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China is to help Nigeria to set up an export processing zone (EPZ) in Nigeria's southern state of Imo, the official News Agency of Nigeria reported on Thursday.

Neul Chukwukadibia, head of the Imo State Housing, Works and Transport Commission, was quoted as saying that a Chinese firm had signed a Memorandum of Understanding (MOU) with the Imo state government on the establishment of the export processing zone in Ngor-Okpala Local Government Area.

Chukwukadibia said the MOU was signed when Imo State Governor Achike Udenwa paid a visit to China recently.

According to the commissioner, the EPZ, when completed and put into operation, will help boost economic activities in the state through processing local raw materials into manufactured goods, especially those that have to be imported now in the country.

(Xinhua News Agency October 27, 2006)