Obtaining an Oil & Gas Free Zone (OGFZ) Operating License in Nigeria involves a multi‑step process regulated by the Oil & Gas Free Zones Authority (OGFZA), under the Federal Ministry of Industry, Trade and Investment. Applicants—whether Nigerian‑registered companies or offshore entities—must first register as zone developers or enterprises, submit requisite documentation (including feasibility studies, environmental impact assessments, company profiles, and proof of funding), and secure land rights and site plans. Following a project impact analysis, OGFZA issues licenses within seven days of complete submission. Key fees include a $50,000 application/processing fee, a $250,000 free zone declaration fee, a $200,000 registration fee (plus a $7,500 stamp duty), and a $3,000 EIA review charge; annual renewal fees apply. Total upfront cost typically starts at $507,500. Below is a detailed, step‑by‑step guide, cost tables, FAQs curated from “People Also Ask,” and clarification of common misconceptions—all sourced directly from OGFZA’s official materials.
1. Regulatory Framework
The Oil & Gas Free Zone Authority (OGFZA) was established by the Oil and Gas Export Free Zone Act No. 8 of 1996 to license, regulate, supervise, manage, control, and coordinate all oil & gas free zones in Nigeria. OGFZA operates under the Federal Ministry of Industry, Trade and Investment and has exclusive authority over free‑trade zones dedicated to the oil & gas sector, including the pioneering Onne Oil & Gas Free Zone in Rivers State.
2. Step‑by‑Step Licensing Process
2.1 Step 1: Registration of the Promoter/Developer
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Letter of Application: Formal application to the Managing Director/CEO of OGFZA.
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Supporting Documents: Company profile; Memorandum & Articles of Association; Board resolution; Organogram; Nature of business; Passport photos of directors; Five‑year development plan; DPR/NUPRC Certificate; Evidence of funding sources.
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Submission: Submit completed application to OGFZA headquarters, Garki, Abuja.
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Fee: Application & Processing Fee – $50,000.
2.2 Step 2: Registration of the Free Zone Management Company
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Register the zone management entity with OGFZA as a Free Zone entity to enable business commencement within the zone.
2.3 Step 3: Zone Area Registration
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Land Title: Certificate of Occupancy (C of O) or title deed.
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Site Plan: Detailed layout of activity clusters.
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Environmental Impact Assessment (EIA): Conducted in consultation with OGFZA.
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Infrastructure Plan and zonal five‑year development plan with local‑content emphasis.
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Funding Disclosure: Statement of funding sources.
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Fee: Declaration Fee – $250,000.
2.4 Step 4: Project Impact Analysis
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OGFZA reviews integration of the zone with host community and national economy.
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May involve stakeholder consultations and technical appraisals.
2.5 Step 5: Recommendation & License Issuance
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Upon satisfactory review, OGFZA issues the Operating License.
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Timeline: License issued within 7 days of complete submission and payment confirmation; renewals processed within 3 days of annual returns filing.
3. Detailed Requirements by Entity Type
| Requirement Category | Nigerian‑Registered Companies / Offshore Entities | Free Zone Incorporation |
|---|---|---|
| Corporate Documents | Certificate of Incorporation; Memorandum & Articles; Company profile; Board resolution; Organogram; Audited accounts (last 3 years, if applicable) | Pre‑incorporation meeting; Notarised OGFZA application forms (A1, A2, A3); Minimum $500,000 share capital (1.5% stamp duty) |
| Technical & Planning | Feasibility study/business plan (3–5 year projection); Environmental Impact Assessment report; Infrastructure & development plans; DPR Certificate | Same as above |
| Financial | Evidence of capital importation; sources of funding disclosure; registry stamp duty (1.5% of share capital) | Same as above |
| Submission & Authorization | Submit to Managing Director/CEO, OGFZA; screening & acceptance per Section 9(1), Act No. 8 of 1996 | Same process |
4. Cost Breakdown
| Fee Type | Amount (USD) | Notes |
|---|---|---|
| Application & Processing Fee | $50,000 | Payable at Step 1 |
| Free Zone Declaration Fee | $250,000 | Payable at Step 3 |
| Registration Fee | $200,000 | Dependent on license category and approved activity |
| Registry Stamp Duty | $7,500 | 1.5% of minimum $500,000 share capital |
| EIA Review Charge | $3,000 | Environmental Impact Assessment review |
| License Renewal Fee | $25,000/year | Dependent on licence category; see OGFZA 2019 Regulations |
| Total Upfront Cost | $507,500 | Excludes lease costs, professional/legal fees |
5. Processing Timelines
| Activity | Timeline |
|---|---|
| Zone developer registration (Step 1–2) | Immediate upon docs |
| Zone area registration (Step 3) | 8 weeks maximum |
| License issuance after complete submission | 7 days |
| Annual license renewal | 3 days after filings |
6. Frequently Asked Questions (FAQs)
Q: Do I need a CAC certificate to register in OGFZ?
A: No. Free Zone incorporation replaces CAC registration; you register directly with OGFZA.
Q: How long does it take to acquire an operating license?
A: Seven (7) days from complete submission and payment confirmation.
Q: What is the duration of a free zone license?
A: All licenses expire on 31 December of each year; renewal is required annually.
Q: Can an offshore company register?
A: Yes, offshore entities meeting OGFZA requirements may register.
Q: What fees apply for corporate searches and plate numbers?
A: Corporate search – $200; free zone license plate fee as per OGFZA 2019 Regulations.
7. Common Misconceptions
| Misconception | Reality |
|---|---|
| “CAC registration is mandatory.” | CAC is not required; OGFZA free‑zone incorporation suffices. |
| “License takes weeks or months.” | OGFZA issues licenses within 7 days of complete submission. |
| “Only onshore companies qualify.” | Both Nigerian‑registered and offshore entities qualify if they meet requirements. |
| “High legal hurdles beyond documentation.” | Process is document‑driven with clear checklists and fixed fees; no further regulatory barriers beyond compliance with OGFZA’s Service Charter. |
By strictly following OGFZA’s official procedures and fee schedules—as documented above—you can confidently navigate the licensing process, minimize delays, and ensure full compliance, positioning your application for swift approval and operational success in Nigeria’s strategic Oil & Gas Free Zones.
