Benue State University, Makurdi

Domesticating the Chinese Development Model of Free Trade Zones in Nigeria: A Critical Analysis

Sidi Istifanus, Abimiku & Uchenna Umearokwu

Abstract

As exemplified by China, Free Trade Zones in East Asia were largely successful and were undertaken majorly to attract FDI, generate employment opportunities and transfer technology. This has attracted the global attention with many developing countries, Nigeria inclusive, desiring to replicate the copycat of the Asian model. It is generally presumed that the provision of tax incentive will motivate MNCs into the country, and that will invariably transform the economy towards attracting FDI, generating employment and as well transfer technology. In agreement with this assumption in Nigeria, the quest for domesticating the Chinese model of FTZs becomes imminent. Unfortunately, while Free Trade Zones in China were largely successful; the attempt to replicate it in Nigeria over the years seems to be generating more problems than solutions. It is in view of this that the researcher utilized secondary source of information and content analysis, with theoretical framework anchored on statist theory, to examine the issues in discourse. Findings revealed that, due to various issues of bad governance, characterized by corruption, infrastructural deficit, poor management system and weak institutions, the Chinese constructed and operated FTZs of Lekki and Ogun-Guangdong has not substantially led to job opportunities, FDI, transfer of technology and Foreign Exchange Earnings as envisaged. Findings further revealed that the successful implementation of Free Trade Zones in China does not take place haphazardly, but was carefully implemented through the adoption of various measures such as policy experimentation, monitoring and evaluation and good location. The study recommends amongst other things that, Nigerian Leaders should learn from the leaders of China who were selfless, nationalistic and competent, without which the operation of Free Trade Zones cannot be successful.

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