The International Finance Corporation (IFC) has announced a $50 million equity investment in the Lagos Free Zone Company (LFZ) to accelerate Nigeria’s industrial expansion and economic diversification.
Dahlia Khalifa, IFC Regional Director for Central Africa and Anglophone West Africa, disclosed the investment at an official signing ceremony on Friday in Lagos.
She emphasized that the funds would address Nigeria’s infrastructure gaps, enhance industrial facilities, and foster global business integration.
“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,” Khalifa stated.
The Lagos Free Zone, spanning 860 hectares, is owned by Tolaram, a multinational conglomerate with operations in Africa, Asia, and Europe. The zone integrates industrial and logistics operations, streamlining import and export activities to support Nigeria’s broader economic diversification agenda.
Strategic Impact on Nigeria’s Economy
Nigeria’s economy is projected to grow by 3.7% by 2026, making investments in infrastructure crucial for sustained progress. Khalifa noted that when fully occupied, Lagos Free Zone would significantly contribute to Nigeria’s GDP and bolster the country’s standing in global trade networks.
The investment also aligns with IFC’s broader strategy to support sustainable development. Approximately 15% of the funding is dedicated to green infrastructure, including climate-resilient designs and energy-efficient buildings certified under the Excellence in Design for Greater Efficiencies (EDGE) program.
Lagos Free Zone’s Commitment to Growth
Adesuwa Ladoja, Managing Director of Lagos Free Zone Company, hailed IFC’s support as a milestone in establishing the free zone as a world-class industrial hub. She highlighted that the investment would enable the company to expand its infrastructure, attract international and local businesses, and drive long-term economic benefits.
“We look forward to driving growth and delivering lasting impact through this transformative collaboration with IFC. This investment aligns with Nigeria’s ongoing economic reforms and IFC’s strategic priorities, which focus on economic diversification, competitive cluster development, and climate-resilient investments,” Ladoja said.
She added that the Lagos Free Zone’s integration with Lekki Deep Sea Port would facilitate ease of doing business in Nigeria, reinforcing the federal government’s push for economic transformation.
Key Highlights:
- IFC’s $50 Million Equity Investment: Aimed at supporting the development of Nigeria’s first deep-sea port and industrial hub.
- Economic Growth & Job Creation: Lagos Free Zone is expected to create approximately 30,000 direct, indirect, and induced jobs.
- Infrastructure & Logistics Expansion: Focus on land development, industrial facilities, and logistics infrastructure.
- Sustainability Commitment: 15% of the investment earmarked for climate-resilient infrastructure and EDGE-certified buildings.
