Transcript Presentation Five - FTZ Nigeria : /Event

FTZ NIGERIA
2012
FTZ: ‘SUSTAING FUTURE GROWTH
FTZ and Deregulation in Downstream
Thursday, 5th April 2012
OK Free Trade Zone
1
SURE!
BUDGETS ARE LIMITED
.
To compensate hardship for Nigerians.
Priorities:
EDUCATION
HEALTH
WATER RESOURCES
If something left?
Challenges of FTZ’s:
Access (Road, Rail, Water….)
Power or Gas for power - Steady supply
FTZ NIGERIA
2012
OK Free Trade Zone
2
COSTS – Reduction for When?
LESS
SUBSIDY
.
HIGHER COST
BETTER OPERATING AND NEW REFINERIES:
In open market: No Restrictions
In an open market without restrictions:
if not self sufficient: landed cost
if self sufficient: world trading price
With direct or indirect subsidy: lower prices
FTZ NIGERIA
2012
OK Free Trade Zone
3
IMPACT OF DELAYS
NO STABLE LEGAL FRAMEWORK PIB, and
.
OTHER DELAYS

SLOWDOWN AND LOSS OF
INVESTMENTS

FTZ NIGERIA
2012
NEGATIVE TO THE COUNTRY AND
ALSO TO FTZ’s
OK Free Trade Zone
4
FTZ AND POWER EFFICIENCY
Power efficiency is easier in Industrial Zones.
.
Grouping of industries
Size of captive market
Less transmission losses
Industrial mentality
However:
FTZ NIGERIA
2012
Gas, gas, gas, gas……..
OK Free Trade Zone
5
FTZ NIGERIA
.
2012
FTZ: ‘SUSTAING FUTURE GROWTH
Thank you!
FTZ NIGERIA
2012
OK Free Trade Zone
6