Nigeria Plans to build 22 Industrial Parks

Abuja, Nigeria | January 20, 2008 by D-8 Secretariat

The Federal Government has planned to establish no fewer than 22 industrial parks across the country as part of measures to put more life into the economy, especially the stifling industrial sector. Minister of Commerce and Industry Charles Ugwuh, who disclosed this to Business Day in Lagos , said the measure was in line with President Musa Yar’Adua’s vision of putting Nigeria among the 20 largest economy of the world by 2020.

They would differently be known as industrial parks, industrial clusters, free trade zones, enterprise zones and incubators. “These are the five planks that the government intends to work upon. And this comes from the appreciation that Nigeria, a large country by all standards is currently facing a difficult operating environment with supportive facilities for industrial growth lacking,” he said. This according to Ugwuh, a former president of the Manufacturers Association of Nigeria (MAN), is to be accomplished through public-private partnership (PPP) with the government playing the role of a facilitator and creating the enabling environment.

The parks to be sited identified deserted areas around the country would see to the establishment of cottage and big industries specializing in different products and services within the same zone so that rather competing with themselves, they would be complimenting one another. The President has made clear that by 2020, Nigeria should be listed among the 20 largest economies of the world and this has been well accepted. The problem we have is how to get there. How do we do it in such a way that every buys into it and participates?

The minister said although the country’s earnings has gone up substantially in the last few years with rising international oil pricing, yet government has competing needs for the resources which makes it imperative for the private sector to fully participate in growing the economy. “Government is attempting to rely on the private sector and therefore the industrial park concept is line with the idea of giving an opportunity to the private sector to exercise their right in this new economic development. We believe that with this, the economy in ten years to come would have fully become private sector driven,” he said.

He explained that the government would be in the position to encourage private investors willing to take advantage of the industrial parks by granting waivers, tax holidays and other incentives in respect of machinery and equipment required for their operations.

D-8 Organization Director, Amb. Kia Tabatabaee, welcomed the news as very encouraging, and therefore should be supported. Tabatabaee said that the plan is a precise design to turn the oil revenues into productive investment that will lead for more job creation and increasing intra-trade among D-8 countries.

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