BRIEF BACKGROUND OF NFE OIL AND GAS FREE ZONE

The responsibly of regulating activities of industry players and investors in the

abundant economic potentials of the Nigerian waterways become a source of worry
for government, instead of just assigning the monitoring and regulation of these
places and areas where the trade takes place to individuals or other government
agencies like Federal environmental protection agency (FEPA) or Nigerian Ports
Authority. The Government saw the need of creating the oil and gas free
zones authority (OGFZA) as an agency of government that will oversee and
regulate and control the operation of activities in the oil and gas free trade
zones across the country.
Since its formation by the powers of sections 2 of the Oil and gas export force zone
Act No. 8 of 1996 to acts commencement of operation in Onne, Rivers State
2001.
The successes of this Agency cannot be exaggerated as available statistics show
that the oil and gas free zones are not just trade zones but economic hub that
account for over (40) Forty percent of distribution to the Nations growth.
An assessment of the Agency and its operations reveals that there are
promising opportunities for growth and expansion of the economic prosperity of
the Nation utilizing the gains and fortunes from the free trade Zones and facilities.
Out of the established oil and Gas free zones in Nigeria, there are currently
seven (7);
1. Onne Oil and Gas Free zone
2. Bras Oil and gas City
3. Warri Oil and Gas Free Zone
4. Eko Support Free ZONE
5. Liberty Oil and Gas Free Zone
6. Notore Industrial City
7. Best of Maritime Industrial Oil and Gas Free Zone

Report from premium times by MARY IZUAKA on AUGUST 2ND 2023 has it that
Oil and Gas free zone authority says it has attracted 15.97 Billion Dollars
investment from existing and new investors.
While we agree that the economic contributions of the Oil and gas free zone the
gross domestic product of the Nations. Reports published by the punch has it that
the agency between 2019 and 2021 remitted revenue of over 138 Billion Naira to
FG.
Present review shows that there are about one hundred and seven vibrant companies
operating in the nation’s oil and gas free zone as many companies have left because
of the setback caused by the outbreak of covid 19, insecurity and partly the
mishandling of political interferences as proposed by some key stakeholders. This
does not include service providers and other local firms and multinationals that are
interested in the gas and other services.

DUE PROCESS BURDENS:

The Due process burdens is one thing that can woe investors into the country’s from
licensing to operational bottlenecks for value chain compares around the oil and gas
free zone ranging from banks, transport companies to oil servicing companies
actually desire enrolments with good ease of doing Business.
DELIBERATE INTENTION TO EXPLORE THE OPPORTUNITIES IN
THE OIL AND GAS FREE ZONE
The massive potentials of Nigeria’s abundant Gas reserves ranging from the Brown
fields and Greenfields zones. The Brown fields have been obviously under-utilized
because a wide range of value chain activities can actually take place with the
availability of the Brownfields because investors will not have to wait all over to get
the funds to develop a conducive environment for operation before commencing
Business as there are existing facilities available for them to leverage on. Therefore
a deliberate unit to woe investors into the place will result in advertising the huge
potentials of the Brownfields as it is in Onne, Bras and make visible and audible
commitment to the investors that the incentives from the agency to help grow
prospective investors. It was practices of the native that attracted Notora. The other
under-utilized potentials of the oil and gas free zone “ The Green field area, there
are areas with abundant gas and oil deposits waiting to be tapped like IKPOKIRI
Island two Kilometres from Onne, government long Designed free zone 1996 that is
yet to be utilized despite high indication of interest by foreign investors to invest in
the Island.
In this modern civilized knowledge, evolving industries, investor oriented policies
should be introduced to encourage public/private partnership that will guarantee
profit through tax exemption amongst new companies.
INSECURITY & INFRASTRUCTURAL UPGRADE
Insecurity account for about 20% percent of the reasons for the exit of big companies
that left the region, now there are renewed commitments from government to
providing solutions to the Insecurity challenges that troubled and disrupted Economic
activities in the Niger Delta region, as the approach to woe back investors to
deliberately utilizing it resources. The existing security architecture of state
apparatus of the police. But adding a complementary component from the zone’s
authority like the creation of an outfit responsible for intelligence gathering for the
police at the nation’s oil and gas Free zones.
SOCIAL MEDIA MARKETING AND NEW TRENDS
Activities of the agency and events around the nation’s oil and gas Free zones are
not effectively visible when it comes to digitality and global visibility. The
utilization of social media tools and on a chain of economic alternative trading
channels can help boost and reposition the Nigerian oil and Gas free Zones.

ONNE AS THE FLAGSHIP OF THE NIGERIAN OIL AND GAS FREE

ZONE.
Expedited cargo services, amazing infacstures and huge assurances of profit for
foreign direct investors in the zone that was ranked the 2nd largest Free trade zone
in the world in 2016 of the Dubai multi commodity Centre (DMCC) which
attracted 3049 new business within 12 months.
The onne oil and gas free trade zone should be expanded beyond a mere centre
for commerce to solid communities capable of driving and hosting multimillion
dollar foreign investment and investors.
In June 2023, the managing Director and chief executive officers of the oil and Gas
Free Zones Authority Sen. Tijani Y. kavra on a courtesy visit to the Governor of
Rivers State disclosed the need to open up Ikpokiri for development and business.
Statistics from the Global Free Zones of the Year Award Organizers in recent years
have continually placed the Nigerian Oil and Gas Free Trade Zones out of
competition range wide mauritus and Egypt keeping leading on the African Continent
of Free Zone Players.
SOME KEY FOCUS AREAS OF IMPROVEMENT RECOMMENDATIONS
FOCUS ON KEY INVESTORS.
Looking at the abundance of Natural Gas and oil in the country especially with the
blessings of the Greenfields, one thing need is deliberate investment in attracting
production and manufacturing investors with overwhelming sustainability goals
and plans because that is what guarantees and boosts investors’ confidence. In
achieving this, there is need for a deliberate intention about expanding the Onne
oil an gas free Zones to the Ikpokiri Green field to accommodate more investors
in the Gas sector in order to meet up global demands for Gas. The Onne oil and
gas free zones needs a flyover to connect the facility at the ikpokiri Greenfield
There is need to expand by establishing oil and Gas Hubs or liaison offices across
all states in the country .
Onne oil and gas free zones needs a refinery so as to compete with the Akwa Ibom
Oil and gas free Zone and set a standard for investors
INFRASTRUCTURE AND TECHNOLOGY
One thing that will open up the Nigerian oil and gas free zones are facilities that
can that drive ambitious sustainability goals like power, improved or smart
monitoring of utilities, storage facilities for Agro goods. Venture Capital firms can
be contacted for partnership in the realization of this initiative, Refineries, hotels
and Malls.
Another source of concern is Digitalization of operations of the Nigeria Oil
and Gas Free zones so as to give it global credit and earn it investors’ trust, this is
because with emerging global economic practices in the world’s trading Free
zones, there is need for us to look inwards and pick areas of operations like
introducing E inspections, E licensing and the introduction of ICT based
marketing scheme is recommended .The Provision of power that will attract
investors to the Zone is a sinequanon.
REVENUE MOBILIZATION AND RESOURCEFULNESS:
That the sector contributes amazing great to the Economic prosperity of Nigeria is
not in doubt, but if there is a review of the financial systems operated currently in
this zone, it will be discovered that the returns from integrally generated revenue
can initiate the takeoff some of the capital intensive investment in power.