Special Economic Zones in the OIC Region:
Learning from Experience
144
1995, which led to the establishment of NIPC and the focus on more coordinated investment
promotion efforts.
Out of these pieces of legislation, the framework for Nigeria’s Free Zones was created. Vision
2020, as well as National Economic Empowerment and Development Strategy (NEEDS) have
most recently provided the policy framework in which Free Zones have been prioritized and the
most recent development of the LFTZ has happened. Importantly, the Federal Government of
Nigeria also recognised the need to more effectively involve state governments as well as the
private sector. This coincided with greater political stability and consistent economic growth in
Nigeria in the early 2000s. These factors led to the Free Zone programme gaining significant
momentum and the development and investment into the Lekki Free Zone.
SEZ Act
The overarching piece of legislation which guides the Free Zone programme is the Nigeria
Export Processing Zones Act (2004). This law stipulates that the licensing, monitoring and
regulation of Free Zones Scheme in Nigeria is vested in the Nigeria Export Processing Zones
Authority (NEPZA).
The Act states that a zone may be operated and managed by a public, private or a combination
of public and private entity under the supervision of and with the approval of Nigeria Export
Processing Zones Authority (NEPZA). The NEPZA regulations also include investment
procedures, regulations and operational guidelines for EPZs in Nigeria.
SEZ Regulations
5.6.3.1 Licensing
Any enterprise wishing to do business within an EPZ in Nigeria must first apply in writing to
NEPZA for permission. NEPZA may grant a licence for any approved activity in an EPZ to an
individual or business. That business does not, however, need to be incorporated in Nigeria. The
granting of a licence by NEPZA shall constitute registration for the purposes of company
registration within an EPZ. A licensed enterprise does not need to comply with the rules of local
incorporation in Nigeria, governed by the Companies and Allied Matters Act 1990 (which
provides for the incorporation of companies and incidental matters). This is because the
granting of a licence by NEPZA is evidence of a company’s registration in an EPZ in Nigeria.
There are a number of different types of Free Zone status as follows:
 FTZ;
 EPZ;
 Export Processing Farm (EPF);
 Science and Technology Park (S&TP); and
 SEZ.