The Ogun Gaungdong Free Trade Zone (OGFTZ) in Nigeria is a joint venture between the Nigerian and Chinese governments. Established in 2008, it covers approximately 10,000 hectares and focuses on manufacturing and processing industries, with China African Investment Company (CAIC) holding an 82% stake and full management control. The zone aims to expand into various industries, offering services like logistics and financial assistance. Over 11 years, it has created jobs for 4000 people and provided training to 30,000 individuals.
The primary focus of the free zone is on the manufacturing and processing industries. The region's major industries are the light industry, furniture, building materials, hardware, wood processing and ceramics. In the long run, the OGFTZ is focused on expanding more into the engineering, marketing and trading industries. As discussed in the China- Africa Summit forum, the free zone is trying to develop its real estate development and R&D department and is striving to provide services such as logistics, manufacturing, trading, financial assistance, etc.
OGFTZ is looking into the prospect of partnering with some Asian countries such as India or Lebanon. This move will not only improve the trade relations of Nigeria with other countries but will also help in uplifting the Nigerian economy.
The free trade zone is located at 22 kilometers straight-line distance from Lagos International Airport in Otta, Ogun State, southwest of Nigeria, and 28 kilometers straight-line distance from Lagos, being the largest economic and commercial center in Western Africa, so is the distance from APAPA, which is the largest port in West Africa. Overall planning of the Free Trade Zone, of which Ogun State is a developing and emerging satellite city of Lagos, covers 100 square kilometers, and the strategic and working relationship is supposed to last for 99 years.
Why do you invest in the Zone?
The Ogun-Gaungdong Free Trade Zone (OGFTZ) offers a range of preferential policies and incentives for investors:
Exemptions: Investors enjoy exemptions from customs duties, VAT, and various taxes and levies. They are also exempt from import and export licenses requirements.
Repatriation and Remittance: Foreign investors can repatriate capital investment and remit profits and dividends without limitations.
Employment and Infrastructure: OGFTZ provides one-stop services, exempts from expatriate quotas, and offers access to special plate numbers. There are no labor unions, and strikes are prohibited.
Taxation Programs: Different taxation programs are available based on the type of enterprise, with exemptions and reduced rates for manufacturing, trading, and construction activities.
Land Leasing: Flexible lease periods and standard warehouses are provided to facilitate operations within the Zone.
ENTERPRISES OUTSIDE THE FREE TRADE ZONE
Import tariff 5% 35%
VAT 7 5%
Corporate income tax 30%
Various local government taxes and fees at all levels capital gains tax, withholding tax, education tax, stamp duty
ENTERPRISES WITHIN THE FREE TRADE ZONE
Import duty free
Exemption from VAT
Exemption from corporate income tax
Exemption from all taxes and fees of local governments at all levels
Free Trade Zone companies can be wholly owned, joint ventures or 100% foreign investment
The investment climate of Nigeria
The Ogun Gaungdong Free Trade Zone (OGFTZ) represents a collaboration between Nigeria and China, occupying 10,000 hectares in Nigeria's Ogun State. Managed primarily by the China African Investment Company (CAIC), it prioritizes manufacturing and processing sectors such as furniture and ceramics. Established in 2008, the zone seeks to attract a diverse range of enterprises and expand into engineering and trading domains. Over the past 11 years, it has generated employment for 4000 individuals and provided training to 30,000 people. Situated conveniently close to Lagos, Nigeria's economic epicenter, the zone places emphasis on sustainable infrastructure. With aspirations for further growth and collaboration with other Asian nations, OGFTZ aims to enhance trade relationships and bolster Nigeria's economy.
Source: https://ogftz.org/investment/
Updated on: 02/21/2024