For the survival of all countries around the world, trading is a very important play, and it can be likened to the oxygen we taken into our bodies to keep alive. Clearly, there is no country in the world that can exist or survive by itself. Hence the need to interact with other countries to exchange goods. From raw materials to processed goods.
As these raw materials and finished goods are exchanged, customs are always involved as they oversee the activities, but in free zones, customs do not have control. Below is all you need to know about Nigeria’s free trade zones.
What are Nigeria free trade zones?
Nigeria’s free trade zones are specially demarcated areas or zones within Nigeria, where goods may land, handled, manufactured or repackaged and re-export, without the oversight of the custom duties. This means that customs do not interfere with trading activities in the free trade zones. The free trade zones in Nigeria are controlled by Export Processing Zones Authority (NEPZA).
What are the types of free trade zones licenses in Nigeria?
Below are the type of free trade zones have license to operate in the;
1. Free Zone Developers License
This license is granted to private and public entities. It lets them to build, manage, and function in a free trade zone in Nigeria, supervised by NEPZA.
2. Free Zone Enterprise License
While this license is granted only to public or private enterprises, only the zone management or Authority can grant it. This lets them to operate within a precise free zone and carry out activities.
3. Export Processing Factory/Farm License
This license is only issued to farmers, alone. To qualify for this license, the farm must have the capability to export over 75% of its production.
Requirements for Participation in the Nigeria Free Trade Zone
- Your business activities must align with the zone’s approved activities.
- Business must add value and be consistent with the development program of the zone.
- A considerable amount of experience in technical, managerial and financial capabilities.
- Compliance with Act and regulations and rules in place.
- A considerable amount of foreign direct investment.
How do I register with the Nigeria Export Processing Zones Authority?
If you want to acquire a license, visit the NEPZA website at www.nepza.gov.ng.
Which are the active biggest free trade zones in Nigeria?
- Lekki free trade zone
- Dangote Industries free zone
- Ladol free zone
- Eko Atlantic free zone
- Snake Island free zone
- Tomaro Industrial park free zone
- Alaro City, Lekki zone
- Abuja Tech Village free zone
Conclusion
In our next article, we will discuss the steps you need to follow to successfully register and participate at any free trade zones in Nigeria.
Source: Nyscinfo