Harnessing the Economic Benefits of Doing Business in The Lekki Free Zone, Lagos, Nigeria
WHAT IS A FREE ZONE?
A free zone is any area designated by the President of the Federal Republic of Nigeria for carrying out of an approved activity or business, one of such areas being the Lekki Free Zone.
THE LEKKI FREE ZONE.
The Lekki Free Zone is one of the Free Zones established pursuant to section 1 of the NEPZA Act and located opposite Tiye Town Akodo Road, Ibeju Lekki, Lagos.
It is currently being operated as a public private partnership between a consortium of Chinese companies and the Lagos State government. The consortium of Chinese Companies is represented by China-Africa Lekki Investment Limited (CALIL) with sixty percent (60%) stake while the Lekki Worldwide Investments Limited (LWIL) represents the Lagos State Government having forty percent (40%) stakes.
WHAT SORT OF BUSINESSES COULD BE CARRIED OUT IN A FREE ZONE?
By virtue of section 6 as well as the third schedule to the Nigeria Export Processing Zones (NEPZA) Act, the following businesses can be caried out in a free zone.
- Manufacturing of goods for export
- Warehousing, freight forwarding and customs clearance.
- Handling of duty-free goods such as transhipment, sorting, marketing, and packaging.
- Banking, stock exchange and other financial services
- Insurance and reinsurance
- Import of goods for special services, exhibitions, and publicity.
- International commercial arbitration services.
- Activities related to integrating zones.
- Other activities deemed appropriate by the Nigeria Export Processing Zone Authority.
WHAT ARE THE ECONOMIC BENEFITS OF DOING BUSINESS IN THE LEKKI FREE ZONE?
The economic benefits of doing business in the Lekki Free Zone are enormous. These benefits include.
- Tax exemptions from all Federal, State and Local Government taxes including Companies Income Tax.
- One-stop approval for all permits, licenses and incorporation documents.
- Duty and tax free importation of raw materials.
- 100% foreign ownership of business.
- 100% repatriation of capital and profit
- Waiver on all import and export duties.
- Exemption from expatriate quota
- Abolition of all forms of strikes/industrial action.
CONCLUSION:
The Lekki Free Zone provides a massive investment opportunity for investors. Berkeley Legal is well equipped to provide pre and post incorporation services for companies that intend to and/or operating in the zone.
If you would like to know more about the Lekki Free Zone or require legal advice, please contact info@berkeleylp.com
The information provided in this article is for general informational purposes only and does not constitute legal advice.
