Skip to main content

Oil & Gas Free Zones

In order to maximize its natural resources, the government of Nigeria created and incentivized Oil and Gas Free Zones, to favor foreign investment aimed at creating employment, welfare, transfer of technology and a generical economic development.

With time Intels […] domesticated the concept of “one-stop oil service center” in some NPA-approved ports. The concept led to the rationalization of the logistic requirements for import and supply of equipment and maximised NPA’s revenue and control. The rationalised and integrated approach to the logistics of offshore exploration, development and production had a major cost saving effect for all parties involved in the Nigerian Oil and Gas Industry.

– source: Oil and Gas Free Zones Authority (Nigeria)

Zero duty, no VAT, WHT or corporate taxes

Oil and Gas Free Zones (OGFZs) are strategically located in the heart of the Niger delta, by the ports of Onne, Warri and Lagos. These sites offers strategical platforms for the provision of logistics solutions, to the industry and to the wider territory as a whole.

The Nigerian Government established a Onne Oil and Gas Free Zone in 1996, to set an Oil Service Center (OSC) for onshore and offshore operations while providing the West African and greater sub-Saharan Oil & Gas industry with easy access and duty-free distribution facilities.

Following the Onne OGFZ’s success, the Government decided to declare the Port of Warri an Oil &Gas Free Zone in May 2011.

Zero duty
for Free Zones

Cargos contained within the Free Zone
and exported to another territory
are exempted from duty

Duty Free
Stock

Spare parts, equipment, etc.
as long as they remain
within the Free Zones

No VAT, no WHT
no Corporate Taxes

No quota restriction
for expatriate employees
in the Free Zones

No Expatriate
Quota

No quota restriction
for expatriate employees
in the Free Zones

Advantages

Oil & Gas Free Zones offer undoubted advantages and incentives to foreign companies to invest in Nigeria. Some examples include:

Business Incentives

  • 100% repatriation of capital investment, remittance of profits and dividends allowed, no import or export licenses required;
  • 100% of FZ goods can be sold in Nigeria;
  • 100 % foreign ownership of business allowed, duty-free stock, equipment, spare parts, pipes, no double-handling in and out of Nigeria

Tax Incentives

  • No value added tax; No withholding tax;
  • No corporate tax; No capital gains tax.

Customs Incentives

  • No customs duty payable for goods stored within the Free Zone or goods consumed within the Free Zone (including equipment and machinery);
  • No customs duty payable for export of Free Zone goods to other countries;
  • Free Zone goods may be transferred under customs’ escort from any port or airport of entry in Nigeria to Oil and Gas Free Zones.

Immigration Incentives

  • Free movement in and out of the Zone;
  • Immigration fast-track procedure

Oil & Gas Free Zone Areas