MD Backs OGFZA Amendment Bill

At the public hearing on the bill to amend the Oil and Gas Free Zones Authority Act of 1996, the authority argued that amending the enabling law to strengthen OGFZA and make them more effective was the right thing to do for an agency of government that has recorded outstanding achievements since it began operation in 2000.
The Managing Director, OGFZA, Mr Umana Okon Umana reported in his paper to the public hearing that the zones grew by 32 per cent in less than two years after OGFZA took charge of the management and regulatory control of the free zones, compared to the growth rate of 2.11 per cent before OGFZA assumed control. The Managing Director, said the positive impact of OGFZA’s management and regulatory control of the oil and gas free zones was made manifest in all aspect of the nation’s economy from shipping traffic at the ports to inflow of foreign direct investments and revenue to government.
Umana argued that they should only be assisted to perform better through the right legal frame work, which he said the amendment was seeking to achieve.
Against the background of contrary argument by opponents of the bill that the amendment should not be allowed, and the OGFZA should be scrapped or merged with the Nigerian Export Processing Authority (NEPZA) Umana told the hearing that it was on record that Nigeria pioneered the concept of special free zones for oil and gas business, nothing that the concept has become so successful that has now been copied by other countries. He cited the Federal Government white paper gazette of March 2014 on the restructuring of Federal Government parastatals and agencies which rejected the merger of OGFZA and NEPZA, as well as the opinions of two Attorneys-General of the federation on the Acts establishing OGFZA and NEPZA, both of which affirmed the legal status of OGFZA as an autonomous agency with the sole responsibility for the licensing and regulating oil and gas free zones in the country.
The proposed amendment to remove all imperfections in the 1996 Act is sponsored by senator Ibrahim Gobir who is the chairman, senate services committee.
Gobir said at the public hearing that the 20-year-old law was long over due for a review to bring it in line with current realities.