Calabar Free Trade Zone
Encyclopedia
The Calabar Free Trade Zone (CFTZ) is an area just north of the port of Calabar
, Cross River State
, Nigeria
that is occupied by companies engaged in manufacturing, trading, provision of services and oil and gas related activities. These companies benefit from special taxation rules and duty-free imports.
The enabling act for Registered Free Zones in Nigeria came into effect in 1992.
The Calabar Free Trade Zone, the first of these, was fully completed by 1999 and started operation after official commissioning in November 2001. The CFTZ is owned by the Federal government.
As of May 2009 the power supply in the zone was erratic, with companies having to rely on diesel generators most of the time.
Lack of dredging in the Calabar River
channel was also affecting the zone, forcing companies to rely on Port Harcourt or Lagos
for import and export of goods.
These problems had not been addressed by December 2010, when the General Manager of the zone said the epileptic power supply, poor quality roads and non dredging of the river channel had slowed down development of the port. He said "... often times we have had cases of containers dropping from trucks due to bad roads. It is also additional cost to transport containers from Port Harcourt and Lagos to Calabar".
The Tinapa Free Zone & Resort, to the north of the Free Zone, was commissioned on 2 April 2007, intended to combine business and recreational functions with duty-free shopping.
The legal status of the Tinapa Free Trade zone has been uncertain. It is owned by the Cross River state government, but only the Federal government can operate a free trade zone. Governor Liyel Imoke
appealed to the Federal Government to take a stake in the project, and to remove uncertainty about Tinapa's status, which is hindering investment.
In September 2009, Cross River Governor Liyel Imoke
said the 1992 laws that established the Calabar Export Processing Zone should be overhauled to match its current status as a Free Trade Zone.
He also said the 2005 gazette that made Calabar Port a Free Port should be implemented.
In August 2011 Olusegun Aganga, the Federal Minister of Trade and Investment, visited the Calabar Free Trade Zone and the Tinapa Business and Leisure resort. He said that the government planned an extensive review of Free Trade Zones across the country to ensure they met the requirements to attract Foreign Direct Investment and to create jobs.
Calabar
Calabar is a city in Cross River State, southeastern Nigeria. The original name for Calabar was Atakpa, from the Jukun language....
, Cross River State
Cross River State
Cross River State is a coastal state in southeastern Nigeria, bordering Cameroon to the east. Its capital is at Calabar, and it is named for the Cross River , which passes through the state...
, Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
that is occupied by companies engaged in manufacturing, trading, provision of services and oil and gas related activities. These companies benefit from special taxation rules and duty-free imports.
The enabling act for Registered Free Zones in Nigeria came into effect in 1992.
The Calabar Free Trade Zone, the first of these, was fully completed by 1999 and started operation after official commissioning in November 2001. The CFTZ is owned by the Federal government.
As of May 2009 the power supply in the zone was erratic, with companies having to rely on diesel generators most of the time.
Lack of dredging in the Calabar River
Calabar River
The Calabar River in Cross River State, Nigeria flows from the north past the city of Calabar, joining the larger Cross River about to the south. The river at Calabar forms a natural harbor deep enough for vessels with a draft of ....
channel was also affecting the zone, forcing companies to rely on Port Harcourt or Lagos
Lagos
Lagos is a port and the most populous conurbation in Nigeria. With a population of 7,937,932, it is currently the third most populous city in Africa after Cairo and Kinshasa, and currently estimated to be the second fastest growing city in Africa...
for import and export of goods.
These problems had not been addressed by December 2010, when the General Manager of the zone said the epileptic power supply, poor quality roads and non dredging of the river channel had slowed down development of the port. He said "... often times we have had cases of containers dropping from trucks due to bad roads. It is also additional cost to transport containers from Port Harcourt and Lagos to Calabar".
The Tinapa Free Zone & Resort, to the north of the Free Zone, was commissioned on 2 April 2007, intended to combine business and recreational functions with duty-free shopping.
The legal status of the Tinapa Free Trade zone has been uncertain. It is owned by the Cross River state government, but only the Federal government can operate a free trade zone. Governor Liyel Imoke
Liyel Imoke
Liyel was elected governor of Cross River State in Nigeria in April 2007, taking office on 29 May 2007. He is a member of the People's Democratic Party .-Background:...
appealed to the Federal Government to take a stake in the project, and to remove uncertainty about Tinapa's status, which is hindering investment.
In September 2009, Cross River Governor Liyel Imoke
Liyel Imoke
Liyel was elected governor of Cross River State in Nigeria in April 2007, taking office on 29 May 2007. He is a member of the People's Democratic Party .-Background:...
said the 1992 laws that established the Calabar Export Processing Zone should be overhauled to match its current status as a Free Trade Zone.
He also said the 2005 gazette that made Calabar Port a Free Port should be implemented.
In August 2011 Olusegun Aganga, the Federal Minister of Trade and Investment, visited the Calabar Free Trade Zone and the Tinapa Business and Leisure resort. He said that the government planned an extensive review of Free Trade Zones across the country to ensure they met the requirements to attract Foreign Direct Investment and to create jobs.