Free Trade Zones (FTZs) are also known as export processing zones
(EPZs). These are specific areas which have a different set of rules than the
rest of the country. There is a give and take relationship between the
government and the business that has been set up in these zones in Nigeria. If
a business commences in any of the free trade zones, they are exempt from the
normal laws and rules of the government which are applicable all over the
country of Nigeria, especially in the field of taxes and customs duties. In
return, the government anticipates that the companies mentioned above will help
the economic growth of the country and boost the national exports.
List of Free Trade Zones in Nigeria
An entrepreneur can choose the free trade zone in Nigeria in
which he or she wishes to incorporate to his or her company according to the
services provided in the free zone. Some of the free zones are more suitable to
a particular kind of industry whereas others are more general. A businessperson
can choose from 17 free zones in Nigeria, which are:
- Aluminum Smelter Company Free Trade Zone…. (Ikot Abasi)
- Border Free Trade…………………(Maigatari, Nigeria/Niger, border)
- Calabar Free Trade Zone ……..…(Calabar, cross River)
- Centenary Economic City ………..(Abuja)
- Onne Oil and Gas Free Trade Zone…. (Onne-Eleme, Rivers)
- Enugu Industrial Park (Free Zone Status)…….(Enugu)
- Kano Free Trade Zone…………………(Panisau Road, Ungogo, Kano)
- Ibom Science & Technology Park Free Zone………….(Akwa
Ibom)
- Lekki Free Trade Zone………………………………(Lagos)
- Maigatari Border Free Trade Zone………………( Nigeria/Niger border)
- Nigeria International Commerce city…………….(Victoria
Island, Lagos)
- Ogun-Guangdong Free Trade Zone………….. (Ogun)
- Illela International Border Market……………… (Sokoto)
- LADOL Free Zone………………………………..(Apapa Port, Lagos)
- Lagos Free Trade Zone………………………… (Port @Lekki, Lagos)
- Snake Island Free Trade Zone…………………(Ibafon, Lagos)
- Tinapa Resort & Leisure Free Trade Zone……(Cross
Rivers)
To manage both the general and specialized Export Processing
Zones in Nigeria, the government has formed two bodies which would oversee the
workings of the various companies in these free zones. These are namely:
1. Nigerian Export Processing
Zone Authority (NEPZA) for all the general purpose export Free Zones
2. Oil and Gas Export Free
Zone Authority dedicated to the Oil and Gas Free Trade Zone.
A business can avail many benefits offered by the EPZs, and this
makes the EPZs one of the most important method to attract FDI into the country
and promote technology transfer. Since the creation of free zones in Nigeria,
there are more than 350 enterprises which are licensed to free-zones and are
operating under the various EPZs of Nigeria.
Benefits of Free Trade Zones in
Nigeria
There are several benefits which can be utilized by an
enterprise when it is set up in an EPZ in Nigeria. These benefits are:
1. Any legislative
provision related to taxes, levies, duties and any foreign exchange regulations
which are applicable in the country will not apply to the companies’ set up in
EPZs.
2. At any time, it is
possible to send back all the foreign capital investment with capital
appreciation of the investment.
3. If any profits and
dividends earned by foreign investors, they can be remitted back to the home
country.
4. If a company is
set up in any of the FTZs, they do not require any import or export license.
5. 25% of the total
production of a business in the free zone may be sold in Nigeria by obtaining a
valid permit and by payment of the required duties.
6. At the construction
phase, the business in construction does not need to pay any rent. When
the company commences its operations, the rent will be determined by NEPZA.
7. Foreign
ownership of a business up to 100% is permitted depending upon the nature of
business and the rulings of the concerned authority.
8. A company established
in the free zones can employ foreign managers and qualified personnel.
9. The NEPZ has
implemented liberal Regulations and has eased the investment and approval
process in EPZs.
10.
EPZs in Nigeria are at proximity to seaports and have extensive
road linkages and are also linked to various airports.
11.
Nigeria has a huge consumer market, and this market reach is
still growing. It also has many trade agreements with many global economic
organizations.
12.
One of the biggest benefits of incorporating a company in
EPZ is that the Nigeria Export Processing Zone Act prevents an employee from
conducting a work strike or any lock-outs within ten years of the inauguration
of a business.
13.
The regulations of the NEPZ state that all the companies which
are licensed companies established in EPZ will be exempt to the expatriate
quota. The expatriate quota states that in case any qualified Nigerians are
present which can potentially occupy a position in a business, and then the
business cannot hire an expatriate for the job.
Free zones in Nigeria act as important and
rewarding areas which not only attract foreign investors but also provide
employment opportunities to the native people.
The information on The Effectual
impact of Free Trade Zone in Nigeria is brought to you by National Mail.
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