Inside Kano’s multi-billion naira free trade zone

Project resumes after 20 years neglect Cost of land at host communities rises N14bn spent, N7bn needed to complete project When the decision to establish a multi-billion naira free trade zone was taken 21 years ago, most communities at Fanisau village and surroundings areas where the free trade zone was to be constructed, celebrated. The […]

• Project resumes after 20 years neglect
• Cost of land at host communities rises
• N14bn spent, N7bn needed to complete project

When the decision to establish a multi-billion naira free trade zone was taken 21 years ago, most communities at Fanisau village and surroundings areas where the free trade zone was to be constructed, celebrated.

The Kano Free Trade Zone (FTZ) is situated on 262 hectares of land at the Fanisau area of Ungogo Local Government Area of Kano. The Kano FTZ was proposed to have warehouses with investors’ chalets, administrative building among others.

According to experts, when completed the FTZ would serve as a special economic zone where goods may be warehoused, handled, reconfigured and re-exported.

The zone is seen as one of the finest of the federal government’s economic strategies that would ensure national economic viability and kick-start a stronger economy for the country in an internationally competitive global environment.

However, it was gathered that since 1998 when it was established, the zone was neglected and the people’s hope of the commencement of the project within their communities was dashed.

But the federal government was said to have approved over N40bn for the Nigerian Export Processing Zones Authority (NEPZA) in the 2019 budget and with the release of part of the funds, activities at the FTZ has been resuscitated beginning with the erection of structures and road networks, a situation that resulted in jubilation by the host communities.

NEPZA has also disclosed that the Kano Free Trade Zone is set to begin operation in the first quarter of 2020.

Disclosing this to newsmen during a media chat in Kano, NEPZA Acting Managing Director Engr. Terhemba Nongo stated that the over 20 year years neglected project has bounced back and that 80 per cent of the road construction works has been completed and 70 per cent of the three blocks of chalets is also completed.

Our correspondent observed that with the commencement of work on the site, a lot of economic activities have started resulting to appreciation of land value and other facilities around the demarcated site.

Economists believe that such establishment of high value would transform the economic strength of the communities as well as increase per capita income of the inhabitants as new business opportunities are set to emerge.

Communities around the project site said for over 20 years, they waited hoping that one day, their dream will come true.

According to Isa Hassan Jaba, a resident of the area, they did not lose hope.

“We are aware that it is a project that requires huge sum of money which was why in 1998 when this place was established, we were so happy believing that the end of poverty in our area had come. Sadly, we waited in anticipation. Different administrations came and left and we still waited hoping that someday we will witness the free trade zone come to life,” said Jaba.

Another resident, Malam Yusuf Isa told our correspondent that the return of activities on the site has rekindled their hope. According to him, more than 300 people of the area are now directly or indirectly engaged in the site.

“We have about 300 people from our community that are directly or indirectly engaged on the site. We are so excited that what we have been hoping for, for years is now coming to reality. Fanisau, Jaba and its environs will in no distant time become a hub of business activities,” he said.

The NEPZA Acting DG, Engr. Terhemba Nongo, said equipment ordered for the zone are expected in the country this December, adding that the four mega warehouses are already completed and that three out of the four had already been rented out.

He said when the free trade zone begins operations, it will provide about 100,000 direct and indirect jobs which will in turn uplift the economic standard of Kano State in particular and the nation in general.

The acting DG further revealed that textile and garment industries are the primary target of the free trade zone, adding that talks have already commenced with one of the biggest Chinese textile companies for investment opportunities aligned with the zone.

He said the zone has a projection of return on investment of N1billion in the first year of its operation which will rise to N5 billion after five years.

Mr Nongo added that about N14 billion has been expended so far and that the zone needs about N7 billion more to be fully completed.

He said, “The delay the zone has been experiencing is due to insufficient funds releases to the project. For example in the 2017/2018 budget, N15 billion was earmarked but only N4 billion was released.

He further stated that establishment of a sewage treatment plant and independent power supply at the zone are required, adding that work on the 15mw source of power was yet to be completed.

He explained that the 15mw power source is estimated  to cost $15m, about N5bn, hence with the paucity of fund, the agency is working towards commencing the project with 5mw instead.

Meanwhile, efforts are on to market the zone abroad for more investors to key into the project, Daily Trust gathered.

When fully operational, the zone will be exporting to Europe, Asia and the United States of America.