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OK Free Trade Zone

FTZ NIGERIA. 2012. FTZ: ‘SUSTAING FUTURE GROWTH. FTZ and Deregulation in Downstream. OK Free Trade Zone. Thursday, 5 th April 2012. SURE!. BUDGETS ARE LIMITED. To compensate hardship for Nigerians . Priorities: EDUCATION HEALTH WATER RESOURCES. If something left?

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OK Free Trade Zone

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  1. FTZ NIGERIA 2012 FTZ: ‘SUSTAING FUTURE GROWTH FTZ and Deregulation in Downstream OK Free Trade Zone Thursday, 5th April 2012

  2. SURE! BUDGETS ARE LIMITED . • To compensate hardship for Nigerians. • Priorities: • EDUCATION • HEALTH • WATER RESOURCES • If something left? • Challenges of FTZ’s: • Access (Road, Rail, Water….) • Power or Gas for power - Steady supply OK Free Trade Zone FTZ NIGERIA 2012

  3. COSTS – Reduction for When? LESS SUBSIDY HIGHER COST . BETTER OPERATING AND NEW REFINERIES: In open market: No Restrictions In an open market without restrictions: if not self sufficient: landed cost if self sufficient: world trading price With direct or indirect subsidy: lower prices OK Free Trade Zone FTZ NIGERIA 2012

  4. IMPACT OF DELAYS • NO STABLE LEGAL FRAMEWORK PIB, and OTHER DELAYS • SLOWDOWN AND LOSS OF INVESTMENTS • NEGATIVE TO THE COUNTRY AND ALSO TO FTZ’s . OK Free Trade Zone FTZ NIGERIA 2012

  5. FTZ AND POWER EFFICIENCY • Power efficiency is easier in Industrial Zones. • Grouping of industries • Size of captive market • Less transmission losses • Industrial mentality • However: Gas, gas, gas, gas…….. . OK Free Trade Zone FTZ NIGERIA 2012

  6. FTZ NIGERIA 2012 . FTZ: ‘SUSTAING FUTURE GROWTH Thank you! OK Free Trade Zone FTZ NIGERIA 2012

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