Free Trade Zones in Nigeria

Nigeria is Africa’s largest economy, with immense potential in the communications, financial, service, technology, manufacturing, and entertainment sectors. Different Free Trade Zones in Nigeria have helped the country expand exponentially as an economic leader in Africa.

As a business owner, you might be considering setting up your company in Nigeria simply because Nigeria is one of the Goldman Sachs “Next Eleven” nations. This article will help you navigate the entire process of accessing the benefits of a free trade zone in Nigeria, among many others.

What Are Free Zones in Nigeria?

Free Trade Zones or Free Zones in Nigeria are also called Export Processing Zones (EPZs). These free zones (FZs) are different from other economic zones within the country. You can import, manufacture, and re-export goods in these zones without facing any tariffs and customs regulations. These free zones are places where businesses and governments partake in a give-and-take. Here, you enjoy tax benefits, and the government gains economically.

List of Free Trade Zones in Nigeria

The government offers forty-two free zones in Nigeria where your business can settle and thrive. You must choose a suitable zone based on your company’s requirements. Moreover, you can register your company in Nigeria with CAC in six easy steps. However, before you start setting up your business in one of the free trade zones in Nigeria, you need to know the regulatory bodies managing the generalized and free trade zones in Nigeria.

1. Nigerian EPZ Authority (NEPZA) regulates all of the Free Trade Zones in Nigeria.
2. OGEFZ Authority dedicatedly regulates the Oil and Gas Free Zones in Nigeria.

Now that you are aware of the regulatory authorities governing the free trade zone in Nigeria, here is a brief list of export processing zones:

• Lekki Free Zone: One of the most significant Free Trade Zones in Nigeria, this free zone is a collaboration between a Chinese Consortium and the Lagos State Government. The zone has attracted critical investment from international investors, including a power plant and a deep-sea port. You can open a company here if your business is involved in manufacturing, oil and gas, and commercial activities.
• Calabar Free Trade Zone: Located in the Cross River State, the Calabar Free Trade Zone is one of the oldest free zones in Nigeria. It is involved in the manufacturing, logistics, and services sectors.
• Ladol Free Zone: This FZ in Lagos ensures engineering and logistical support in deep-water oil and gas exploration.
• Ogun Guangdong Free Trade Zone: This Ogun state FZ focuses on the manufacturing and industrial sectors and boasts companies in textiles, steel, and ceramics.
• Dangote Industries Free Zone: This Lagos-based FZ, home to the Dangote Refinery, is one of the largest oil refineries in the world. This free trade zone in Nigeria is geared to boost the country’s refining capacity.
• Kano Free Zone: The Kano Free Trade Zone in Nigeria is the second free trade zone and is focused on warehousing, manufacturing, and providing logistic services.
• Snake Island Integrated Free Zone: SIIFZ focuses more on maritime and oil and gas services and operations.

Benefits of Free Trade Zone in Nigeria

Here are some benefits of establishing a business in free zones in Nigeria:

• Tax Freedom: Exemption from taxes, levies, tariffs, and applicable foreign exchange laws. As a foreign investor, you can send your dividends or profits to your home country.
• Simplified Approval: The government has liberalized regulations to simplify your company’s approval and incorporation processes.
• Better Connectivity: Most FZs are close to seaports and easy to approach by road.
• License Freedom: Setting up your company in a free trade zone in Nigeria means you won't need an import or export license.
• Rent Benefits: If your company is under construction, you will be exempt from paying rent. The NEPZA will decide your rent once your company becomes operational.
• 100% Business Ownership: As a foreign investor, you can own 100% of your company; however, this is subject to conditions like your company’s nature, rules, and regulations, etc.

How to Set Up A Company in Free Zones in Nigeria

If you wish to set up your business in this country, you must seek help from a business advisor like Business Setup Worldwide (BSW). However, here is a quick overview of the processes you must follow to set up a company in a free trade zone in Nigeria.

Fill Out Your Application Form

Fill out your application form. You can download this form online or acquire it from the Free Zone Administration Office or NEPZA headquarters in Abuja.

Submission and Review of Your Application

Submit your duly filled-out application form and other necessary documents to the NEPZA. The concerned authorities ideally take a week to review your application.

Acquiring Your License

If your application is approved, the concerned authorities will issue an Operating License. These authorities will also reserve/assign a space for your company’s establishment.

Obtain an Importation Certificate

Receive a Certificate of Importation through one of the various banks in the zone. Before proceeding with opening an offshore bank account, make sure you are well-versed in opening a business bank account in Nigeria.

Why Business Setup Worldwide

At Business Setup Worldwide, we can help you form a business in the free zone of your choice and provide several other services to help you establish a solid foundation in the commercial world. Please get in touch with us for more information.