The Export Processing Zone Strategy and SocioEconomic Development in Nigeria

Harry, Deinibiteim Monimah
  • School of Graduate Studies University of Port Harcourt Nigeria
  • Keywords:
  • Free Trade Zones, Industrial Development Zones, Socio-economic
  • Abstract:
  • This study examined the contribution of Export Processing Zones to the socio-economic development of Nigeria. The country adopted the EPZ strategy in 1992 with the establishment of Calabar Free Trade Zone to diversify the economy, accelerate industrialization, acquire modern technologies, create jobs, and attract FDIs. Since then 25 zones have been registered out of which 11 are operational, 9 under construction and 5 merely declared. In this study, the endogenous growth theory was adopted as the theoretical framework of analysis. It focuses on the institution of a knowledge-based human capital accumulation system and structures through learning by doing externalities, investment in research and development (R and D) activities that will generate new ideas enhance technological progress and improve quality of products via the zones. Four zones, (Calabar, Oil and Gas, Snake Island and ALSCON) were randomly selected. Two hundred and ninety (290) copies of questionnaires were administered on 290 respondents selected from 54 FZEs and 4 Zonal Management Boards. Out of this number 242 properly completed questionnaires served as the sample size for the data analysis. Primary and secondary data were used in the study. Data collected were analyzed using descriptive statistics such as frequency and percentage distribution. Views on the research assumptions were presented and discussed exhaustively. The study revealed that EPZs have not substantially contributed to Nigeria’s socio-economic development. This is because the zones have not significantly enhanced the industrialization process, economic diversification, technology transfer, employment generation, etc. It concluded that for the EPZs to contribute meaningfully to Nigeria’s socio-economic development they must accelerate the industrialization and diversification, increase export of manufactured goods, and create jobs. Some of the recommendations are that value addition should be made compulsory in the production processes; R and D must be made central to EPZ’s operations and that deliberate efforts must be made to increase the exports of manufactured goods and government should endeavour to stabilize the power situation at the zones.
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The Export Processing Zone Strategy and SocioEconomic Development in Nigeria
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