By Franklin Alli
The Special Adviser on Commerce and Industry, Lagos State, Mrs. Olusola Oworu, and the Chairman, Lekki Free Zone Development Company (LFZDC) Engr. Segun Jawando, have defended why  the Nigeria Export Processing Zones Authority(NEPZA) granted jumbo incentives to both existing and prospective investors in the Lekki Free Zone.

Top of these incentives are “100 per cent  foreign ownership of investments, 100 per cent reparation of capital, profit and dividends,  100 per cent restriction free to hire foreign employees and waiver for all expatriate quotas for companies operating in  the Zone, among others.”

Reacting  in an interview with Vanguard, Oworu, and  Jawando, maintained that these incentives were tailored to stimulate the economy and to accelerate flow of foreign direct investments into the country.

“We can’t develop it by ourselves.  We need to attract other people to invest in Nigeria, and after they have made their investment, and recoup their capital, they can repatriate their profits, but they can’t take the manufacturing company back with them, they can’t take the investment they have made locally away,” she said, stressing “It’s a long-term project that will take 10-15  years to build up the first phase of the zone, sitting on more than 15,000  hectares of land mass.”

On the volume of trade to be generated when the zone is fully on the stream, the Special Adviser said: “We are looking at $700 million (about N105 billion)annually, and the figure will continue to change as more investors come to set up businesses.”

“In doing this, we had looked at the benefits to Lagos State and the entire economy.  Else where, similar incentives have been given to investors, corroborated Engr. Jawando.

He pointed out that all over the world, free trade zones have been used as a tool for economic development particularly China.

“China started with free trade zones and it has contributed tremendously to the economy of China, so we decided to adopt that strategy for Lagos State. We do not want our people to be going to Shanghai to buy things, and they can buy them from here. So, the incentives are tailored to attract foreign direct investments,” he said.
“ This project’s our whole life business, and our vision’s to gradually turn the free zone into a new industrial city as well as a multi-functional special economic zone in the State,” said Managing Director LFZDC, Mr.Chen Xiaoxing.

According to the Deputy Managing Director, LFZDC, Mr. Adeyemo Thompson, the essence of LFZ is for the welfare of the people of Lagos by creating jobs, providing conducive environment, and to shore up the economy of the State.  It’s a gear towards making Lagos a mega city , and apart from the free zone, the plan is to develop the Epe axis,” he said.