TRALAC - Trade Law Centre

Nigeria: NEPZA calls for foreign investment

Monday, 17 March 2008

Source: Leadership (Abuja)

The Nigeria Export Processing Zones authority, NEPZA has called on foreign investors to take advantage of the over 22 free zones in Nigeria and invest in the country, to enable them enjoy the facilities and the incentives provided by the zones.

Managing director of NEPZA, Mr. Sina Agboluaje has stated that the advantages of the free zones in Nigeria would launch the investors into the global platform of business and landmark. The advantages he listed included the huge population of 140 million people, which is by far the largest consumer market in Africa, the proximity to abundant natural resources such as wood, rubber, cocoa, gum arabic, sesame seeds, fresh fruits and several others.

The location of Nigeria is unique and advantageous for export to other parts of Africa, Europe, including the Middle East and the Americas, NEPZA MD stated. Also, Nigeria enjoys the Africa growth and opportunity act, AGOA with benefits on more than 6,500 products that are preferential quotas and tariffs on the export of some goods to the E.U. One of the advantages is the fact that investors will benefit from and abundant supply of skilled labour at some of the most competitive labour rates worldwide.

Other incentives that abound in the Nigeria free zones include the automatic conferment on investors, all the advantages created by the federal government and the business-friendly environment for the investor. The incentives include complete tax holiday from all federal, state and local government taxes. Rates, customs duties and Levis, duty free tax, free import of raw materials and components for goods destined for export, duty-free introduction of capital goods machinery equipment and facilities. Permission to sell 100 per cent of manufactured, assembled or imported goods in the domestic Nigeria markets, 100 per cent ownership of foreign investment and unlimited repatriation of capital profits and dividends including waiver of all import and export licenses. There is also waiver on all expatriate quotas for companies operating in the zones. On the free zones, there is absolute prohibition of strikes and lockout by workers and rent-free land during the first six months of construction of facility.

It is also worthy of note that since the return of democracy in 1999, Nigeria has become an investor's haven in Africa. The abundant natural resources to same in raw materials, the abundant work force which is not only skilled but Nigerians have made the case of investors better. The communications explosion occasioned by the introduction of the GSM has equally created a more business friendly environment. Energy that has been the bane of investment is being tackled headlong by the Yar'Adua administration. Energy was allocated the lion share of the 2008 budget, while the eight independent power projects, IPP, when fully operational will complement the national grid.

The over 22 free zones in the country include the ones in Calabar, Lagos, Kano, Barki in Borno State and Maigatari in Jigawa State.



“ Latest AGOA Trade Data currently available on AGOA.info


Click here to view a sector profile of Nigeria’s bilateral trade with the United States, disaggregated by total exports and imports, AGOA exports and GSP exports.


Other regularly updated trade statistics on AGOA.info include: (click each link to view)

  • AGOA-Beneficiary Countries’ AGOA and GSP Trade Aggregates

  • AGOA Trade by Industry Sector

  • Apparel Trade under AGOA’s Wearing Apparel Provisions

  • Latest Apparel Quotas under AGOA

  • Bilateral Trade Data for all AGOA-eligible countries individually.