THE world’s first Free Trade Zone was established in Shannon, Ireland. Named Shannon Free Zone, the facility was an attempt by the Irish Government to promote employment within a rural area, and as well make use of a small regional airport and generate revenue for the Irish economy. To a large extent, the initiative was hugely successful and it is still in operation today.
Later, the number of worldwide Free Trade Zones proliferated in the late 20th century. For instance, in the United State, Free Trade Zones were first authorized in 1934. By 1997, 93 countries had set up export processing zones, employing 22.5million people. Five years later in 2003, the number increased to 116 countries and employing well over 43 million people producing items such as clothes, shoes, electronics, plastic materials, toys e.t.c.
The basic objectives of the business concept are to generate employment opportunities, develop export-oriented industries, to enhance foreign exchange earnings and others.
In Nigeria, the enabling act for Registered Free Zones came into effect in 1992 and the Calabar Free Trade Zone, which is the first of these, was fully completed by 1999 and started operation after official commissioning in November 2001, as property of the federal government. Since then, other free trade zones such as Kano FTZ, TINAPA FTZ, Ogun Guandong FTZ have been initiated, with the approval of the Nigerian Export Processing Zones Authority (NEPZA).
However, being the commercial nerve of Nigeria, many were optimistic that a Free Trade Zone in Lagos would finally launch Nigeria into the league of countries with functional and thriving Free Trade Zones. With the level of business activities already taking place in Lagos and the big time investments in the city, the dream of having a free trade zone in Lagos sounds realistic.
While the Federal Government, through an Indian private enterprise known as Tolaram Group, the same company that will operate the Lekki Deep Sea Port, drives Lagos Free Trade Zone, the Lagos State Government hopes to operate Lekki Free Trade Zone, which shares common border with the Lagos Free Trade Zone.
Lagos Free Trade Zone
DESIGNED for manufacturing oil & gas and petrochemicals, the Lagos Free Trade Zone Company is being developed as a multi-product and logistics hub for the entire West African Region. Strategically located 60km east of Lagos, the zone is expected to be well connected by road, sea and by air.
When fully developed, it will spread over an area of 1500 hectares and will house a number of world class petroleum, petrochemical and agri-commodity manufacturing complexes by drawing Nigeria’s abundant oil and gas resources as the basic feedstock. The area also has a corporate and residential zone to provide a wholesome work-live-play experience.
A multi-purpose, deep sea port at the heart of the Lagos Free Trade Zone, the Lekki Deep Sea Port, when completed, will be one of the most modern ports, supporting the burgeoning trade across Nigeria and the entire West African region. Besides being the largest port in Nigeria based on the design, it will also be the first privately built port in the country, offering the biggest potential container footprint and accessibility facilities for larger shipping vessels.
Lekki Free Trade Zone
DESIGNED for manufacturing, logistics, the Lekki Free Zone was initiated by the Government of Asiwaju Ahmed Bola Tinubu in 2003, with a land area of 1000 hectares, which was later increased to 3000 hectares on registration with the Nigerian Export Processing Zone Authority (NEPZA).
However, upon realising the relative advantage of a one-stop Free Zone in Lagos, the vision was expanded to accommodate a model city devoid of stress and accompanying social vices and the land area was increased to 16,500hectares. The zone is located on the Lekki Peninsula, one of the fastest developing urban areas in Nigeria with an annual economic growth rate of 16.8%.
The zone encompasses hubs for oil & gas and logistrics, light and medium scale industries, hospitality and resort, engineering and infrastructure support services, commerce, retail and real estate, as well as information and communication technology.
Translating Lekki To Reality
WHILE the country awaits the take off of the Dangote Refinery, one or two companies have taken their business to the coastal community. Coscharis Group has positioned a massive office accommodation in place for chief executives of multinational companies expected at the Free Trade Zone (FTZ).
Eleganza Industries City Limited has also opened a massive plastic manufacturing complex along the road. Already, Eleganza is a beehive of factory workers, who churn out plastic products on daily basis. From the outside, the factory looks more like a building under construction, but when you get in, the whole place is fully equipped with machines.
But one single, most significant project that could turn around the fortune of Ibeju Lekki is the proposed Lekki International Airport. For now, apart from a ring of unpaved road that runs through the site and some mark offs here and there, there is nothing on ground to show that the airport could commence operation in the next few years.
The preliminary works carried out by Charvet Nigeria Limited appeared to have been stalled with a truck and a cabin abandoned at the entrance. On a visit, there were no workmen on site. Apart from Kweku, an indigene of the village, who has cultivated the acquired land for decades, there were no guards either.
According to Kweku, who informed that his farm was destroyed without compensation, the community has waited forever for the take off of the airport construction. The villagers are skeptical about the reality of the airport but at Epe, which is less than five minutes drive away from the site, people talk about the airport like it will open for operation tomorrow. A make-believe bus, branded Lekki International Airport is said be on Epe roads.
Governor Fashola said the government has not jettisoned the project, saying the delay in take-off does not mean it had been abandoned. He said the government has done preparatory work on the project and was engaging the right investors to translate it to reality.
According to him, what the government plans to build is an international airport that will live to its true name and comply with the best aviation standards.
“There are airports and there are airports. What we think Lagos deserves is a truly international airport that can compete globally. And those are not the kind of airports that government would build and run. We have acquired the land for the project; government is fencing the land. We are doing the financial and the technical study of the project.
“We already know what it will look like because we have already done the concept design. We have, in fact, done all the preparatory work… there are people whose business it is to build airports. They do it for a living and those are the people we are talking to. We have done international bid; seven investors have been shortlisted. These are people who have handled similar projects successfully in other parts of the world.
“We are seeking the partnership of these people to install equipment; scanners, data capture machines and others, and run the airport and keep it functional because it is their core business. That is the kind of plan we have for the airport because the state is a centre of excellence and it deserves nothing short of the best,” he said.
If the New Lagos has attracted attention, it was for the Free Trade Zone concept. Both the international airport and the deepwater seaport are designed to service the free trade. Within the zone, there is the Lagos FTZ and Lekki FTZ. So far, Tolaram has been able to bring two subsidiaries — Raffle Oil and Insignia Print Technology — to pioneer the industrial segment of the zone.
A senior staff of Insignia, which existed several years before Raffle joined, said the conditions of work have improved. She complained that the company brings technicians from Lagos, thereby spending twice what it would cost local technicians to carry out the same service. She added that the company spends extra budget on staff transportation, as there are no decent accommodation in the community.
Power, like in other industrial centres, is also an issue in the zone. Top officials of Insignia said the company operates on diesel every single minute the factory is open because they would spend much more due to regular machine breakdown if they were to alternate between public and self-generated power sources.
Apart from the two companies owned by the Indian developers, the best any other company has done is enquiry on space acquisition process. The operators said many companies have shown interest but are yet to move in.
Nothing, besides barbwire fencing, has been done on the seaport as well. Those who should develop it are not forthcoming with official information. But company source said actual development ought to have taken off, just as he could not give reason why that has not happened. Not withstanding, there are pilot efforts at the site belonging to the Federal Government scheme, though everything is done in some manner of secrecy; no one gives information.
Efforts to speak with the developers proved abortive, as the ‘top man’ was said to be out of the country, while the ones on ground, ‘do not have the power to speak with the press.”
But as for that of Lagos State (Lekki FTZ), there is no visible move to translate the massive barren land into activity centre. But there is the stylishly built administrative office and solar-power streetlights plus a couple of billboards announcing the arrival of the trade arena. Nothing more apart these efforts had been achieved, at least, as at the time the reporter visited. From the state Ministry of Information, to the Commerce and Industry, information is hard to come by.
A Peep Into The New Lagos
Though the Free Trade Zone and other ancillary organs are yet to go full circle, the whole of Ibeju Lekki is already a beehive of expansion and commercial activities, in anticipation of the New Lagos.
There is no question as to whether there are efforts to reinvent Lagos and, perhaps, redefine its ancient borderlines. And with the Free Trade Zones under construction, with investors gradually looking towards the project, the possibility of a New Lagos now looks very feasible.
Over the years, the geography of the city undergoes transformation and the massive Eko Atlantic is yet another example. And if new towns are essential aspects of urban renewal, the Lekki corridor is a quintessential example of how fast Lagos is reinventing itself.
Based on a recent visit to the location, there is no better signal that announces the reality of New Lagos than the burgeoning building material markets along the Lekki corridor, towards the Free Trade Zone. There is at least a shop on every house along the Lagos-Epe Expressway, starting from Sogotedo, where either nails, roofing sheets, cement or iron rods and other building materials are sold.
A shop owner along the axis said he relocated from Surulere several years ago, when he noticed the shift of construction activities to that part of the city. He said he has never regretted his decision as he has expanded from a single shop to three and diversified. The story is the same with other traders, who had the foresight and established in the new site.
Indeed, building material dealers enjoy huge patronage in this area. During business hours, individuals, who are majorly retail contractors, move from one shop to the other in safety kits, buying the materials they need to deliver their jobs.
Just when many thought property development had exceeded its peak, Lekki corridor unveiled a new phase. Visitors can see this in the horde of construction workers that move around both morning and evening. It manifests in the cluster of construction material markets. And, most important, the surge of residential estates announces the arrival of Lekki as the emerging hub of the commercial city.
The names of the estate are specially chosen to go with what the residential quarters stand for. Announcing the emerging modishness and extending the culture of elegance that lies in the bosom of Lekki Phase One are Royal Gardens, Trojan Estate, Crown Estate, Panorama Estate and Red Worth. The names of architectural designs on the lips of marketers of the homes are also unconventional, at least, to Nigerians. The popular names are St James, Kensington, Buckingham, Windsor, Whitehall, Clarence and Hampton. Everything about them, including the prices, tell that the properties are not just for anybody, but for those, who cherish elegance and comfort. The homes are, indeed, a fashion statement.
Unlike the mixed settlement old Lagos is know for, the planning of the Lekki-Epe corridor, by all standards appears elitist. The construction workers apparently know their fate; they would not stay in the ambiance beyond the period bricks and mortars are still relevant to the place.
Osho Badejo, a plumber working in one of the estates, said: “After the construction of the estate, I might not be able to come close to the gate. They are so expensive that those who will buy them are not individuals who care about rents.
“And even if they are for let, do you think I can cough out N5 million every year just because I want to feel comfortable? Wouldn’t I rather buy a land elsewhere to build my house? This estate (pointing to buildings under construction) is not for people like us.”
Fear Of Villagers
THE memory of Maroko is still fresh. The residents considered as squatters were evacuated to achieve Oniru Estate, otherwise known as Victoria Island Extension. There may not be another Maroko that stands in the way of New Lagos, but there are fears the same scenario could play up. In the heart of the massive construction work is Lakowe, a village that before now offered cover to young men and women, who moved to the coastal state to hustle. Awayaya is another popular village tucked away in that part of the state.
Residents of these villages can feel the change in the Lekki urbanisation like the temperature. Not many of the youths that earn a living in the district were old enough to understand the Maroko eviction script in the early hours of July 14, 1990. But the older generations saw how it all happened. They also appreciate the fact that not many people are strong enough to stop bulldozers that are ordered by the government. Villagers here admitted they are aware that they might be asked to relocate one day.
The Economy Of Land
AND if the government decides to let the communities be, economic power could evict them. Across the length and breath of Ibeju Lekki, the heart of the New Lagos, the economy of land is realigning communities and recreating families. Daily, people are giving up family land for money. So, if the cold hand of government does not sack the community soon, the economy of land may eventually displace the current occupants.
“We are aware of the development. It is an issue we don’t have much control over, hence we keep our fingers crossed while we watch. Of course, landowners will take money and walk if there are good offer for their land. But the worst thing that may happen is when the government says the people should go. Nobody may be able to alter the cause of nature,” admitted Chike Nwachukwu, a resident of Lakowe.
The remote communities are already tasking the goodies they can get in place of land. Apart from the popular land transaction, the Ibeju Lekki chiefs and land speculators have introduced a strange deal that seems to bring back the memory of trade by barter. It is code name car-for-land transaction.
Findings suggest that the practice, which revolves around exchanging cars (which are mostly SUVs) for parcel of land as the name suggests, is as old as when developers started frolicking with traditional rulers in the community over land.
“The traditional rulers started asking for SUVs for a parcel of land. The people also found it very attractive because these were villagers who, perhaps, overestimated the value of the cars of their dream. Then, you could secure a parcel of land worth over N10 million with three or four SUVs that were not more than N6 million,” observed a resident who has monitored the trend for years.
The exchange practice, which started with local chiefs, it was learnt, spread with youths also exchanging family land for vehicles, including buses they used for transportation. Till date, car for land is part the massive community land transaction in Ibeju Lekki. Lagos city dwellers that are related to the villagers take advantage of the scheme for pecuniary gains. Stephen Ubakwe, a resident of Olodi Apapa and estate agent, said he got his first car (an Infinity SUV car) 2007 through the scheme.
“The developer wanted two acres of land for which the land owners wanted three SUVs in exchange. Eventually, the developer gave four SUVs. I told the family that I was going to keep one for myself; nobody raised any issue because they were satisfied with the offer,” Ubakwe narrated.
Intermittingly, battle for land takes place. Recently, over one hundred Nigerian police officers from the Special Anti-Robbery Squad (SARS) invaded Okun-Idasho rural community in Ibeju-Lekki, Lagos, and forced residents to evacuate their homes. According to report, the policemen arrived the community and went from house to house, throwing out occupants. Those who protested were arrested and manhandled. The police officers also shot in the air sporadically and threw tear gas to disperse protesting residents.
The community sits on the proposed site for the $9 billion oil refinery and petrochemical complex allegedly planned by Alh. Aliko Dangote. Before the Police’s sacking, Dangote accompanied by Fashola reportedly visited the community in January, when he persuaded the residents to release the land for the refinery project. The billionaire businessman reportedly offered chiefs and other representatives of the community monetary compensation to the tune of more than N750 million for the land
Source:http://www.ngrguardiannews.com/business/181655-free-trade-zone-in-lagos-a-good-dream-still-so-far
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