Nigeria: NEPZA PERMITS THE OPERATION OF 3 NEW FREE TRADE ZONES WORTH $2.751 BILLION
The Managing Director
of Nigeria Export Zones Authority (NEPZA). Mr Emmanuel Jime, says the Authority
has granted licenses to three new Free Trade Zone (FTZ).
of Nigeria Export Zones Authority (NEPZA). Mr Emmanuel Jime, says the Authority
has granted licenses to three new Free Trade Zone (FTZ).
This announcement by
Jime was in a statement issued recently by the Head Corporate Communications of
the Authority, Mr. Simon Imobo-Tswam.
Jime was in a statement issued recently by the Head Corporate Communications of
the Authority, Mr. Simon Imobo-Tswam.
The Free Trade Zones
are Nasco Town FTZ; valued at $2.086 billion, Quit Aviation Services FTZ;
valued at $215 million, and Tomaro FTZ; valued at $450 million. Details of
these approved zones shall be posted on this blog soon.
are Nasco Town FTZ; valued at $2.086 billion, Quit Aviation Services FTZ;
valued at $215 million, and Tomaro FTZ; valued at $450 million. Details of
these approved zones shall be posted on this blog soon.
The new licensed FTZs
hope to attract an inflow of $2.751billion in Foreign Direct Investment (FDI)
into the country, also targeting direct jobs in excess of 50,000.
hope to attract an inflow of $2.751billion in Foreign Direct Investment (FDI)
into the country, also targeting direct jobs in excess of 50,000.
This is a welcomed
development especially now that the economy of the country is looking
promising, the Free Zone Scheme will be one of the foil Crum, it has been
suggested that Nigeria economy would expand 2.7 percent in 2018.
development especially now that the economy of the country is looking
promising, the Free Zone Scheme will be one of the foil Crum, it has been
suggested that Nigeria economy would expand 2.7 percent in 2018.
The 2.7 percent mean
estimate derived from the survey which featured projection by US- based global
lenders, World Bank and the international monetary fund, as well as
Russia-based investment bank, Renaissance Capital. This also reflected optimism
over improved foreign exchange liquidity
.
estimate derived from the survey which featured projection by US- based global
lenders, World Bank and the international monetary fund, as well as
Russia-based investment bank, Renaissance Capital. This also reflected optimism
over improved foreign exchange liquidity
.
“Aside the improvement
in real GDP, the performance across several other macro-indicators suggests
that the economy is on track for a broad-based recover,” said Andrew S Nevins,
a partner and chief economist at PWC.
in real GDP, the performance across several other macro-indicators suggests
that the economy is on track for a broad-based recover,” said Andrew S Nevins,
a partner and chief economist at PWC.
Nigeria has been
hammered by a lengthy collapse in oil prices that began in mid-2014 and
snowballed into a two-decade low of $28 per barrel in January 2016.
hammered by a lengthy collapse in oil prices that began in mid-2014 and
snowballed into a two-decade low of $28 per barrel in January 2016.
The pain inflicted by
militant attacks in the Niger-Delta, which sent production levels to near decade-low
of 1.2 million barrels, dealt an even steeper blow on the oil-dependent
economy.
militant attacks in the Niger-Delta, which sent production levels to near decade-low
of 1.2 million barrels, dealt an even steeper blow on the oil-dependent
economy.
These factors tipped
the economy into its first full-year contraction in 25 years and triggered
acute dollar shortages that stifled the non-oil sector, as the latter contracted
0.2 percent to record its worst performance since 1984.
the economy into its first full-year contraction in 25 years and triggered
acute dollar shortages that stifled the non-oil sector, as the latter contracted
0.2 percent to record its worst performance since 1984.
However, the economy
managed to limp off the recession in the second quarter of 2017 after expanding
0.55 percent, on the back of a rebound in oil prices, following an agreement
reached by OPEC members in 2016 to shave some 1.2 mbpd off the market to nip
growing supply glut in the bud and relaxed hostilities in the Niger-Delta.
managed to limp off the recession in the second quarter of 2017 after expanding
0.55 percent, on the back of a rebound in oil prices, following an agreement
reached by OPEC members in 2016 to shave some 1.2 mbpd off the market to nip
growing supply glut in the bud and relaxed hostilities in the Niger-Delta.
This year, “we expect
the Nigerian economy should continue its rebound, perhaps reaching 2.5 percent
driven mainly by further improvements”.
the Nigerian economy should continue its rebound, perhaps reaching 2.5 percent
driven mainly by further improvements”.
Increased flow of
petrodollars has pushed the country’s external reserves of a 34-month high of
$38billion as of December 2017, according to data available on the Central Bank
of Nigeria (CBN) website, adding to positive exchange rate expectations.
petrodollars has pushed the country’s external reserves of a 34-month high of
$38billion as of December 2017, according to data available on the Central Bank
of Nigeria (CBN) website, adding to positive exchange rate expectations.
“We retain our favorable
outlook for the exchange rate amid sustained stability in global crude oil
prices which should result in further build-up in foreign reserves as well as
CBN’s continued intervention to meet demand at the interbank foreign exchange
markets,” analyst at Cowry Assets Management said in a note to investors.
outlook for the exchange rate amid sustained stability in global crude oil
prices which should result in further build-up in foreign reserves as well as
CBN’s continued intervention to meet demand at the interbank foreign exchange
markets,” analyst at Cowry Assets Management said in a note to investors.
Foreign exchange
liquidity has improved following not only increased CBN fire power, but the
creation of the investors & exporters window in April 2017 to boost liquidity
and ensure timely execution and settlement for eligible transactions as
stipulated by CBN. Some $18 billion have been traded at the window since
inception.
liquidity has improved following not only increased CBN fire power, but the
creation of the investors & exporters window in April 2017 to boost liquidity
and ensure timely execution and settlement for eligible transactions as
stipulated by CBN. Some $18 billion have been traded at the window since
inception.