Lagos Free Zone to Generate $12bn, Add to GDP

Lagos Free Zone to Generate $12bn, Add to GDP
Babajide Sanwo- Olu On the Lagos Free Zone


The managing director of the Lagos Free Zone (LFZ), Dinesh Rathi, says with companies displaying vital curiosity within the space, the corporate goals to contribute about $12 billion to Nigeria’s annual gross home product (GDP) by 2032.

Talking on the agency’s plans at a current assembly with journalists at LFZ’s headquarters in Ibeju Lekki, Rathi stated the goal can be achieved when the zone is absolutely purposeful, with extra firms making the most of the alternatives within the space.

He stated the free zone requires at the very least 150 firms to function at full capability.

“In case you take a look at the zone and the grasp plan, immediately, we’re having 24 firms working contained in the zone, after getting 150 to 160 firms working contained in the zone, and when you put a quantity based mostly on that, we will simply get an output equal of $12 billion,” he stated.

“We did our workings and that’s our imaginative and prescient. After which, with that quantity, you’ll be 2 to three % of the nationwide GDP.

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“This entire free zone together with the Lekki port could be a recreation changer within the years to return. And this has occurred within the case of China and Dubai.”

As implied by Rathi, who doubles because the chief government officer (CEO) of LFZ, the $12 billion goal relies on the inflow of firms within the zone.

In the intervening time, solely Indian corporates like Kellogg’s, Colgate, Arla Meals, and BASF Company, are tenants within the free zone as LFZ invited companies from the South Asian nation final month to arrange retailers within the space.

Nevertheless, the managing director stated plans are afoot to onboard native firms into the zone.

“We’re in fixed contact with a number of Nigerian operators to get them contained in the zone and leverage the port and the zone to create, not solely a hub for home gross sales but in addition for exports underneath the continental free commerce settlement and underneath the ECOWAS treaties,” he stated.

“So, that’s our purpose: to get as many individuals as attainable to return and function within the zone.”

As a part of its development plans, the corporate stated it additionally intends to develop a fuel infrastructure to serve the electrical energy wants of firms within the space.

Initially, LFZ had signed a 20-year fuel infrastructure improvement settlement (GIDA) to attach the zone with the nationwide fuel transportation grid.

Based on the organisation, Optimera Vitality LFZE, a consortium of Falcon, FHN and ND Western, will implement the challenge and “ship piped pure fuel to all LFZ tenants”.

Since LFZ’s improvement kicked off 10 years in the past with the purpose of enhancing the benefit of doing enterprise, the agency stated it has recorded “over 23 registered enterprises, manufacturing, and logistics firms”.

Promoted by Tolaram Group, LFZ sits on 850 hectares of land in Lagos and homes the Lekki deep seaport inaugurated by President Muhammadu Buhari in January this yr.

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