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Bullion

Keywords

International Finance, Export Processing Zones, Trade, Exports, Nigeria

Abstract

Since the inception of SAP, the Federal Government has introduced many far reaching economic and financial measures aimed at promoting non-oil exports. Such measures include the promulgation of the incentives and Miscellaneous Provisions Decree, No. 18 of 11th July, 1986, the establishment of the Nigerian Export Import Bank (NEXIM) to provide different funds and financial assistance to exporters, the introduction of the Nigeria Economic Reconstruction Fund (NERFUND), the setting up of Small and Medium Scale Enterprises Fund (SMEs Fund) and the deregulation of the Foreign Exchange Market (FEM) which has resulted in significant depreciation of the naira exchange rate. The objective of this paper is to highlight the likely financial operations in Nigeria's EPZs with a view to acquainting the potential investors with the types of business transactions and modes of payment they are likely to encounter. The remaining part of the paper is divided into three sections. The characteristics of Export Processing Zones are presented in Section I. Section II contains some of the main provisions of the decree that established EPZs in Nigeria. The policy issues at stake in foreign financial operations in the zones are treated in Section III.

Author Bio

The author is staff of Central Bank of Nigeria.

Publication Title

CBN Bullion

Issue

4

Volume

16

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