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OGFZA Attracts $21.6bn FDIs into Nigeria’s economy in 20 years, Secures $19.97bn investments commitment

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MD/CEO, OGFZA, Sen. Tijjani Kaura, flanked by management staff
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The Oil and Gas Free Trade Zones Authority (OGFZA), said it attracted the sum of $21.6bn foreign direct investment into the Nigeria’s economy between 2001 and 2021

The Authority, also said it secured the sum of $19.97bn fresh investment commitment for Nigeria’s oil and gas free zones for the 2021 to 2025 fiscal periods.

The Managing Director and Chief Executive Officer of OGFZA, Sen. Tijjani Kaura gave the figures during a chat with journalists in Abuja.

Sen. Kaura, said that the Oil and Gas Free Zones are evolving well and contributing significantly to the nation’s economy

He said, between 2021 and 2025 OGFZA has attracted a total investment commitment of $15.97b from new and existing investors in five of the Oil and Gas Free Zones.

Giving a breakdown of the investment commitments, Kaura put the proposed investment in Brass Oil and Gas Free Zone at $3bn; Notore Oil and Gas Free Zone $5.35bn; Liberty Oil and Gas Free Zone $6.4bn; Bestaf Maritime and Industrial OGFZ $485m and OGFZ-SBA Free Zone $738m

Accoding to him, “The Oil and Gas Free Zones Authority have recorded real achievements in quantitative terms which have contributed significantly to the nation’s GDP in the last two decades especially in three key indices namely Foreign direct investments (FDI) of $21.6b (2001-2021); technical skills transferred to Nigerians-35,330 (2001-2021); Number of Nigerians who have secured various levels of direct employment 41,085 persons and 164,000 indirect employments within the same period.

“In the area of revenue generation to Government, OGFZA activities accounted for the following revenues to the Federal Government between 2018 to 2021 Customs Duty of N119bn for goods exported from the Free Zones to Customs territory; Withholding Tax of N10.4bn for transactions carried out between Free Zone Enterprises and non-Free Zone licensees; and Value Added Tax (VAT) of N9.5bn for transactions carried out between Free Zone Enterprises and non-Free Zone licensees.”

Sen. Kaura, noted that the Authority has contributed to the reduction of Federal Government’s personnel and overhead costs by offering to become a partially self-funding Agency since January 2021, thereby saving the Federal Government over N2.3bn annually.

He said currently, OGFZA regulates eight Free Zones with six of them being fully operational, while processes towards the taking off of two are at various stages of completion.

He explained further that the agency has been achieving the objectives of government as revealed in the outcome of the evaluation exercise carried out by a high-powered Technical Committee set up in 2021 by the Federal Ministry of Industry, Trade, and Investment for the evaluation of the performance of Free Zone Licensees in Nigeria.

In that Report, he noted that OGFZA in the area of Employment scored 69% in achieving its expected employment generation targets while on skills transfer, it achieved 73% of the national goal for Free Zones.

He said in line with the determination of President Bola Ahmed Tinubu to bring a turnaround to Nigeria’s oil and gas sector, OGFZA has established Oil and Gas Free Zones in the resource-rich areas of Akwa Ibom State, Rivers, Bayelsa and Delta States respectively.

“In these states, the Authority has attracted gas processing projects eg (i) the Giwa Gas Project being constructed in the Liberty Oil and Gas Free Zone, Akwa Ibom State, (ii) the proposed methanol plant project at Brass Oil and Gas Free Zone, (ii) the Meliora Methanol FZE Project at Onne Oil and Gas Free Zone etc.

“The Authority is also working with E & P Companies (Exploration and Production) including Waltersmith Petroman Oil Ltd for the development of an Industrial and Innovation Park/Oil and Gas Free Zone in Imo State and similar projects, which will operate as clusters for downstream gas-to-industry manufacturing and related activities,” he added.

In the area of midstream activities, Kaura said the Authority has commenced discussions with key industry stakeholders like BrentexCPP Limited, a consortium of Brentex Petroleum Services Ltd/China Petroleum Pipeline Engineering Co Ltd (CPP), one of the contractors executing the project to support and facilitate the completion of the Ajaokuta-Kaduna-Kano (AKK) Gas pipeline project through its trade facilitation incentives.

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Business & Economy

Tinubu To Present 2027 Budget Before Year-End As FEC Approves Five-Year Development Plan

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President Bola Ahmed Tinubu
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President Bola Tinubu is expected to present the 2027 Appropriation Bill to the National Assembly before the end of 2026, as the Federal Executive Council (FEC) approved the National Development Plan 2026–2030 and new policy measures aimed at strengthening food security and tackling child stunting.

The Minister of State for Budget and Economic Planning, Doris Uzoka-Anite, disclosed this on Wednesday while briefing State House correspondents on the outcomes of the FEC meeting chaired by President Tinubu at the Presidential Villa, Abuja.

Uzoka-Anite also announced the council’s approval of the Revised National Policy on Food and Nutrition 2026, which seeks to establish sustainable financing mechanisms and strengthen collaboration among ministries responsible for agriculture, livestock, health and education, as well as development partners.

The announcements followed the conclusion of the 32nd Nigerian Economic Summit, held in Abuja from October 26 to 28, which focused on key issues affecting the country’s economic development.

Meanwhile, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has clarified that the $21.7 billion borrowing proposal transmitted by President Tinubu to the National Assembly is intended to finance investments in productive assets and infrastructure rather than recurrent expenditure.

Oyedele explained that the proposal represents a multi-year investment programme spanning approximately five years, rather than an immediate drawdown of the entire amount.

According to him, $10.6 billion is earmarked for critical transportation infrastructure, including the Sokoto–Badagry Highway, Lagos–Calabar Coastal Highway and Kano–Kaduna Metro Rail.

He further disclosed that more than $7.9 billion would be sourced from multilateral and bilateral development partners, including $5 billion from the World Bank, at an average interest rate of approximately 2.1 per cent.

The proposed financing package also includes $3.3 billion for state government projects and $1.45 billion for projects in the Federal Capital Territory.

The planned 2027 budget presentation and the approval of the five-year development plan underscore the Federal Government’s efforts to align fiscal planning, infrastructure investment and social development priorities with its broader economic agenda.

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Tinubu Rules Out Fuel Subsidy Return, Says Nigeria Cannot Go Back to ‘Egypt’

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President Bola Ahmed Tinubu
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President Bola Tinubu has ruled out any return to petrol subsidy, insisting that the removal of the policy was necessary to prevent Nigeria’s economy from sliding into bankruptcy.

The President reiterated his position on Monday during a meeting with members of the City Boy Movement, a youth-driven political and advocacy group, where he defended the economic reforms introduced by his administration.

Tinubu said the government could no longer sustain the financial burden of subsidising petrol, arguing that the country lacked the resources required to continue funding the scheme.

“I came, and I removed the subsidy on my first day. Nigeria would have gone bankrupt; there was nothing left to pay for subsidies,” he said.

Using a biblical and Quranic analogy to underscore his position, the President declared that reversing the policy would amount to returning to an unsustainable economic system.

“When Moses (Musa) left Egypt, the Red Sea parted and gave way. You cannot ask Moses to go back to Egypt. With your energy and support, we will never go back to Egypt,” he stated.

The removal of petrol subsidy, announced during Tinubu’s inauguration on May 29, 2023, marked a major shift in Nigeria’s fiscal policy. The decision significantly increased petrol prices and contributed to mounting pressure on household incomes, transportation costs and businesses.

Petrol prices, which were below ₦200 per litre before the policy change, have since risen substantially, with prices reported at between ₦1,350 and ₦1,405 per litre across major filling stations.

The resulting increase in energy and transportation costs has continued to fuel public concerns over inflation, declining purchasing power and the overall cost of living.

However, the Federal Government has maintained that subsidy removal is critical to reducing fiscal pressure, improving public revenue and creating room for investment in infrastructure and other priority sectors.

Tinubu acknowledged the political contest surrounding the policy, noting that his opponents had promised to restore fuel subsidy. He nevertheless maintained that his administration would not reverse the reform.

Beyond defending the policy, the President urged members of the City Boy Movement to mobilise support for his administration by communicating its achievements and future plans to young Nigerians across campuses, markets and rural communities.

He also encouraged eligible young people to obtain their Permanent Voter Cards (PVCs) and participate in the electoral process.

The debate over fuel subsidy remains a central issue in Nigeria’s economic policy, with the government defending the reform on fiscal sustainability grounds while households and businesses continue to grapple with the effects of higher fuel prices.

 

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FG Rules Out Electricity Tariff Hike, Targets 24-Hour Power Supply

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Power Station and Meters
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The Federal Government has ruled out any plan to increase electricity tariffs, saying its priority is to improve power supply and ensure reliable electricity across the country.

The Minister of Power, Joseph Tegbe, gave the assurance in Ibadan, Oyo State, on Thursday, amid concerns and speculation about a possible increase in electricity tariffs.

Tegbe spoke during the groundbreaking ceremony for five interconnected mini-grid projects with a combined generation capacity of 17.7 megawatts and a 17.74-megawatt-hour Battery Energy Storage System (BESS).

“I want to say this clearly and without ambiguity: there is no plan to increase electricity tariffs. What we are planning is a power sector that works around the clock. Our commitment is 24/7 power,” the minister said.

He urged Nigerians to disregard reports suggesting an impending tariff hike, stressing that the government was focused on improving electricity generation, transmission and distribution.

The five mini-grid projects are located in Bola, Jiboye, Molade-Adelubi, Ogo Oluwa and Sooko-Elega. They are expected to provide electricity to communities across Akinyele, Ido, Ibadan North, Egbeda and Lagelu Local Government Areas of Oyo State.

According to the minister, the projects are designed to expand electricity access, reduce dependence on petrol and diesel-powered generators, and create a more favourable environment for businesses, investment and job creation.

Tegbe said the Federal Government was also implementing a broader energy strategy aimed at improving electricity supply through designated energy corridors, including the Lagos-Ogun, Abuja-Kaduna-Kano and Benin-Enugu-Port Harcourt corridors.

He added that efforts were underway to strengthen the national grid and upgrade generation and transmission infrastructure across the country’s eastern, western and central corridors.

The minister described the mini-grid initiative as part of President Bola Tinubu’s Renewed Hope Agenda, noting that similar electricity interventions had been implemented in communities across several states with support from the Rural Electrification Agency (REA).

He commended Tinubu for his leadership and acknowledged the contributions of the REA, project developer Paras Energy and Natural Resources Development Limited, the World Bank and the Ibadan Electricity Distribution Company.

Tegbe also recognised the Oyo State Government, traditional rulers and other stakeholders for their roles in facilitating the projects.

The initiative is expected to improve electricity reliability in the beneficiary communities, support local economic activities and reduce energy costs for households and businesses.

 

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