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.
The Federal Republic of Nigeria is having one of the largest economies in Africa and has the potential to become one of the biggest economies of the world. Keeping this in mind, the Nigerian government is working towards bringing in more FDI into its economy by setting up various Export Processing Zones. The government has already approved more than thirty-two EPZs in the country out of which thirteen are active. One of these zones in Nigeria is the Calabar Free Trade Zone (CFTZ).
Calabar Free Trade Zone (CFTZ) is located near to the port of Calabar in the Cross River State, Nigeria and covers an area of 152 hectares. Calabar Export Processing Zone was officially converted to Calabar Free Trade Zone in the year 2001. This refurbishing of the title was done so that it was more clear that this zone not only allows the investors to produce goods and services for export but also permits them to conduct other business-related activities such as assembly, distribution, packaging, warehousing, etc.
The Calabar Free Trade Zone has proximity to both the Calabar port and the centre of Calabar, Nigeria. Which makes it easy for transportation of the goods produced. At present, more than 70 companies are registered within the zone out of which around 28 are operational. These companies are part of various industries such as:
- Textile Manufacturing
- Food Processing
- Steel Rolling
- Computer Assembly
CFTZ already comprises of 43 investors who have got permission from the federal government to conduct export-related activities in this zone.
Benefits of Free Trade Zones in Nigeria
There are several benefits which a company can avail by setting up a company in the Calabar Free Trade Zone in Nigeria.
- A company established inside the CFTZ does not come under the standard rules, and laws of the government and hence is exempt of all taxes and levies.
- A foreign investor will not require a local sponsor and can own 100% of an enterprise if he sets up the business in the free zone.
- Throughout the construction of the facilities of the business, they are not liable to pay the rent for the space taken up in the CFTZ.
- The closeness of the free zone to the Calabar Free Port and the city of Calabar makes it easier for the companies’ setup there to access the raw material imports and also allows them to export the finished goods promptly.
- CFTZ has a constant source of electricity and is capable of providing essential services such as potable water and sanitation for a clean environment.
- CFTZ is equipped with all the necessary service and infrastructure that would provide support to the companies set up in the region or can be required by a company in the area. These would include support infrastructures such as banks, medical clinics, cargo handling services, warehouses etc.
- The free zone has its own separate police station and also consists of a private security company. It also includes a fenced perimeter and thus is fully capable of providing security to the companies in the region.
In April of 2007, the first phase of Tinapa business resort and the free zone was ordered. As it is very close to the Calabar FTZ, Calabar can provide both leisure and pleasure to the people that come to CFTZ to set up their company. The aim is to convert Calabar FTZ into a global trading hub which would be comparable to Hong Kong or Dubai.
Industries Permitted in CFTZ
Calabar free trade zone mostly caters to the companies that deal in manufacturing and trading of goods or companies that delve in to oil and gas related activities. The various industries in which a company can set up his business are:
- 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
- Metal products and machinery
Setting up a company in Nigeria may be a bit complicated at times. In these times it is essential to have a helping hand from an experienced firm which would streamline your company setup process and would provide sound advice which would help in the growth of your business.
If you are looking for such firm in Nigeria, you can avail the services of Business Setup Worldwide. Our team of experts will tackle all your business related problems and help you to conduct business in the Calabar Free Trade Zone. If you are interested in establishing your company in the free zone, feel free to contact us - We’d be happy to help you.