The establishment of modular refineries in oil and gas free zones would reduce investment costs

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The establishment of modular refineries in oil and gas free zones would reduce investment costs, suggested the Association of Nigerian Exporters, ANE.
The president of the ANE, Sunny Udoh, made this suggestion in Abuja during his meeting with Okon Umana, the managing director of the Oil and Gas Free Zones Authority, OGFZA.
Mr. Udoh made it clear that, with the incentive regime that exempts free-zone enterprises from import duties and other forms of taxation, the establishment of modular refineries in oil and gas free zones would reduce the cost considerably.
He said the modular refinery proposal should go hand in hand with the creation of oil and gas free zones in all oil-producing states in order to diversify the country's economy.
In addition, he said, the federal government should allow OGFZA to lead efforts to set up modular refineries in oil-producing areas to replace "illegal refineries" in the region.
He said these refineries should be based on US export-oriented refineries to produce special products such as aviation fuel and industrial raw materials.
To enable OGFZA to benefit from the revenue generated by its operations, the exporter also asked the federal government to authorize the agency's share in the seven per cent import-surcharge fund reserved for government agencies in the sector.
The head of the association also called on the federal government to set up a "dedicated statutory fund" for OGFZA to finance the development of infrastructure in the free zones.
Mr. Udoh recalled that the 2006 presidency approved the inclusion of OGFZA in the sharing of the import surcharge fund following the recommendation of the National Council of Commerce, noting that the income would allow OGFZA to provide facilities in free zones to improve the ease of doing business.
He congratulated the Federal Government for the policy that allows exports of goods manufactured in the free zones to be exported to the "Nigerian Customs Territory".
The president of ANE encouraged OGFZA to support positive changes in the free zones, especially the revision of excessive tariffs, the  licensing of a new oil and gas free zone promoter, the facilitation of the creation of new zones openness for more jobs and collaboration between OGFZA and the Nigerian Content Development and Monitoring Board.
He stated that the maintenance of these achievements would ensure a higher level of added value in the manufacturing processes of free zones in the country.
Meanwhile, Mr. Umana expressed his gratitude to the NSA for supporting the federal government's programs and policies to attract foreign direct investment, FDI, which he says is at the heart of the government's mandate. .
His management has decided to review fees in free zones to "prevent the erosion of legal incentives for investors, and to provide a level playing field for all license holders in the zones ",  Mr. Umana disclosed.
He stated that similar intentions have informed his management's support of the amendment of the main law of the Authority to remove areas of ambiguity that tended to promote confusion and conflict with sister agencies and reduce its effectiveness.
The Director General said that ANE's call for a fund dedicated to the development of infrastructure in the free zones was welcome.
"We should provide equipment that investors would benefit from when they come into the free zone," Umana said.

He congratulated the group for supporting the government's efforts to restructure the economy and generate more exports in the oil and gas sector.

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