The International Finance Corporation (IFC) has announced an equity investment of up to $50 million in Lagos Free Zone Company. This funding is aimed at developing and expanding Lagos Free Zone (LFZ)—Nigeria’s first deep-sea port-based private special economic zone. The investment is not only a crucial step toward bridging infrastructure gaps but also a catalyst for attracting both local and global businesses, fueling economic growth, and promoting Nigeria’s diversification agenda.
Lagos Free Zone: Nigeria’s Gateway to Global Markets
The Lagos Free Zone is a sprawling 860-hectare industrial zone strategically located alongside the Lekki Deep Sea Port. Owned by Tolaram, a Singapore-based multinational conglomerate, LFZ offers a world-class industrial ecosystem that streamlines import and export operations, significantly enhancing Nigeria’s global trade competitiveness.
The first phase of development, funded by IFC’s investment, will focus on:
- Land development to accommodate industrial facilities
- Construction of world-class logistics infrastructure
- Development of climate-resilient, sustainable industrial spaces
With Nigeria’s GDP projected to grow by 3.7% by 2026, investments in infrastructure are crucial to sustaining this momentum. The Lagos Free Zone, when fully developed, is expected to create 30,000 direct, indirect, and induced jobs, solidifying its role as an economic powerhouse for the country.
IFC’s Commitment to Nigeria’s Economic Transformation
The investment is part of IFC’s broader commitment to fostering inclusive economic growth in Africa. According to Dahlia Khalifa, IFC’s Regional Director for Central Africa and Anglophone West Africa, this initiative is a transformative step toward enhancing Nigeria’s global competitiveness.
“This investment reflects IFC’s commitment to fostering inclusive economic growth and sustainable development in Nigeria. Lagos Free Zone is poised to become a transformative hub for industrial activity, driving job creation and enhancing Nigeria’s competitiveness in global markets. We are proud to partner with Lagos Free Zone in building the infrastructure necessary to attract global and local businesses, enabling Nigeria to achieve its full economic potential.”
Sustainability at the Core of Development
A key highlight of IFC’s investment is its focus on sustainable development. Approximately 15% of the investment will be dedicated to climate-friendly infrastructure, including:
- Excellence in Design for Greater Efficiencies (EDGE)-certified buildings
- Climate-resilient infrastructure to mitigate environmental risks
- Energy-efficient solutions that align with Nigeria’s sustainable development goals
This commitment to green infrastructure aligns with IFC’s Climate Action Plan and the World Bank Group’s Nigeria Country Partnership Framework (2021–2025), reinforcing Nigeria’s efforts to integrate sustainability into industrial development.
Creating a Thriving Business Environment
The Lagos Free Zone is already home to global and regional manufacturing giants such as Kellogg’s, Dano Milk, Colgate, BASF, ADM, and Tata International. IFC’s support will scale up existing infrastructure, making it even more attractive for foreign and local investors.
According to Adesuwa Ladoja, MD/CEO of Lagos Free Zone Company, IFC’s backing signals global confidence in Nigeria’s industrial potential:
“IFC’s support represents a significant and positive recognition of our vision to establish Lagos Free Zone as a world-class industrial hub. This investment allows us to scale up the existing infrastructure to attract more foreign and local tenants while promoting sustainability and creating economic opportunities for Nigeria. Lagos Free Zone, integrated with Lekki Deep Sea Port, facilitates ease of doing business in Nigeria and supports the Federal Government of Nigeria’s drive for economic diversification and infrastructure development. We look forward to driving growth and delivering lasting impact through this transformative collaboration with the IFC.”
Why This Investment Matters for Nigeria
IFC’s investment in Lagos Free Zone is a pivotal step in addressing Nigeria’s infrastructure bottlenecks. By enhancing connectivity and providing world-class industrial facilities, this project will:
- Attract international investors looking for a reliable gateway into African markets
- Generate thousands of jobs, boosting employment and local economic development
- Strengthen Nigeria’s role as a key player in global trade through the Lekki Deep Sea Port integration
- Promote sustainability with climate-resilient infrastructure and green building initiatives
With the support of IFC, Lagos Free Zone is well on its way to becoming West Africa’s premier industrial and logistics hub, reinforcing Nigeria’s status as an economic leader in the region.
