18 August 2011

The Oyo State Governor Abiola Ajimobi yesterday said that the state will develop an Export Processing Zone otherwise known as free trade zone that will cost between N5 billion to N10 billion.

He said this when he visited the Minister of Trade and Investment, Olusegun Aganga.

The governor said free trade zone will generate about two million jobs as a result of the activities that will generate from the zone.

"We want to change the socio-economic activities of Oyo State and no matter the investment that is required we will be willing to give it," he said.

The governor said that they have put in place mechanism that will bring many investors and manufacturers to the state, adding that they are also going to promote their transnational border markets such as Oke Ogun which has boundary with the Benin Republic.

He said that the state is blessed with agricultural potential and his administration would do all it could to unearth the assets.

"We must concentrate on value added agriculture. We believe in agro-allied and we are going to develop it because 70 percent of our people earn their living through agriculture. We have arable land ready to be cultivated, agric is the highest employer of labour in the world so concentrating on it will mean a lot for our state," he said.

Speaking, the Minister of Trade and Investment, Olusegun Aganga said that the ministry would collaborate with the Oyo State government in the implementation of its new initiative on value addition for agro-allied industries as part of its mandate to generate employment and create wealth.

He added that the ministry would work closely with state governments across the country to attract genuine foreign investors into various sectors of the economy.

He said that by September this year, there will be signing ceremony between the government and one of the development partners on the transnational border markets in the state which is expected to create about one million jobs.

http://allafrica.com/stories/printable/201108180379.html

I am extremely skeptical of this.

Export Processing Zone for. . . what? What exactly do you plan on making and exporting? With no electricity in Nigeria? Please do not sink government funds in an unviable project.

Or is there something that I am missing here about why this project is worthwhile?

No electricity, not easy to set it up privately for yourself (unlike say Lagos and Ogun) due to lack of a gas pipeline nearby (correct me if I'm wrong on this.)

Poor transportation from Oyo to seaports.

Tinapa/Calabar FTZ Part 2 . . . bleh

Governing these SW states shouldn't really be too hard. In some ways, it should be the easiest zone to govern after the SS.

If you are a pro-business governor, focus on roads and start making plans for how you'll deliver or assist on power (since it looks like the FG is rapidly liberalizing the power sector.)

What sense does it make to promote trade along your border with Benin Republic when you have the 5th largest economy in all of sub-Saharan Africa two states away (Lagos State)?

Shouldn't you pursue the big fry rather than the small one?

ekt_bear:

"We must concentrate on value added agriculture. We believe in agro-allied and we are going to develop it because 70 percent of our people earn their living through agriculture. We have arable land ready to be cultivated, agric is the highest employer of labour in the world so concentrating on it will mean a lot for our state," he said.

Does he realize that it is SUBSISTENCE FARMING that is the highest employer of labor? Not the type of farming one can get rich off of, that is highly mechanized and doesn't require much labor? Take the US for example. . . less than 1% of the population farmers, yet is one of the agriculturally productive countries on earth.

Do you think Obama is going to promote farming as a way to solve his country's unemployment problems?

Bleh, I hope he was misquoted or something. Because this entire article worries the hell out of me

He should forget about the Export processing zone or tell us more about it's feasibility. I think he should focus on mechanized farming, employment generation will come from the new agro-allied industries.

YES OOO . . . . Every State in Nigeria must have their own Free Trade Zone ooo . . . . . That na the newest TOY!!!