Four free trade zones have attracted a total investment of $8 billion, enhancing local economic activity and international trade relations, according to officials of the FTZs.
The Lagos Free Trade Zone drew $2.5 billion, the Lekki Free Trade Zone attracted $4 billion, Alaro City received $1 billion, and the Lagos Deep Offshore Logistics garnered $500 million, according to The Punch.
These investments were highlighted by officials during a recent media tour organized by the Nigeria Export Processing Zones Authority.
According to NEPZA, free trade zones foster economic growth and promote export-oriented manufacturing in Nigeria’s non-oil sector.
Earlier this year, the Managing Director of NEPZA, Olufemi Ogunyemi, said Nigeria’s free zones, numbering 46 licensed in 2022, had provided 38,429 direct employment jobs and an additional 172,930 indirect jobs as of the end of 2023.
Commenting, the Manager of Business Development and Marketing, Lagos FTZ, Chinju Nwankwo-Udora said that the free trade zone, established in 2012, has achieved significant milestones by providing world-class infrastructure to facilitate ease of doing business for investors.
She highlighted that the zone currently hosts 30 registered and operational companies, with plans to attract 150 more in the coming years.
She said, “The Lagos Free Trade Zone has contributed about $2.5bn in committed investments and employed investments, These include 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.”
She added that in 2023, the Lagos Free Zone contributed over N40 billion in customs duties and remitted over N400 million as PAYE to the Lagos State government.
She emphasized that facilities have been established to improve the ease of doing business, stating, “Enterprises only have to bring in their machinery and plug-and-play.”
“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.”
Meanwhile, the LFZDC Deputy Managing Director, Bolatito Ajibode, stated that approximately 3,200 workers come to the zone each day to earn a living, highlighting the significant employment opportunities created by the zone.
“The level of foreign direct investment that we have attracted in the free zone. Today we can say that the zone in terms of investments is more than $4 to $5bn from infrastructure to respective industries and raw material production.
“In terms of revenue to the government, we also remit pay as you earn tax to the state government,” she noted.
The former banker noted that the zone, the largest in the region at 3,000 hectares, currently hosts 60 operational enterprises, with 30 more under construction across sectors like manufacturing, real estate, logistics, recreation, and oil and gas.
Addressing challenges, she pointed out that the main issue is the road infrastructure from Lekki to Eleko junction, which is being addressed by Dangote and is expected to be completed soon.
“Another challenge is the devaluation of the naira. We currently sell in dollars, and it has been a bit of a challenge for investors, whether coming in or going out, especially Nigerian investors, to buy our land.
“We have different options for large-scale manufacturers and small retailers, but it’s people who have deep pockets that can come in. Nigerian investors struggle to cough out the money, which is why we have more foreigners here, like 80 to 20 per cent,” she said.
In her remarks, the Managing Director of LADOL, Dr Amy Jadesimi, noted the need to boost manufacturing activities through free trade zones.
She stated that the zone, serving as a logistics hub for multinational industrial and offshore companies, aims to diversify into agricultural processing, parts manufacturing, and other industrial activities.
“In In 23 years, we have invested $500m, and we are looking at directly and indirectly creating 30,000 jobs, and in creating those jobs, we want to make Nigeria an industrial hub,” The University of Oxford.
“We have had every challenge you can think of; we are developing infrastructure and facilities to overcome these hurdles. One of the biggest hurdles is the self-belief in Nigerians. If we supported each other, no foreigner would do what a Nigerian would do in their country. We have to believe in each other more and I believe if we do that, challenges and barriers would have been easier to manage,” she said.
