Industrial Champion in Africa Award: Another Feather to Lagos Free Zone’s Cap

Dike Onwuamaeze

Until a decade ago, attracting foreign direct investments into Nigeria using Free Trade Zones as the investment gateway seemed a distant dream rather than a feasible reality. However, the success of the Lagos Free Zone has since revolutionised the manufacturing FDI space, with a cumulative deployed investment of $2.5 billion to date by many multinational corporations (MNCs).

While many free zones have proliferated in Nigeria, only a select few have become operational after obtaining a license from NEPZA, the regulatory authority. In the case of Lagos Free Zone, remarkable progress has been recorded in recent years, fueled by a surge in foreign direct investment. This trend has earned the Zone consistent recognition for its pivotal role in boosting the Nigerian economy. The most recent accolade is the Industrial Champion Award in the Africa region at the fDi Global Free Zones of the Year 2023 awards.

The fDi Intelligence, a service from the Financial Times, monitors global greenfield foreign direct investments across sectors and celebrates the best free zones across geographies and specialisations through The Global Free Zones of the Year awards. A special report published by the industry-leading research firm identified the integration of the Zone with a deep-sea port that receives container vessels from around the world, creating new opportunities for manufacturers looking to export their goods, as the significant reason for honoring it as the inaugural winner of Africa’s Industrial Champions category. The report further declared the Zone as “the region’s leading SEZ for manufacturing.”

Promoted by Singapore-based Tolaram, the Lagos Free Zone is centrally located in Lagos State, the commercial center of West Africa’s largest economy. LFZ, regarded as the ‘new frontier,’ boasts world-class infrastructure and a single clearance window for enhanced ease of doing business. The integration of the 90-hectare Lekki deep seaport presents an opportunity for the Zone to become a link to regional and international markets.

The award has been a long time coming going by the level of infrastructure at the zone, which has continued to attract some of the world’s most renowned international brands such as BASF, TATA International, Insignia Print Technologies, Colgate, Kellogg’s, Aria Foods (Dano Milk), Raffles Oil (Power Oil), CHEC, Sana Building Systems, and others. The commencement of operations at Lekki Port since April 2023 has also added to the thriving business at the zone.

The zone, developed and planned with a cluster-based approach in line with international best practices of Work-Live-Play, allocates 70 per cent of the area towards industrial developments, 20 percent, and 10 percent, respectively, to logistics and support services and real estate. The zone is fast becoming home to players in the industrial and services sector who are taking advantage of the availability of world-class facilities, the offer of the single-clearance window, and unrestricted access to regional and international markets, which all together promote the ease of doing business.

Since the Zone won the award, there has been a series of appreciation from relevant stakeholders, who believed the award was truly deserving.

Speaking on the recognition, Managing Director Nigeria Export Processing Zones Authority, Dr. Olufemi Ogunyemi, expressed profound appreciation for the award, stating the team is gladdened by the feat.

“We are deeply excited about this development and congratulate the Lagos Free Zone team for their efforts. This recognition further strengthens NEPZA’s commitment to driving the Renewed Hope agenda with free zones as the cornerstone of our approach to driving investments into the country. We will continue to provide a conducive environment for businesses to thrive and contribute to our nation’s prosperity. We are excited about the opportunities that lie ahead,” he said.

Similarly, the recently appointed Nigerian Investment Promotion Commission CEO, Aisha Rimi, lauded LFZ on the feat, noting that this is an excellent motivation needed to promote investment.

In a congratulatory message, Rimi noted, “We are glad to see investment hubs like the Lagos Free Zone get global recognition and congratulate the team at Lagos Free Zone for being announced the Industrial Champions for the African continent at the Global Free Zones awards this year. We are committed to working constructively with public and private sector players towards the common goal of driving inward investments and contributing to the country’s economic growth. “

On his part, the Chief Executive Officer of Lagos Free Zone, Dinesh Rathi, maintained that the award was a testament to the commitment of the promoters to attract global manufacturers by providing a world-class industrial ecosystem and thereby creating employment opportunities for Nigerians.

Dedicating the award to Nigerians and making a call to attract global investments to the zone, which offers tax exemption to businesses, Rathi was quoted as saying, “At Lagos Free Zone, we make it possible for businesses to make “Make in Nigeria for Africa” by providing a world-class industrial ecosystem integrated with Lekki Port, Nigeria’s most modern and deepest seaport. We invite global and local manufacturers to unlock hassle-free growth in West Africa and beyond through this ecosystem. We humbly dedicate this prominent recognition to all Nigerians”.