The evolution of free zone scheme in Nigeria was influenced by a number of factors such as the overdependence of the Nigeria Economy on Petroleum, the need to diversify the revenue base of the economy, employment generation and the encouragement of export through local production.
Free Zones are special geographical areas or locations within a country which are administratively deemed to be outside the customs borders, within which regulations relating to foreign trade and other financial and economic activities are inapplicable or party applicable. The State Government in order to take advantage of the potentials of a Free Trade Zone and change the industrial landscape of the State accepted to develop one in the State.
Investors are invited to enter into Contract with the Imo State Government to establish the Free Trade Zone in Ngor Okpala Local Government Area of Imo State to be known as Imo investor name Free Trade Zone. Under the terms of the Agreement, Imo State Government will provide the following:
i. Vast area of land to the Company free from all encumbrances
ii. Pay all compensation fees or other damages or cost to the affected landowners.
iii. Survey the project site
iv. Pay the development levy and ground rent of the project
v. Provide infrastructure facilities outside, and up to the boundary to the zone as maybe required by the project, such as electricity, water, gas, access roads in conjunction with the Federal Government, etc.
International Investors on other hand was to:-
i. Provide funds for the construction of the infrastructure of the Zone
ii. Provide manufacturing enterprises from their country or elsewhere to invest in the Zone including manufacturers from industries such as furniture metal products, building materials, ceramics and wood processing products.
iii. Provide infrastructural development within the project site, which includes sinking of boreholes, construction of mini hydro projects, stepping down the electricity power supply and putting up the telecommunications systems, internal access roads ect.
iv. Procure ship and clear all the equipment and materials needed for the construction and production in the zone on cost insurance and freight basis etc.
The Shear ratio of Imo Investor Name Free Trade Zone when incorporated was to be:-
Imo State Government 20%
International Investors 70%
Private Sector 10%
The State Government acquired and surveyed 2000 hectare piece of land at Ezeama/Amala/Ntu/Ikem in Ngor Okpala Local Government Area of Imo State for the establishment a Free Trade Zone.
The Certificate of Occupancy for the land will be issued to Imo Investor-name Free Trade Zone by Ministry of Land. Compensation for the land acquired is yet to be paid. There is no physical development at the site.
The State will secure a license to operate a Free Trade Zone under the name Imo Investor-name Free Trade Zone, from Nigeria Export Processing Zones Authority (NEPZA), draft Memorandum and Articles of Association is prepared. The incorporation will be jointly executed by IMSG and Intenational Investor as soon as a qualified investor declares interest.