Senate moves to create financial free zone

The Senate yesterday took steps to create a financial free zone for the country.

This followed the second reading of a bill entitled, “A bill for an Act to establish the Nigerian International Financial Centre to provide for a Financial Free Zone to offer a full range of Financial and Allied Services.”

Most senators supported the bill but Senate Olusola Adeyeye (Osun Central) made spirited effort to point out some flaws in the bill.

Adeyeye drew parallel with the establishment of the export processing free zone and the proposed financial free zone, wondering why Nigerians have not bothered to find out why the export free zone failed.

He said Nigeria will “work not because we established one more centre, but Nigeria will work when we are honest enough to ask why one agency failed.”

Deputy Senate President, Ike Ekweremadu, in his contribution noted that though he has no problem with the idea of creating a financial free zone, the Senate should find out if such a centre required the passage of a bill to come into existence.

He recalled that when the National Assembly attempted to create the Industrial Court, it was cut short by the Supreme Court.

He said that the Constitution had to be amended before the court was created.

He said that it should be considered whether a financial free zone should crop up on its own without necessarily coming through a bill.

Senate Leader, Senator Victor Ndoma-Egba, in his lead debate noted that the bill is proposed to give legislative backing for the establishment of an international financial centre that would act as a catalyst for economic growth in the country in particular, and sub-Saharan Africa in general.

He said if established, the centre will focuse on a broad range of financial and ancillary services driven by a unique and separate regulatory, administrative and judicial framework in line with global standard.

Ndoma-Egba said that the bill seeks to accomplish the following broad objectives plugging West Africa especially Nigeria into the global financial system in furtherance of the region’s economic growth and development.

Ndoma-Egba said the centre would also exploit the gains of an international financial centre in raising the GDP per capita income and general standard of living as in United Arab Emirate, Malaysia, Hong Kong, China, United Kingdom, the Netherlands, United States and South Africa.

The centre, he added, would facilitate the diversification of the region’s economy via increased contribution to the financial sector, drive the entrenchment of a global best practice in the country’s financial markets, contribute to the development of human capital through association, knowledge and skill transfers.

The Senate leader said that in the contemporary times, only three Nigerian banks are rated among the world’s 500 banks, the highest ranked, being 317th.

He said that the size of the country’s Stock Exchange is also small compared to the world’s leading exchanges.

He said, “Our country is positioned as the heart of Africa, very easy to access and linked to the rest of Africa. Nigeria is a coastal nation accounting for more than 60 per cent of the total seaborne traffic in volume and value for the entire sub-Saharan Africa.

“Our dear country is also the hub for leading global airlines in West Africa. There is no gainsaying that trade and commerce is the lifeblood of our nation with over 60 million micro enterprises in existence.

“There will be no major language barrier because Nigeria is an English speaking country and English is the primary language of business globally.”