The Export Processing Zone (CEPZ)
Calabar, Nigeria
The Calabar Export Processing Zone (CEPZ) is the premier Export Processing Zone (EPZ) in Nigeria, the giant of Africa. It is located in the historic port city of Calabar, Cross River State.
The CEPZ provides the necessary enabling environment for the setting-up, development, expansion and growth of export-oriented manufacturing industries in the non-oil sector of the Nigerian economy. It is situated on 152 hectares of prime real estate, adjacent to the modern seaport of Calabar. There is an additional 20 hectares of land available for future expansion. The Calabar EPZ is equipped with all modern conveniences, good roads, steady power and water supply, telecommunications and very good security. Prebuilt factories are yours for the asking, with every conceivable facility available 24 hours of the day.
Thinking about setting up an export industry in Nigeria? There's no better place to do it than at the Calabar Export Processing Zone, where you can be rest assured that your investment is safe and will pay for itself in a very short time!
Calabar, the capital of Cross River State, is one of the major seaports in Nigeria. As such, it is ideally suited for use by the Calabar Export Processing Zone.The port lies about 93 kilometers (58 miles) from the fairway buoy and 8 kilometers (5 miles) from the main channel of the Cross River. It occupies approximately 38 hectares of land, and has a fully-buoyed river channel which is 80 nautical kilometers (about 50 nautical miles) long and 150 meters (490 feet) wide. Annually, about 1.5 million metric tonnes of cargo can be handled at the port, which is located less than 2 kilometers (1.25 miles) away from the Calabar EPZ.In addition, the Port has a health center, offering medical services to ships either at anchorage or at berth. Good berthing/transit cargo storage facilities as well as stevedoring services are provided for. There is also a slipway graving (dry dock) attached, with machine shops which are capable of fabricating new parts and repairing old ones.
SOURCE: Raw Materials Research & Development Council, Calabar. Last Updated August 2, 1999.
MINERAL RESOURCESS/N
MINERAL
LOCAL GOVERNMENT AREA
LOCATION
REMARKS
1.
Uranium
Yakurr
Ugep, Agoi
Extent of deposit not yet determined
Pyrite
Akamkpa
Mile 18, after Odukpani/Yala Junction on the way to Awi
Exist in Sedimentary Layers
2.
Barytes
Yala
Alifokpa
Exist in sedimentary layers
Yakurr
Agoi Ibami
Small scale
3.
Petroleum
Akpabuyo
Idundu Qua Town
Quantity not yet determined
Bakassi
(Offshore)
Quantity not yet determined
4.
Coal
Akamkpa
Sediment of low and upper coal in the Eastern Flanks of Akpamkpa
Extent of deposit not yet determined
5.
Manganese
Akamkpa
Oban Rubber Estate
Extent of deposit not yet determined
6.
Gelena/Lead Zinc
Yala
Gabu and Alifokpa
Extent of deposit not yet determined
7.
Salt
Obubra
Ibene in Ababene
Extent of deposit not yet determined
Salt deposits
Yala
Okpoma, Gabu, Ijegu, Oba Olochor, Woda
40 km in length and reaches its greatest width of 112.8 km at Gabu/Echimoga. In the Okpoma vicinity, it is by the Abakaliki/Afikpo Road. The relief of the area is mild. Salt is produced in most of these areas traditionally.
Abi
Egbokoriko, Ogoho, Onyi
Exploited for local salt use.
Etung
Akparabong and Abia
Exists in large quantities. The Akparabong brine hold is located about 4.8km from Akparabong village.
Obubra
Ibene-Ababene Road
Exploited for local salt use.
8.
Iron Ore
Obubra
Ofioji in Isobo Yala beach
Deposits yet to be determined
Geothite 62% lateritic iron stone ore
Obubra
Obubra Urban
Deposits yet to be determined
9.
Talc
Obudu
Okwel Osa Mountain
Extent of deposit not yet determined
Obanliku
Near Sankwala Market about 15km Sout East of Obudu
Extent of deposit not yet determined
10.
Mica/Illmenite
Obudu
Ohong & Alege
Extent of deposit not yet determined
Obanliku
Bendi (near the road to Wula).
Extent of deposit not yet determined
Boki
Nsadop/Boje Axis
Extent of deposit not yet determined
Akamkpa
Akamkpa
Extent of deposit not yet determined
11.
Tin Ore
Biase, Yakurr
Akwaibami Agoi Ibami
Deposit yet to be determined
Ogoja
Ogoja
Deposit yet to be determined
Obudu
Obudu
Deposit yet to be determined
12.
Gold
Obudu
Traces in crystalline basement of Okorotong.
Deposits yet to be determined
Akamkpa
Oban Massifs
Deposits yet to be determined
13.
Quartz & Glass Sand
Ikom
Ikom Town, Ibine
Deposits yet to be determined
Akamkpa
Oban, Mfamosing
Deposits yet to be determined
Obudu
Okorotong Hills
Deposits yet to be determined
Quartz Muscovite
Obubra
Edondon
Deposits yet to be determined
Pure Quartz
Obubra
Iyamoyong
Deposits yet to be determined
Granite
Obanliku
Bebi, Ugbakkoko
Ranch/ SGEN Co. Ltd. Established a Quarry during the construction of the Obudu Road. Huge deposits still unexploited.
Sharp Sand
Calabar North
Ikot Omin, Ikot Effanga, Kasuk Town, Obutong Old Town, Ikpa
Deposits are being exploited though the quantity is not estimated.
Calabar South
Efut Uwanse, Efut Abua
Deposits are being exploited though the quantity is not estimated.
14.
Limestone
Akamkpa
Mfamosing
Available in commercial quantities. The most suitable of reef limestone are available in the area between Odukpani and Mfamosing.
Odukpani
Etankpini, Uwet Akpa
Deposits are untapped.
Calabar
Okranibang (Essien Town)
Deposits are untapped.
Obubra
Ofat (67% Carbonate)
Deposits are untapped.
Ochon-Isabang Road, (70% Carbonate)
Deposits are untapped.
Ababene-Omune road (65% Carbonate)
Deposits are untapped.
Yakurr
Ugep
Deposits are untapped.
Silicious Slight Limestone
Odukpani
Calabar - Odukpani Road and Uwet
Found in the course of road construction. The deposit is untapped.
15.
Tourmaline
Akamkpa
Uwet
Pegmatite intruding the Uwet granodiorite are source of primary tourmaline in Cross River State.
16.
Clay
Obanliku
Bendigie, Bukumaya, Bendi, Bassang
Deposit is being exploited by traditional pottery industries.
Ogoja
Ishibori
Deposit is being exploited by traditional pottery industries.
Akpabuyo
Idundu, Qua Town
Deposit is being exploited by traditional pottery industries.
Obubra
Iyamitet
Deposit is being exploited by traditional pottery industries.
Calabar North
Ikot Omin, Ikot Ansa, Essien Town, Okranibang
Deposit is being exploited by traditional pottery industries.
Calabar South
Ekondo, Anantigha River Bank, Uwanse Creek
Deposit is being exploited by traditional pottery industries.
Clay Mineral illite (highly solicious)
Obubra
Appiapumtet and Ofumbongha one
Extent of deposit not yet determined.
Clay Mineral Motomorillonite (Smectite)
Obubra
Ogurude
Extent of deposit not yet determined.
Clay Mineral Kaolinite with Geothite impurities
Obubra
Ovonum
Extent of deposit not yet determined.
Kaolin
Obudu
Alege (mined by Geominex Nig. Ltd.), Betukwe, Mba, Bebuabong
Deposits yet to be determined.
Akpabuyo
Idundu, Qua Town
Deposits yet to be determined.
Calabar North
Ikot Omin, Esuk Utan
Deposits are being exploited by the local population.
Spring Water
Obanliku
Bottom Hill Obanliku
Can sustain a large-scale water bottling project.
Calabar North
Essien/Simon Spring in Essien Town
Can sustain a large-scale water bottling project.
Calabar South
Uwanse Stream
Can sustain a large-scale water bottling project.
SOURCE: Raw Materials Research & Development Council, Calabar. Last Updated August 2, 1999
AGRO-BASEDS/N
LOCAL GOVERNMENT AREA
RAW MATERIALS
1.
ABI
Oil Palm, Cassava, Poultry, Maize, Forest Produce, Fruits and Vegetables, Rice
2.
AKAMKPA
Timber and Forest Produce, Vegetables and Fruits, Raffia Palm, Poultry, Bamboo, Oil Palm, Rubber, Gmelina.
3.
AKPABUYO
Oil and Palm Produce, Poultry, Cassava, Raffia, Forest Produce and Timber, Fish, Fruits, Kolanut.
4.
BIASE
Fruits and Vegetables, Plantain/Banana, Timber and Forest Products, Bamboo, Oil Palm.
5.
BOKI
Plantain/Banana, Fruits and Vegetables, Livestock, Oil Palm, Bamboo, Cocoa, Poultry, Timber and Forest Produce, Cane Ropes, Coffee.
6.
CALABAR NORTH
Fishery, Raffia Palm, Cassava, Oil Palm, Rubber, Vegetable.
7.
CALABAR SOUTH
Fishery, Vegetables, Cassava, Oil Palm, Raffia Palm.
8.
BAKASSI
Fishery, (Fish Crayfish, Oysters, Clams, Periwinkles), Raffia Palm, Forest Produce, Beniseed.
9.
ETUNG
Plantain/Banana, Cocoa, Fruits (Pineapples, Oranges etc) Timber and Forest Produce, Oil Palm, Maize, Livestock, Poultry, Cassava, Cane Ropes, Coffee
10.
BEKWARRA
Maize, Cassava, Groundnut, Oil Palm, Yam, Beniseed.
11.
IKOM
Plantain/Banana, Cocoa, Fruits, Timber and Forest Produce, Livestock, Yam, Poultry, Oil Palm, Gmelina, Corn, Coffee.
12.
OBANLIKU
Maize, Poultry, Livestock, Forestry and Timber, Oil Palm, Yam Beniseed, Groundnut, Kolanut, Cassava, Rice, Plantain/Banana.
13.
OBUBRA
Fruits (Mango and Oranges), Rice, Yam, Oil Palm, Cassava, Timber and Forest Produce, Maize, Cocoa, Fish.
14.
OBUDU
Poultry, Oil Palm, Beniseed, Yam, Livestock, Kolanut, Groundnut, Maize and Millet, Plantain/Banana.
15.
ODUKPANI
Fishery, Plantain and Banana, Fruits and Vegetables, Timber, Rubber, Oil Palm, Raffia, Bamboo, Cassava, Maize, Kolanut.
16.
OGOJA
Maize and Millet, Cassava, Poultry, Sugar Cane, Yam, /rice, Livestock, Groundnut, Oil Palm.
17.
YAKURR
Fruits, Rice, Yam, Rubber, Oil Palm, Poultry, Timber and Forest Produce, Cassava, Maize.
18.
YALA
Maize and Millet, Cassava, Oil Palm, Poultry, Yam, Rice, Livestock, Sugar Cane, Fruits, Beniseed.
One-stop Approvals by the EPZ Administration and its supporting agencies to handle almost all phases of operation in the Zone
Exemption from all Levies, Rates, Customs Duties, and Taxes (Federal, State, and Local Government)
Repatriation of foreign capital investment in EPZs at any time (with capital appreciation on the investment)
No import or export licenses required
Land for Factory Space is provided Rent-Free
Warehouses, standard pre-built Factories, transportation, etc. available in the Zone
Unrestricted remittance of profits and dividends earned by investors in the Zone
100% Foreign Ownership of Enterprises in the EPZ is allowed.
25% of production can be sold in the domestic market. We are currently considering that this percentage of volume available for the domestic market be increased.
No quotas on products from Nigeria exported to the European Economic Community or to the United States
"Made In Nigeria"-goods entitled to preferential tariffs in the E.U. (Nigeria is a signatory to the Lomé Convention)
Access to the largest English-Speaking Market in Africa
Ideally located to serve European and North American Markets
At the Calabar EPZ, we are privileged to have access to some of the best facilities in the country. Below is a list of them.
Serviced plots: A total of 152 hectares of land has been developed as the Export Processing Zone. There is an additional 20 hectares available for expansion. A total of 80 serviced plots have been delineated for allocation to prospective investors for self-built facilities. The Nigeria Export Processing Zones Authority has final say on the design and construction of such factories.
Pre-Built Standard Factories:These are available to investors for immediate occupation to facilitate immediate commencement of business operations. They are designed and constructed to ensure safety and convenience. There are 8 Type A factories (area 1185 m2) and 4 Type B factories (area 1890 m2) availablenow, with more to be completed soon. Each factory block is provided with operational offices for managers, supervisors, etc., rest rooms, and changing rooms.
Roads and Street Lighting:A total of 10 kilometers (6.25 miles) of asphalt roads has been constructed. All buildings within the Zone are connected to the road network, which is designed for a high concentration of traffic. Street light, of course, are provided, as well as all necessary signs.
Sewer and Drainage System:A comprehensive waste management system is in place, which can cope with both human and industrial waste. A sewage treatment plant has been installed for the purpose of handling waste within the Zone.
Power and Water Supply:A regular and uninterrupted supply of electricity comes from a 33 kV/11 kV mains substation located within the Zone. In addition, 3 giant standby electricity generators are available. Each generator has a 3981 kW capacity. Potable water is supplied from 2 treated boreholes.
Environmental Laboratory: This laboratory provides services for effluent monitoring of industrial waste. It is also responsible for regular inspection of factories to ensure adequate treatment of waste before it is disccharged to the sewer line.
Telecommunications: Recognizing the need for a fast and efficient telecommunication system, the Calabar EPZ is equipped with a digital telecommunication system. It provides integrated customer access to its switching capabilities which can provide simultaneous voice/data services.
The 960-line (expandable to 3000 lines) system has:
call transfer
call waiting
call hold
hot line
executive override
access restriction
call forwarding
hree-way conferencing
speed calling
"don't disturb"
night answering
bad line reporting
Common Facilities: These include:
Administrative Block: a two-storey building providing office space for all departments and units at the Zone level. Provided in the block is a mini-Auditorium, a Library, and a Telecommunications Office.
Canteen/Mess Hall: This is well-equipped to cope with the meal requirements of all employees in the Zone, with a menu of local, continental, and Chinese food. We also can supply menus for special dietary or religious restrictions.
Fire-Fighting Station: A modern fire-fighting facility is already in place. With our well-trained and -equipped fire fighters, we can ensure the safety of both lives and property within the Zone.
Police Station: The existence of a contingent of the Nigeria Police Force in the Zone also helps to provide a secure base for operations. The entire Zone is well-secured with a 3-meter (10-foot) high perimeter sandcrete wall fence built around it. Three gates are provided at strategic positions along the length of the wall to allow for easy flow of pedestrian and vehicular traffic.
Warehousing and Transportation Services Centre (WTSC): The Centre provides cargo handling, storage, delivery and transportation services for all enterprises within the Calabar EPZ. There are three large Warehouses fully equipped with modern cargo handling and delivery facilities.
Banking Facilities: Approved commercial banks are locating within the Zone to offer all necessary banking services to investors. Banking services to be provided include foreign exchange settlement, accepting deposits, issuance of Letters of Credit (L.C.), and comprehensive off-shore banking services.
Business Costs at the Calabar EPZFacilities/Services
Periods/Units of Charge
Amount
Remarks
Development Fees for Infrastructure
Yearly
A*
Contribution towards the construction cost of such services as roads, fence wall, drainage, sewage system and plant, telecoms, power & water supply system, etc.
Purchase of Standard Factory Buildings:
- Type A: 1185 m2
- Type B: 1890 m2
Per unit
- Type A:
N20m- Type B:
N30mCost to exclude ground rent which is
N100/m2 a yearRenting of Standard Factory Buildings:
- Type A: 1185 m2
- Type B: 1890 m2
Rent is for 15 years
N1,000/m2 per yearPayment of 40% lease value on approval; 30% of value at end of 5th year; 30% of value at end of 10th year.
Leasing of Serviced Plots
m2 per year
B*
Minimum of leasing size is 2000 m2 over a 15-year period. 40% down payment on completion of factory construction, then 30% after 5 years and the balance at the end of the 10th year.
Management Fee
Half-yearly
0.5% of FOB value of exported products
For financing the maintenance of public facilities such as fire fighting, security and sanitation.
Zone Promotion Fee
Half-yearly
0.5% of FOB value of exported products
For financing of the Zone's promotional activities, e.g. seminars, advertising, etc.
Registration and Other Fees:
- Company Registration
- Boiler and High-Pressure Container Safety Inspection Fees
Percentage of Share Capital
- 0.04% of invested capital
- 0.006% of the value of the boiler and pressure container
Warehousing Fee
Weekly
N500 per tonne or per m2 (whichever is higher)Fee shall depend upon space occupied, tonnage, and period of storage.
Transportation Fee
Tonnage/km
N10,000 from the Zone to the portN4 per tonne/km (subject to maximum tonnage of truck allowed) for trips outside the Zone to any part of the country.Security personnel of the Zone always accompany trucks.
Post Office Fee
Yearly
As billed by NIPOST (the national postal agency)
Post Office boxes will be rented out over a period of 10 years. Other services provided by the Post Office will attract charges at the prevailing rates.
Environmental Laboratory Fee
Available upon request
As billed
The Environmental Unit provides services for the testing of waste and effluent within the Zone and for individual investors upon request. Fees for such services will depend upon the complexity and number of tests to be carried out.
Electricity Supply
KWAh
N3 per kilowatt-ampere hour, plus 15% as service chargeCost of power consumption will be based on units consumed.
Water Supply
m3
N20/m3Water consumption cost will depend on the amount of water consumed by the respective investors.
Telecommunication:
- Telephone
- Fax
- Telex
Minutes
As billed, plus 15% service charge
Charges will depend on time spent, with a minimum period of 3 minutes.
Clinic
Per patient
As billed
Cargo handling facilities
Tonnage
As billed
As provided within the Zone.
* where A + B = betweenN40 andN70 per m2 per annum These rates are subject to change without notice.
Export Processing Zones are clearly delineated and fenced industrial estates forming a free trade enclave within a nation's customs and trade regime. They are normally provided with liberal tax incentives, exemptions to duties on raw materials, equipment, plant and machinery. Excellent infrastructural facilities, conducive to export growth and development, are also provided. EPZs generally have four basic freedoms central to their operations:
freedom of ownership
relative freedom from customs
freedom from foreign exchange controls, and
freedom from taxes.
The Nigeria Export Processing Zones Decree (now Act) No. 63 of 1992 further provides as follows: the President and Commander-in-Chief of the Armed Forces may from time to time order, upon the recommendation of the Nigeria Export Processing Zones Authority (NEPZA), designate such areas as he thinks fit to be an Export Processing Zone. Such Zones may be operated and managed by a public entity, a private entity, or a combination of public and private entities, under the supervision of and with the approval of the Nigeria Export Processing Zones Authority.
The decision of the Federal Government to extend the Export Processing Zones' policies to include Export Processing Factories was made in 1995. Like the Export Processing Zones, the EPF Scheme is a strategy to shift emphasis from dependence on petroleum oil to export manufacturing in the non-oil sector through the encouragement of export-oriented industries.
The Export Processing Factory Scheme allows the application of the EPZ package of incentives to deserving private factories with the capability and high potential to manufacture goods for export. Such approvals are granted on their own merit by NEPZA on a case-by-case basis. Like the EPZs, intending EPF operators apply to NEPZA with full details of the company and feasibility reports.
To date, there are three Export Processing Factories in Nigeria:
Aluminium Smelter Company of Nigeria (ALSCON), Ikot-Abasi, Akwa Ibom State, which produces aluminium ingots;
Stanmark Cocoa Processing, Ondo, Ondo State, which produces cocoa butter and cocoa powder; and
Coop Cocoa Industries, Akure, Ondo State, which also produces cocoa butter and cocoa powder.
Below is a list of the Companies who have been given approval to operate in the Calabar Export Processing Zone.
COMPANIES in the Calabar EPZName of Company
Products
Golden Giant Industries
Textile & Garment Manufacturing
Hwafong Autoparts Manufacturing (Nigeria) Limited
Manufacture of Tyres & Tubes
SLOK Nigeria Limited
Clothing & Food Processing
Formosa Industries
Wood Processing
WoodTech Industries Limited
Wood Processing
AP Petroleum
Petroleum Derivatives Processing
Sosega Nigeria Limited
Vegetable Oil Processing
Union Forest Industries Limited
Wood Processing
Larnagold Limited
Textile & Fabrics Manufacturing
Ibom Industries Limited
Cocoa Processing
Integrated Marbles Limited
Marble Floor Tiles, Bath Tiles and Sanitary Wares
SIO Industries Limited
Bags and Other Propylene Products
SIO Motors Limited
Light Trucks Assembly
SODIQ Electrical & Engineering Limited
Electrical Parts
AFRO Oil Limited
Lubrication
Combination Industries Limited
Manufacturers of Extruded Snacks
Premier Clothing Industries
Manufacturers of Clothing Materials
Cross River State Government
Palm Kernel Products
Jackson Devos Plc
Manufacturers of Crown Carpets
Oil Palm Integrated Company
Vegetable Oil Processing
Ayos Wood International
Furniture Components
Bao Yao Futurelex Iron & Steel Company Limited
Steel Mills
In addition to the above occupants of the Calabar EPZ, here are some of instances of Export Processing Factories outside the Zone Location:
Aluminium Smelter Company of Nigeria (ALSCON), Ikot-Abasi, which produces aluminium ingots;
Stanmark Cocoa Processing, Ondo, which produces cocoa butter and cocoa powder;
Coop Cocoa Industries, Akure, which also produces cocoa butter and cocoa powder.
The following types of industries are allowed to set up factories within the Calabar Export Processing Zone:
Electrical and Electronic Products
Textile Products
Wood Products
Leather Products
Plastic Products
Petroleum Products
Rubber Products
Cosmetics
Garments
Chemical Products
Metal Products
Educational Equipment and Materials
Communication Equipment and Materials
Sports Equipment and Materials
Machinery
Handicraft
Optical Instruments and Appliances
Medical Kits and Instruments
Biscuits and Confectioneries
Printed Materials, Office Equipment and Appliances
Paper Materials
Food Processing
Pharmaceutical Products
* NOTE: the above list of investment opportunities is not exhaustive.
In the near future, we hope to develop the Kano Export Processing Zone as well as other EPZs and EPFs in other locations within the country. Please stay tuned for other developments!
First of all, a potential investor must ensure that:the industry to be set up in the Calabar EPZ is guaranteed to be environmentally-friendly, with low or no pollution;
at least 75% of the total products will be for export;
a maximum of 25% of the products can be sold in the domestic market (on payment of appropriate fees and levies).
Once that is ascertained, the investor then has to follow the procedure below:
Obtain and complete the appropriate Application Forms: This includes submitting a feasibility study in respect of the investment project which the applicant wishes to undertake in the Zone. This should contain amongst other things a project description; market survey; funding proposals; financial projections; and an environmental impact statement and control measures.
Submission of Investment Application Forms: The application shall be considered by the Authority within 30 days of receipt and the Authority shall notify the applicant in writing of its decision to grant the said approval or otherwise. (The approval shall be subject to such terms and conditions as may be imposed by the Authority.)
Screening and Processing of Application Forms
Application Approval (or otherwise): if the application is successful, then the investor can go on to Step 5.
Company Registration with the Nigeria Export Processing Zones Authority (NEPZA)
Setting up of the Factory: There are 3 possibilities: outright purchase of a standard factory; renting a factory building; or leasing of a serviced plot.
Outright purchase: payment of 10% deposit of the selling price of the standard factory building (within 3 months of approval), and payment of the remaining 90% 5 months after.
Renting of factory building: down payment of one year rent is required (not exceeding 3 months after signing the rental contract). Thereafter, rental charges shall be paid in the first quarter of every year.
Leasing the standard factory: 40% lease value paid on approval, 30% paid at the end of the 5th year, and 40% balance paid at the end of the 10th year.
Construction must be completed within one year (a 6-month extension is possible). A plan of the building shall be submitted to the Authority for approval. The land lease contract shall be signed within 2 months after the allocation of the land. The area occupied by the factory shall be 60%-70% of the leased land and construction must start within 3 months of signing of the lease contract.
Remittance of Investment Capital: This is done through the banks in the Zone; the Authority will be notified upon its arrival.
Importation and Installation of Machinery: After installation, the Authority shall be required to carry out pre-inspection, and if found satisfactory, a Certificate to commence production will be issued.
Commencement of Production: Companies intending to sell the permitted 25% of their total production in the domestic market will be required to notify the Authority for necessary documentation and payment of appropriate levies and charges as applicable.
Repatriation of Profit: The company shall apply to the Authority for assessment of invested capital for later repatriation purposes. (This is applicable to companies which are 100% foreign equity owned and those with part foreign equity participation only.)