In fulfillment of his promise to invest in infrastructural development in the South East, President Muhammadu Buhari, Tuesday revealed that federal government has made a budgetary provision of N10 billion for the Enyimba Industrial park and the Nnewi Auto Park.
One of the most identifiable risk in project developments in most developing economies is undue interference of government establishments. It was therefore, such a relief for the developers of Enyimba Economic City when on July 04, 2017, Abia State Government signed the Economic Zones Operations Law.
As part of the benefits of the law signed by Governor Okezie Ikpeazu to promotors of Special Economic Zones in the Abia State, any territory recognized as a Special Economic Zone in the State shall be exempted from all revenue drivers by State Ministries, Departments, Agencies and or Local Government or Agents.
The law also limits the number of approvals to a maximum of 1 in each senatorial zone within the state in the first 15 years of commencement of the law.
Furthermore, the law prevents the State from Intervening in management of Special Economic Zones, obstructing it or acting in any manner detrimental to the development and or operation of a recognized Special Economic Zone.
The law also precludes the State from confiscating, canceling a certificate of Occupancy or expropriating any property or any part of real or movable property or anything of economic value belonging to a recognized Special Economic Zone without paying back its full investment costs in addition to reasonable returns on investment up until the date of cancellation, confiscation and or expropriation of the assets or any part thereof.
This law practically eliminates the risk of undue government interference on development projects which is very common in Africa.
It is worthy of note that Enyimba Economic City is the first beneficiary of this law in Nigeria.
The management of Enyimba Economic City have signed an Agreement with CGCOC as EPC Contractors for the development of the Enyimba Economic City.
In addition to the role of CGCOC as EPC contractors, they have also indicated their willingness to promote the Industrial City to Chinese investors who are interested in Industrial Transfer to Africa.