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FAQ

Have any Questions?

Below you’ll find answers to some of the most frequently asked questions. We are constantly adding most frequently asked question to this page.

An FTZ is a designated location in a geographical area where enterprises can operate without trade barriers, bureaucratic bottleneck and customs interference in order to attract new businesses and foreign participation. Goods may be landed, handled, manufactured or reconfigured and re-exported without the intervention of the customs authorities in an FTZ. Goods or services become subjected to customs duties only when they are moved to consumers outside the FTZ but within the country in which the FTZ is located (the customs territory).

A public, private or a combination of public and private entities under the supervision of and with the approval of the Authority may operate in a FTZ. In other words, before an enterprise can operate in a FTZ they must be registered and obtained an operating licence from the Authority. This accords such enterprise the status of "an Approved Enterprise" - an enterprise that has applied to the Authority and has obtained the licence to carry out an approved activity in the FTZ. Thus, only Approved Enterprises can operate in the FTZs.

Any enterprise which proposes to undertake an approved activity within an FTZ can apply to the Authority in writing for permission and submit all necessary documents and information in support of its application as the Authority may require. The Authority may then grant a licence for any of the approved activity to an individual or business concern whether or not the business is incorporated in the customs territory (CT)

This is the place outside the FTZ where (the nationally) applicable provisions on duties, levies, rates and taxes attach to transactions. According to IPROG2004, CT are "areas in Nigeria where there is no exemption for payment of customs duties on imports, company income tax etc".

Yes. Firearms and ammunition, other than by members of the security services or security agencies employed to work in an FTZ in the course of their duties or by such other persons as may be authorised by the Authority; dangerous explosives, without prior approval of the Authority; petrol, inflammable materials, hazardous cargoes or oil fuels, other than in such quantities and on such terms and conditions as may be prescribed by the Authority; and on goods which the Authority by Order has imposed specific or absolute prohibition on their importation are not be allowed into a FTZ.

Manufacturing of goods for export, warehousing freight forwarding and customs clearance, handling of duty free goods (transhipment, sorting, marketing, packaging, etc.), banking, stock exchange and other financial services; insurance and re-insurance, import of goods for special services, exhibitions and publicity, International Commercial Arbitration Services Activities relating to integrated zones, and other activities deemed appropriate by the Authority.

Yes, an Approved Enterprise can lose its license to operate in a FTZ for several reasons. For example, where an Approved Enterprise that has secured a lease of land fails to commence development and operations within three (3) and eighteen (18) months respectively after executing the lease agreement or such other extension as the Authority may grant, the license of the approved enterprise shall be revoked forthwith. Also, the Authority may revoke a Licence if a Licensee fails to comply with the provisions of the NEPZA, Regulations and Circulars issued by the Authority from time to time. The Authority may also revoke a Licence if the Licensee is in breach of any of its obligations under any lease agreement to which the Licensee is a party or is in breach of any conditions attached to any Licence held by the Licensee.

Yes. In the event that an investor wishes to disinvest for any reason, the Authority shall take over the building occupied by the investor on negotiated and agreed cost and payment terms on mutually agreed by both parties.

Foreign investors are free to operate in FTZs and 100% foreign ownership is permitted for Approved Enterprises in an FTZ. Where a foreign investor chooses to register in a FTZ as an enterprise, the licences issued by NEPZA are only valid within the FTZ and, as a result, holders of such licences that wish to carry on business in the CT are required to comply with the applicable laws.

Any approved enterprise is entitled to import into a FTZ free of customs duty: VAT and other taxes 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, alteration, reconstruction, extension or repair of premises in a FTZ or for equipping such premises.However, if the goods eventually find their way to CT or are used to produce goods for the CT, import duty liability that was not paid before will re-attach.