Introduction: The Free Zones in Nigeria are licensed, regulated and managed by The Nigerian Export Processing Zones Authority. NEPZA is a Federal Authorities Company established in 1992 by way of the Nigeria Export Processing Zones Act 63, of 1992. The Company is liable for selling and facilitating native and worldwide investments into Free Zones in Nigeria. The scheme was arrange by the federal government to make sure the advance of funding local weather within the nation particularly by stimulating export sort enterprise actions by way of pleasant financial insurance policies.
ibe kachikwu administers the assorted incentives starting from Export Processing Zones, Free Commerce Zones, Border Free Zones, Export Farms, Science and Know-how Parks, Tourism and Resort Facilities.
Any enterprise situated in any of these tasks in Nigeria robotically confers upon the homeowners sure incentives which have been designed by the Federal Authorities of Nigeria for buyers to be aggressive and obtain profitability in a short while.
Incentives for operators are:
Legislative provisions pertaining to taxes, levies, duties and overseas alternate shall not apply.
Obligation free importation of capital items, Equipment, Spare Components, Uncooked Supplies and Consumable objects into the zones.
- 100% overseas possession of investments.
- 100% repatriation of capital, income and dividends.
- Waiver of all imports and export licenses.
- Waiver on all expatriate quotas.
- Hire free land in the course of the first 6 months of building
- As much as 100% of manufacturing might be offered within the Customs Territory towards a sound allow, and on fee of acceptable duties
The quantity of import obligation on items processed or assembled and exported into the Nigeria Customs Territory shall be the speed of obligation relevant to the uncooked supplies (within the state during which they’re initially launched).
Firms can use Banking companies within the Nigerian Customs Territory. They’re nevertheless not allowed to entry overseas alternate within the official market.
Firms engaged in imports usually are not required to finish a Kind ‘M’; nevertheless corporations within the Nigeria Customs Territory are required to finish a Kind ‘M’ in the event that they intend to import from the Zone. Such Customs Territory corporations can entry the overseas alternate market to pay for imports from the realm.
LICENCE TO OPERATE IN A FREE ZONE
NEPZA can license any entity to function any of the next:
1. Free Zone Builders License: That is granted to any entity to develop and function a Free Zone in Nigeria however below the supervision, monitoring and regulation of NEPZA
2. Free Zone Enterprise License: That is granted to an entity to hold out accredited enterprise actions inside a Free Zone -Manufacturing, Buying and selling and Service provision
three. Export Processing Manufacturing facility/Export Processing Farm License: That is granted to export oriented corporations situated within the Nigerian Customs territory which have capability to export about 75 per cent of their manufacturing.