CARES means COVID-19 Action Recovery Economic Stimulus. It was called Programme for Results because States had to use their money in advance to implement the programme.

“After the World Bank verified the amount spent by the State, it reimbursed the States through the platform provided at the Federal level. The Federal Government did not give any State money; they were simply the conduit through which the reimbursements were made to States for money already spent.

“It is important to note that the World Bank fund is a loan states, not a grant. So, states will need to repay this loan. Note also that NG-CARES, which we christened Oyo-CARES in our state, predates the present federal administration.

“So,in direct response to the message, the Federal Government did not give Oyo State any money. We were reimbursed funds (N5.98 billion in the first instance and N822 million in the second instance) we invested in the three result areas of NG-CARES, which includes inputs distribution to smallholder farmers within our State. In fact, when the World Bank saw our model for the distribution of inputs preceded by biometric capturing of beneficiary farmers, they adopted it as the NG-CARES model.

“Oyo State has always led in ensuring transparency in any donor-facilitated interventions. This is why we are always picked as one of the subnational beneficiaries. We are exhibiting the same level of transparency in another World Bank-Facilitated project, the Livestock Productivity and Resilience Support (L-PRES) Project. I spoke about this in my last newsletter.

“This project is designed to create a resilient livestock landscape, leveraging our comparative advantage in dairy, goat and sheep farming, poultry, and piggery. You may follow this link to register as a livestock farmer in Oyo State. I will speak more about this project at the official flag-off.

“We continue to embrace every opportunity to break from the norm as we implement projects and policies in the agriculture sector, which we identified since 2019 as one of the focal areas in building a sustainable economy. Agriculture as a business requires substantial investment. While we continue to invest in and support our smallholder farmers, we know we cannot rely solely on them to ensure food security; we need to think bigger.

“We also acknowledge that Oyo State alone cannot bring Nigeria out of its economic difficulties. What we can do is provide a model for others to follow.

“As I take a brief pause from my usual duties for four weeks, I am confident that the structures we have put in place will continue to drive our state forward. Thank you for your unwavering support and understanding. Together, we can create a model of productivity and resilience that can inspire the entire nation.”