Presidency has said there was no
controversy over the status of Nigeria SEZ Investment Company Limited
(NSEZCO), also known as Nigeria Special Economic Zones Company.
Mr Femi Adesina, the Special Adviser to
the President on Media and Publicity, stated in Abuja on Wednesday when
he reacted to reports about the status of NSEZCO.
He said the company was designed as a
special purpose vehicle to deliver Project MINE (Made in Nigeria for
Exports), which is a Presidential initiative.
“We wish to confirm that NZESCO was
incorporated as a special purpose vehicle to deliver Project MINE (Made
in Nigeria for Exports), which is a Presidential initiative.
“The Federal Government’s Economic
Recovery & Growth Plan (ERGP) identified the development of Special
Economic Zones (SEZs) as a major strategic tool to accelerate the
implementation of the Nigeria Industrial Revolution Plan
(NIRP),’’ he said.
He added that the Project MINE was
envisioned by the Federal Ministry of Industry Trade and Investment
(MITI) to develop SEZs to world-class standards and position Nigeria as
the pre-eminent manufacturing hub in sub-Saharan Africa
and a major exporter of made in Nigeria goods and services regionally
and globally.
He said: “Indeed, Project MINE was necessitated by the following factors:
Lack of operating competitiveness that
limits the growth of the zones, despite the presence of generous fiscal
and regulatory incentives.
For government-owned SEZs, there were
limited Federal budget allocations to make the required investments in
infrastructure, operations and management services;.
Others are the need to develop the skills and experience to operate and manage the zones to world-class standards of efficiency;
The absence of a deliberate strategy to
attract investors, create clusters or encourage the development of local
value chains using SEZs, and therefore the lack of appropriate link
between the industrialization strategy of government
and the Free Trade Zones.
Project Mine therefore seeks support
structural transformation of the Nigerian economy by increasing the
manufacturing sector’s contribution to GDP to 20 per cent by 2029 and
contribute to sustainable inclusive growth by creating
1.5 million new direct manufacturing jobs in the initial phase of
Project MINE.
He said the project would increase and
diversify foreign exchange earnings to at least US$30bn annually by
2029, by increasing manufacturing sector exports and create local models
of global best practice in the provision of world
class infrastructure at competitive costs connecting SEZs to
international and regional markets with transport links, uninterrupted
power, ICT, water, sewage and other services to ensure smooth and
efficient operation of SEZ businesses.
It would promote the “cluster” effect to
be gained by locating similar export-oriented manufacturing businesses
within the same locality, and attract world class investors with strong
positions in global supply chains and investors
with potential to increase the scale of operations rapidly to set up
operations in SEZs.
The project was also create an enabling
environment for SEZ businesses by instituting best in class legal and
regulatory frameworks, using technology and streamlined processes to
facilitate movement of people, goods and capital
and easy access to government services, approvals and permits.
Adesina recalled that in June, 2018, the
Federal Executive Council (FEC) approved NSEZCO, with the endorsement of
the Economic Management Team, as the holding entity for FGN investments
and proprietary interests in existing and
future SEZs.
He said the FEC approval also provided
that all current and future capital appropriations for Project MINE
should be transferred to NSEZCO’s account, as soon as opening
formalities were completed.
“With the formalities
completed, NSEZCO became the platform through which Federal Government’s
capital budget appropriations for SEZs are converted into long term
value creating investments.
“NSEZCO is a public private partnership
(PPP) company to operate world-class standards of governance and
management, to facilitate mobilization of capital and other resources
from PPP partners, in order to overcome budgetary constraints
to the provision of critical infrastructure for SEZs.
“By aggregating and harnessing FG’s
investment in a strong corporate special purpose vehicle, NSEZCO will
facilitate the mobilization of additional capital from development
finance institutions (DFIs) and private investors. Ministry
of Finance Incorporated (MOFI) is the shareholder, holding the FG’s
interest of 25% in NSEZCO.
“The balance of 75% is currently held in
trust on behalf of other prospective shareholders, pending completion of
investors’ diligence and documentation and approval procedures,’’ he
further maintained.
The presidential spokesman also recalled
that on Feb. 8, NSEZCO signed investment agreements with three
Development Finance Institutions: Afreximbank, Bank of Industry, the
Nigeria Sovereign Investment Authority (NSIA) and Ministry
of Finance Incorporated for their investment in NSEZCO at a ceremony
presided over by President Muhammadu Buhari at the Presidential Villa.
He stated that Africa Finance Corporation
and African Development Bank which are still in the preliminary stages
of their internal approval processes were also in attendance as
observers.
Adesina quoted President Buhari at the
signing ceremony as saying that: “When we committed to the
implementation of the Nigeria Industrial Revolution Plan and launched
our Economic Recovery and Growth Plan to fast track implementation,
we had a vision of Nigeria as the pre-eminent manufacturing hub in
Sub-Saharan Africa and a major exporter to our immediate West African
sub-region, the rest of Africa and indeed the World.”
He said already, NSEZCO was mobilizing
capital from the Federal Government and the development finance
institution shareholders, for the development of Special Economic Zones
across Nigeria.
He disclosed that pilot projects in the
first phase were Enyimba Economic City, Abia State, Lekki Model
Industrial Park, Lagos State and Funtua Cotton Cluster, Katsina State.
The
presidential media aide maintained that “in addition, pre-development
studies are on-going in Benue, Kwara and Sokoto States whilst studies
will soon commence in Ebonyi, Edo and Gombe States amongst others”.