Kogi State has officially secured the Declaration License for the Ajaokuta Economic City Free Trade Zone, signaling the formal take-off of one of Nigeria’s strategic industrial corridors.
The disclosure was made in a statement by the Kogi Commissioner for Information and Communications, Mr. Kingsley Fanwo, on Thursday in Lokoja, as reported by the News Agency of Nigeria (NAN).
The license, issued by the Nigeria Export Processing Zones Authority (NEPZA), is expected to attract significant investments and create thousands of jobs across the state, positioning Kogi for industrial growth and economic diversification.
What they are saying
According to Fanwo, the certificate was presented to Governor Ahmed Ododo at NEPZA Headquarters in Abuja, marking a historic milestone in Kogi’s economic transformation agenda.
The commissioner described the Ajaokuta Economic City Free Trade Zone as a major economic driver for the state, with potential to position Kogi as a key player in Nigeria’s industrial sector.
- “The Ajaokuta Economic City Free Trade Zone is set to become a major economic driver for Kogi, with NEPZA officially issuing the License/Certificate of Declaration,” the statement read.
- NEPZA Managing Director, Olufemi Ogunyemi, congratulated the governor and the people of Kogi, expressing confidence in the state’s commitment to developing the Economic City into a thriving investment hub.
- The project is projected to drive investment, job creation, export expansion, and sustainable economic growth.
- With its strategic location, the Ajaokuta Economic City Free Trade Zone is expected to become the largest commercial and industrial corridor in the country.
The development is anticipated to attract businesses and industries that will boost Kogi’s economy for years to come.
Why this matters
The Ajaokuta Economic City Free Trade Zone could become a catalyst for industrial growth in Kogi State, following the success of zones like Lekki, Onne, and Eko Atlantic City. These areas have demonstrated how strategic location, infrastructure, and investor-friendly policies can attract businesses, create jobs, and boost exports.
- Lekki Free Trade Zone has drawn multinational companies in manufacturing and logistics.
- Onne Free Trade Zone leverages its port for the oil and gas industries.
- Eko Atlantic City combines urban development with commercial opportunities.
As of February 2023, Nigeria had 46 of Africa’s 240 Free Trade Zones, with 30 operational at the time, and the number expected to grow as more states apply for licenses.
By replicating these models, Ajaokuta Free Trade Zone can diversify local industries, stimulate trade, and strengthen Kogi’s role in Nigeria’s industrial landscape, driving sustainable economic growth and regional competitiveness.
What you should know
Free Economic Zones, also called Special Economic Zones or Free Trade Zones, are designated areas with special legal and regulatory frameworks designed to attract investment and stimulate industrial growth. They provide incentives such as tax breaks, simplified customs, and streamlined regulations to create a more business-friendly environment.
- These zones promote exports, encourage domestic production, create jobs, and facilitate technology transfer through foreign and local investment.
- Activities in Nigerian Free Zones include manufacturing, agribusiness, solid minerals, oil and gas, and other industries like textiles, electronics, and food processing.
- By fostering industrialization, Free Zones can drive sustainable economic growth, expand production, boost exports, and generate employment.
With proper investment and supportive policies, zones like the Ajaokuta Economic City Free Trade Zone can help diversify Nigeria’s economy and replicate the success of similar initiatives across Africa.
