Calabar Free Trade Zone
Calabar Free Trade Zone is one of the earliest free zones in Nigeria and aims to help in the growth of the economy of Nigeria.
Nigeria, with one of the largest and most dynamic economies in Africa, is rapidly positioning itself to become a global economic powerhouse. To fuel this growth, the Nigerian government is attracting more foreign direct investment (FDI) by establishing a network of Export Processing Zones (EPZs). Among these, the Calabar Free Trade Zone (CFTZ) stands out as a prime location for businesses looking to tap into the country’s thriving economy.
About Calabar Free Trade Zone
CFTZ is located near the port of Calabar in the Cross River State of Nigeria and covers an area of 152 hectares. The Nigerian government officially converted the Calabar Export Processing Zone into the Calabar Free Trade Zone in 2001. The government refurbished the title to make it clear that this zone not only allows investors to produce goods and services for export but also permits them to conduct other business-related activities such as assembly, distribution, packaging, warehousing, and more.
Industries Operating in CFTZ
The Calabar Free Trade Zone (CFTZ) is in proximity to both the Calabar port and the centre of Calabar, Nigeria, which makes it easy to transport the goods produced. Currently, numerous companies are registered within the zone, and multiple of them are actively operating. These companies span various industries:
- Textile manufacturing
- Food processing
- Steel rolling
- Computer assembly
- Pharmaceuticals
The CFTZ currently comprises forty investors who have received approval from the federal government to conduct export-related activities within the zone.
Benefits of Incorporation Business in Calabar
A company can benefit from several benefits by setting up a business in the Calabar Free Trade Zone in Nigeria.
- A company established within the Calabar Free Trade Zone (CFTZ) is not subject to the standard government rules and regulations, exempting it from taxes and levies.
- Foreign investors do not need a local sponsor and can own a hundred per cent of their business when setting up a business in Calabar.
- During the construction of business facilities, the CFTZ waives rent for the space occupied by companies.
- Calabar Free Trade Zone provides a consistent power supply and essential services, including potable water and sanitation, ensuring a clean and conducive environment.
- The necessary infrastructure and support services, such as banks, medical clinics, cargo handling services, and warehouses, equip the zone.
- Additionally, CFTZ has its own dedicated police station and private security company, as well as a fenced perimeter, ensuring robust security for businesses operating within the region.
In April 2007, authorities ordered the first phase of the Tinapa Business Resort and Free Zone. As it was very close to the Calabar Free Trade Zone, the jurisdiction could provide both leisure and pleasure to the people who came to CFTZ to set up their companies. The aim was to convert the Calabar Free Trade Zone into a global trading hub which would be comparable to Hong Kong or Dubai.
Industries Permitted in the Calabar Free Trade Zone
The Calabar Free Trade Zone primarily caters to companies involved in the manufacturing and trading of goods, along with those engaged in oil and gas-related activities. The various industries that can conduct business in Calabar include:
- Electrical and electronic products
- Garments, wood products, and handicraft
- Leather products
- Petroleum products
- Textile products
- Rubber and plastic products
- Cosmetics and other chemical products
- Printing materials
- Communication and office equipment
- Medical kits
- Educational materials and sports equipment
- Optical instruments and appliances
- Biscuits, confectionery, and food processing
- Pharmaceuticals
- Metal products and machinery
Setting up a company in Nigeria can sometimes be complex, but with the right support, you can navigate the process smoothly. It's crucial to partner with an experienced firm that can streamline your company setup and provide expert advice to help your business thrive. If you're seeking such a partner in Nigeria, Business Setup Worldwide is here to assist. Our team of experts will address all your business-related challenges and help you establish your presence in the Calabar Free Trade Zone (CFTZ). If you're interested in setting up your company in the free zone, feel free to contact us, and we'd be happy to guide you every step of the way.
