Key highlights
- The zone has the potential to unlock $443 million for Ekiti State.
- China and the African Development Bank have agreed to collaborate with Ekiti state to develop the park.
- Ekiti state said it lobbied for the park under the mantra of sheer prosperity so that the state will be less dependent on sharing from the monthly federation account.
This month, President Muhammadu Buhari approved the Ekiti Knowledge Zone as a Free Trade Zone, which is also one of the first service-knowledge business parks approved in Ekiti.
The Ekiti Knowledge Zone (EKZ) is situated on 208.949 Hectares of Land Located Ado-Ijan Road, Ado Ekiti, Ekiti State.
The Buhari administration in its later years has signaled Free Trade Zones as a model for economic development in Nigeria as The Nigeria Export Processing Zones Authority (NEPZA), revealed that free trade zone schemes in Nigeria have attracted cumulative investment of N14.1 trillion.
The Ekiti state Government since the administration of ex-Governor Kayode Fayemi has lobbied for the knowledge city, which would be modeled after India’s Special Economic Zones for technology and biotech, here are some facts about the business park:
4-year plan
In 2019, Nairametrics reported that African Development Bank(AfDB) said it will be financing road projects and the upgrade of airports in Ekiti State and also provide technical support for the development of a ‘smart city, a government project within the State.
The smart city, which is known as the Ekiti Knowledge Zone was also among the projects that compelled AfDB to express its readiness for technical and financial support, as the smart city was initiated to promote a knowledge economy within the State.
Destination of Choice
Governor Fayemi also revealed in 2019 that infrastructure and industrial development are crucial to the growth of Ekiti State’s economy and these projects are in alignment with Af DB’s priorities, he added:
“We have aligned our priorities to the AfDB’s priorities which apply to us, such as lighting up Africa; Feeding Africa; Industrialise Africa, etc. All these apply to us as our plan is to make Ekiti a destination of choice for her citizens and all those who will like to live, work and invest in the state.
$433 million potential
The zone has the potential to unlock $443 million for Ekiti State, according to Olusiji Aina, an Economic Advisor and Advisory Board Member of the US-Africa Trade Council, reported by Narametrics.
He said, Ekiti state has a thriving young and innovative population that has the potential to unlock $443 million of internally generated revenue (IGR) for the region’s economy.
Tremendous benefit
Aina also stated that the Zone would place skilled workers in the state in an advantageous position as they stand to gain tremendously, he added:
- “The young people of Ekiti are in a very advantageous position. On one hand, they have been blessed with an abundance of natural resources while on the other, they have direct access to Nigeria’s large consumer demand. This means that there are ample resources available for them to develop new and exciting products, which can be sold to a market where there is a lot of potential revenue to be generated. If we can help young people to build and scale new businesses, the region stands to benefit tremendously.”
Chinese Partnership
In 2022, the Chinese Ambassador to Nigeria, Mr. Cui Jianchun, said the Chinese Government plans to partner with Ekiti State in the development of the Ekiti Knowledge Zone project through collaboration with the China National Nuclear Corporation (CNNC).
He explained that technological collaboration that would promote the application of nuclear energy to serve the people of the state, adding that the partnership between the state and China in the development of the Ekiti Knowledge Zone project would attract more support from the Chinese community in Nigeria and other places.
Technical Study
Earlier this year, the Federal Government through the Nigeria Export Processing Zones Authority (NEPZA) announced that the Ekiti State Government submitted a technical report on the proposed “Knowledge and Technology Free Trade Zone.”
- “The parties agreed on the Feb. 7, 2023, deadline for submission of the report after the Managing Director/CEO of NEPZA, Prof. Adesoji Adesugba, inspected the site and other associated infrastructure on Thursday in Ado Ekiti.”
Academic leverage
Governor Abiodun Oyebanji after the inspection, said the zone would be used to revolutionize Ekiti State, adding that NEPZA and Ekiti had the required background to venture into the specialized ecosystem.
NEPZA noted that the state appeared decisive to harness its people with a high academic and technological endowment for profitability, they added:
- “NEPZA is now very dynamic and innovative in the way and manner it encourages the establishment of free zones in the country.
- “The Governor and I have, therefore, agreed to give a two-week deadline for the submission of the Technical Report after a more detailed inspection is carried out by NEPZA officials in collaboration with other technical partners.
Sheer Prosperity
Ekiti State Governor, Oyebanji said that negotiations with the NEPZA Managing Director of the Authority were used by Ekiti to seek support and guidance in setting up the Knowledge and Technology Free Zone, as the state wants to be less dependent on the federation account for its prosperity, he said:
- “We have campaigned on a mantra of sheer prosperity so that we will be less dependent on sharing from the monthly federation account.
- “It is our goal to drive development in the state either with or without the federation allocation account.
- “My exposure to the Lekki Free Trade Zone corridor is an eye opener and we shall fulfill all the technical requirements to ensure we scale through the various stages of approvals.’’
Indian Model
In the early 2000s, India set up its Special Economic Zones (SEZs) Policy as a successor to its successful Export Processing Zone (EPZ) model which was set up earlier in the 1960s.
India’s SEZs include free-trade zones (FTZ), export processing zones (EPZ), free zones (FZ), industrial estates (IE), free ports, urban enterprise zones, and others, to boost structure foreign direct investment and also offer highly skilled jobs to Indians.
Some examples of technology parks in India include the International Tech Park, ITPL, or ITPB in, Bangalore, 18 km from the city center. ITPL is one of the first technology parks in India and houses many multinational companies from technology to financial services. Other major technology parks in India are the Electronic City, Bangalore, and InfoPark, Kochi.
India is expected to have software and technology exports of $245 billion in 2023.
