The Oil and Gas Free Zones Authority, Nigeria (OGFZA), has remitted over N138 billion in revenue to the federal government between 2018 and 2021.

The managing director of OGFZA, Senator Tijjani Kaura, disclosed this during a media parley in Abuja on Wednesday. He said that the agency has attracted a total investment commitment of $15.97 billion from new and existing investors in five oil and gas free zones between 2021 and 2025.

Senator Kaura revealed that currently, the agency oversees eight free zones, with six of them fully operational and the remaining two in different stages of completion.

He expressed his delight in the evolving success of these zones, emphasizing their substantial contributions to the country’s economy.

“Between 2021-2025, OGFZA attracted a total investment commitment of $15.97 billion from new and existing investors in five of the oil and gas free zones,” he stated.

Providing further details, Kaura listed the proposed investments from different zones, including $3 billion from the Brass oil and gas free zone, $5.35 billion from the Notore oil and gas free zone, $6.4 billion from the Liberty oil and gas free zone, $485 million from Bestaf maritime and industry OGFZA, and $738 million from OGFZA-SBA free zone.

In terms of quantifiable achievements, Senator Kaura highlighted three key indices: foreign direct investment of $21.6 billion between 2001-2021, the transfer of technical skills to 35,330 Nigerians, and the creation of direct employment opportunities for 41,085 Nigerians and indirect employment for 164,000 Nigerians, all within the period of 2001-2021.

The agency has also contributed to reducing the cost of governance by becoming partially self-funded since January 2021, saving the Federal Government over N2.3 billion annually. Presently, the agency allocates 40 percent of its revenue to the government, while the remaining 60 percent is used for operational expenses.

He explained that the agency generates income from administrative charges (1.5 percent of operator profits), licensing fees, operational charges from cargoes, and regulation fees.

The revenue remitted to the federal government between 2018 and 2021, totaling N138.9 billion, was generated from customs duty for goods exported from free zones to customs territory (N119 billion), withholding tax (N10.4 billion), and value-added tax (N9.5 billion) on transactions between free zone enterprises and non-free zone licensees.