Locating in any Free Zone in Nigeria automatically confers upon the investor certain advantages, benefits and incentives which have been strategically designed by the Federal Government of Nigeria to create a business-friendly environment for the investor and to be competitive.
These incentives, established by Act No. 63 of 1992 and which have been improved even more in subsequent legislation, are the following:
Complete holiday from all federal, state and local government taxes, rates, and levies.
Duty free importation of capital goods, machinery/components, spare parts, raw materials and consumable items in the zones.
100% foreign ownership of investments.
100% repatriation of capital, profits and dividends.
Waiver of all imports and export licenses.
Waiver on all expatriate quotas.
One-stop approvals for permits, operating license and incorporation papers.
Permission to sell 100% of goods into the domestic market (However, when selling into the domestic market, applicable customs duty on imported raw material shall apply).
For prohibited items in the custom territory, free zone goods are allowed for sale provided such goods meet the requirement of up to 35% domestic value addition.
Waiver on all expatriate quotas for companies operating in the zones.
Minimize delays in the movement of goods and services.
Rent free land during the first 6 months of construction (for government owned zones).
Benefits of Investing in Nigeria Free Zones
Access to the Nigerian consumer market which is by far the largest consumer market in Africa with approximately 160 million people.
Nigeria has an excellent location from which to export to the rest of Africa, the Middle East, Europe, and the Americas.
Abundant supply of human and material resources.
Nigeria enjoys several preferential trade arrangements such as ECOWAS, AGOA, WTO, GSTP, OPEC, D-8 etc.
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