6 Reasons Why Nigeria Export Processing Zones Authority Is A Powerful Driving Force In The Economy

Nigeria Export Processing Zones Authority (EPZ) is one of the primary agencies tasked with helping to develop and expand Nigeria’s export capacity. As an agency that oversees all things related to the country’s export processing zones, the EPZ plays a crucial role in the country’s global trade landscape. If you look at the facts and figures, Nigeria has only managed to achieve a minor place in terms of its contribution to global trade as well as its ability to create new markets for its goods and services. In order for the nation’s exports to take off at a faster rate, the government established different measures. Among them is the establishment of Nigeria Export Processing Zones Authority (EPZ). Let’s check out 6 reasons why it is a powerful driving force in this article.

1. EPZ Helps To Attract Foreign Direct Investment

One of the areas where Nigeria Export Processing Zones Authority has made a significant impact is in attracting foreign direct investment. The EPZ is, indeed, a powerful driving force when it comes to attracting FDI. The Nigerian government has been spending a lot of money to attract FDI. In 2000, the amount of FDI inflow into the country was $2.2 billion. By 2016, the amount had increased to over $20 billion. In 2000, there were only eight countries investing in Nigeria. By 2016, that number had increased to over 70. Nigeria Export Processing Zones Authority has also helped to attract FDI by creating a very lucrative scheme for potential investors. The scheme allows investors to enjoy 100% tax exemption on their earnings for a period of 10 years. The scheme also allows investors to import raw materials and machinery free of duty, and export the finished products to any part of the globe free of duty as well. The scheme has attracted a number of investors from countries such as China, India, South Korea, and Taiwan to name a few. They have invested in sectors such as automobile manufacturing, food processing, and textile manufacturing.

2. Nigeria Export Processing Zones Authority Creates Employment

One of the core objectives of Nigeria Export Processing Zones Authority is to create employment in the country. In order to create employment, the government has been creating new job opportunities in different sectors of the economy. In the textile and garment processing industry, the EPZ has created tens of thousands of job opportunities. The EPZ has also created job opportunities in the agricultural processing sector. The EPZ has also helped to create job opportunities in the health and education sectors.

3. It Is A Platform For Global Exports

Nigeria has a lot of potential when it comes to exporting its goods and services to other parts of the world. The country has some of the best agricultural products in the world. It also has a thriving manufacturing sector, and an abundance of mineral resources. The goal of the Nigerian government is to transform the country into a top-notch exporter. One way the government has been able to reach that goal is by turning the country’s export processing zones into world-class platforms. EPZs have been awarded the ISO certification to prove their world-class status. The country’s EPZs have also been connected to the internet to make them even more attractive to businesses.

4. Nigeria Export Processing Zones Authority Drives Innovation And Research

Innovation and research are two of the key ingredients that go into creating a top export country. In order to achieve this, the Nigeria Export Processing Zones Authority has fostered a culture of innovation and research in all its EPZs. Based on an investment of N200 million, the agency established an Innovation and Technology Transfer Centre (ITTC) at the Lagos Export Processing Zone. The main aim of the centre is to promote innovation and technology transfer in all sectors. The agency has also partnered with the Young Entrepreneurs and Business Students (YEBs) Program to promote innovation as well as entrepreneurship in Nigerian universities.

5. It Promotes Trade With Africa And The World At Large

One of the primary reasons why the government of Nigeria established the Nigeria Export Processing Zones Authority was to promote trade with fellow African nations. The agency has been very successful in achieving this. In fact, the majority of export goods and services that come out of Nigerian EPZs are destined for Africa. The agency also hosts major exhibitions and trade fairs that are designed to promote trade between African nations. At the same time, the Nigeria Export Processing Zones Authority has been working to promote trade with other parts of the globe. The agency has also partnered with other government agencies as well as private sector entities to promote trade between Nigeria and other nations.

6. By Its Very Existence, Nigeria Export Processing Zrones Authority Is A Driving Force In The Economy

Another reason why Nigeria Export Processing Zones Authority is a powerful driving force in the economy is by its very existence. In other words, the agency has been able to prove its worth by the number of jobs it has created, the amount of investment it has brought in, and the amount of goods and services it has exported. The agency has created tens of thousands of jobs in the country. It has also been able to bring in billions of dollars in investment. It has also been able to drive billions of dollars in exports. Nigeria Export Processing Zones Authority has been able to do all of this, even though it has only been established for a few years. It is clear that the agency is a powerful driving force in the economy because it is helping to drive economic growth in the country.

Conclusion

The bottom line is this – Nigeria Export Processing Zones Authority is a powerful driving force in the economy primarily because it helps attract foreign direct investment, create employment, promote trade with Africa and the rest of the world at large, and drive innovation and research. By its very existence, it is a driving force in the economy.