Kano Free Trade Zone Records N40bn Customs Revenue, Hosts 87 Operational Firms

The Kano Free Trade Zone has recorded significant growth in manufacturing and export activities, with 87 operational enterprises contributing to job creation, technology transfer and foreign investment, while customs revenue generated within the industrial estate rose to N40 billion as of August 2026.

The development highlights the growing importance of the Federal Government-owned industrial estate as a hub for value-added manufacturing and a gateway for Nigerian products to international markets.

Located on a 262-hectare expanse, the zone hosts indigenous companies, wholly foreign-owned enterprises and joint ventures engaged in the production and processing of various goods for local consumption and export.

During a tour of the facility by members of the Commerce and Industry Correspondents Association of Nigeria (CICAN), the director of the zone, Mr. Solomon Topa, and his assistant, Deputy Director Richard Bassey, provided insights into its operations, investment profile and contributions to the national economy.

Topa said the zone had 87 operational enterprises, which collectively contributed to Nigeria’s export performance through the production of goods with higher value for international markets.

“When you look at the movement in the national export index over the past years, a significant share of that momentum comes from these 87 companies,” he said.

He explained that the zone’s export portfolio had moved beyond the traditional shipment of raw commodities to include manufactured and processed products.

“The composition of what leaves the gates matters as much as the volume. Where the country once shipped raw commodities, the zone’s factories now assemble and export cars, electrical cables, specialized food for malnourished children, processed shea butter, refined vegetable oil, cashew kernels, ginned cotton and yams, leather goods, agrochemicals, pharmaceuticals, and light electronics assemblies, products that carry substantially higher unit value,” Topa said.

He added, “The zone covers 262 hectares and hosts enterprises that consistently engage in meaningful export-oriented production.’’

According to him, the enterprises operating within the zone have also contributed to employment generation, local manufacturing and the attraction of domestic and foreign investments.

“It is important to note that a total of 113 enterprises were granted licenses to operate in the zone, but at this time, 87 of them are operational while the remaining 46 are at various stages of development,” he stated.

The zone’s activities have created between 3,000 and 5,000 direct jobs for local workers, while its operations have supported small businesses through supply chains and other commercial activities.

Topa also identified technology transfer as one of the major benefits of the free trade zone, particularly through the engagement of expatriates who transfer specialised skills and technical knowledge to Nigerian employees.

“These foreign companies come in here, establish their enterprises and factories, and employ Nigerians, who work with them and thereby gain knowledge. At the end of the day, skills and technology are being transferred,” he said.

He further highlighted foreign direct investment as a major contribution of the zone, noting that investors bring capital into the country to establish and operate businesses, with their activities supporting economic growth in the northern region.

Beyond its contribution to domestic manufacturing, Topa said the Kano Free Trade Zone had become an important economic gateway to the Maghreb countries, with products from the industrial estate reaching Egypt, Algeria, Morocco and Libya.

Bassey, the Deputy Director of the zone, attributed the increase in customs revenue to improved collaboration between the zone’s management and the Nigeria Customs Service (NCS).

He explained that the partnership was designed to improve revenue collection while preserving the incentives that make the free trade zone attractive to investors.

According to him, manufacturers importing raw materials into the zone operate under suspended-duty arrangements, with duties becoming payable when finished products enter Nigeria’s domestic customs territory.

He said the collaboration with Customs had also introduced an inventory procedure to ensure that manufacturers paid duties only on imported raw materials actually used in production.

“The inventory procedure allows you to pay duty for only the raw materials you have used and waste is excluded,” Bassey said.

He explained that goods brought into the zone for warehousing and subsequently released into Nigeria were subject to full customs duties, while goods exported to other countries were not taxed.

Bassey also highlighted the contribution of Nutri-K Limited, a manufacturer of ready-to-use therapeutic food for malnourished children, to the zone’s export performance.

“It is important to note the strategic contribution of the zone to global efforts to combat child malnutrition across Nigeria and Africa through Nutri-K Limited, a manufacturer of ready-to-use therapeutic food for malnourished children. This has significantly increased the zone’s export index,” he said.

The revenue performance of the industrial estate was further highlighted during the journalists’ interaction with officials of the Nigeria Customs Service.

The Deputy Comptroller of Customs for the zone, Mr. Isah Bala, disclosed that the Service had generated N40 billion from the zone as of August 2026, reflecting an increase in customs revenue.

Bala said the revenue was monitored through a live dashboard that refreshed every 15 minutes, adding that the technology had eliminated human discretion in the collection and monitoring process.

During the journalists’ visit, the dashboard showed the revenue figure rising from N39.6 billion to N40 billion as additional duties were collected.

“Congratulations. We have now seen the automated tax collection board increase to N40 billion.

“It was reading N39.6 billion when you came in. You could see it update as additional duties were collected. That was a display of rigid transparency and accountability,” Bala said.

He noted that Customs operations within the free trade zone were guided by three major principles: trade facilitation, monitoring and compliance, and accountability.

Bala attributed the improvement in revenue collection to ongoing customs reforms and the close working relationship between the service and the Nigeria Export Processing Zones Authority (NEPZA).

The Nigeria Immigration Service (NIS) also identified inter-agency collaboration and ongoing reforms as important factors supporting the operations of the zone.

Aminu Mohammed, the Assistant Comptroller of the Nigeria Immigration Service in the zone, credited its achievements to cooperation among the key government agencies operating within the industrial estate.

He linked the improvements in operational processes to the ongoing reforms by the federal government, particularly the digitisation of immigration services by the Ministry of Interior and the Nigeria Immigration Service.

“We are implementing a simplified process for expatriates employed by companies operating in the zone, allowing only qualified expatriates to obtain residence permits before entering the free trade zone. The measure is intended to facilitate investment and accelerate industrial development,” Mohammed said.

The tour also revealed the expanding international reach of the zone’s enterprises, which currently export to about 12 countries across the African Continental Free Trade Area corridor, Europe, the Middle East and Asia.

The growing export activities, investment inflows and employment opportunities underscore the strategic importance of free trade zones to Nigeria’s industrialisation drive, particularly in promoting non-oil exports, strengthening domestic manufacturing and attracting foreign capital.

The federal government’s renewed support for the free trade zone scheme under President Bola Tinubu’s administration has also provided a policy direction aimed at strengthening the contribution of the zones to the national economy.

The Managing Director and Chief Executive Officer of NEPZA, Dr. Olufemi Ogunyemi, has been implementing the agency’s mandate to deepen investment, expand industrial activities and improve the performance of free trade zones across the country.