The Oil and Gas Free Zones Authority (OGFZA) remitted N138.9 billion to the federal government between 2018 and 2021, as part of its impactful contributions to the economy.
The N138.9 billion was generated from customs duty for goods exported from free zones to custom’s territory (N119 billion), withholding tax (N10.4 billion) and value added tax (N9.5 billion) on transactions between free zone enterprises and non-free zone licensees.
Tijjani Kaura, Managing Director, OGFZA revealed this during a meeting with the Press in Abuja on Wednesday.
“Between 2001 and 2025, OGFZA attracted a total investment commitment of $15.97 billion from new and existing investors in five of the oil and gas free zones,” he said.
The $15.97 billion proposed investment commitment is coming from Brass OGFZ ($3 billion), Notore OGFZ ($5.35 billion), Liberty OGFZ ($6.4 billion), Bestaf maritime and industrial OGFZ ($485 million) and OGFZ-SBA free zone ($738 million).
Speaking to the agency’s revenue inflow, he said that the income is generated from administrative charges which is 1.5 percent of profit from operators, licensing fees, operational charges from cargoes, and regulation fees.
He stated that now the agency contributes 40 percent of its revenue to the government which is automated while the remaining 60 percent is used to run the operations of the agency, adding that it has been partially funding itself since January 2021 thus saving the government N2.3 billion annually.
In line with president Tinubu’s plan to improve the oil and gas sector, OGFZA established Oil and Gas Free Zones in Akwa-Ibom State, Rivers, Bayelsa and Delta States and has attracted gas processing projects.
“The Authority is also working with exploration and production companies including Waltersmith Petroman Oil Ltd for the development of an Industrial and Innovation Park/Oil and Gas Free Zone in Imo State and similar projects, which will operate as clusters for downstream gas-to-industry manufacturing and related activities,” he said.
The Authority had over 200 companies under its control but now has 103 due to various issues such as business challenges, reduced demand for services, COVID-19, among others some of them closed down.
He however expressed optimism that going forward more companies with the implementation of its strategic plan, more companies will come onboard.
Kaura highlighted operational challenges to include lack of adequate infrastructure for operations and unnecessary regulatory interferences in its activities because some of the offices are not conversant with the agency’s operations.
“One of the major challenges bedeviling our Free Zones activities, is the deplorable state of the Port Harcourt- Onne Junction of East-West Road; The Authority is also faced with the problem of regulatory interferences due to lack of understanding of the peculiar nature of the operations of free trade zones,” he said.
These challenges, he said has been escalated to the special adviser on industry, trade and investment, John Uwajumogu, who will present it to the president for it to be addressed.
He noted that the Authority regulates eight free free zones, six of which are fully operational while the other two are at various stages of completion.
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