Nigeria Free Trade Zones: Lekki, Ogun–Guangdong and How to Set Up

Nigeria’s free trade zones are regulated by two bodies. The Nigeria Export Processing Zones Authority (NEPZA) covers industrial, manufacturing, logistics and tech zones, and the Oil and Gas Free Zones Authority (OGFZA) covers oil and gas zones. A licensed Free Zone Enterprise (FZE) is exempt from federal, state and local taxes, imports equipment and inputs duty-free, can repatriate profits and capital freely, and does not need an expatriate quota. Chinese investment is concentrated in the Lekki Free Trade Zone in Lagos and the Ogun–Guangdong Free Trade Zone in Ogun State.

The new tax law in force since 1 January 2026 adds limits: zone enterprises that sell more than 25% into the domestic market, or that belong to large multinational groups, lose part of the benefit.

Key points

• Scale: NEPZA’s chief said in June 2026 that Nigeria has 63 licensed zones, about 40 operational, hosting more than 900 enterprises.
• Two regulators: NEPZA (NEPZA Act 1992) and OGFZA (Oil and Gas Export Free Zone Act 1996), each running a one-stop approval process.
• Lekki FTZ: 30 km² planned, 3 km from Lekki Deep Sea Port; 134 signed and 66 operating firms as of October 2025.
• Ogun–Guangdong FTZ: 170+ registered firms, over US$2 billion invested, annual turnover above US$1 billion, nearly 10,000 direct jobs.
• Entry rules: NEPZA requires minimum share capital of US$100,000, more than one director, and no prior CAC registration.
• New tax rules: domestic sales above 25% of total sales mean full domestic tax on all profits; MNE members or firms with turnover above ₦20 billion face a 15% minimum effective rate.

Who regulates the zones

The legal basis is the Nigeria Export Processing Zones Act 1992 and the Oil and Gas Export Free Zone Act 1996. NEPZA supervises most general-purpose, manufacturing, logistics and digital zones. OGFZA, set up in 1996 and operating from Onne in Rivers State since 2001, oversees oil and gas zones such as the Onne Oil and Gas Free Zone and the Dangote Industries Free Zone inside Lekki FTZ, home to the Dangote refinery, fertiliser and petrochemical plants.

Zones work on a single-window model: company set-up, customs, immigration and tax approvals are handled by the zone authority and the zone management company rather than separate ministries.

The two Chinese-backed zones compared

Most figures come from China’s MOFCOM country guide for Nigeria (2025 edition). In November 2025 the News Agency of Nigeria quoted Lekki Free Zone Development Company MD Dai Shunfa as saying that, by June 2025, 134 firms had signed, 65 were operating and 10 were under construction, which is consistent with MOFCOM.

Incentives for zone enterprises

According to NEPZA and law-firm summaries, approved FZEs generally get:

• Exemption from federal, state and local taxes, rates and levies, including company income tax, capital gains tax and VAT on qualifying in-zone transactions
• No withholding tax on dividends
• Repatriation of capital, profits and dividends at any time
• 100% duty exemption on imported machinery, equipment and production inputs; duty-free storage
• No import or export licences
• 100% foreign ownership, freedom to hire foreign managers and specialists, and expatriate quota waivers
• Rent-free land during construction
• Up to 100% of output may be sold into Nigeria with a permit and the applicable duties

What the 2026 tax law changes

The Nigeria Tax Act 2025, effective 1 January 2026, narrows the benefit:

• The 25% rule. An FZE that sells more than 25% of total sales into the customs territory (the domestic market) pays full domestic company tax on all its profit.
• 15% minimum rate. FZEs that are part of a multinational group or have turnover above ₦20 billion face a 15% minimum effective tax rate.
• Exporters. Entities whose profits come entirely from exports stay fully exempt; smaller firms with at least 75% export sales get proportional relief.

For Chinese factories selling mainly to Nigerian customers, this significantly reduces the advantage of a zone location, so model the numbers before you choose a site. See our Nigeria Tax Act 2026 guide.

How to set up in a zone

1. Pick a zone that suits your sector and market; some zones accept only certain activities.
2. Talk to the zone management company about land, factory or office space.
3. Prepare the application: NEPZA Form 1, directors and share allotment (Form 2), MEMART, board resolutions, business description, directors’ passports and photos, a lawyer’s declaration of compliance (Form 3), a feasibility study, and where relevant an infrastructure plan, environmental impact assessment and sector certificate for oil and gas.
4. Meet the capital and director rules: US$100,000 minimum share capital and at least two directors.
5. Receive the FZE licence from the authority or zone management, then renew the operating licence annually.
6. Bring in capital through a bank so profits can be repatriated, and arrange entry permits for any foreign staff.

NEPZA says an FZE does not need prior CAC registration. If you also want to trade outside the zone, you will need a separate CAC company registration. Zone enterprises are exempt from quotas, but individual staff still need the right visa; see our STR and CERPAC guide and expatriate quota guide.

Who should consider a zone

• Export-oriented manufacturers serving West Africa and beyond get the full package.
• Port logistics and warehousing next to Lekki Deep Sea Port, including bonded storage and re-export.
• Import-substitution plants in ceramics, building materials and packaging already cluster in Ogun–Guangdong, but watch the 25% domestic-sales threshold.

More trade and investment news in our trade and free zones section.

Sources

• Nigeria Export Processing Zones Authority (NEPZA)
• NEPZA FAQ: licences, entry requirements and incentives
• OGFZA: Dangote Industries Free Zone
• The Guardian (Nigeria): Free zones generate $33bn, house 900 enterprises (June 2026)
• Mondaq: Free trade zones in Nigeria, legal framework and incentives
• Mondaq: How to set up a free zone company in Nigeria
• News Agency of Nigeria: Lekki Free Zone Coy MD on progress (November 2025)
• HKTDC: Ogun–Guangdong Free Trade Zone
• MOFCOM country guide: Nigeria (2025 edition), chapter 5 (Chinese)

Facts checked: 2026-10-22 · Niriliya Huaren Editorial Team · How we check facts