In a bid to encourage investors to repatriate their returns from their businesses the Central Bank of Nigeria, CBN is partnering with the Free Trade Zone Authority, FTZA, to set up off-shore banking in Nigeria.
The Managing Director of the Nigeria Export Processing Zone Authority, Prof Adesoji Adesugba, explained that having off-shore banking operations in the FTZs is a factor that would boost investors’ confidence in the nation’s FTZs operations.
Adesugba made this known at the three days Conference marking the 30th anniversary of the FTZ in Nigeria, he described off-shore banking in FTZs as international best practice that Nigeria must adopt to enhance investors’ operations in the FTZs.
The FTZ boss said “The CBN is in charge of processing off-shore banking in the FTZs and the FTZA and the CBN have met over the issue for almost two years and we are still meeting. The document to establish the off-shore banking operations is ready. We are just awaiting the approval of the CBN to commence operations in the Free Zones because Free Zones enterprises are not allowed to enjoy the facilities of the banking system in the Nigerian territory.
“So we need an off-shore banking system. There is no way you can do business without having a bank, so that is what we are asking for. It’s high time we start that.
“Every other Free Trade Zone outside Nigeria has that kind of system. It’s not new, but in Nigeria, we still don’t have it. It is an incentive for investors because that is the first thing they ask for when they come to the Free Trade Zones.
“The absence of an off-shore banking count against us, so we are asking the Central Bank to please fast-track that for us to have it.