Lagos Free Zone Targets $3.5bn Investment By 2024

The Lagos Free Zone has announced that it’s targeting a total sum of $3.5billion investment by 2024, this is even as it says that five commercial banks have already indicated interest to operate in the area.

Addressing the media on Thursday, during a tour of the Free Zone, the Managing Director/CEO of the Lagos Free Zone, Mr Dinesh Rathi, explained that as of Thursday, 20 companies have commenced operations in the area.

Rathi said we expect investment in this area to hit $3.5bn by 2024. Presently, we have close to $2bn investment here.

He said the Lekki Deep Seaport which is inside the Lagos Free Zone alone has around $1.2bn investment as of today, and that value is still growing. The Lagos Free Zone in itself has around $400m that has been invested into it by Tolaram Group.

The other companies that are currently located within the Lagos Free Zone have also invested around $400million in terms of investment. So for now, we have about $2bn invested in the Lagos Free Zone and we expect that to grow to $3.5bn in two years.”

On the companies already operating inside the Lagos Free Zone, Mr Rathi explained that the numbers are expected to grow once the Lekki Deep Seaport commences operation by September of 2022.

According to him, we have about 20 companies operating inside the Lagos Free Zone as of today. Some of the companies include Kelloggs factory, Raffles Oil, Sane building system, Insignia Print Technology amongst others.

“Just last week, Main One launched its optic fibre broadband services here. That means every firm domiciled within the Lagos Free Zone can have access to unfettered internet services.

“Also, about five banks have already signified interests to operate from here. Stanbic IBTC is already here, and we expect another four to join very soon.

“The benefits for companies operating from inside the Lagos Free Zone are enormous. Companies operating from the Lagos Free Zone are exempted from all taxes, levies and rates from the Federal, State and Local Governments.

“There is also no import duty applicable on goods imported from outside the country into the Lagos Free Zone. Companies operating from here will also enjoy remittances of profit and dividends without Withholding Tax.

“There is also 100 per cent repatriation of capital investment for operators within the Lagos Free Zone. Also, there is 100 per cent foreign ownership of businesses within here amongst others,” the Lagos Free Zone MD stated.

On accessibility into the Free Zone, Mr Rathi added that the roads leading into the Free Zone are being expanded in anticipation of the volume of operations that will commence very soon.

“The Eleko road is currently being expanded. The Lekki-Epe road is being converted into a dual-lane from Ibeju-Agbe to T-junction at Epe. Epe road to Ijebu-Ode is being upgraded also as we speak. Itoikin to Ijebu-Ode road is also being expanded and upgraded too. A new road, the 7th Axial road is being built under a Public-Private partnership arrangement,” the Lagos Free Zone MD added.

Established in 2012, the Lagos Free Zone which is fully owned by the Tolaram Group is located in Lekki and has over $2bn in Foreign Direct Investment to date.