Incentives - advantages of establishing in the Enpower FTZ

Generally, the free trade zone operation in Nigeria has numerous benefits accrued to the system. Government has provided generous physical and fiscal incentives aimed at making business in the Zones very easy and competitive. The physical incentives are provided to address the national infrastructural inadequacies. These facilities include water, electricity, security and telecommunication, which could make up to 25% of an enterprise initial capital outlay. Some of the fiscal incentives includes the followings:

• • • Complete exemption from federal, state and local governments' taxes, levies, duties and foreign exchange regulations;
    • One-Stop approvals for all permits, operating licenses and incorporation papers;
    • 100% foreign ownership of all manner of business is allowed in the EFTZ;
    • Duty free, tax free import of raw materials and components for goods destined for re-export(e.g capital goods, consumer goods, machinery, equipment and furniture, etc;
    • 100% repatriation of capital projects and dividends;
    • Waiver of all expatriate quotas and Free repatriation of foreign capital invested in the EFTZ at any time with capital appreciation on the investment;
    • Rent-free land at construction stage within the Zone;
    • Free remittances of profits and dividends earned in the EFTZ;
    • Free engagement of expatriate managers and other personnel in the EFTZ;
    • Free trade relationship between the investors and their personnel as no strike or lockout is permitted for a period of ten years following the commencement operations in the EFTZ;
    • Also, all disputes arising within the Zone between the government and an enterprise are resolved by the Authority in an expeditious and equitable manner;
    • Preferential tariffs for made-in-Nigeria goods by some economic blocks like the European Union (EU);
    • Legal Guarantees and protection of foreign investments, both in the EFTZ and within Nigeria, from nationalisation, expropriation and mandatory buy by the Nigerian government as confirm in the Nigeria Investment Promotion Act; and
    • Enterprises in the Zone can sell up to 100% of their manufactured item, with up to 35% value addition, in the domestic economy, regardless of whether the item is banned or prohibited.

Free Trade Zone Registration and Licensing

Types of FTZ Licenses

The Authority (Free Trade Zone Management) might grant approval for one or more of the following licenses according to NEPZA:

• • Free Zone Enterprise License: is granted by the Zone Management for an enterprise to undertake an approved activity within the Zone. These activities could be: Manufacturing Trading and Service Provision.
  • Export Processing Factory/Export Processing Farm License: granted by the Authority to an export oriented manufacturing enterprise of farm located in the customs territory, haing the capacity to export over 75% of its production.

The procedure for companies/enterprises to locate in an approved and developed Free Zone certified by the authority to admit companies are as follows:

• • • The prospective enterprise/developer obtains an application form from EFTZ.
    • Cost of application is not uniform, but depends on the tariff structure of the Zone varying from US$ 5,000 to US$10,000 per year.
    • On completion of the application by the prospective investor, it is submitted back to the EFTZ. The application can downloaded for free from mdacapitalinvest.com, then you fill it by hand, scan and send by email (info@enpowerftz.com or enpower.ftz@mdacapitalinvest.com) or by post to EFTZ, Plot 282b Trans-Amadi Industrial Estate, Port Harcourt, Rivers State, Nigeria. You may also fill the eForm online and send at a fee of US$2. It is not necessary you sign it. As you register and access, you become a member with  the right to receive our weekly newsletters, business information and data, etc.
    • Within the framework of EFTZ's operation, the investor is expected to hear of the outcome of the application within 5 working days.
    • If the application is approved, the enterprise is expected to visit the zone, pay the applicable licensing fee and become a member of EFTZ. The approved enterprise shall thereafter have the freedom to request for serviced plots with all the facilities already provided and can access the bundle of privileges, rights, incentives and obligations in the Free Zones‟ Scheme.