Exploring Business in Nigeria’s Free Trade Zones
The Nigerian Export Processing Zones Authority (NEPZA) is a Federal Government Agency supervised by the Federal Ministry of Industry, Trade & Investment, established in 1992 after enacting the Nigeria Export Processing Zones Act 63, of 1992. The NEPZA promotes and facilitates local and international investments into these Free Trade Zones.
Based on the transformative economic policies to encourage commercial activities, export-oriented manufacturing, attract Foreign Direct Investment (FDI) and the need to diversify the economic based from its over-reliance on oil & gas revenues, the program provides a robust platform for global commerce and business within the 34 Free Trade Zones across Nigeria supporting over 300 licensed enterprises currently operating in the country.
Where the Free Trade or Export Zones Located?
Some of the Trade Zones cater for a specific area of economic enterprise while others are more general. While some of the sites are under-construction or physically developed but yet to start activities, there are 14 fully operational sites – Calabar FTZ, Kano FTZ, Tinapa FTZ, Snake Island Int’l FTZ, Maigatari Border TZ, Ladol Logistics FZ, Airline Services EPZ, ALSCON EPZ, Sebore Farms EPZ, Ogun G. FTZ, Lekki FZ, Abuja Tech. Village FZ, Ibom Science & Tech FZ, Lagos FTZ, Olokola FTZ.
How to Participate in Nigeria’s Free Trade Zones:
Procedures for obtaining a Free Zone or Trade Zone Developer/Promoter License:
- Application letter indicating interest to establish a zone and its location
- Payment of US$1,000.00 or its Naira equal to NEPZA H/Q as application fee
- Inspection of proposed site by NEPZA Officials
- The Investor must submit the following, once the site is inspected and approved:
- An unencumbered piece of land with Certificate of Occupancy;
- Perimeter and topographic survey of the site;
- Master Plan of the proposed site;
- Environmental Impact Assessment Report;
- Detailed Feasibility Study which would highlight : Brief description of the project, Identify Promoters and Directors, Location, Marketing strategy, Economic and Financial viability, Sources of funding, Project Development Plan and other requirements as determined by NEPZA
Industries Permissible in Nigeria’s Free Trade Zones are :
- Oil and gas Logistics
- Electrical and Electronic Products
- Textile Products
- Wood Products and Handicraft
- Leather Products
- Petroleum Products
- Rubber and Plastic Products
- Cosmetics and other Chemical Products
- Metal Products and Machinery
- Educational materials and Sports Equipment
- Printing Materials, Communication and Office Equipment
- Medical Kits, Optical Instruments and Appliances
- Biscuits, Confectionery and other Processed Foods
- Pharmaceutical Products
- Ship building and Repairs
The conditions and fees reviewed from time to time without notice. Please check with the NEPZA website for any changes.
Looking to expand your business into Africa? Think Nigeria and the impressive list of incentives which include: Tax holidays, rent free land for first six months on government EPZ, 100% foreign ownership of investments,100% repatriation of capital, profits and dividends, waiver of all imports and export licenses etc.
For more information, please contact us and review Trade Zones on the NEPZA site.
Author: A Danesi
A. Danesi is a writer, a business and marketing consultant with an MBA in Financial Management. “I love people, writing & crunching numbers…in that order – Please Like, Connect, Comment and Share. Thanks for hanging out!”
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