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LAGOS, Nigeria - The International Finance Corporation (IFC) has declared a $50 million equity investment in the Lagos Free Zone Company (LFZ) to enhance Nigeria's industrial development and economic diversification.
Dahlia Khalifa, IFC's regional director for Central Africa and Anglophone West Africa, announced this during an official signing event on Friday in Lagos.
She explained that the investment aims to assist in the construction and growth of Nigeria's first deep sea port located within the Lagos Free Zone.
The funding is expected to tackle critical infrastructure challenges, attract both local and international businesses, and aid in Nigeria's economic diversification efforts.
Khalifa mentioned that the investment will support the initial phase of the 860-hectare Lagos Free Zone, concentrating on land development, industrial facilities, and logistics infrastructure.
The facility is managed by Tolaram, a diversified multinational corporation operating in Africa, Asia, and Europe, providing a cohesive industrial ecosystem that will facilitate effective import and export activities, thereby integrating Nigeria into global value chains.
With Nigeria's economy anticipated to expand by 3.7 percent by 2026, Khalifa emphasized the crucial role of infrastructure investments in fostering sustainable growth.
She stated that once fully operational, the Lagos Free Zone is projected to generate about 30,000 direct, indirect, and induced jobs, significantly contributing to Nigeria's gross domestic product (GDP) upon completion.
"This investment showcases IFC’s dedication to promoting inclusive economic growth and sustainable development in Nigeria. The Lagos Free Zone is set to emerge as a pivotal center for industrial activity, enhancing job creation and improving Nigeria’s competitiveness in international markets. We are pleased to collaborate with Lagos Free Zone in developing the infrastructure needed to attract both global and local businesses, enabling Nigeria to realize its economic potential," she remarked.
Khalifa further highlighted that the investment aligns with IFC’s commitment to sustainable development, focusing on green infrastructure, with approximately 15 percent allocated for climate-related initiatives, such as EDGE-certified buildings and climate-resilient infrastructure.
Managing director of the Lagos Free Zone Company, Adesuwa Ladoja, commented that IFC’s backing represents a significant acknowledgment of the vision to position Lagos Free Zone as a premier industrial hub.
She noted that the investment enables the company to enhance existing infrastructure to draw more foreign and local tenants while promoting sustainability and generating economic prospects for Nigeria.
Ladoja mentioned that the Lagos Free Zone, integrated with the Lekki Deep Sea Port, facilitates business operations in Nigeria and supports the federal government's economic diversification efforts.
"We are eager to foster growth and create a long-lasting impact through this collaborative effort with the IFC. This investment coincides with Nigeria's ongoing economic reforms and IFC’s strategic priorities, focusing on economic diversification, developing competitive clusters, and investing in climate-resilient infrastructure. By resolving infrastructure constraints and enhancing connectivity, IFC’s investment in the Lagos Free Zone will open new avenues for businesses and bolster Nigeria’s status as a regional economic powerhouse," Ladoja stated.
