OIL AND GAS EXPORT FREE ZONE DECREE, 1996

A Decree establishes the Oil and Gas Export Free Zone in Onne, offering tax incentives and duty-free imports for oil services. It targets oil and gas companies and support operators to promote investment and job creation. This develops a hub for foreign exchange earnings in the sector.

What Is This Policy?

A Decree establishing the Oil and Gas Export Free Zone (OGEFZ) in Onne, Rivers State, providing a duty-free, tax-incentive zone specifically for oil and gas services and manufacturing companies.

Who Does It Target?

Oil and gas services companies (drilling, fabrication, supply) Offshore support vessel operators based in Onne The Oil and Gas Free Zone Authority (OGFZA) International oil service companies seeking a Nigerian base

What Does It Aim to Achieve?

Develop Onne as a world-class hub for oil and gas support services, attract foreign investment in the upstream services sector, create employment, and earn foreign exchange.

Key Features

Duty-Free Imports: All goods imported into the zone for zone operations are exempt from import duty. Tax Incentives: Zone enterprises enjoy corporate tax holidays and VAT exemptions. 100% Foreign Ownership: Foreign investors may own 100% of zone enterprises. OGFZA Administration: The Oil and Gas Free Zone Authority manages the zone and issues enterprise licences.

Current Status

Rollout Stage: Active — Onne Oil and Gas Free Zone is Nigeria's largest oil services hub Coverage: Oil and Gas Export Free Zone, Onne, Rivers State Beneficiaries: Oil services industry; Nigeria's oil sector competitiveness Funding: Private investment; OGFZA commercial revenues

How to Access

Apply to OGFZA for a zone enterprise licence Business must be oil and gas related to qualify for zone location 80% of production/services must be for export Application method: Apply to OGFZA at https://www.ogfza.gov.ng

Important Terms

Sale of zone products in the domestic Nigerian market requires payment of applicable duties Zone enterprises must comply with OGFZA operational rules Zone licences are renewed annually subject to compliance

Official Resources

Website: https://www.ogfza.gov.ng Contact: Oil and Gas Free Zone Authority (OGFZA)

Legal Framework

The Oil and Gas Export Free Zone Decree 1996 is recognized under Section 315 of the 1999 Constitution as an existing law. It operates alongside the Nigeria Export Processing Zones Authority Act, the Petroleum Industry Act 2021, the Companies Income Tax Act (on free zone tax exemptions), and the Nigerian Investment Promotion Commission Act. The WTO Agreement on Trade-Related Investment Measures (TRIMs) and the ECOWAS Trade Liberalisation Scheme provide the international trade context.