OGFZA collaborates with NFIU to attract investment, enhance global investor confidence

Oil and Gas Free Zones Authority (OGFZA) to Collaborate with the Nigerian Financial Intelligence Unit (NFIU) to Enhance Nigeria’s Investment Attractiveness and Global Investor Confidence.

In line with the Oil and Gas Free Zones Authority’s (OGFZA) commitment to strengthening transparency, fostering investor confidence, and bolstering Nigeria’s global reputation as a premier investment destination, the Managing Director/CEO of OGFZA, Bamanga Usman Jada, and key members of his management team visited the Director/CEO of the Nigerian Financial Intelligence Unit (NFIU), Hajiya Hafsat Abubakar Bakari, on August 13, 2024, at her office in Abuja.

The purpose of the visit was to explore avenues of collaboration between both agencies, particularly in improving the transparency and compliance levels within Nigeria’s Oil and Gas Free Zones. This strategic partnership is expected to further attract high-value investments into the country and contribute significantly to Nigeria’s overall economic growth.

The NFIU serves as Nigeria’s central coordinating body for the receipt, analysis, and dissemination of financial intelligence reports relating to money laundering, terrorism financing, and other relevant financial crimes. As a key player in the fight against financial crimes, the NFIU works closely with law enforcement, security, and intelligence agencies to ensure that Nigeria remains unattractive to global money laundering and terrorism financing networks.

Under the leadership of Hajiya Hafsat Abubakar Bakari, the NFIU has made significant strides in blocking revenue leakages, which have led to increased government revenues, an improved international image for Nigeria, and renewed global investor confidence in the country’s economic reforms. These accomplishments align with the Renewed Hope Agenda of President Bola Ahmed Tinubu’s administration, which emphasizes transparency, accountability, and sustainable economic growth.

During the meeting, OGFZA’s Managing Director, Bamanga Usman Jada, commended Hajiya Bakari for her well-deserved appointment and expressed confidence in her ability to elevate the NFIU’s status within the global financial intelligence community. Jada emphasized OGFZA’s readiness to work closely with the NFIU to achieve shared objectives, particularly in the areas of anti-money laundering (AML) and counter-terrorism financing (CFT) within the Oil and Gas Free Zones.

He highlighted that OGFZA, as a regulatory agency responsible for overseeing the activities within Nigeria’s oil and gas free zones, is fully committed to ensuring that these zones operate with the highest level of transparency and integrity. The collaboration with NFIU is expected to strengthen regulatory oversight and prevent the exploitation of these zones for illicit financial activities.

The NFIU Director/CEO, Hajiya Bakari, assured her commitment to a robust partnership with OGFZA, noting that such collaborations are essential for the effective implementation and monitoring of critical regulations. She outlined plans for joint sensitization and training exercises by both agencies, aimed at enhancing compliance with AML and CFT regulations within the Oil and Gas Free Zones. These initiatives will include workshops, seminars, and capacity-building programs designed to educate stakeholders on the importance of adhering to global best practices in financial transparency and accountability.

The strategic collaboration between OGFZA and NFIU is also expected to lead to the development of new regulatory guidelines that will further safeguard the integrity of financial transactions within Nigeria’s Oil and Gas Free Zones. By closing loopholes and enhancing due diligence measures, both agencies aim to create a more secure and investor-friendly environment that will attract more credible investors into the sector.

The partnership between OGFZA and NFIU is anticipated to yield several positive outcomes. First, it will contribute to improving Nigeria’s Investor Attractiveness Ranking, which has been on an upward trajectory due to ongoing reforms. The enhanced regulatory environment will also increase the Investment Rating of Nigeria, positioning the country as a top destination for international investors seeking opportunities in the oil and gas sector.

Furthermore, the collaboration will foster greater inter-agency cooperation, leading to more efficient resource utilization, quicker response times in addressing financial crimes, and a more coordinated approach to economic development. By leveraging the expertise and resources of both OGFZA and NFIU, Nigeria stands to benefit from a more transparent, secure, and resilient investment landscape.

One of the key successes of the NFIU has been its ability to minimize money laundering activities through the effective use of its Crime Record Information System (CRIMS). This system has played a crucial role in boosting government revenue at both the federal level and across 18 states of the federation. The reduction in illicit financial activities has not only strengthened Nigeria’s fiscal position but also improved the country’s standing in the international community as a responsible and transparent nation.

Hajiya Bakari noted that the NFIU’s achievements in combating financial crimes have had a ripple effect across multiple sectors of the economy, including oil and gas, manufacturing, and financial services. By ensuring that free zones are not exploited for illegal activities, the NFIU has contributed to creating a safer and more attractive business environment for both local and foreign investors.

As the primary regulatory body overseeing the operations within Nigeria’s Oil and Gas Free Zones, OGFZA plays a critical role in national economic growth. The Authority’s mandate includes administering, regulating, and managing activities within these zones, ensuring that businesses operate in compliance with national laws and international standards. OGFZA’s focus on attracting high-quality investments into the free zones aligns with the government’s broader goal of diversifying the economy and reducing dependency on oil revenues.

Through strategic partnerships, such as the one with NFIU, OGFZA is poised to enhance its regulatory effectiveness and contribute more significantly to Nigeria’s economic transformation. The Authority’s proactive approach to engaging with sister government agencies, private sector stakeholders, and international partners underscores its commitment to creating a world-class investment climate within Nigeria’s Oil and Gas Free Zones.

In conclusion, the collaboration between OGFZA and NFIU represents a major step forward in safeguarding the integrity of Nigeria’s financial and investment environment. By working together to enhance transparency, strengthen regulatory frameworks, and promote compliance with global best practices, both agencies are well-positioned to drive sustainable economic growth and attract more value-driven investments into the country.

The visit marked the beginning of what promises to be a fruitful and long-term partnership between OGFZA and NFIU. With the combined efforts of both agencies, Nigeria’s Oil and Gas Free Zones will continue to thrive as hubs of excellence, innovation, and growth, contributing to the nation’s overall prosperity.