Export Processing
or Free Trade Zones are clearly delineated and fenced industrial estates within
a nation’s customs and trade regime. They are normally set up for manufacturing
concerns producing mainly for the export market. The Nigerian concept is no
difference. Since 1989 when the foundations for the first Free Trade Zone
(Calabar Free Trade Zone)
was established, there have been the addition of five
more with two been fully completed and operational.
In
Nigeria, there are two types of free trade concept – the specialised and the
general-purpose trade/export zone. For effective management of these zones, at
the federal level, two bodies are in place – Nigerian Export Processing Zone
Authority (NEPZA) for the general-purpose zones and Oil & Gas Free Zone
Authority (OGFZA) for oil & gas zone.
INVESTMENT PROCEDURES WITHIN THE ZONES
The following are the entry procedures into the zones:
i.
Obtain
and complete prescribed forms from either NEPZA or OGFZA, as applicable
ii. Submit completed form with the following
attachments:
·
Project
description
·
Market
survey
·
Funding
proposal
·
Financial
projection
·
Environmental
impact statement and control
iii.
Upon
approval of request, the following steps are thereafter taken:
·
company’s
registration with CAC;
iv.
If
outright purchase of factory building is desired
·
10%
deposit of the selling price of the standard building is made within 3months of
approval
·
payment
of the balance 90%, 5months after
v.
Renting
of factory building
·
down
payment of one year rent required not exceeding 3months after signing the
rental contract. Thereafter, rental charges shall be paid within the first
quarter of every year.
vi. Leasing the standard factory
·
Payment
of 40%lease value on approval
·
Payment of
30% at the end of the 5th year
·
Payment
f 30% balance at the end of the 10th year
vi.
With condition(s)
in (iii) fulfilled, the investor may proceed to carry out the following:
·
Remittance
of investment capital
·
Importation
and installation of machinery
·
Commencement
of production
TYPES OF INDUSTRIES PERMISSIBLE IN NIGERIA EXPORT PROCESSING ZONES
· Electrical and electronic products
·
Textile
products
·
Wood
products
·
Leather
products
·
Plastics
products
·
Petroleum
products
·
Rubber
products
·
Cosmetics
·
Garments
·
Chemicals
products
·
Metal
products
·
Educational
materials and equipment
·
Communication
equipment and materials
·
Sports
equipment and materials
·
Machinery
·
Handicraft
·
Optical
instruments and appliances
·
Medical
kits and instruments
·
Biscuits
and confectioneries
·
Printed
materials, office equipment and appliances
·
Paper
materials
·
Food
processing
·
Pharmaceutical
products
·
Oil
& gas activities
INCENTIVES
i.
Exemption
from payment of all federal, state and local taxes, levies, rates, and customs
duties;
ii.
Repatriation
of foreign capital investment in EPZs at any
time with capital appreciation on the investment;
iii.
No
import or export licence;
iv.
Rent
free land during construction of factory space;
v.
Services
such as warehousing, standard pre-built factories, transportation, sanitation,
canteen, etc, are available within the zones;
vi.
Unrestricted
remittance of profits and dividend earned by investor in the zone;
vii.
100
percent foreign ownership of enterprises in the EPZ allowable;
viii.
Sale of
up to 25% of production permitted in the domestic market.
EXISTING ZONES AND STATUS
NameLocation |
Status
|
Mode
|
Management
|
|
Calabar
Free Trade Zone
|
Calabar,
Cross River State
|
Completed
(over 80% occupied)
|
General
purpose
|
NEPZA
|
Onne
Oil & Gas Free Zone
|
Onne,
Rivers State
|
Completed
(Over 80% occupied)
|
Specialised
|
OGFZA
|
Kano
Free Trade Zone
|
Kano,
Kano State
|
Under
construction
|
Non-oil
export
|
NEPZA
|
Maigatari
Free Trade Zone
|
Maigatari,
Jigawa State
|
Under
construction
|
Non-oil
export
|
Jigawa
State Govt.
|
Banki
Free Trade Zone
|
Banki,
Borno State
|
Under
construction
|
Non-oil
export
|
Borno
State Govt.
|
Lekki
Export Processing Zone
|
Lekki,
Lagos State
|
Under
construction
|
Non-oil
export
|
Private
initiative
|
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