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Oil and Gas Free Zone

The economy of Nigeria depends heavily upon the production and Processing of Hydrocarbons. This makes investing in the OGFZ a desirable option. 

One of the most important exports from the country of Nigeria is the exports of hydrocarbons, i.e. oil and Gas. The exports of oil and gas account for more than 95% of the export earnings of the country and also about 14% of the GDP. Nigeria if striving to develop an entrepreneur-friendly environment and with the Oil and Gas Free Zone Authority, the government is striving to combine its wealth of Oil and gas with the entrepreneurial efforts of the young and abundant population of the country. The Oil and Gas Free Zones are supervised by The Oil and Gas Free Zone Authority.

Let us gain more knowledge about the Oil and Gas Free Zone Authority in Nigeria.

Oil and Gas Free Zone Authority (OGFZA)

All the free zones owe its existence to the collaboration between the federal government, some of the eager states of the country and some of the private sector operators in developing a base which would provide all the logistic support needed to any-one in the oil and gas industry. This collaboration resulted in the formation of the Oil and Gas Free Zone Authority or OGFZA for short. It is a Regulatory Agency which was formed to regulate Nigeria’s oil and gas export free zones. There are for free zones that come under OGFZA. These are:

1.Onne Oil and Gas Free Zone

Onne OGFZ was one of the first oil and gas export free zones in Nigeria to be established. This FZ is exclusively devoted to oil and gas and has licensed over 200 companies to operate in the zone. Companies from over 45 different countries have their branches in the FZ. The zone is positioned very strategically and is considered as the most successful free zone in Africa in terms of FDI. Currently, over 220 service companies and eight principle oil companies reside in the Onne Free Trade Zone.

2.Warri Oil and Gas Free Zone

The Warri port was acknowledged as a Free Zone on May 2011 and was constructed as a one-stop shop service centre for the companies dealing in the oil and gas sector in the Western Delta area. The port is fully active and provides reliable and effective services to all the oil and gas companies licensed in the zone. Currently, the zone is undergoing extension and the improvement of its capacity.

3.Brass Oil and Gas Free Zone

This free zone is located in the Brass Island in Bayelsa State, and it is proposed that this free zone will position itself as the leading hub for all oil and gas manufacturing and related industrial activities in Africa. In the long run, this free zone is expected to progress as one of the biggest petrochemical and hydrocarbon processing hub in the world. Till now, nearly $3.5bn has been invested in the Brass Oil and Gas Free Zone. 

4.Eko Support Services

Oil and Gas Zone Eko Support was established in partnership with Eko Support Services and was approved as a free zone on 17 April 2014. This free zone will provide jobs, both direct jobs and indirect ones, to at least 1,000 Nigerian nationals. The government is also going to invest more than $124 million for the development of the infrastructure of the zone.

Benefits of Free Trade Zone in Nigeria

Getting licensed and setting up a company in the Oil and Gas Free Zone in Nigeria can provide numerous benefits for the company to be, availed such as:

  • The free zone operates 365 days, seven days a week Round-the-clock; thus, there is no notion of any losses due to wastage of time.
  • Enables the companies to update their procurement process by allowing them to hold stock in the region.
  • Provide a rebate on any import or export duty of at least 75%.
  • The management of the complete free zone has been computerized so that it is easier for the companies licensed in the Free Zone.
  • The OGFZ acts as a one-stop shop for all the operations and cargo handling, warehousing, etc.
  • By making the exploration and production activities more efficient by providing a measure of coordination and better infrastructure.
  • There are many concessions regarding taxation and other activities of the company which the OGFZs provide.
  • OGFZ provide state of the art infrastructure and services using which the company can grow ten-fold in the oil and gas industry.

Requirements for Registration

For registration of a company in the Oil and Gas Free Zone, there are separate documents required according to the nationality of the company. The requirements are as follows:   

Documents Required for Company Registration in Nigeria:

  1. Profile of the Company including the industry it is working in
  1. Certificate of Incorporation
  1. Memorandum and Articles of Association
  1. Contact Person, Designation, Phone Numbers and Address of Company
  1. Report on the Feasibility Studies of the intended Investment in the Zone (Business Plan)
  1. Financial Profile & Profile of the various Personnel
  1. Sources of funding (Local & Foreign)
  1. Audited Account of the companies’ last three years (Applicable to Companies with more than one year of operation)
  1. In the case of Non-Oil producing company or liquefied natural gas producing company, they must produce a DPR Certificate 

Offshore Companies in Nigeria: Documents Required

  1. Company Profile
  1. Certificate of Incorporation or Notarized Copy of Overseas Incorporation
  1. Memorandum and Articles of Association
  1. Sources of funding
  1. Contact Person, Designation, Phone Numbers and Address of Company
  1. Report on the Feasibility Studies of the intended Investment in the Zone (Business Plan)
  1. Financial Profile & Profile of the various Personnel
  1. Affidavit issued by a Notary Public that the entity is an Oil & Gas related Company.
  1. Official confirmation from the operator of the facilities leased
  1. Companies last three years Audited Account (Not applicable to Companies having less than one year in operation)

How to Set Up a Company in Oil and Gas Free Zone of Nigeria?

If you are interested in establishing a company in Nigeria oil and gas free zone, first you will need to download the required for or take the form from the nearest NEPZA office. The Filled form should be submitted along with all the necessary documents mentioned above. On the approval of the application, you will be receiving an operating license which would allow you to start building your office in the designated space. Finally, you can commence operation after the survey.

For a step by step guide on how to establish your company in free zones, you can read the company setup process.

The prospects of setting up a company in the oil and Gas Free Zone is very good as the government of Nigeria is trying to emphasise more on the hydrocarbon sector. Moreover, more than 14% of the GDP of the country is dependent on the oil and gas sector, which makes investing in such companies a very lucrative option.

If you are looking for assistance in setting up a company in the oil and gas free zone in Nigeria, you must take the help of “Business Setup Worldwide”. BSW provides world-class services which would make help you to set up your business in the free zone. For more details on how to set up your company in a free zone,  do contact us – we’d be happy to help.