The Federal Government of Nigeria has said it is targeting increasing manufacturing exports by $30 billion by 2025 through the development of Special Economic Zones.
This was disclosed by the Ministry of Industry, Trade and Investment in a statement.
According to the ministry, special economic zones had been identified by the Economic Recovery and Growth Plan as a major strategic tool to accelerate the implementation of the Nigeria Industrial Revolution Plan.
The ministry further explained that in achieving this, government envisioned the Made-in-Nigeria for Exports project and the Nigeria Export Processing Zone Authority to develop economic zones to world-class standards.
According to the statement, this would assist in positioning Nigeria as the manufacturing hub in sub-Saharan Africa and a major exporter of made-in-Nigeria goods and services.
“The project seeks to aid structural transformation of the Nigerian economy by increasing the manufacturing sector’s contribution to Gross Domestic Product to 20 per cent by 2025; contribute to sustainable inclusive growth by creating 1.5 million new manufacturing jobs in the initial phase of the project; increase and diversify foreign exchange earnings by increasing manufacturing sector exports to at least $30bn annually by 2025″ the ministry said.
The ministry further said that the project would start with a phase one that would focus on the development and upgrade of SEZs in 12 states across Nigeria, after which the initiative would be extended to other states in subsequent phases.
The project would also involve partnering with the private sector to develop new world-class SEZs in Abia, Katsina and Lagos as pilot projects to demonstrate proof of concept and provide models for future SEZ development in Nigeria.
The statement said the Nigeria SEZ Investment Company Limited had already been set up as the special purpose vehicle to deliver the Made-in-Nigeria for Export project and harness the Federal Government spending on SEZs.
“The Federal Executive Council has approved NSEZCO as the holding entity for all the Federal Government’s investments and proprietary interests in existing and future SEZs.
“The FEC approval also provided that all current and future capital appropriations for Project MINE be transferred to NSEZCO’s account, as soon as opening formalities are completed,” it added.
According to the statement, aggregation and harnessing of the Federal Government’s investment in a strong corporate special purpose vehicle “is to ensure the facilitation and mobilisation of additional capital from development finance institutions and private investors.”
Source: Business Insider