By Ndubuisi Micheal Obineme
Established in 1996, The Oil and Gas Free Zones Authority (OGFZA) is the only regulatory authority that issue licenses and manage Nigeria’s Oil & Gas Export Free Zones including enterprises that operate within the export free zones.
Speaking on an exclusive interview with Ndubuisi Micheal Obineme, Oil & Gas Republic’s Correspondent, OGTZA CEO Mr. Umana Okon Umana, said that since his appointment as CEO, OGTZA have been making progress to attracting foreign direct investment in Nigeria’s Oil & Gas Value Chain.
In his words, Mr. Umana said that they implemented a strategic three year roadmap which includes; Creating an Enabling Environment where businesses can thrive and to attract
FDIs, Financial Independence, where OGFZA will rely on internally generated revenue (IGR) rather than the Federal Government funding for its recurrent expenditure, Improve operational efficiency by automating its service deliveries and deploying ERP to ensure improved access and better services.
“We have successfully expanded investment opportunities open to tenant investors by licensing another free zone operator in our Onne/Notore Free Zone. We have created an enabling environment for competition amongst service providers in the zone so as to afford greater choice and reduced costs to our zone enterprises.
“We have been taking practical steps towards amending the OGFZA Act to rid it of ambiguity in its functions and jurisdictional challenges as well as to empower the agency to regulate more effectively. The proposed amendments to the Act also look at our revenue structure, which will better empower us to partner with private investors who can help us realize our developmental goals.
“Most of our free zones are strategically located on the Gulf of Guinea, on the Atlantic Ocean Coast and in proximity to major offshore oil and gas fields in Nigeria.
They serve as logistics base for some of the international oil companies carrying out exploration and production (E&P) activities in the deep offshore or ultra-deep offshore.
“In addition, our zones house companies investing along the oil and gas value chain.
Currently, we have the Notore Free Zone where we have investors extensively involved in fertilizer and petrochemical business.
“For us at OGFZA, as regulators of the Oil and Gas Free Zones, we have business incentives such as customs incentives, tax incentives, immigration incentives and logistics and supply chain incentives for attracting potential investments into the Oil and Gas industry.
“As a regulator of Oil and Gas Free Zones, we are particularly interested in attracting modular refineries, gas plants, petrochemical plants and companies along these value chains.
“The Zabazaba FPSO project is strategically positioned in proximity to our free zone in
the Brass Oil and Gas City, Southern Nigeria. The existence and success of this oil and gas offshore project will directly impact on our zone. Its success will make our free zone a more attractive site for businesses along the FPSO value chain to situate,” he said.
Recently, The Presidential Enabling Business Secretariat conducted an assessment of the nationwide implementation of EASE OF DOING BUSINESS Executive Order 001 (PROMOTION OF TRANSPARENCY & EFFICIENCY), to which OGFZA was highly commended and adjudged 4th overall across all Ministries, Departments and Agencies of government.
OGFZA business model offers various investment opportunities for investors looking to invest in Nigeria’s Oil & Gas Free Zones. One of the incentives in operating as a licensed free zone enterprise is 100% expatriate quota which offers opportunities for technology transfer so that local population is trained in competitive and viable fields of specializations.
As part of the effort to attract foreign direct investment (FDI) for Nigeria, OGFZA uses its Special Purpose Vehicle (SPV) – Free Zone Global Investments Ltd, to facilitate public private partnership investments in the Nigeria’s oil & gas free zones, maximizing their potential as vehicles for promoting accelerated growth and sustainable development.
