6.1:   EXPORT PROCESSING ZONE INCENTIVES

Ministry: Federal Ministry of Industry, Trade and Investment

Regulator: Nigeria Export Processing Zones Authority

Export processing zone incentives
For enterprises approved by NEPZA under the NEPZA Act and operating within an approved Zone:

  • 100% foreign ownership of investment;
  • Free transferability of capital, profits and dividends by foreign investors;
  • Rent-free land at construction stage, thereafter rent shall be payable;
  • All industrial undertakings including foreign companies and individuals operating in an Export Processing Zone are allowed full tax holiday from Federal, States and Local Governments;
  • Duty-free, tax free on import of raw materials for goods destined for re-export;
  • Waiver on all import and export licenses; and
  • Waiver on all expatriate quotas for companies operating in the zones.

100% capital allowance
Section 35(1) CITA provides that a company which has incurred expenditure on its qualifying building and plant equipment on an approved manufacturing activity in an export processing zone shall be granted 100 percent capital allowance in any year of assessment.

  Administering Agency: Eligibility:
  –  Federal Inland Revenue Service A company granted capital allowance under this subsection shall not be entitled to an investment allowance under this Act
     
     

 

Unlimited sale of product within the customs territory
Enterprises operating in the Zones are allowed to export into the Nigerian customs territory up to 100% of their product produced, assembled or packaged within the Zones;

  Administering Agency: Eligibility:
  –  Nigeria Customs Service i. There must be valid permit, and on-time payment of appropriate duties; and
    ii. Import prohibited goods assembled or packaged within the Zone without meeting the 35% local value addition requirement shall not be allowed into the Customs territory.
       
       
       

 

Activities permitted in export processing zones

  • Manufacturing of goods and services;
  • Warehousing freight forwarding and customs clearance;
  • Handling of duty free goods (transhipment, sorting, marketing, packaging, etc);
  • Banking, stock exchange and other financial services; insurance and re-insurance;
  • Import of goods for special services, exhibition and publicity;
  • International commercial arbitration services; and
  • Activities relating to integrated zones.
 

6.2:   OIL & GAS FREE ZONE INCENTIVES

Ministry: Federal Ministry of Industry, Trade and Investment

Regulator: Oil & Gas Free Zones Authority

 

Oil & gas export free zone incentives
For enterprises approved by the OGFZA under the OGFZA Act and operating within an approved Zone:

  • 100% foreign ownership of investment;
  • Free transferability of capital, profits and dividends by foreign investors;
  • Rent-free land at construction stage; after which rent shall be payable;
  • All industrial undertakings including foreign companies and individuals operating in an Oil & Gas Export Free Zone are allowed full tax holiday from Federal, States and Local Governments;
  • Duty-free, tax free on import of raw materials for goods destined for re-export;
  • Waiver on all import and export licenses; and
  • Waiver on all expatriate quotas for companies operating in the zone.

100% capital allowance
Section 35(1) CITA provides that a company which has incurred expenditure in its qualifying building and plant equipment on an approved manufacturing activity in an export processing zone shall be granted 100 percent capital allowance in any year of assessment.

Administering Agency: Eligibility:
–  Federal Inland Revenue Service A company granted capital allowance under this subsection shall not be entitled to an investment allowance under this Act
   
   

 

Unlimited export into the customs territory
Part 1, 3.7 OGFZA Regulations provides unlimited export of any product or goods manufactured, assembled, pre-packaged in the Zone into the customs territory.

  Administering Agency: Eligibility:
  –  Nigeria Customs Service i. There must be valid permit, and on-time payment of appropriate duties;
    ii. Import prohibited goods assembled or packaged within the Zone without meeting the 35% local value addition requirement shall not be allowed into the Customs territory.
       

 

75% duty rebate
FZO 2015 provides for a 75% duty rebate on raw materials processed in the OGFZA

  Administering Agencies: Eligibility:
  –  Oil & Gas Export Free Zone Authority Appropriate license must be obtained from OGFZA.
  –  Nigeria Customs Service