By Adedapo Adesanya
The Nigerian government, through the Nigeria Export Processing Zones Authority (NEPZA), has announced plans to establish virtual free trade zones with a top cryptocurrency exchange, Binance.
The partnership aims to build a digital hub “similar to the Dubai virtual free zone,” according to a statement by the authority seen by Business Post.
Virtual free trade zones use cutting-edge technology like artificial intelligence, data integration, and automated processes to support local businesses and cut red tape on import and export procedures.
This is as Nigeria is targeting digital technology as a means to help diversify the economy away from crude oil, taking advantage of an increasingly connected and youthful population.
Mr Adesoji Adesugba, in a statement signed by Mr Martins Odey, Head, Corporate Communications, NEPZA noted that the partnership was necessary after holding meetings with officials of the two firms on Friday in Dubai, United Arab Emirates.
The Chief Executive Officer of the authority explained that the partnership when agreed would be similar to the Dubai Virtual Free Zone.
The NEPZA boss presented the vision of his management which centres on expanding the frontiers of innovations in the operations and management of free zones in Nigeria and Africa as a whole.
“We seek to break new grounds to widen economic opportunities for our citizens in line with the mandate of the Authority, the directive of the Honourable Minister, and the economic development agenda of President Muhammadu Buhari. Our goal is to engender flourishing virtual free zones to take advantage of a near trillion dollar virtual economy in blockchains and digital economy,” Mr Adesugba said.
Binance was represented at the parley by Mr Nadeem Ladki, its Executive Director, Regional Strategic Partnerships and Sameera Kimatrai, Binance Senior Legal Counsel.
Also in attendance were Mr Luqman Edu, Chief Executive of Talent City and Mr Sikiru Lawal, NEPZA’s Director of Projects & Procurement.
The government this year enacted regulations for trade in digital assets after Nigerians saw cryptocurrencies as a safe haven from worsening foreign exchange crisis and low investment yield environment.
