Posted on February 12, 2025
To enhance industrial growth and diversify the economy in Nigeria, the International Finance Corporation (IFC) has announced an equity investment of up to $50 million (over £40 million) in the Lagos Free Zone Company. This investment aims to support the development of Nigeria’s first deep-sea port-based private special economic zone, paving the way for critical infrastructure improvements and attracting local and international businesses.
The funds will primarily focus on the first phase of the expansive 860-hectare Lagos Free Zone, emphasising land development, establishing industrial facilities and enhancing logistics infrastructure. Strategically owned by Singapore’s Tolaram Group, the Lagos Free Zone is uniquely positioned adjacent to the Lekki Deep Sea Port, creating an interconnected industrial ecosystem designed to facilitate efficient import and export operations, thereby integrating Nigeria more seamlessly into global value chains.
Expected to generate 30,000 direct, indirect and induced jobs
With Nigeria’s economy projected to experience a growth rate of 3.7% by 2026, investment in infrastructure has become paramount for fostering sustainable development. Once fully operational, the Lagos Free Zone is expected to generate about 30,000 direct, indirect and induced job opportunities, substantially contributing to Nigeria’s gross domestic product (GDP).
“This investment reflects IFC’s commitment to fostering inclusive economic growth and sustainable development in Nigeria,” said Dahlia Khalifa, IFC’s Regional Director for Central Africa and Anglophone West Africa. “The Lagos Free Zone is poised to transform into a hub of industrial activity, driving job creation and enhancing Nigeria’s competitive edge in global markets. We are proud to collaborate with Lagos Free Zone in building the infrastructure necessary to attract businesses, both local and international and unlock Nigeria’s full economic potential.”
In line with global sustainability efforts, approximately 15% of the investment will target climate-related initiatives, including the development of EDGE-certified buildings and climate-resilient infrastructure.
Adesuwa Ladoja, Managing Director and CEO of Lagos Free Zone Company expressed enthusiasm over the investment: “IFC’s support is a significant endorsement of our vision to create a world-class industrial hub. This investment allows us to scale up existing infrastructure, attracting more tenants while also promoting sustainability and creating economic opportunities for Nigeria. Integrated with the Lekki Deep Sea Port, the Lagos Free Zone enhances the ease of doing business and aligns with the Federal Government’s agenda for economic diversification and infrastructure development. We look forward to driving growth and making a lasting impact through this transformative partnership with IFC.”
The Lagos Free Zone already hosts several prominent manufacturing brands, including Kellogg’s, Dano Milk, Colgate, BASF, ADM and Tata International, illustrating its potential as a manufacturing powerhouse.
This investment aligns with ongoing economic reforms in Nigeria and falls within the IFC’s strategic frameworks, including the World Bank Group’s Nigeria Country Partnership Framework (2021–2025) and its 2015 Climate Action Plan. Both frameworks prioritize economic diversification, the development of competitive clusters and investments in climate-resilient infrastructure.
By addressing infrastructure challenges and enhancing connectivity, IFC’s investment in the Lagos Free Zone is set to unlock new business opportunities and further solidify Nigeria’s position as a regional economic leader.
