NewsVoir
New Delhi [India], February 10: IFC has announced an equity investment of up to $50 million in Lagos Free Zone Company to support the development and expansion of Nigeria's first deep- sea port-based, private special economic zone, the Lagos Free Zone. This investment is designed to address critical infrastructure gaps, attract local and global businesses, and contribute to Nigeria's economic diversification agenda.
The funds will support the first phase of the 860-hectare Lagos Free Zone, focusing on land development, industrial facilities, and logistics infrastructure. Owned by Singapore based Tolaram, a diversified multinational group with operations across Africa, Asia, and Europe, Lagos Free Zone is strategically integrated with the Lekki Deep Sea Port and will provide an integrated industrial ecosystem for efficient import and export operations, serving as a gateway for Nigeria's integration into global value chains.
With Nigeria's economy projected to grow by 3.7% by 2026, investments in infrastructure are vital to ensuring sustainable growth. When fully occupied, Lagos Free Zone is expected to create approximately 30,000 direct, indirect, and induced jobs, while contributing significantly to Nigeria's GDP upon completion.
"This investment reflects IFC's commitment to fostering inclusive economic growth and sustainable development in Nigeria. Lagos Free Zone is poised to become a transformative hub for industrial activity, driving job creation and enhancing Nigeria's competitiveness in global markets. We are proud to partner with Lagos Free Zone in building the infrastructure necessary to attract global and local businesses, enabling Nigeria to achieve its full economic potential," said, Dahlia Khalifa, IFC Regional Director, Central Africa and Anglophone West Africa.
The investment in Lagos Free Zone also reflects IFC's commitment to sustainable development, with a focus on green infrastructure. Approximately 15% of the investment is earmarked for climate-related initiatives, including Excellence in Design for Greater Efficiencies (EDGE)-certified buildings and climate-resilient infrastructure.
"IFC's support represents a significant and positive recognition of our vision to establish Lagos Free Zone as a world-class industrial hub. This investment allows us to scale up the existing infrastructure to attract more foreign and local tenants while promoting sustainability and creating economic opportunities for Nigeria. Lagos Free Zone, integrated with Lekki Deep Sea Port, facilitates ease of doing business in Nigeria and supports the Federal Government of Nigeria's drive for economic diversification and infrastructure development. We look forward to driving growth and delivering lasting impact through this transformative collaboration with the IFC," Added, Adesuwa Ladoja, MD/CEO at Lagos Free Zone Company.
Lagos Free Zone is already home to several manufacturing brands like Kellogg's, Dano Milk, Colgate, BASF, ADM, and Tata International.
This investment aligns with Nigeria's ongoing economic reforms and IFC's strategic frameworks, including the World Bank Group's Nigeria Country Partnership Framework (2021-2025) and its 2015 Climate Action Plan, both of which prioritize economic diversification, the development of competitive clusters, and investments in climate-resilient infrastructure.
By addressing infrastructure bottlenecks and enhancing connectivity, IFC's investment in Lagos Free Zone will unlock new opportunities for businesses and strengthen Nigeria's position as a regional economic leader.
Promoted by Singapore-based Tolaram, Lagos Free Zone is the first privately held deep sea port- based free trade zone in Nigeria. Centrally located in Lagos State, the commercial center of West Africa's largest economy, the zone covers an area of 860 hectares. It is fully equipped with world- class infrastructure, a single window clearance for ease of doing business, and integrated with the 90 hectares Lekki Deep Sea Port, which allows for access to regional and international markets.
For more information, visit www.lagosfreezone.com.
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