CBN to set up offshore banking in free trade zones to boost investments

By Rosemary Iwuala

The Central Bank of Nigeria (CBN), in collaboration with the Free Trade Zone Authority (FTZA), has commenced moves to establish offshore banking in the zones in Nigeria so as to encourage investors to repatriate their returns from their businesses.

Confirming the report on the sideline of a three-day conference to mark the 30th anniversary of the Free Trade Zones in Nigeria,  Adesoji Adesugba, the managing director of the Nigeria Export Processing Zone Authority (NEPZA), disclosed that having offshore banking operations in the FTZs is a factor that would further boost investors’ confidence in the nation’s FTZs operations.

According to Adesugba ,offshore banking in FTZs is an international best practice that Nigeria must adopt to enhance investors’ operations in the FTZs.

He noted that the CBN is in charge of processing offshore banking in the free trade zones, adding that the FTZA and the CBN have met over the issue for almost two years, while the document to establish the offshore banking operations is ready.

The NEPZA MD also stated that the organisation is  awaiting the approval of the CBN to commence operations in the free zones because free zones enterprises are not allowed to enjoy the facilities of the banking system in the Nigerian territory.

“So, we need an offshore banking system. There is no way you can do business without having a bank, so that is what we are asking for. It is high time we start that. Every other Free Zone outside Nigeria has that kind of system. It’s not new, but in Nigeria, we still don’t have it. It is an incentive for investors because that is the first thing they ask for when they come to the free trade zones,” he added.