Table of Contents
ABSTRACT.. 2
CHAPTER ONE.. 5
INTRODUCTION.. 5
1.1 Background to the Study. 5
1.2 Statement of the Problem... 6
1.3 Objectives of the Study. 7
1.4 Research Questions. 7
1.5 Research Hypothesis. 7
1.6 Significance of the Study. 8
1.7 Scope of the Study. 8
1.8 Limitations of the Study. 9
1.9 Organization of the Study. 9
CHAPTER TWO.. 12
REVIEW OF RELATED LITERATURE.. 12
2.1 Introduction.. 12
2.2 Theoretical Review.. 12
2.4 Empirical Review.. 15
2.5 Summary of Literature Review.. 17
CHAPTER THREE.. 19
RESEARCH METHODOLOGY.. 19
INTRODUCTION.. 19
RESEARCH DESIGN.. 19
DATA COLLECTION.. 19
DATA ANALYSIS.. 20
ETHICAL CONSIDERATIONS.. 21
LIMITATIONS.. 21
CONCLUSION.. 21
CHAPTER FOUR.. 22
DATA ANALYSIS AND INTERPRETATION.. 23
4.1 Preamble. 23
4.2 Socio-Demographic Characteristics of Respondents. 23
TABLES BASED ON RESEARCH QUESTIONS.. 26
4.3 Analysis of the Respondents’ Views on Research Question one:. 26
4.4 Testing Hypothesis. 36
4.5 Discussion of Findings. 37
CHAPTER FIVE.. 40
SUMMARY CONCLUSION AND RECOMMENDATIONS.. 40
5.1 Summary of Findings. 40
5.2 CONCLUSION.. 40
5.3 RECOMMENDATION.. 41
REFERENCES.. 42
APPENDIX.. 45
Research Questionnaire: Influence of Free Trade Zones on the Economy of Nigeria with a case study focus on the Lekki Free Trade Zone.. 45
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Free Trade Zones (FTZs) have emerged as significant instruments in fostering economic development and international trade across the globe. In the context of Nigeria, these zones have played a pivotal role in shaping the nation's economic landscape. The influence of Free Trade Zones on the Nigerian economy is multifaceted, encompassing various sectors such as manufacturing, logistics, and foreign direct investment. Understanding the dynamics and implications of these zones is crucial for comprehending Nigeria's economic trajectory and its integration into the global market. Ogbuabor, J.E. (2019).
FTZs in Nigeria have been established with the aim of attracting foreign investment, promoting export-oriented industries, and fostering technology transfer. These zones offer incentives such as tax breaks, duty exemptions, and streamlined regulatory procedures to encourage businesses to set up operations within their boundaries. As a result, they serve as hubs for industrialization, job creation, and economic diversification, contributing significantly to Nigeria's Gross Domestic Product (GDP) and trade balance. Adegbite, E.A. (2020).
Furthermore, the impact of Free Trade Zones on Nigeria's economy extends beyond the realms of trade and investment. These zones serve as catalysts for infrastructural development, stimulating investments in transportation, energy, and telecommunications. Additionally, they facilitate knowledge transfer and skill development through collaborations between domestic and foreign firms, thus enhancing Nigeria's human capital and technological capabilities. The synergistic effects of these developments have profound implications for the country's competitiveness and economic resilience in the global arena Olaniyan, S. (2018).
1.2 Statement of the Problem
Despite the potential benefits they offer, Free Trade Zones (FTZs) in Nigeria face a myriad of challenges that hinder their optimal contribution to the economy. One significant issue pertains to the limited integration of FTZs into the broader Nigerian economy, leading to questions about their effectiveness in promoting sustainable economic growth and development. Furthermore, concerns persist regarding the extent to which FTZs attract foreign direct investment (FDI), promote local industrialization, and facilitate technology transfer, all of which are crucial factors for enhancing Nigeria's economic competitiveness and resilience in the global market. Ademola, A.A. (2021).
Moreover, there is a lack of comprehensive studies that delve into the nuanced dynamics and complexities surrounding the influence of FTZs on the Nigerian economy. Existing research often focuses on general trends and broad assessments, overlooking specific challenges and opportunities that are unique to Nigeria's context. Addressing these gaps in the literature is essential for policymakers and stakeholders to formulate evidence-based strategies aimed at maximizing the potential of FTZs to drive economic development in Nigeria. Ibrahim, S. (2022).
1.3 Objectives of the Study
The main objective of the study is to examine Influence of Free Trade Zones on the Economy of Nigeria. Specific objectives of the study are:
- 1. To assess the impact of FTZs on job creation in Nigeria.
- 2. To evaluate the contribution of FTZs to foreign direct investment (FDI) in Nigeria.
- To analyze the effects of FTZs on government revenue and economic diversification in Nigeria.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- How has the establishment of FTZs affected the overall employment rate in Nigeria?
- To what extent have FTZs attracted FDI into Nigeria, and in which sectors is this investment concentrated?
- How do tax breaks and other benefits offered within FTZs impact government revenue collection in Nigeria?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no statistical significant relationship between Free Trade Zones and Economy of Nigeria.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the Economics sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to Lekki Free Trade Zone. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.