phd proposal 18062012
TRANSCRIPT
Page 1 of 33
ABSTRACT
TOPIC:
A DETAILED ANALYTICAL ASSESSMENT OF THE
NIGERIAN FREE ZONE: LEGAL AND REGULATORY
FRAMEWORK
OLANREWAJU ABDULATEEF OLAYINKA
2012
PHD PROPOSAL
Page 2 of 33
ABSTRACT
Following the collapse of the crude oil market, successive administrations have explored and
adopted numerous economic stabilisation and development policies towards stimulating rapid
national industrialisation and reviving the country’s dwindling economic fortunes. Amongst the
export promotion industrialisation strategies adopted by the Nigerian Government included the
Free Zone Scheme.
The Scheme upon adoption became one of the Nigerian Government’s tactical revolutionary
instrument fashioned to stimulate economic growth towards industrialisation. The Government’s
rationale for adoption was based on the acclaimed global success of the Scheme and the
Scheme’s inherent potential to counter numerous domestic economic growth barriers.
Accordingly, Nigerian Zones were designed to create a thriving business environment so as to
attract Foreign Direct Investments galvanised by strategic business incentives.
However, the Scheme’s enacting legislative instrument (Nigeria Export Processing Zones Decree
No. 63 1992 Act Cap. N107 L.F.N. 2004) has remained substantially unchanged. Hence, these
enacting law has become obsolete, globally uncompetitive and business unfriendly. Therefore,
this paper briefly explores the historic development of the Nigerian Free Zone Scheme with
particular attention paid on the Scheme’s Legal, Regulatory and Institutional Framework. Utilising
the Nigerian Government’s Industrial Policy per time, this study employs a flexible qualitative
research methods in an attempt to accumulate relevant information concerning the
effectiveness or otherwise of the Scheme’s Legal, Regulatory and Institutional Frameworks.
Projecting forward, it is intended that this research will allow for a rigorous performance
assessment of the of the Nigerian Free Zone Scheme precisely the Legal and Regulatory
Framework: identifying cogent lapses affecting the Scheme’s functional effectiveness and
recommending necessary corrective measures towards repositioning Nigerian Zones.
Furthermore, upon conclusion of a rigorous examination of the effectiveness and efficiency of
government regulatory agencies directly or indirectly charged with the administration,
establishment, facilitation, supervision, co-ordination, regulation, monitoring etc. of the Nigerian
Free Zones, paying particular attention to the lapses and challenges faced by these institutions,
cogent recommendations will be made towards developing an effective and efficient
regulatory institution with a robust institutional framework.
Page 3 of 33
Conducting a concrete x-tray of the Scheme’s Legal and Regulatory Framework including the
supporting institutional structure(s) also affords a unique opportunity to contribute to the
increasing academic write-ups on the subject matter. As a result, a robust recommendation will
be proposed following a detailed evaluation of adoptable international best practices in order
to create an effective, vibrant and responsive Legal and Regulatory Framework.
Page 4 of 33
ABBREVIATIONS/ACRONYMS
EPZ Export Processing Zone
FDI Foreign Direct Investment
FP Free Port
FTZ Free Trade Zone
FZ Free Zone
FMTI Federal Ministry of Trade and Investment
IMF International Monetary Fund
IPs Industrial Parks
IPR Intellectual Property Rights
JV Joint Venture
M&E Monitoring and Evaluation
MOU Memorandum of Understanding
NCS Nigeria Customs Service
NERFUND Nigeria Economic Reconstruction Funds
NEPC Nigeria Export Promotion Council
NEPZA Nigeria Export Processing Zones Authority
NIPC Nigerian Investment Promotion Commission
NIS Nigeria Immigration Service
NOIP National Office of Industrial Property
NOTAP National Office for Technology Acquisition and Promotion
OPEC Organisation of Petroleum Exporting Countries
R&D Research and Development
SAP Structural Adjustment Program
SEZ Special Economic Zone
UNIDO United Nations Industrial Development Organization
WTO World Trade Organisation
Page 5 of 33
LIST OF FIGURES/TABLES
Fig 1: Free Zone Development Statistics
Fig 2: Free Zone Typologies, Evolution and Development Trend
Fig 3: Categories of Free Zone Legislative Instruments
Fig4: Evolutionary Model of Free Zone Objective
Fig 5: Proposed Research Process Flow
Fig 6: Proposed Comparative Historical Research Process
Fig 7: Illustrates a detailed Data Collection, Verification and Analysis Process
Page 6 of 33
TABLE OF CONTENTS
Abstract
Abbreviations/Acronyms
List of Figures/Tables
Table of Content
1.1 Background.......................................................................................................................... 7
1.2 Study Area............................................................................................................................ 9
1.3 Justification............................................................................................................................ 9
1.4 Statement of the Problem.................................................................................................. 10
1.5 Study Objective................................................................................................................... 12
1.4.1 Specific Objectives: ............................................................................................ 12
1.6 Significance of Research.................................................................................................... 13
1.7 Motivation for Research..................................................................................................... 13
1.8 Research Requirements……………………………………………………………........……. 19
1.8.1 Research Objectives, Questions and Hypothesis........................................... 19
1.8.2 Research Design, Approach and Strategy…….…………………………...…. 26
1.8.3 Research Method(s)………………………………………………………………... 27
1.8.4 Proposed Research Process Flow..................................................................... 27
1.9 Methodology...................................................................................................................... 28
1.10 Data Requirements.......................................................................................................... 29
1.10.1 Data Collection, Verification and Analysis Process..................................... 29
1.11 Expected Research Output............................................................................................ 30
Page 7 of 33
1.1 BACKGROUND
Since Nigeria became independent in 1960, achieving economic development through rapid
industrialization has remained a major economic thrust and challenge for successive
administrations. As a result, consecutive administrations have adopted numerous economic
development policies towards ensuring rapid national industrialization. However, upon the
discovery of crude oil and commencement of oil exploratory related activities, these
industrialization policies were passively jettisoned. Therefore the Nigerian economy became
wholly dependent on the FDIs and revenues from the oil industry.
But, the fall of the petroleum economy in 1980 caused by the collapse of the crude oil market
and the subsequent reduction in the production quota of the Organisation of Petroleum
Exporting Countries (OPEC) member countries1 signalled the need to diversify the economy
away from its subsisting mono-product state. Additionally, the government’s economic
diversification thrust was later strengthen by the nation’s dwindling foreign exchange earnings,
her alarmingly growing import bills, high interest rate, accumulating trade arrears, high
unemployment rate and mounting external debt servicing burden. Therefore, the Nigerian
Government frantically explored different economic stabilization measures and development
policies towards ensuring an even Balance of Payments.
Some of the Nigerian Government’s economic development policies ranged from Import
Substitution Strategy (ISS)2 or Resource Based Strategy3 under the First National Development
Plan (1962 – 1968) to various indigenization initiatives. Furthermore, the Government adopted the
Structural Adjustment Program (SAP)4 and other Trade and Financial Liberalization Policies5
towards the revitalization of the nation’s dwindling fortunes. The government also introduced
other far reaching economic revitalization initiatives towards the promotion of non-oil exports.
These initiatives included the promulgation of the Incentives and Miscellaneous Provision
Decree, No 18 [1986]6, the introduction of the Nigeria Economic Reconstruction Funds
(NERFUND) and the deregulation of the Foreign Exchange Market (FEM) with the aim of
enhancing price competitiveness of Nigerian goods in the foreign markets.
1 http://en.wikipedia.org/wiki/1980s_oil_glut assessed 13l06l2012 at 4:33pm. Oil Glut, Price Cuts: How Long Will They Last?". 89. U.S. News & World Report. 1980-08-
18. p. 44 2 Essentially to enable the country import capital goods like machinery, tools and spare parts and by so doing, facilitate the assembly of these products within the
country, while encouraging the manufacture of consumer goods. 3 Aim was to reduce the dependence on imported consumer goods and create employment opportunities for the Nigerian workforce. 4 The government also introduced that “Industrial Policy of Nigeria: Policies, Incentives, Guidelines and Institutional Framework” under SAP with the aim of
achieving an accelerated pace of industrial development towards making the industrial sector the prime mover of economic development. 5 Obi Iwuagwu, 2011. The Cluster Concept: Will Nigeria’s New Industrial Development Strategy Jumpstart the Country’s Industrial Takeoff? Afro Asian Journal of
Social Sciences Volume 2, No. 2.4 Quarter IV 2011 6 To provide different funds and financial assistance to exporter
Page 8 of 33
Furthermore, the Government also established the National Office for Technology Acquisition
and Promotion (NOTAP), the National Office of Industrial Property (NOIP), Nigeria Export
Promotion Council (NEPC)7 and the strengthening of the Nigerian Investment Promotion
Commission (NIPC)8 so as to control and administer incentives for investment attraction.
Nevertheless, the Nigerian Government failed to attain its industrial development targets despite
these industrial policies, strategies and reforms. As a result, the government switched from import
replacement policy under the philosophy of economic nationalism to export promotion
industrialization strategies for a faster economic growth and structural upgrade.
Amongst the export promotion industrialization strategies adopted by the government included
the Free Zone Scheme: an initiative that was touted by several International bodies including the
World Bank Group, World Trade Organisation, the International Monetary Fund (IMF) and United
Nations Industrial Development Organization (UNIDO) amongst other international institutions.
Therefore, established by the Nigeria Export Processing Zones Act,9 the Free Zone Scheme was
fashioned to create an enabling business environment aimed at promoting economic activities
geared towards the processing of local and imported raw materials into finished goods for
export. The Scheme’s entire ecosystem was designed to gyrate around importing, processing
and exporting of non-oil related trade items galvanised by strategic business incentives.10
The abovementioned Act also established the Nigeria Export Processing Zones Authority (NEPZA),
under the then Federal Ministry of Trade and Commerce (now Federal Ministry of Trade and
Investment), as the body charged with the registration/deregistration, regulation, supervision
and management of all Export Processing Zone, Free Trade Zones, Free Zone Enterprises, Free
Port, Free Industrial Parks etc. within Nigeria amongst other obligations.
Furthermore, the Oil and Gas Export Free Zone Decree No. 8, of 1996 established the Onne Oil
and Gas Free Zone (OGFZ) and created the Onne Oil and Gas Free Zone Authority (OGFZA)
towards facilitation of transhipment activities for the oil and gas industry. OGFZA like NEPZA also
functions under the Federal Ministry of Trade and Investment and is situated in Onne/lkpokiri
7 Agency vested with the responsibility of administering export incentives including Export Expansion Grant and Export Development Fund in Nigeria. The Agency
offers exporters to export incentives upon satisfying the prescribed requirements. 8 Grants Pioneer status certificate upon application to pioneer industry or product thus enabling the applicant access to tax holidays. 9 Nigeria Export Processing Zones Decree No. 63 1992 Act Cap. N107 L.F.N. 2004. 10 Iliya Saidu Kure. [] The South Korea’s Masan Free Export Zone Experience: Lessons For Nigeria’s Export Promotion Drive
Page 9 of 33
area of Rivers State in Nigeria. OGFZ till date remains the only Free Zone in the world wholly
dedicated to the servicing of oil and gas related activities.
Hence, by the year 2005, OGFZ had attracted investment worth over USD1.0 Billion and created
between 7,000 - 20,000 jobs. The Zone has also attracted and registered over 112 reputable
major multinational oil exploration and production companies and a wide range of support firms
in furtherance of its objectives. 11
Free Zones notwithstanding the briefly mentioned achievements and regardless of their
respective objectives, typologies, nomenclature or establishing instruments, are economic
enclaves where trade activities are conducted freely and foreign investments are exchanged
for goods and/or services.
Therefore, since terms such as Export Processing Zones, Free Trade Zones, Special Economic
Zones, Export Processing Factories etc. all refer to similar concepts with variations determined by
policy prescriptions and objectives, this paper adopts the term Free Zone of the Scheme to
encompass the several array of Zones for consistency and ease of understanding going forward.
1.2 STUDY AREA
This research will briefly examine the historic development of the Nigerian Free Zone Scheme
guided by the Government’s periodic policy thrust per time so as to enable a detailed
assessment of the Scheme’s Legal and Regulatory Framework real-time.
Furthermore, extensive attention will be paid on the Scheme’s institutional framework by
conducting a holistic performance evaluation exercise so as to effectively identify existing lapses
and propose requisite curative actions for future legal, institutional and regulatory reform
initiatives.
1.3 JUSTIFICATION
Numerous literatures have been written on the Free Zone Scheme globally. Whilst a significant
number pay considerable attention on Scheme’s typologies, evolution and economic theories
(Aggarwal Aradhna, 2010; Xiangming Chen,12 1995) others explore the developmental catalytic
11 Inye Nathan Briggs, 2007. Nigeria: Mainstreaming Trade Policy into National Development Strategies. Economic Commission for Africa: African Trade Policy
Centre. United Nations Development Programme (UNDP). 12 Xiangming Chen. 1995. “The Evolution of Free Economic Zones and the Recent Development of Cross-National Growth Zones.” International Journal of Urban
and Regional Research 19(4): 593-621.
Page 10 of 33
upshot and economic transformational possibilities in the economic affairs of the host country
(Meng Guangwen, 2003; Akinci, G. and J. Crittle, 2008).
Nevertheless, very few sighted and/or reviewed literature focus specifically on the Nigerian Free
Zone legal and regulatory framework. Besides, literatures on the Nigerian Free Zone Legal,
Institutional and Regulatory Framework are mostly obsolete, incoherent or sparsely obtainable.
Therefore, conducting a research squarely aimed at assessing the Scheme’s Legal and
Regulatory Framework including the supporting institutional structure(s) affords a unique
opportunity to contribute to the increasing academic write-ups on the subject matter.
Additionally, this research provides a unique up-to-date data collation opportunity upon which
real-time profitability and economic impact assessment can be based. The proposed research
also creates an avenue within which legislative, regulatory and institutional reforms may be
proposed and/or effected.
1.4 STATEMENT OF THE PROBLEM
Based on the brief introductory narration provided above and as further elaborated in the
succeeding sections of this proposal, the conclusion can be reached that the Free Zone
Scheme functions as a revolutionary engine for economic growth stimulation with an inherent
potential to counter numerous economic growth barriers.
Furthermore, the Scheme undoubtedly possesses the ability to propel a country’s economy to
industrialisation by facilitating the transfer of technology/expert knowledge within the shortest
time possible.
As a result, developed and developing countries have increasingly adopted liberal economic
policies via export-led growth strategies utilizing the aforementioned Scheme as a means of
generating FDIs, raising industrial output, upgrading production standards, reducing reliance on
traditional export, achieving broader/long term economic development and providing an
enhanced platform for global exchange amongst other objectives.
This phenomenon has led to a considerable upsurge in the number of Free Zones globally with
Nigerian Free Zones steadily increasing from zero (0) to twenty-five (25) since the adoption of the
initiative and enactment of the enabling statues.
Page 11 of 33
Nevertheless, the enabling Nigerian Free Zone Legal and Regulatory Framework have remained
static: thus rendering these Laws, globally uncompetitive and business unfriendly. Furthermore,
these laws as a result of its static nature have become hugely irresponsive to the challenges of
modern trade. Therefore elongated business dispute resolution processes are beginning to occur
without adequate legal succour. Moreover, the Scheme’s Legislative Framework is currently
characterised by absence of convergence in related legislations, a weak
enforcement/regulatory agency and a lack of concerted efforts towards trade laws
harmonisation.
Balancing the above state of affairs with the opinion that Free Zone Scheme require numerous
conditions that are not always strictly speaking economic or financial,13 the conclusion may be
reached that present day reality does not reflect the government’s aspirations for the Scheme
which is to stimulate Nigeria’s economic towards industrialisation.
Therefore, save and except a robust legal, institutional and regulatory framework is developed,
galvanised by requisite statutes, the Nigerian Government’s desire for the Scheme alongside its
globally acknowledged static (increased capital and capital goods) and dynamic (technology
diffusion, tangible and intangible technology transfer14 and spill over, export promotion) benefits
of FDI15 will remain a façade.
Furthermore, high net-worth individuals will continue to ignore the humongous business
opportunities available in Nigeria should Government continued to overlook, neglect and/or
refuse to reposition the Scheme by providing the necessary Legal & Regulatory Framework.
To this end, this research paper will highlight the direct/indirect consequence of the obsolete
legislations with detailed attention paid to the problematic sections of these Laws. These
legislative provisions will be compared with those of strategic countries so as to enable the
possibility of recommending worthy alternatives in line with international best practices.
Additionally, a rigorous assessment of the scheme’s institutional framework will be conducted
with special attention paid to the lapses caused by these institutions as a result of their
discordant mandates and modus operandi. The need to continue to enjoy government’s
13 Ibrahim F.I. Shihata. (1996) The Role of Law in Business Development. Fordham International Law Journal. Volume 20, Issue 5, Article 6. 14 Tangible transfers include the transfer of capital equipment and spill overs such as the development of auxiliary and support industries whilst intangible transfers
include the transfer of skills. 15 Enrique Blanco De Armas, Mustapha Sadni-Jallab. 2002. A Review of the Role and Impact of Export Processing Zones in World Trade : the Case of Mexico. W.P.
02-07. Groupe d’Analyse et de Théorie Économique UMR 5824 du CNRS
Page 12 of 33
support and long term commitment will also be stressed alongside a need for a
revised/streamlined/dedicated importation/exportation process for Free Zones.
1.5 STUDY OBJECTIVE
As mentioned in the Abstract Section of this proposal, the principal objective of this study is to
effectively assess the performance of the Nigerian Free Zone Scheme precisely the Legal and
Regulatory Framework: identifying cogent lapses affecting the Scheme’s functional
effectiveness and recommending necessary corrective measures towards repositioning Nigerian
Zones as a choice destination going forward.
Furthermore, this study will undertake a rigorous examination of the effectiveness and efficiency
of government regulatory agencies directly or indirectly charged with the administration,
establishment, facilitation, supervision, co-ordination, regulation, monitoring etc. of the Nigerian
Free Zones paying particular attention to the lapses and challenges faced by these institutions.
A robust recommendation will also be proposed following a detailed evaluation of adoptable
international best practices in order to create an effective, vibrant and responsive Legal and
Regulatory Framework.
SPECIFIC OBJECTIVE
1. To evaluate and produce a pragmatic unbiased detailed assessment report on the
effectiveness of the existing Nigerian Free Zone Legal & Regulatory Framework.
2. To appraise the effectiveness of established Free Zone Regulatory Authorities alongside
other supporting agencies and suggest essential corrective actions towards remedying
identified lapses.
3. To identify and propose robust remedial actions towards eradicating highlighted lapses
in the existing legal & regulatory framework.
4. To stress-test, identify loopholes and advocate necessarily corrective measures (where
applicable) to the proposed Free Zone regulatory reforms.
5. To explore and recommend globally recognized legal & regulatory best
practices/models towards creating a profitable and sustainable business environment
within Nigerian Free Zones.
Page 13 of 33
1.6 SIGNIFICANCE OF RESEARCH
The significance of this research becomes palpable when the lapses and inadequacies of the
existing Legal, Institutional and Regulatory Framework is examined against the backdrop of
current global challenges facing the Free Zones Scheme including terrorism, money laundering,
counterfeiting etc.
Additionally, the need for this research is further necessitated and strengthened by the fact that
except a robust Legal and Regulatory Framework including an effective institutional structure is
developed, investors may continue to avoid Nigeria’s thriving business environment.
Accordingly, a clear and transparent legal and regulatory framework which codifies the
Scheme’s strategy and establishes the Free Zone Rules for all concerned stakeholders must be
holistically captured in other to shape the boundaries of behaviour.
This research also echoes and contributes significantly to the call for a review of the Free Zone
legislations by offering a platform for a rigorous assessment of the existing framework towards
giving a fresh policy perspective to civil societies and government agencies/organisations
engaged in the promotion of the Nigerian Free Zone Scheme.
Furthermore, the significance of this research paper is effectively captured in the research
questions listed below which were developed from a plethora of reviewed literature, extensive
research and the researcher’s first-hand experience in a Nigerian Free Zone Management
Company. It is hoped that upon conclusion of this research, further studies will be inspired.
1.7 MOTIVATION FOR RESEARCH
Numerous factors instigated and consistently motivate the conduct of this research principally
amongst which includes the acclaimed performance of the Free Zone Scheme globally.
Undoubtedly, the Scheme within the last fifty (50) years has become increasingly popular in both
developed and developing countries mostly as an economic growth policy instrument aimed at
enhancing industry competitiveness16 and the promotion of export-oriented Foreign Direct
Investments.17
Historically, the Free Zone concept originated from Free Ports like the Port of Aegean island of
Delos and Port of Leghorn in the Bay of Genoa, North West Italy (1547). The eighteenth (18th) and
16 Special Economic Zones Performance, Lessons Learned, and Implications for Zone Development 17 United Nations Economic and Social Commission For Asia and the Pacific (UNESCAP) and Korea Maritime Institute (KMI), (2005) Free Trade Zone and Port
Hinterland Development, Transport and Tourism Development (TTD) Publication reference ST/ESCAP/2377
Page 14 of 33
nineteenth (19th) centuries also witnessed increased establishments of Free Ports in places like
Gibraltar (1704), Singapore (1819), Hong Kong (1848), Hamburg (1888)18 and Copenhagen
(1891) to name a few.19 Ephesus (now Turkey) for instance, through its Free Port initiative
welcomed traders and tradesmen with open arms as a result the region recorded remarkable
economic developments during those times.20
Free Zones historically were small, fenced-in, duty-free areas, offering warehousing, storage, and
distribution facilities for trade, transhipment and re-export operations, and were located in most
ports of entry around the world. The rationale of setting up these zones was to facilitate
‘transiting trade’ of other countries exports. Therefore, the level of international trade was linked
to domestic production but depended on expanding transiting trade related activities.21
However, the modern concept of free trade "zone," as opposed to free "port" or free "city," was
introduced by the United States in the Foreign Trade Zones Act of 1934.22 The New York Foreign
Trade Zone No. 1 was established in 1937 as the first FTZ in the world. However, the U.S. FTZs
remained rather small until a 1950 Act authorized export-oriented processing within the Foreign
Trade Zones. Thus creating for the first time an FTZ where manufacturing was permitted.23
As a commendable follow up, the Irish Government in 1959 established the Shannon Free Zone
by extending liberal policies normally accorded to ports and airports to the industrial area
adjoining Shannon Airport. The Shannon Free Zone was the first Free Industrial Zone (FIZ) created
expressly for customs-free export oriented manufacturing. The FIZ model developed at Shannon
was a combination of the FTZ concept with the emerging concept of industrial estates, i.e. "a
tract of land which is subdivided and developed according to a comprehensive plan for the
use of a community of industrial enterprises.24
The Irish Government’s rationale was geared towards attracting FDI, supporting existing foreign
enterprises and ensuring efficient government supervision of enterprises amongst other
objectives. Till date, Shannon Free Zone still remains Ireland's largest cluster of North American
18 In 1888, Hamburg became the first port to be granted the special privilege of manufacturing, on the conditions that it not compete with the hinterland and
remain export-oriented. Jayawardena (1983), Free Trade Zones, 17 J. WORLD TRADE L. 427 19 Currie, Jean (1979) Investment: The Growing Role of Export Processing Zones, The Economic Intelligence Unit, London 20 José, Cerón (2004) Assessment of Mongolia’s Free Trade Zone Program and Site Evaluation: Mongolia Economic Policy Reform And Competitiveness Project
(EPRC) 21 Aggarwal, Aradhna, (2010) Economic impacts of SEZs: Theoretical approaches and analysis of newly notified SEZs in India. Munich Personal RePEc Archive
Paper No. 20902, posted 26. February 2010 / 17:43 22 Foreign Trade Zones Act of 1934, Pub. L. No. 73-397, 48 Stat. 998 (codified as amended at 19 U.S.C. §§ 81a-81u (1982)). 23 R. Thoman, Free Ports and Foreign Trade Zones 140 (1956), cited in Note, Foreign Trade Zones, supra note 14, at 732 n.55. 24 W. Bredo. (1960).Industrial Estates: Tool For Industrialization 1
Page 15 of 33
investments with a successful track record as a choice location for international companies
wishing to invest in Europe.25
In addition, the modern concept of Free Zone unlike the abovementioned Free Port concept is
not static and does not need to be situated adjacent to a port. Modern Free Zones can be
located anywhere with relatively good connectivity. Modern Zones also evolve with economic
growth of the domestic economy, in terms of the composition of economic activity and
technological sophistication. Additionally, modern Free Zones are dominated by low cost labour
intensive industries in the earliest phase of development.
Mayaguez, Puerto Rico (1962), Kandla, India (1965) and Kaohsiung, Taiwan (1966) like the
Shannon Free Zone effectively exemplify the modern concept of Free Zone. By 1975, twenty-nine
(29) countries had seventy-nine (79) Zones across the world. Today, there are approximately
3000 zones in 135 countries worldwide.26
In 2007, total global exports from FTZs were estimated at USD 400 billion.27 The Colon Free Zone in
Panama, the world’s second largest FTZ, generated USD 8.6 billion in exports and re-exports in
2008.28
The United States which possesses more than 161 active Zones, exported more than USD 40
billion.29 Whilst China which leads Asia with 187 Zones, reports exports transactions worth more
than USD 145 billion followed by Indonesia, Philippines, Thailand, India, Taiwan and S. Korea.30
Nigeria, which possesses about twenty-five (25) Zones, has attracted over USD 13.6 billion
investment and paid over N150 billion to the government as customs duty since its inception.31
Overall Free Zones are estimated to account for more than USD 200 billion in global exports and
employ directly at least 40 million workers.32 Nevertheless, strong arguments have been made
that the FZ Scheme “…..is not a first best policy choice…. [for the development of a country’s
economy]. The best policy is one of overall liberalization of the economy… [Although], zones
can play a long term dynamic role in ...[a]… country's development if they are appropriately
25 Http://Www.Shannonireland.Com/ 26 Akinci, G. and J. Crittle (2008), Special Economic Zones: Performance, Lessons Learned, and Implications for Zone Development, FIAS, WorldBank Group,
Washington. 27 Akinci et al. (2008) These statistics were derived from a database developed by FIAS in close consultation with the World Economic Processing Zones
Association (WEPZA), and the International Labor Organization (ILO). Date from an ILO document dates April 2007. 28 U.S. Department of Commerce (2007), U.S. Commercial Service., Panama: Warehousing and Wholesaling, Panama City, published online at
www.buyusa.gov/stlouis/189.doc, 1. 29 Free Trade Zones Board (2009), 70th Annual Report of the Foreign Trade Zones Board to the Congress of the United States FY2008, Washington, published online
at http://ia.ita.doc.gov/ftzpage/annualreport/ar-2008.pdf, 2. 30 Akinci et al (2008), p. 27. 31 http://www.thisdaylive.com/articles/free-trade-zones-investment-hits-over-13-6bn/113362/ at14/04/2012 32 Trade Issues Brief: Special Economic Zones. World Bank Group - Poverty Reduction and Economic Management Network - International Trade Department
Page 16 of 33
set-up…as an integrated part of a national reform and liberalization program”33 or if they are
used “to integrate …[their economy]… into the world’s global economy.”34
The foregoing facts prove undeniably that Free Zones, as a Scheme, has certainly played a
critical role in economic growth and the development of a Nation’s rapidly increasing exports,
foreign exchange earnings, and employment generation capabilities.
Secondly, the use of the Free Zone Scheme by countries as a catalyst for economic reform also
constitutes another motivating factor. Historically, numerous countries adopted the Free Zone
Scheme as a development strategy and export promotion policy aimed at liberalizing their
respective economies by reducing economic barriers and facilitating global free trade in an
attempt to provide a stimulus to national and local economies towards international productive
capital.
The abovementioned policy change marked a deep structural reform for most countries and
puts an end to the monopoly of closed economies; thus introducing a hybrid system in line with
the host Government’s economic transformation agenda. The policy also acts as an economic
growth stimulus whereby capital, technology and resources introduced into Zones create new
job opportunities for local workers and business opportunities for local companies.
A vivid illustration of the catalytic effect of the Free Zones Scheme is best exemplified by the
Shannon Free Zone scenario mentioned above. This catalytic effect also holds the keys to
China’s rapid and sustained economic growth, outwardly-oriented economic strategy,
unbalanced regional policy (i.e. not all Chinese regions are treated the same way) and growing
integration into the global economy since the 1980s.35
Therefore, the Nigerian Government, like the rest of the world also commenced its
transformational economic reform initiative towards diversifying the economy away from its
subsisting mono-product state. Hence, the Government introduced the Structural Adjustment
Programme (SAP) as means of reducing the Country’s excessive dependence on oil sector
revenues. The programme also sought to promote exports from other non-oil producing sectors
including agriculture, solid mineral etc.
33 Madani, Dorsati (1999)A Review of the Role and Impact of Export Processing Zones, (Washington, D.C: World Bank) 34 Watson, Peter, (2001) “Export Processing Zones: Has Africa Missed the Boat? Not Yet. Africa Regional Working Paper Series, No. 17, World Bank 35 Meng Guangwen, The Theory and Practice of Free Economic Zones: A Case Study of Tianjin, People’s Republic of China
Page 17 of 33
The Government also established the Calabar Export Processing Zone36 with the aim of boosting
manufactured exports and promoting foreign and domestic trade in line with its economic
transformation objective. As a result, Nigerian Zones like rest of the Free Zones globally account
for approximately USD 200 billion in gross exports per annum and directly employ some 40 million
workers and perhaps some 60 million indirectly.37 Nevertheless, the point must be made that the
FZ Scheme is just an instrument of industrial policy whose success depends on carefully designed
and broadly implemented coherent strategy aimed at rapid economic development.
Hence, although the Scheme has recorded significant success overtime, concerted steps will be
taken in this research paper to understand the very essence of the Scheme as a cartelistic
economic development strategy. Fig1: illustrates additional Zone Development Statistics.
38
Thirdly, the need for an end-to-end reform of the existing Legal and Regulatory Framework
trumps all other motives and constitutes the fundamental objective of this research. This is
because until a holistic reform is carried out, the prospect of achieving the Nigerian
Government’s economic objective(s) via the creation of the FZ Scheme will remain an idea or
illusion.
Globally, evidence has shown that the development of a responsive and proactive legal and
regulatory framework still remains a critical component towards ensuring a stable, transparent
and predictable business environment. Therefore, except proactive steps are taken towards
36 The Calabar Free Zone, the premier FZ, was fashioned to create an enabling environment with suitable financial and other incentives towards promoting
economic activities which seeks to process local and imported raw materials into finished goods. 37 Ibid. 38 BearingPoint; International Labor Organization database; WEPZA (2007); FIAS research.
Page 18 of 33
enhancing the existing framework (including FZ Laws, Regulations and Operational Procedures),
the Nigerian Free Zone Scheme may continue to suffer serious conceptual and operational
weaknesses. Additionally, the Nigerian FZ investment climate may also continue to lose
credibility,39 competitiveness, investments, investors and global appeal.
Fourthly, the performance and efficacy assessments of the regulatory agencies direct and
indirectly charged with the administration of the Nigerian Free Zone Scheme also form part of
the research motive. Undoubtedly, the key to a successful Zone rests with the ability of the
overseeing authorities and supplementary government agencies to act efficiently and
independently while encouraging more developmental activities.40
Nonetheless, the Nigerian Free Zone Scheme currently lacks a harmonised institutional
framework. Hence, Nigerian government agencies directly and indirectly charged with the
administration, establishment, facilitation, supervision, co-ordination, regulation, monitoring etc.
of Zones appear to function discordantly. This is because a significant number of government
agencies with specific function(s) within Nigerian Zones are established by non-
related/unsynchronised statutes. As a result, operationalizing their respective mandates often
create red-tapes and/or corruption.
Therefore, spirited efforts must be taken by the Nigerian Government towards developing an
effective and efficient regulatory institution with a robust institutional framework. These Institutions
going forward must possess established well-functioning systems, with clear and transparent
rules, effective checks and balances and strong enforcement mechanisms.41
Additionally, these Institutions must help shape a revised institutional matrix of new norms,
capacities, incentives, organizations and regulations aimed at fostering private and/or state
activities within the FZ Scheme so as to improve developmental competitiveness42 and
sustainable economic growth.
Finally, the fact that the study of the Nigerian Free Zone Legal and Regulatory Frameworks
remains a novel area also stimulates the conduct of this research. This is because although
numerous literatures have hitherto been written about the Free Zone Scheme globally, none
39 Ibrahim F.I. Shihata. (1996) The Role of Law in Business Development. Fordham International Law Journal. Volume 20, Issue 5, Article 6. 40 Howard, Stein (2008). Africa, Industrial Policy and Export Processing Zones: Lessons from Asia. Paper Prepared for Africa Task Force Meeting, Addis Ababa,
Ethiopia 10-11 July, 2008 41 Seema. Hafeez. (2003). The Efficacy of Regulation in Developing Countries. United Nations 42 Developmental competitiveness refers to an institutional continuum which propels a dynamic process of accumulation focused on increasing the diversity,
market share, linkages, and depth of an economy.
Page 19 of 33
specifically seeks to assess the functional effectiveness of the legal, regulatory and institutional
framework of the Scheme.
Hence, having observed this literature lacuna, this research paper aims at bridging the gap by
contributing to the critical x-ray of the aforementioned framework with a view to making
valuable contribution to the Nigerian Free Trade Zone Laws vis-à-vis recommending reforms in
line with international best practises.
1.8 RESEARCH REQUIREMENTS
1.8.1 RESEARCH OBJECTIVE, QUESTIONS AND HYPOTHESIS
OBJECTIVE 1: To evaluate and produce a pragmatic detailed assessment report on the
effectiveness of the existing Nigerian Free Zone Legal & Regulatory Framework.
RESEARCH QUESTIONS
RQ1a. What types of Free Zones exist in Nigeria?
RQ1b. What are the existing legislative instruments, government policies and directives
that established and regulate the Nigerian Free Zone Scheme?
RQ1c. What principle(s) guided the establishment of Free Zones in Nigeria?
RQ1d. What was the government’s establishment rationale?
RQ1e. What amendments have been made to these establishing legislative and
administrative instruments?
RQ1f. What lapses occurred as a result of these amendments?
RQ1g. Do the existing legal and regulatory framework(s) adequately provide an effective
administrative, supervisory and monitoring system for the Nigerian Free Zone Scheme?
HYPOTHESIS:
H1a. As stated above, there are Twenty-five (25) Zones in Nigeria. Although some Zones
are operational, a majority are still under construction. Historically, Free Zone
terminologies are diverse therefore in this study, Nigerian Zones will be, broadly speaking,
categorised into Territorial and Regime-type Zones.43
Nigerian Territorial-type Zones occupy clearly defined area(s) and possess a high quality
infrastructure and administrative facilities with better trained members of staff than in the
customs territory. Regime-type Zones strictly speaking are only ‘free economic regime’
43 Meng Guang-wen, [2005]. Evolutionary Model of Free Economic Zones- Different Generation and Structural Features. Science Press Beijing China. Chinese
Geographical Science Volume 15, Number 2, pp. 103-112.
Page 20 of 33
enjoyed within a defined location but are not ‘Free Economic Zones’ per se. Therefore,
for the purpose of this study our attention will be fixed on Territorial-type Zones.
Moving on, it is worth stating that Territorial-type Zones are further subdivided into Enclave
and Open type Zones depending on their linkages with the domestic economy and
customs supervision policy.
Nigerian Enclave Zones often have clearly defined boarders (such as Free Trade Zones;
Free Ports; Export Processing Zones etc.) and operate with a closed customs supervision
which result in a less direct linkage with the Nigerian domestic economy. The Open
Zones (such as Special Economic Zones, Science and Technology Parks, Free Financial
and Tourism Zones, Industrial Parks etc.) on the other hand enjoy special/open customs
supervision which encourages direct linkages with the domestic economy.
Therefore, grouped according to industrial sector and background features such as
economic freedom, geographical and macro location, Nigerian Zone can be classified
into the following types/categories.
1. Trade Based Zones – i.e. Free Trade Zone
2. Manufacturing Zones – i.e. Export Processing Zones
3. Service Based Zones – i.e. Free Tourism & Finance Zones
4. Science Based Zones – i.e. Science & Technology Parks
Globally, other recognised types of Zones include:
1. Comprehensive Zones – i.e.
2. Cross border Zones – i.e. Cross-border Cooperation Zone and Cross-National Growth
Triangles
3. Cross-National Regional Economic Integration (REI)
Page 21 of 33
44
Fig 2: illustrates Free Zone Typologies, Evolution and Development Trend
H1b. Notable Free Zone legislative instruments include:
a. Acts:
i. Nigeria Export Processing Zones Act
ii. Onne Oil and Gas Free Zone Authority
b. Supplementary Legislations:
i. Customs & Exercise Act
ii. Immigration Services Act CAP 171 LFN 1990
c. Policies & Operating Guidelines:
i. Investment Procedures, Regulations and Operational Guidelines for
Free Zones in Nigeria. 2004
44 Meng Guangwen. [2003]. The Theory and Practice of Free Economic Zones: A Case Study of Tianjin, People’s Republic of China. Submitted to the Combined
Faculties for the Natural Sciences and for Mathematics of Ruprecht-Karls University of Heidelberg, Germany for the Degree of Doctor of Natural Sciences.
Page 22 of 33
45 Fig 3: Illustrates the various categories of Free Zone Legislative Instruments
H1c & d. The Government’s establishment guiding principles and rationale(s) include:
a. Attraction of domestic and Foreign Direct Investment
b. Enhancement of foreign exchange earnings
c. Stimulation of the local/regional economic performance and the
transformation of the Nigerian economy
d. Generation of employment opportunities vis a vis the eradication of poverty
e. Implementation of liberal market economy principles and policies.
f. Realization of micro, macro, common and special economic objectives.
a. The microeconomic objectives evolve from creating trade, export,
employment, foreign exchange and attraction capital to absolving
advance technology, investment and training personnel.
b. Whilst the macroeconomic objective evolved from promoting
regional development to carrying out structural reforms and Regional
Corporation in order to foster Regional Economic Integration (REI).
See Fig 4 below for the Evolutionary Model of Free Zone Objective
g. Decentralisation of markets
h. Development of export oriented industries
i. Encouragement of foreign commerce
j. Diversification of exportable products
k. Overcoming structural balance of payments pressures
45 Ibid.
Page 23 of 33
l. Importation of modern technology, management know-how and human
capacity building within and outside the Zones
m. Improving domestic markets supply conditions
n. Augmentation of forward and backward linkages with domestic firms, leading
to potential formation of clusters
o. Integration of the Nigerian economy into the international economic system,
including international capital movements and international trade
Fig4: Evolutionary Model of Free Zone Objective46
H1e. Amendments to the establishing legislative instruments include:
a. There has been no amendment to the NEPZ Act but added-on guidelines
such as the…….have been drafted so as to regulate and guide Zone
operations.
H1f. Lapses that emanated from the amendment of establishing instrument(s):
a. A stated above, although there has been no amendment to the NEPZ Act
save the referred Operating Guidelines notable lapses yet include:
46 Ibid
Page 24 of 33
i. Consistently confronting novel issues with out-dated and unresponsive
legislative instruments which often expose investors to reoccurring
litigation and disputes.
ii. Inconsistent application of laid-down rules and regulations has
resulted in a plethora of conflicting judicial precedence.
iii. Drastic increment in bureaucratic bottlenecks and corruption caused
by the wanton abuse of inflexible rules and regulations.
iv. Weak and ineffective regulatory instruments have resulted in the
enactments of additional laws and regulations. However, these
regulatory laws have resulted in an arguably under-regulated industry
and undermined the chances of new investment in Zones.
v. The multiplication of ineffective, weak and excessive laws and
regulations also reduces their quality and the chances of their
enforcement.
vi. Lack of implementing regulations and procedural definitions prevents
the achievement of minimal transparency and operationalisation of
key international best practices
vii. Activation and implementation of the existing policy framework
underpinning the Free Zone investment climate is threatened by poor
human capacity particularly in the public sector.
viii. Lack of adequate coordination and cooperation between Zone and
Customs Authorities presents a unique money laundering and terrorist
financing threat/opportunity.
ix. Weak Enterprise Registration process and customs inspection
procedures.
x. Obsolete or Inadequate information technology based record-
keeping systems.
xi. Inadequate combative safeguards against customs fraud, trade
based money laundering activities, terrorism financing and weapons
of mass destruction proliferation.
H1e. Do the existing legal and regulatory framework(s) adequately provide an effective
administrative, supervisory and monitoring system for the Nigerian Free Zone Scheme?
a. This study will irrefutably and conclusively show that the existing Nigerian Free
Zone: Legal and Regulatory instruments are archaic, static and reactionary.
Page 25 of 33
Accordingly, the Legal and Regulatory Framework(s) have become
ineffective administrative and regulatory tools.
Therefore, a strong case will be made for a wholesome review of the
prevailing Framework so that Nigerian Free Zones can be repositioned as a
globally acclaimed, legally vibrant and profitable business destination.
OBJECTIVE 2: To appraise the effectiveness of established Free Zone Regulatory Authority(ies)
alongside other supporting agencies and suggest essential corrective actions towards
remedying identified lapses.
RESEARCH QUESTIONS
1. What legislative and regulatory instruments established the Free Zone Authorities and
supporting agencies?
2. Do the existing regulatory authority(ies) vis a vis the supplementary Government
Agency(ies) directly or indirectly charged with the administration, establishment,
facilitation, supervision, co-ordination, regulation, monitoring etc. of the Nigerian Free
Zone Scheme efficiently and effectively provide the requisite support?
3. What are the critical issues and challenges constraining the functional effectiveness
of these institutions?
4. What proactive remedial actions can be adopted towards addressing these
highlighted constraints?
OBJECTIVE 3: To identify and propose robust remedial actions towards eradicating highlighted
lapses in the existing legal & regulatory framework.
RESEARCH QUESTIONS
1. What are the identified and acknowledged (legal and otherwise) lapses affecting
the successful execution of the Nigerian Free Zone Scheme?
2. What are the direct and indirect consequence of these lapses on the profitability
and sustainability of the Nigerian Free Zone Scheme?
3. What corrective steps have the government taken to tackle these lapses?
4. How effective was the government’s response to these lapses?
Page 26 of 33
OBJECTIVE 4: To stress-test, identify loopholes and advocate necessarily curative actions (where
applicable) to proposed Free Zone regulatory reforms.
RESEARCH QUESTIONS
1. What are the proposed Free Zone reforms?
2. What are the direct and indirect effect(s) of proposed legislative reforms on the
continued existence, profitability and sustainability of Free Zone in Nigeria?
3. What are the possible remedial actions needed to cure the highlighted defects
benchmarked against international best practices?
OBJECTIVE 5: To explore and recommend globally recognized legal & regulatory best
practices/models towards creating a profitable and sustainable Free Zone environment in
Nigeria.
RESEARCH QUESTIONS
1. What innovative and globally acknowledged legislative best practices, instruments
and mechanisms can be adopted or mirrored in order to ensure a sustainable Free
Zone Scheme in Nigeria?
2. What other notable Free Zone developmental model/approach can be borrowed
from globally acclaimed Free Zones?
HYPOTHESIS:
H5a. What innovative and globally acknowledged legislative best practices, instruments
and mechanisms can be adopted or mirrored in order to ensure a sustainable Free Zone
Scheme in Nigeria?
a. United Arab Emirates
a. Dubai International Financial Centre
1.8.2 RESEARCH DESIGN, APPROACH AND STRATEGY
This study is a qualitative research that attempts to accumulate relevant information and data
regarding the effectiveness or otherwise of the Nigerian Free Zone: Legal and Regulatory
Framework. The impetus for doing this qualitative research is to investigate and become more
experienced with the subject matter so as to deliver a detailed description, assessment and
conclusion on the performance efficacy of the aforesaid framework.
Page 27 of 33
Additionally, the utilisation of a flexible qualitative research approach further enables the
rigorous examination of the aforesaid matter through the adoption of diverse qualitative
research approach, strategies and analysis (including statistical, stakeholder and comparative
policy analysis etc.) so as to conclusively verify assumed, observed and confirmed lapses with
the framework.
In line with the foregoing, the descriptive, analytical and exploratory research methods would
be utilised so as to obtain current performance information/indicators of the framework and to
yield instructive information concerning the problems with same. Primary and secondary
methods of data collection will also be used so that the research’s objectives can be achieved.
It is intended that following the application of these research methods, approaches and
strategies, considerable insight would have been acquired towards the production of a holistic,
accurate and verifiable report on the framework.
1.8.3 RESEARCH METHOD(S)
See Section 1.9
1.8.4 PROPOSED PHD RESEARCH PROCESS FLOW
Fig 5: Proposed Research Process Flow
Page 28 of 33
Fig 6: Proposed Comparative Historical Research Process
1.9 METHODOLOGY
This research will take a holistic look at Nigerian Free Zones generally as a unit of analysis in order
to effectively assess the functional effectiveness of the Legal and Regulatory Framework. Also,
this research will employ both library and qualitative field research methods alongside numerous
research techniques with the intention of improving accuracy of collated data through robust
triangulation methods.
The aforementioned research methods and techniques will also foster an in-depth
understanding of the general theoretical and philosophical nature of the Nigerian Free Zone
Legal and Regulatory Framework. Additionally, existing scholarly writing and jurisprudence on
the above-subject matter will also be utilised towards addressing the abovementioned research
questions.
Relevant Free Zone laws and regulatory practices will also be rigorously analysed alongside
various country reports on Free Zones prepared by local and international bodies (such as the
World Bank (WB) and the International Monetary Fund (IMF)) directly and indirectly involved in
the promotion of international trade.
The experience of countries with successful Free Zones like the United Arab Emirates, China,
Singapore, etc. will also be considered for an extensive comparative historical analysis.
Page 29 of 33
1.10 DATA REQUIREMENTS
The types of data that will be collected, analysed and utilised include:
a. Local and International legislative instruments including laws, treaties, policies,
guidelines, directives, agreements etc.
b. Statistical data, reports and indicators on Nigerian Free Zones from different level
governmental and nongovernmental organizations.
c. Robust literature search/survey and case studies on Nigerian Free Zones.
d. Outputs from focus group discussion and participatory performance appraisal (PPA)
method with Free Zone Stakeholders
e. Outputs from well-structured in depth interview for a comprehensive qualitative and
quantitative data.
f. Structured questionnaires and (one-on-one/telephone) interviews for subject matter
expert surveys.
1.10.1 DATA COLLECTION, VERIFICATION AND ANALYSIS PROCESS
Data for the purpose of this study will be collected mostly through rigorous review of Local and
International legislative instruments including laws, treaties, policies, guidelines, directives,
agreements etc. A robust literature search/survey will be conducted with case studies, email,
telephone and/or personal interviews and standardized questionnaires completed by subject
matter expert respondents.
The abovementioned subject expert respondents will include selected representatives of NEPZA
and other supplementary Government Agencies, Zone Managers and Operators, Investors,
Service Providers with cogent dealing in Nigerian Zones, Local and International Legal
Practitioners with requisite Free Zone knowledge and expertise and other targeted contributors.
Additionally, in order to ensure accuracy of collected data, several rounds of interactions via
email and telephone with many survey respondents will be conducted so as to verify the
received data and explore the reasons for inconsistent responses where applicable. This
verification exercise will involve the use of various Data Analysis methods alongside repeated
authentication exercises until the conflicting responses are totally reconciled.
Page 30 of 33
Fig 7: illustrates a detailed Data Collection, Verification and Analysis Process47
1.11 EXPECTED RESEARCH OUTPUT
The projected research output will be a PhD thesis containing numerous chapters in which
written articles, journals and/or presentations made at local seminars and international
conferences will be submitted for relevant assessment. Please see Fig 7: (above) for projected
yearly outputs.
47 Miles M.B., Huberman A.M. (1984) Qualitative Data Analysis: A Sourcebook of New Methods. Newbury Park, CA: Sage
Page 31 of 33
BIBLIOGRAPHY
Aggarwal, Aradhna. [2010]. Economic impacts of SEZs: Theoretical approaches and analysis of
newly notified SEZs in India. Munich Personal RePEc Archive Paper No. 20902, posted 26.
February 2010 / 17:43
Akinci, G. and J. Crittle. [2008]. Special Economic Zones: Performance, Lessons Learned, and
Implications for Zone Development, FIAS, WorldBank Group, Washington.
Bearing Point. [2007]. International Labor Organization database; World Export Processing Zones
Association: FIAS Research
Bredo, William. [I960]. Industrial Estates, Tool for Industrialization. Glencoe (Ill). Chicago: Free Press
Currie, Jean. [1979]. Investment: The Growing Role of Export Processing Zones, The Economic
Intelligence Unit, London
Enrique Blanco De Armas, Mustapha Sadni-Jallab. [2002]. A Review of the Role and Impact of
Export Processing Zones in World Trade: the Case of Mexico. W.P. 02-07. Groupe d’Analyse et de
Théorie Économique UMR 5824 du CNRS
Hafeez, Seema. [2003]. The Efficacy of Regulation in Developing Countries; United Nations -
Department of Economic and Social Affairs, 31 - http://tinyurl.com/32wmlww - Accessed on
26/04/2012
Howard, Stein. [2008]. Africa, Industrial Policy and Export Processing Zones: Lessons from Asia.
Paper Prepared for Africa Task Force Meeting, Addis Ababa, Ethiopia 10-11 July, 2008
Ibrahim F.I. Shihata. [1996]. The Role of Law in Business Development. Fordham International Law
Journal. Volume 20, Issue 5, Article 6
Iliya Saidu Kure. [1998] The South Korea’s Masan Free Export Zone Experience: Lessons for
Nigeria’s Export Promotion Drive. Department of Economics, University of Jos. Volume 1; No. 1
Inye Nathan, Briggs. [2007]. Nigeria: Mainstreaming Trade Policy into National Development
Strategies. Economic Commission for Africa: African Trade Policy Centre. United Nations
Development Programme (UNDP).
Jayawardena. [1983]. Free Trade Zones, 17 J. World Trade L. 427
José, Cerón. [2004]. Assessment of Mongolia’s Free Trade Zone Program and Site Evaluation:
Mongolia Economic Policy Reform and Competitiveness Project (EPRC)
Madani, Dorsati. [1999]. A Review of the Role and Impact of Export Processing Zones,
(Washington, D.C: World Bank)
Meng, Guangwen. [2005]. Evolutionary Model of Free Economic Zones - Different Generation
and Structural Features. Science Press Beijing China. Chinese Geographical Science Volume 15,
Number 2, pp. 103-112.
Page 32 of 33
Meng Guangwen. [2003]. The Theory and Practice of Free Economic Zones: A Case Study of
Tianjin, People’s Republic of China. Submitted to the Combined Faculties for the Natural
Sciences and for Mathematics of Ruprecht-Karls University of Heidelberg, Germany for the
Degree of Doctor of Natural Sciences.
Miles, M.B. Huberman, A.M. [1984]. Qualitative Data Analysis: A Sourcebook of New Methods.
Newbury Park, CA: Sage.
Obi, Iwuagwu. [2011]. The Cluster Concept: Will Nigeria’s New Industrial Development Strategy
Jumpstart the Country’s Industrial Takeoff? Afro Asian Journal of Social Sciences Volume 2, No.
2.4 Quarter IV
Thoman, R. [1956]. Free Ports and Foreign Trade Zones 140, cited in Note, Foreign Trade Zones,
supra note 14, @ 732 n. 55.
Watson, Peter. [2001]. Export Processing Zones: Has Africa Missed the Boat? Not Yet. Africa
Regional Working Paper Series, No. 17, World Bank
Xiangming Chen. [1995]. The Evolution of Free Economic Zones and the Recent Development of
Cross-National Growth Zones. International Journal of Urban and Regional Research 19(4): 593-
621.
Page 33 of 33