Oil and Gas Export Free Zone in Nigeria

 Decree No. 8, 1996 . This Decree establishes an Oil and Gas Export Free Zone, and also the Oil and Gas Export Free Zone Authority (“The Authority”) to manage, control and coordinate all activities within the zone. The Authority has power to take over and perform such other functions being hitherto performed by the Nigeria Export Processing Zones Authority as they relate to the export of oil and gas from any of the Nigeria Export Processing Zones established by the Nigerian Export Processing Zone Decree 1992.
Exemption from Taxes

Approved enterprises operating within the Export Free Zone are exempted from all Federal, State and Local Government taxes, levies and rates.
Approval of Enterprise to Undertake Approved Activity
(1) Any enterprise which wishes to undertake an approved activity within the Export Free Zone, will apply to the Authority in writing for permission to do so and submit such documents and information in support of the application, as the Authority may require from time to time.
(2) The Authority may grant, subject to such terms and conditions as it thinks fit, approval for an enterprise to undertake the approved activity specified in its application.
Power to Grant License
(1) The Authority may grant a licence for any approved activity in the Export Free Zone to an individual or business concern whether or not the business is incorporated in the customs territory.
(2) The grant of licence by the Authority shall constitute registration for the purposes of company registration within the Export Free Zone.
(3) A body corporate licensed to operate within the Export Free Zone and undertaking an approved activity shall notify the Authority of any purchase, assignment or transfer of shares in the body corporate, except where such shares are quoted and are freely transferable on any international stock exchange.

Payment for Goods and Services
(1) Where an approved enterprise operating in the Export Free Zone supplies goods and services to customers within the customs territory, that enterprise shall be entitled to receive payment for such goods and services in foreign currency and for the purposes of such payment, the rules and regulations applicable to importation of goods and services into Nigeria and repatriation of the proceeds of sales or services shall apply.
(2) Where a person within the customs territory supplies goods and services to an approved enterprise established within the Export Free Zone, that person shall be entitled to receive payment for such goods or services in foreign currency and the rules and regulations applicable to export from Nigeria and the repatriation of proceeds from sales or services shall apply.
Import of Goods into the Export Free Zone
(1) The Authority and any approved enterprise are entitled to import into the Export Free Zone, free of customs duty, any capital goods, consumer goods, raw materials, components or articles intended to be used for the purposes of and in connection with an approved activity, including any article for the construction, and maintenance of premises in the Export Free Zone or for equipping such premises.
(2) Articles for equipping premises include equipment for offices and other ancillary facilities necessary for the proper administration of the premises and for the health, safety, hygiene and welfare of the premises and of persons employed therein.
(3) All goods brought into the Export Free Zone shall be consigned to the Authority or to an approved enterprise and the goods may, with the approval of the Authority, be transferred from one approved enterprise to another or from the Authority to an approved enterprise or from an approved enterprise to the Authority.
(4) The Authority many take such steps as it deems necessary to preserve goods within the Export Free Zone, whether by moving the goods from one place to another or by storing the goods and where any expenses are incurred by the Authority in so doing, the owner or consignee of the goods shall reimburse the Authority for the expenses.
(5) Goods brought into the Export Free Zone may;
(a) be stored, sold, exhibited, broken up, packed, graded, cleaned, marked, re-marked, loaded, re-loaded, divided, mixed, separated or otherwise manipulated; or
(b) be worked, processed or re-processed or otherwise manipulated or manufactured; or
(c) be consumed if the goods are meant for consumption in the Export Free Zone; or
(d) be removed from the Export Free Zone or sent into the customs territory, whether as originally packed or otherwise; or
(e) subject to relevant enactments be destroyed.
(6) Where any goods which are dutiable on entry into the customs territory are sent from the Export Free Zone into the customs territory, the goods will be subject to the provisions of the Customs, Excise Tariff, (Consolidation) Act and its regulations, and if the goods are intended to be disposed of in the customs territory, will not be removed from the Export Free Zone unless:
(a) the consent of the Authority has been obtained; and
(b) the relevant customs authorities are satisfied that all relevant import restrictions have been complied with and all duties have been paid.
(7) Where goods are brought from the customs territory into the Export Free Zone for the purposes of an approved activity the goods are deemed to be exported.
(8) The Nigerian Government will appoint for the Export Free Zone, an inspecting agent who will be charged with responsibility of inspecting goods imported from the Export Free Zone into Nigeria for use by an approved enterprise within the Export Free Zone.

Prohibition Of Retail Trade
(1) No retail trade is conducted within the Export Free Zone without the prior approval of, and each may be subject to terms and conditions set by, the Authority.
Export Of Goods From The Export Free Zone
Export of goods from the Export Free Zone to the
customs territory is, except as otherwise prescribed,
subject to the same customs and licensing
requirements as apply to goods imported from
other countries.
Incentives and Related Matters
(1) Approved enterprises within the Export Free Zone are entitled to the following incentives:
(a) Legislative provisions pertaining to taxes, levies, duties and foreign exchange regulations shall not apply within the Export Free Zone.
(b) Repatriation of foreign capital investment in the Export Free Zone at any time with capital appreciation of the investment.
(c) Remittance of profits and dividends earned by foreign investors in the Export Free Zone.
(d) No import or export licences shall be required.
(e) Up to a maximum of 25 per cent of production may be sold in the customs territory against a valid permit, and on payment of appropriate duties.
(f) Rent free land at construction stage, thereafter rent shall be as determined by the Authority.
(g) Up to 100 per cent foreign ownership of business in the Export Free Zone allowable.
(h) Foreign managers and qualified personnel may be employed by companies operating in the Export Free Zone.
(2) The Authority shall be the only agency qualified to:
(a) give all approvals; and
(b) cancel all licences.
(3) The Authority shall simplify all procedures necessary for authorization of investments in the Export Free Zone and state by Order, from time to time, its requirements for the grant of authorizations for investments in Export Free Zone.
(4) There shall be no strikes or lockouts for a period of 10 years following the commencement of operations within the Export Free Zone and any trade dispute arising within the Export Free Zone shall be resolved by the Authority.
Work Permit
Where a person who is a non-Nigerian citizen is employed by the Authority or by an approved enterprise established in the Export Free Zone, upon application by the enterprise for a licence to establish itself within the Export Free Zone or at any time thereafter, the enterprise shall apply on behalf of the non-Nigerian citizen direct to the Authority for the purpose of immigration and employment permits, in such manner as may be prescribed by the Authority.