Introduction: Nigeria's free zones are licensed, regulated, and managed by the Nigeria Export Zones Authority. NEPZA is the Agency of the Federal Government, established in 1992 in accordance with the Nigeria Export Zones Processing Zones Act 63 of 1992. The agency is responsible for facilitating and facilitating local and international investment in free zones in Nigeria. This scheme was created by the government to ensure the improvement of the investment climate in the country, especially by stimulating export-type business through friendly economic policies.
NEPZA manages various incentives, ranging from export processing zones, free trade zones, borderless zones, export farms, science and technology parks, tourist and resort centers.
Any business located in any of these projects in Nigeria automatically provides owners with certain incentives that have been developed by the federal government of Nigeria so that investors can be competitive and achievable in the short term.
Incentives for operators:
The legal provisions concerning taxes, fees, charges and foreign currency do not apply.
Duty-free importation of capital goods, machinery, spare parts, raw materials and consumables in the zone.
- 100% foreign ownership of investment.
- 100% repatriation of capital, profits and dividends.
- Waiver of all import and export licenses.
- Waiver of all expatriate quotas.
- Rent of free land during the first 6 months of construction
- Up to 100% of products can be sold in the customs territory against valid rights and upon payment of the corresponding duties.
The amount of import duty on goods processed or collected and exported to the customs territory of Nigeria is the rate of duty applicable to raw materials (in the state in which they were originally introduced).
Companies can use banking services in the Nigerian customs territory. However, they are not allowed to access foreign exchange in the official market.
Import companies are not required to complete Form M; however, companies in the customs territory of Nigeria are required to complete an “M & A” form if they intend to import from the Zone. Such companies of the customs territory can get access to the foreign exchange market to pay for imports from the area.
LICENSE FOR WORK IN THE FREE ZONE
NEPZA may allow any enterprise to use any of the following:
1. License of developers of the free zone: granted to any person for the development and operation of the free zone in Nigeria, but under the supervision, control and regulation of NEPZA
2. License for a free enterprise zone: granted to an enterprise for carrying out approved business operations within the free zone - provision of services, trade and provision of services
3. License for export factory / export processing. Farm license: granted to export companies located in the Nigerian customs territory, which can export about 75 percent of their products.
INDUSTRIES ALLOWED IN FREE TRADE ZONES
- Oil and gas logistics
- Electrical and electronic products
- Textile products
- clothes
- Wood and crafts
- Leather Products
- Oil products
- Rubber and plastic products
- Cosmetics and other chemical products
- Metal products and machines
- Educational materials and sports equipment
- Printed materials, communications and office equipment
- Medical kits, optical instruments and devices
- Cookies, confectionery and other food industry
- Pharmaceutical Products
- Construction and repair of ships
Offers for industries outside the above lists will be reviewed for their individual NEPZA merits.
SOME OPERATIONAL FREE TRADE ZONES IN NIGERIA
NAMES OF SHOPPING AREAS AND BUSINESS TYPES:
1 Calabar: Production, Oil / Gas and Logistics Services
2 Kano: Manufacturing, logistics and warehousing services
3 Tinapa Resort Calabar: production, trade, tourism and resort
4 Snake Island Lagos: Steel, Oil / Gas
5 Maigatari Border Jigawa State: Production and Warehouse Services
6 Lagol Logistics Lagos: oil / gas, logistics and production
7 Airline services in Lagos: Food industry and packaging
8 Sebore Farms Adamawa State: Production, Oil / Gas and Petrochemicals
9 Ogun Guandong Ogun Condition: Manufacture
10 Lekki Lagos: Production and Logistics
11 Ibom Science & Technology FZ Akwa Ibom Science and Technology
12 Lagos: Production, Oil / Gas and Petrochemicals
13 Olokola: Ondo and Ogun State Oil / Gas and Production
