Stakeholders who converged at the public hearing on the Oil and Gas Export Free Zone Authority at the National Assembly complex, Abuja, on Thursday canvassed for greater role for the organised private sector.
They also called for enabling environment that will promote competition for all operators to thrive in all the oil and gas export free zone in line with global best practice.
According to Section 2 of the proposed bill, 14 areas are to be designated as oil and gas free zones and sub-zones, namely: Onne/Ikpokiri oil and gas free zone, River State; Oil and Gas Free Zone, Owuogono, River State; Oil and Gas Free Zone, Terminal I, II & III, Warrior, Delta state; Oil and Gas Free Zone, Eko Support Services, Terminal I, II & III, Apapa Lagos; Oil and Gas Free Zone, Delta Port, Warrior, Delta State; Oil and Gas Free Zone, Snake Island, Lagos and Oil and Gas Free Zone, Ladol, Lagos.
Others include: Oil and Gas Free Zone, Olokola, Ondo/Ogun states; Oil and Gas Free zone, Iwokiri, River state; Oil and Gas Free zone, Ibaka, Akwa Ibom state; Oil and Gas Free zone, Brass, Bayelsa State; Oil and Gas Free zone, Ogedengbe, Warri, Delta State; Oil and Gas Free zone, Imgbengbe Ama, River State and Oil and Gas Free zone, Akwete-Obeaku, Abia State respectively.
But in their presentations before the House Committee on Commerce, the stakeholders kicked against the proposed amendment will dis-incentivize investment in such zones as a hallmark of attracting investment in any area is certainty of laws, regulations and more importantly, certainty of regulators.
In its submission, Details Commercial Solicitors urged that the bill should be limited to regulating the activities of One/Ikpokiri area of Rivers State as originally intended under the OGFZA Act, and exempt 13 other listed in the bill.
The law firm also argued that the amendment will create a monopoly by stifling competition in the sector/industry and runs contrary to Federal Government’s policy on the aease of doing business.
“Such provisions also run contrary to one of the basic rights of consumers which is the right to choose and have access to a variety of quality services at competitive prices.
“It is important to note further that in order to to promote competition in the sector, the Federal Government on the 21st of April, 2017 approved the recommendations of policy reform committee of the Nigerian Ports Authority which suggesered extant reforms for the Dave of the maritime industry, including the right of importers to chops terminals or ports for the discharge of their cargoes,” Details stated in the submission to the Comittee.
Yusufu Abdullahi, chairman, Snake Island Integrated Free Zone (SIIFZ) who spoke at the public hearing on the bill for an Act to amend the Oil and Gas Export Free Zone Act, 2011, alleged that the “Act empowers Oil and Gas Export Zone Authority Act to take over the functions of NEPZA,” as the Act specifically designates the One/Ikpokiri area of Rivers State as an oil and gas export free zone.
“Unlike NEPZA Act, the OGEFZA Act does not grant the power to designate any area within Nigeria as free zone. The Oil and Gas Export Zone Authority Act was enacted solely to oversee the export of oil and gas in One/Ikpokiri area of Rivers State as designated in section 1(1) of the OGEFZA Act. This however, is in direct conflict with the mandate of NEPZA and it usurps the functions of NEPZA even as it relates to One/Ikpokiri.
“Since its establishment, OGEFZA has consistently acted in violation of both its enabling law (which spelt out well defined and specific limits) and the NEPZA Act,and HSS repeatedly abused due legislative process by seeking to exercise legislative powers solely granted to the National Assembly by the Constitution of the Federal Republic of Nigeria,” he said.
He argued that the proposed amendment in its current form seeks to forcefully take over the administration of SIIFZ. This in itself is an act that would completely destroy investor’s confidence and destroy the good work and goodwill that NEPZA has built over the years.
“It would create more uncertainty and cast aspersions on other agencies of government such as the Nigeria Customs Service, the Nigeria Ports Authority, Nigerian Immigration Service, the State Security Service, the Nigeria Police who are all established on SIIFZ to ensure compliance with all laws and that appropriate security is maintained.
He further argued that the proposed amendment will remove competition not only in the handling of oil and gas export but provides for limitless empowerment over any business even remotely connected to the oil and gas industry and places every investor at the mercy of a single operator,” Abdullahi argued.
In its submission, Institute of Chattered Accountants of Nigeria (ICAN), which opposed fully owned government institution, recommended 60 percent private sector ownership and 40 percent government ownership.
The Institute also canvassed stronglly for the prosecution of any corporate company found guilty of an offence as stipulated in section 24(3) of the bill.
The Institute which frowned at the proposed N100,000 or 3 month imprisonment for offenders as proposed in section 24 of the 1999 Act, noted that “these penalties are not too severe to deter deliberate offenders,” hence called for review of the provision.
The Institute also opposed the usage of the proceeds realised by the agency, stressing that “this is a violation of the government directive on Treasury Single Account (TSA) where Ministries, Departments and Agencies (MDAs) are expected to pay monies into an account instead of spending thereof.
“Then, how can that be reconciled with the current government’s concept of TSA, where all expected payments to the Federal Government or its agencies, must be made directly to the Central Bank of Nigeria (via Remita) first? Won’t there be a collusion or contradiction here?”
On its part, Adetayo Oduwole, Legal Practitioner at Lekki Free Zone Development Company, argued that having two authorities regulating one zone will be a legal anomaly and administrative bottlenecks.
He maintained that the proposed amendment attempts to brand rather arbitrarily, Snake Island and Ladol as an oil and gas free zone.
“We humbly request that a declaration should be made by the distinguished committee forbidden the continued attempt by OGEFZ authority to infringe on the powers if the National Assembly by a continued and arbitrary attempt to forcefully takeover these entities and therefore worsening the economic situation of Nigeria and causing loss of hundreds of jobs by frustrating investors out of Nigeria,” he noted.
KEHINDE AKINTOLA, Abuja
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