Special Economic Zones in the OIC Region:
Learning from Experience
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The types of licences issued by NEPZA are as follows:
 Free Zone Developers Licence: granted to either a public or private entity or a
combination of the two for the establishment, operation and management of an FZ in
Nigeria under the supervision, monitoring and regulation of NEPZA;
 Free Zone Enterprise Licence: granted for an enterprise to undertake an approved
activity within an FZ. These activities could be manufacturing, trading or service
provision; and
 Export Processing Factory/Export Processing Farm Licence: granted to an export-
oriented manufacturing enterprise or farm located in Nigeria which has the capacity to
export over 75% of its production.
5.6.3.2 Customs Regulations
The Export Processing Act allows for the receipt in foreign currency, by an approved entity, of
payment for goods and services supplied to customers within Nigeria. This means foreign
investors can charge for their services in their own currency and are not bound by the
sometimes restrictive provisions of the Central Bank of Nigeria Act 2007.
An approved foreign investor is allowed to receive payment for goods and services supplied
within the Customer territory in USD$ or the prevailing Central Bank of Nigeria (CBN) current
exchange rate in Nigerian Naira (₦) only. Foreign investors are therefore only allowed to charge
for their services in USD$ or equivalent in Naira (₦) based on the current CBN exchange rate.
Incentives
5.6.3.3 Fiscal Incentives
Fiscal incentives for investors (as per the Nigerian Free Trade Zone policy):
 100% tax holiday from all Federal, State and Local Government taxes, rates, duties.
However, companies within the Zone are expected to provide PAYE (Pay as You Earn)
contributions to the host state for all workers residing outside the Zone. In the event
that expatriate workers reside outside the zone, the same is applicable but the
contribution will be calculated by the State Internal Revenue Board of the State
Government;
 Duty-free and tax-free import of raw materials and components for goods destined for
re-export; and
 Duty-free introduction of capital goods, consumer goods, machinery, equipment, and
furniture.