There are strong indications that about 16 companies operating in the Oil and Gas Free Zones Authority (OGFZA) in Port Harcourt, Rivers State, have concluded plans to pull out of Onne.
Among the 16 companies that have decided to exit the free zones are Prodeco International Limited, West Africa Machinery Services (WAMS), MGM Logistics Solutions Limited and Orlean Invest Limited.
Muhammad Babandede, the Comptroller General of Immigration (CGI), revoked the residence permits of the expatriate workers given to six companies, including Intels Nigeria Ltd.
The affected workers were also directed to leave the country on or before November 30, 2017, failure of which may result in their deportion.
It was gathered that the decision to pull out of the free zones might not be unconnected to the withdrawal of expatriate quota of six companies, among which is logistics giant, Intels.
This is even as a Port Harcourt-based oil and gas industry expert, Dr. Austin Obieze, at the weekend, accused the management of the OGFZA of damaging the concept of free trade zones in the country with what he termed “rogue behaviour” towards free zone operators in the country.
The reasons behind the decision to exit Onne were still sketchy as at press time, but the General Manager, Finance, of the Lagos Channel Management Company Limited, Mr. Joseph Amoni, said the action of the government would scare foreign investors away from the country.
Also speaking on OGFZA’s battle against Intels, The Managing Director/COO of Samsung Heavy Industries in Nigeria, Mr. Frank Ejizu, said, “You cannot be wooing investors on one hand and scaring them away on the other hand it will not work. If there was a violation of the law, then there is a ground for sanction.”
A Port Harcourt-based oil and gas expert, Obieze, at the weekend, told journalists that the recent attack by OGFZA against a leading free trade zones operator, Intels Nigeria Limited (INL), has sent the wrong signal and created panic among businesses operating in the zones.
“It was a very bad move by OGFZA, which was set up to promote trade and attract investors into the country through the oil and gas free zones concept. OGFZA, under Umana Okon Umana, is doing the direct opposite of what it was established to do,” Obieze said.
He said by OGFZA’s action against Intels, free trade zones operation in Nigeria “can not be the same again” as investors will find it difficult to take government for its words.
He said, “Free trade zones all over the world are created to serve as destination for capital; attract investment, create jobs and aid the transfer of technology to the host country. Free trade zones played a key role in the boom enjoyed by the Asian Tigers.
“The Nigeria Export Processing Zones Authority (NEPZA) and the Oil and Gas Free Zones Authority (OGFZA) were specifically set up by the Federal Government to encourage investment in Nigeria in line with the country’s economic growth aspirations.
“Several incentives were instituted, including 100 per cent repatriation of capital investment, remittance of profits and dividends with no import or export licenses required.”
“Companies operating in the free zones also enjoy immigration non-quota regime and are exempt from taxes such as value added tax, corporate tax, withholding tax, capital gains tax and customs duty on export of goods to other countries.
“It was these incentives that attracted several companies resulting in over five trillion naira investments in the zones, with several thousands of jobs created.
Similarly, the Chairman, House of Representatives Committee on Maritime Safety, Education and Administration, Mohammed Umar Bago, said the situation was “getting sour”.
