IFC invests $50 million in Lagos Free Zone to boost Nigeria’s industrial growth
The International Finance Corporation (IFC) has pledged a $50 million equity investment in the Lagos Free Zone (LFZ) to support Nigeria’s industrial growth and economic diversification. The announcement was made by Dahlia Khalifa, IFC Regional Director for Central Africa and Anglophone West Africa, at a signing ceremony in Lagos. Khalifa highlighted that the investment would address critical infrastructure gaps, improve industrial facilities, and integrate Nigeria more effectively into global business networks.
Lagos Free Zone, which spans 860 hectares, is owned by Tolaram, a multinational conglomerate. The zone serves as a hub for industrial and logistics operations, designed to facilitate import and export activities. With Nigeria’s economy projected to grow by 3.7% by 2026, the LFZ investment is seen as crucial in advancing the nation’s economic diversification efforts and boosting its competitiveness in the global marketplace.
The $50 million investment is also aligned with IFC’s broader objectives to support sustainable development. Around 15% of the funds will be dedicated to green infrastructure, including climate-resilient and energy-efficient buildings certified under the EDGE program. This commitment underscores the importance of sustainable, long-term development in the industrial sector, as Nigeria seeks to modernize and diversify its economy.
IFC’s investment in Lagos Free Zone is expected to drive significant job creation, with projections estimating the creation of around 30,000 direct, indirect, and induced jobs. This economic boost is central to the government’s ongoing reforms aimed at enhancing Nigeria’s business environment. The development of the Free Zone, integrated with the Lekki Deep Sea Port, will provide a streamlined platform for both local and international businesses to thrive.
Adesuwa Ladoja, Managing Director of Lagos Free Zone Company, emphasized the transformative potential of the investment. It will help expand infrastructure, attract more businesses, and strengthen the economic links between Nigeria and global markets. The initiative complements the federal government’s focus on fostering economic diversification, competitive industries, and climate-resilient investments, positioning the LFZ as a key player in Nigeria’s long-term economic future.
Source: nairametrics