Free Trade Zones (FTZs) in Nigeria are designated areas where businesses enjoy special economic regulations and incentives to promote trade, attract foreign investment, and stimulate industrial growth. Here’s an overview of FTZs in Nigeria:

1. Legal and Regulatory Framework

• Nigeria Export Processing Zones Act (NEPZ Act) 1992: Establishes the Nigerian Export Processing Zones Authority (NEPZA) to license, regulate, and manage FTZs in Nigeria. (Free Trade Zones In Nigeria: Legal Framework, Incentives, And …)
• Oil and Gas Export Free Zone Act (OGFZ Act) 1996: Provides for the establishment and regulation of oil and gas free zones, managed by the Oil and Gas Free Zones Authority (OGFZA). (Nigerian Free Trade Zones: An Examination of the Legal and …)
• Regulations: Include the Investment Procedures, Regulations and Operational Guidelines for Free Zones in Nigeria (2004), and specific regulations for zones like Lekki Free Trade Zone (2010) and Lagos Free Trade Zone (2016). (Legal Frameworks Regulating Free Trade Zones in Nigeria)

2. Types of Free Trade Zones

• Export Processing Zones (EPZs): Focused on manufacturing goods for export, offering incentives to encourage export performance. (The role of Free Trade Zones in Nigeria)
• Free Trade Zones (FTZs): Designed to promote both import substitution and export promotion, enhancing trade by reducing tariffs and other trade barriers. (The role of Free Trade Zones in Nigeria)

3. Incentives and Benefits

Businesses operating within Nigeria’s FTZs enjoy several incentives:

• Tax Exemptions: Exemption from all federal, state, and local government taxes, levies, and rates. (Doing Business in Nigeria’s Free Trade Zones – The Trusted Advisors)
• Customs Incentives: No import or export licenses required; goods can be imported duty-free into the zone. (Incentives – Oil & Gas Free Zone Authority)
• Repatriation of Capital: 100% repatriation of capital and profits. (FAQs | Find the answers you’ve been looking for – Lagos Free Zone)
• Foreign Ownership: 100% foreign ownership of businesses is permitted. (FAQs | Find the answers you’ve been looking for – Lagos Free Zone)
• Simplified Procedures: Streamlined processes for business registration and operations within the zones.

4. Major Free Trade Zones in Nigeria

• Lekki Free Trade Zone (LFTZ): Located in Lagos State, it is a multi-functional economic zone with industrial, commercial, and residential areas.
• Lagos Free Zone (LFZ): Also in Lagos State, promoted by the Tolaram Group, integrated with the Lekki Deep Sea Port, and focuses on manufacturing and logistics. (Lagos Free Zone)
• Calabar Free Trade Zone (CFTZ): Situated in Cross River State, it was the first FTZ in Nigeria, focusing on manufacturing, trading, and services.
• Snake Island Integrated Free Zone (SIIFZ): Located in Lagos, it offers an integrated platform for logistics, trading, and manufacturing companies. (Snake Island Integrated Free Zone)
• Onne Oil and Gas Free Zone: Located in Rivers State, it caters specifically to the oil and gas industry.

5. Registration and Licensing

To operate within an FTZ, businesses must:

1. Submit an Application: Provide a letter of application to NEPZA or OGFZA, along with required documents. (PPT – Free Trade Zones & Nigeria Tax Regime Afolabi Elebiju, ACTI …)
2. Obtain a License:
   • Free Zone Developer License: For entities developing and managing a free zone. (FAQ – NEPZA – Nigeria Export Processing Zones Authority)
   • Free Zone Enterprise License: For businesses operating within a free zone.
3. Meet Capital Requirements: A minimum share capital of $100,000 is required for Free Zone Enterprises. (FAQ – NEPZA – Nigeria Export Processing Zones Authority)
4. Comply with Regulations: Adhere to the operational guidelines and regulations set by the governing authority.

6. Economic Impact

• Investment Attraction: FTZs have attracted significant foreign direct investment (FDI) into Nigeria. ([PDF] Are Free Zones Really Catalysts for Foreign Direct Investment?)
• Job Creation: They have generated employment opportunities for local citizens. (Free Trade Zones In Nigeria: Legal Framework, Incentives And …)
• Industrial Growth: FTZs have contributed to the development of various industries, including manufacturing, oil and gas, and logistics.

Lekki Free Trade Zone

The Lekki Free Trade Zone (LFTZ) is a prominent special economic zone in Nigeria, strategically located in the eastern part of Lagos State. Spanning approximately 155 square kilometers, LFTZ is designed to foster industrialization, attract foreign investment, and stimulate economic growth by offering a conducive environment for businesses.