2012年-世界发展银行全球_An_Overview_of_Six_Economic_Zones_in_Nigeria___Challenges_and_Opportunities_22页_907kb

Summary of Six Economic Zones in Nigeria: Challenges and Opportunities

Core Content

This report provides an overview of six economic zones in Nigeria, highlighting their development objectives, current status, business prospects, and key challenges. It also outlines proposed action plans to improve the implementation and management of these zones, with a focus on attracting foreign investments and maximizing benefits for both the host and investing countries.

The zones reviewed are located in Lagos, Ogun, Abuja, and Delta States, and include a mix of free trade zones, technology parks, and industrial business parks. Each zone has distinct ownership structures, development phases, and target industries, but they all face similar challenges, such as legal and institutional constraints, infrastructure gaps, and resettlement issues.

Main Findings and Zone Profiles

1. Lekki Free Trade Zone, Lagos State

• Location: 60 km east of Lagos on a sandy peninsula.
• Ownership: Joint venture between Chinese consortium (60%), Lagos State Government (20%), and Lekki Worldwide Investment Ltd (20%).
• Development Objective: Establish a free economic zone and international city with industrial, commercial, trade, tourism, and residential functions.
• Current Status:
  • Phase I covers 154 ha, with 109 ha of infrastructure development completed.
  • 8 companies are operational, employing 450 people (80% Nigerian).
  • A 10-15 MW power plant is under evaluation, and the deep sea port is expected to start construction in June 2012.
• Business Prospects:
  • Targets light industry, vehicle assembly, warehousing, and real estate.
  • Lease prices vary from $20/m² for manufacturing to $50–100/m² for real estate.
• Challenges:
  • Legal framework needs urgent reform.
  • Resettlement and remaining infrastructure (ports, power plant) are ongoing issues.

2. Ogun-Guangdong Free Trade Zone, Ogun State

• Location: Igbessa Region, 30 km from Lagos International Airport.
• Ownership: Joint venture between Chinese consortium (82%) and Ogun State Government (18%).
• Development Objective: Focus on light manufacturing and logistics.
• Current Status:
  • Phase I covers 250 ha with $220 million investment.
  • On-site infrastructure is partially developed, but major gaps remain.
• Business Prospects:
  • Hosts seven operational companies in steel, furniture, and other sectors.
  • Attracts investors like Nestle.
• Challenges:
  • Power supply and access roads are the main constraints.

3. Abuja Technology Village (ATV), FCTA

• Location: Capital city of Nigeria.
• Ownership: Joint venture between FCTA (40%) and ATV Foundation (60%).
• Development Objective: Become a technology park and free zone for IT and related industries.
• Current Status:
  • Master plan and feasibility study completed.
  • Major on-site infrastructure is in place, but power plants and waste management are still pending.
• Business Prospects:
  • Attracted interest from firms like Cisco, Microsoft, and Huawei.
• Challenges:
  • On-site infrastructure needs improvement.
  • Requires solid zone management and operational expertise.

4. KoKo Free Trade Zone, Delta State

• Location: 35 km from Sapele, Delta State.
• Ownership: Public-private equity structure in progress.
• Development Objective: Support Nigeria's Gas Based Industrialization Program (GBIP).
• Current Status:
  • Still in the initial stage, with no site construction started.
  • Environmental impact study pending.
• Business Prospects:
  • Anchor investors include Xenel (Saudi Arabia) and Nagarjuna Fertilizer (India).
• Challenges:
  • On-site infrastructure and environmental issues.
  • Resettlement concerns due to proximity to KoKo town.

5. Warri Industrial Business Park, Delta State

• Location: Warri, Delta State.
• Ownership: Joint venture between Delta State Government (80%) and Arco Petrochemicals (20%).
• Development Objective: Develop a mixed-use industrial business park.
• Current Status:
  • Master plan and feasibility study completed.
  • Land acquisition and site preparation ongoing.
• Business Prospects:
  • 7 firms have expressed interest.
  • Existing firms may remain or be relocated.
• Challenges:
  • Security concerns, though improved by recent government initiatives.
  • Need for on-site infrastructure and zone management expertise.

6. ICT Park Asaba, Delta State

• Location: Capital city of Delta State.
• Ownership: Public-private consortium, with government holding 25%.
• Development Objective: Become an ICT incubator and IT hub.
• Current Status:
  • Master plan and feasibility study completed.
  • Environmental impact study pending.
• Business Prospects:
  • Potential for training and employment of 25,000 young people in 4 years.
  • Anchor investors include Digital Bridge Institute and Zenith Bank.
• Challenges:
  • On-site infrastructure needs development.
  • Requires legislative and institutional support for ICT.

Key Challenges

• Legal and Institutional Framework: The NEPZA Act, enacted over 20 years ago, is outdated and creates obstacles for free zones. The act does not allow products made in zones to be imported to the domestic market, and the Customs Administration does not acknowledge recent regulatory changes.
• Resettlement Issues: Land acquisition and compensation are not always fulfilled, especially in advanced zones like Lekki and Ogun-Guangdong.
• Infrastructure Gaps: Power, gas, roads, and logistics are key constraints. Most zones are using PPP to address these issues.
• Environmental Impact: Environmental assessments are incomplete for some zones, and waste management remains a challenge.
• Zone Management and Operational Expertise: Most developers lack the necessary expertise and experience, making it difficult to attract and manage foreign investment effectively.

Proposed Action Plans

• Technical Assistance: Provide hands-on support to developers and regulators in legal framework, zone management, and operational know-how.
• Knowledge Sharing and Capacity Building: Enhance understanding and skills of local stakeholders.
• Additional Analytical TAs: Support in business and master planning.
• Financing Schemes: Leverage IFC equity investment and MIGA risk guarantees.
• Investment Promotion: Assist in organizing investment forums in Lagos and Abuja to attract more investors.

Conclusion

The six economic zones in Nigeria show varying levels of progress, with Lekki and Ogun-Guangdong being the most developed. Despite these achievements, common challenges persist, particularly in legal, institutional, and infrastructure domains. Addressing these challenges through technical assistance, capacity building, and strategic financing is crucial to ensuring the long-term success and sustainability of these zones. Foreign investments, especially from China, play a vital role in driving development, but the effectiveness of these investments depends on the resolution of these key constraints.