Operators Rekindle Call For Offshore Banking As Lekki, Three Other Free Zones Fetch Over N12tn Investments

 

Free Trade Zones are vital components of Nigeria’s economic strategy, designed to boost investment, enhance exports, and create job opportunities.

Established to facilitate trade and encourage industrialization, these zones provide unique incentives to both local and foreign businesses

The Nigerian Export Processing Zones Authority (NEPZA) was established in 1992 to oversee and promote the development of Free Trade Zones in Nigeria. NEPZA’s primary mission is to create a conducive environment for businesses to thrive, enhance Nigeria’s export capacity, and attract foreign direct investment.

Over the years, the Free Zones in Nigeria have emerged as a key strategy for stimulating economic growth, attracting foreign direct investment, and fostering industrialization.

By providing a regulatory environment conducive to trade and investment, FTZs are pivotal in Nigeria’s economic transformation agenda.

Findings by THE WHISTLER revealed that four free trade zones have successfully attracted a total investment of over $8bn within their years of operations, significantly contributing to local economic activity and fostering international trade relations.

The committed investments were obtained by THE WHISTLER from top officials of the zones during a media tour of the free trade zones organised by the Nigeria Export Processing Zones Authority.

A breakdown of the figure provided by the officials revealed that $2.5bn investment had been attracted from investors to develop the Lagos FTZ, while the Lekki FTZ had attracted over $4bn in investments.

For Alaro City which is also one of the Free Trade Zones Located in Lagos, about $1bn had been invested in the development while over $500m had been used to develop LADOL, a privately owned logistics and engineering facility.

Speaking to THE WHISTLER during the tour, the Manager of Business Development and Marketing, Lagos Free Zone, Chinju Nwankwo-Udora, said the zone is strategically located along the Lekki Corridor, close to the Lagos seaport.

Established to boost industrialization, trade, and investment, Nwankwo-Udora said the Lagos Free Zone is creating a conducive environment for both local and foreign businesses.

Situated near the Lekki Deep Sea Port and the international airport, she told THE WHISTLER that LFZ offers excellent access to global shipping routes and logistics networks.

She said, “The zone is equipped with modern infrastructure, including well-planned roads, utilities, and communication systems, designed to support various business activities.

“LFZ attracts a wide range of industries, including manufacturing, logistics, technology, agriculture, and pharmaceuticals, creating a vibrant economic ecosystem.”

Speaking further, she noted that the zone, established in 2012 has achieved remarkable accomplishments through world-class infrastructure to enable ease of doing business for its investors.

She noted that the zone currently accommodates 30 registered and operational companies with plans to attract 150 companies in the coming years.

She said, “The Lagos Free Trade Zone has contributed about $2.5bn in committed investments and employed investments, This includes the Lekki ports project which was $1.2bn, the land acquisition of the free zone and other factories that have been set up and infrastructure we have been put in place till date.”

Nwankwo-Udora added that in 2023, Lagos Free Zone alone contributed over N40bn in customs duties, and over N400m was remitted as PAYE to the Lagos State government.

She said that facilities have been established to enhance the ease of doing business, stressing that, “Enterprises only have to bring in their types of machinery and begin manufacturing.

“By the time we finish our infrastructure, we plan to have 150 companies in the zone creating thousands of jobs and looking forward to contributing 2.5 per cent to the country’s Gross Domestic Product.”

For the Lekki Free Zone, which is one of Nigeria’s premier Free Trade Zones that has so far attracted over $4bn in investments, officials told THE WHISTLER that it was strategically established to promote industrialization, attract foreign investment, and boost economic development in Nigeria, particularly in the Lagos region.

The zone is situated along the Lekki Corridor, close to the Lekki Deep Sea Port and the international airport, providing excellent connectivity for global trade and logistics.

Speaking to THE WHISTLER, the Deputy Managing Director, of Lekki Free Zone Development Company, Bolatito Ajibode, said the zone is equipped with modern infrastructure, including well-developed roads, reliable utilities, and advanced communication systems, essential for facilitating business.

According to her, the zone caters to a wide array of industries, including manufacturing, logistics, agro-processing, oil and gas, and technology, fostering a diverse economic ecosystem.

Ajibode further told THE WHISTLER that about 3,200 workers visit the zone daily to earn a living, highlighting the significant employment opportunities created by the zone.