AFRICA: NASS moves to ensure CBN grants permit for offshore banking.

As published on vanguardngr.com, Tuesday 22 June, 2021.

abuja—Chairman, Senate Committee on Trade, Industry and Investment, Senator Francis Fadahunsi, has said the National Assembly would ensure the Central Bank of Nigeria, CBN, granted permit for the establishment of offshore banking for free access to forex without inhibition.

He stated this while the committee members rounded off its four-day oversight tour of the trade zones in Lagos.

Fadahunsi in a statement by the Head, Corporate Communications, NEPZA Martins Odeh, said: “The investors need our support as government has no option than to provide enabling environment and favourable legislation for the free trade zone to succeed in Nigeria.”

He said continuously denying zone operators and their businesses to access forex was inimical to government’s desire to use the zone scheme to industrialise the country.

Fadahunsi said the business enclaves which haboured sea ports, oil/gas refinery, warehouses, tank farms, logistics firms, real estates, manufacturing firms, world class medical centres as well as factories of various dimension would in no time begin to reflect in the country’s Gross Domestic Products  significantly.

He explained that the country’s political leadership, relevant agencies of government and the public must be made to fully accept the free trade zone concept as socio-economic growth accelerator.

“We are amazed with the level of multi-billion-dollar investments attracted to the Lekki free zone quadrant which habours various mega projects of global magnitude.

“The committee is particularly happy with Alhaji Aliko Dangote and the other investors for considering Nigeria worthy to host those economic empires.

“The prospects of these mega firms will significantly improve the lives of Nigerians and the country’s Gross Domestic Products, GDP, when fully operational. With this development, a new Nigeria is about to evolve,” Fadahunsi said.

He said further that private operators and their investors in the bid to establish those zones committed huge resources to first reclaim implausible hectares of land from the sea and ocean, adding that the development also saved parts of Lagos from the regular threats of those large bodies of water.

He added: “For instance, the Eko Atlantic free zone is an amazing engineering masterpiece that has saved lives of citizens and their businesses on Victoria Island and the Lekki axis of Lagos. We were told the zone is capable of generating over 250,000 jobs when completed.”

In his remarks, Prof. Adesoji Adesugba, Managing Director of the Nigeria Export Processing Zone, NEPZA, who led the committee members to the zones, reiterated that the Authority was on a clear mission of ensuring that the zone concept succeeded in Nigeria.

Adesugba said the long-term benefits accrual to the nation from the scheme, if allowed to grow, would surpass the immediate temptation of using the enclaves to forcibly generate revenues.

“We have seen how countries that adopted that concept had widened their development skyline without putting undue pressure on the operators.

‘’Free Trade Zone remains an independent country which operations are exempted from taxes and levies.  However, if their operations extend to Custom’s areas, the tax exemption privilege is suspended. This is how the system plays out,’’ he said.

Carey Olsen advises FSN Capita…