Incentives & Benefits

Oil and Gas Free Zone Onne is set to play a major role in the development of the West African oil and gas industry with a unique package of incentives and strategic advantages unrivalled throughout the rest of the sub-region. Oil and Gas Free Zone Onne, located about 30km from Port Harcourt, offers an easy way to do business for companies involved in the West African oil and gas industry.

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Graphic Customs Duties Example (Click to enlarge)

Ideally located in the heart of the Gulf of Guinea region, the Nigerian government has resolved to create a strategic centre of excellence and efficiency for all oil operating companies and service and equipment suppliers. A range of financial incentives are available to investors looking to set up operations within the Free Zone similar to those offered by other successful Free Zones throughout the world. The Oil and Gas Free Zone Onne also offers a whole range of other strategic benefits to companies specifically within the oil and gas sector.

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Logistics Operations Comparison (Click to enlarge)

Among the general incentives offered by the Oil and Gas Free Zone Onne are quick and simple registration procedures, no red tape, faster services, easy cargo customs clearing procedures, plus fast track procedures at Lagos and Port Harcourt international airports for all visiting and Free Zone expatriate personnel. In other markets around the world, Free Zones have been instrumental in boosting industrial and economic growth and Oil and Gas Free Zone Onne is designed to strengthen Nigeria’s future role in the regional oil and gas industry. Among the advantages for Nigeria in establishing the Free Zone are greater levels of foreign direct investment; technology transfer; manpower development; provision of employment opportunities and greater economic self-reliance.

The Nigerian government has been investing heavily in the infrastructure to support the Free Zone and is determined to see the facility grow into a major hub of activity. Supporting the region’s energy industry, it is located close to major projects such as the Nigerian Liquefied Natural Gas plant at Bonny Island but within easy reach of offshore developments field.

Various Incentives and Advantages in the Free Zone

Free Port Incentives

  • No form ‘M’ prior to shipment
  • Ability to break bulk, sold, exhibited, broken-up, packed, mixed,cleaned, marked, remarked, loaded, unloaded, reloaded, divided and graded
  • Goods may be manipulated or manufactured (worked, processed or reprocessed)
  • Goods may be consumed in the Free Zone

Customs Incentives (import/export)

  • Duty Free Stock within the Zone
  • No customs duty for goods consumed in the Free Zone;
  • No customs duty payable for goods exported from the Free Zone to other countries
  • No customs duty payable on goods in transit from any port of entry in Nigeria to the Free Zone
  • No import and export licenses required.
  • Duty payment on raw materials only
  • Duty is based on the cost of raw material at the importation stage
  • Goods imported into the Free Zone in finished form without value addition shall attract full duty payment on export into the Customs territory
  • 75% Import Duty Rebate on Special Products (Goods which value is added in the Free Zone without changing the essential character of the product and destined for Customs Territory)

    Direct Import Example - click to enlarge

    Direct Import Example – click to enlarge


    Example: Import without value addition - click to enlarge

    Example: Import without value addition – click to enlarge


    Example: Import after value addition - click to enlarge

    Example: Import after value addition – click to enlarge


  • 100% sale/export of product into Customs Territory after payment of duties

Immigration Incentives

  • No Quota Restriction on expatriate employees
  • Immigration fast track Procedure and attendance
  • Visa application under STR Visa Regime
  • Free Zone expatriates shall work and reside within the Zone only
  • Enjoys liberty of movement

Tax Incentives

  • No Corporate Taxes (VAT, WHT and Capital Gains Tax)
  • No Federal, State and Local Government taxes, levies and rates
  • Foreign exchange regulations shall not apply
  • No levies on 75% Import Duty Rebate

Specific Advantages

  • 100% repatriation of Capital Investment
  • 100% Remittance of profits and dividends
  • No import licenses required
  • 100% sale/export of goods into Customs territory after payment of duties
  • 100% foreign ownership of business
  • Duty Free stock of equipment, spare parts and pipes
  • Optimize cash flow management as no payment of duties till goods are exported into the Customs territory from Free Zone
  • No double handling in and out of Nigeria
  • Resolution of disputes by the Authority
  • Long term port and camp facilities lease agreement

Specific Onne Advantages

  • Customs privileges for goods consigned to Oil and Gas Free Zone Onne, including Goods in Transit to other West African Territories.
  • Duty Free Stock, Equipment, Spare Parts, Pipes
  • No double handling in and out of Nigeria
  • Access to major projects On-shore, Off-shore and Regionally
  • Cost Efficient Operations
  • Sophisticated Oil Service Centre Support

Logistics Centre for West Africa

  • Easy Clearing Process
  • Duty Free Status for Imports
  • Duties paid on Goods Exported to Nigeria
  • Sea/Air Logistics
  • No red tape – faster services
  • Minimal Bureaucracy

Market Access / Strategic Location

Distribution Centre For West Africa

  • Nigeria
  • Douala – Cameroon
  • Malabo – E. Guinea
  • Port Gentil – Gabon
  • Pointe Noire – Congo
  • Malongo – Congo
  • Soyo – Angola
  • Luanda – Angola
  • Saõ Tomé & Principe
  • Abidjan

distribution

Strategic Location Map (Click to enlarge)

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Distances From Free Zone (Click to enlarge)

 

Services Proximity

Services Proximity (Click to enlarge)