U.S. Backs Investment Push in Lagos Free Zone, Eyes Stronger Economic Ties with Nigeria
The United States has reaffirmed its commitment to supporting foreign direct investment in Nigeria, particularly in the Lagos Free Zone (LFZ), during a visit by the U.S. Ambassador to Nigeria, Richard Mills Jr., and a delegation from the U.S. Embassy and Consulate General. The ambassador emphasized that the U.S. would prioritize private sector-led investments rather than traditional aid, aligning with a broader strategy for engagement across sub-Saharan Africa. Mills highlighted the LFZ’s potential as a model for economic growth and said efforts would be made to encourage more American businesses to explore opportunities there.
Located in Lagos State and promoted by Singapore-based Tolaram, the LFZ spans 860 hectares and is equipped with world-class infrastructure, including a single-window system for ease of business operations. Mills Jr. expressed admiration for the zone’s master plan and ongoing development, noting that major U.S. brands like Kellogg’s and Colgate already have a presence in the area. He also pointed to the upcoming 2025 U.S.-Africa Business Summit in Angola as an ideal platform to connect with potential investors.
However, Mills expressed concern that many Nigerian businesses have yet to take full advantage of the African Growth and Opportunity Act (AGOA), a U.S. trade policy enacted 25 years ago to deepen trade relations with Africa. He underscored the importance of utilizing such bilateral agreements to strengthen economic partnerships between the two nations and help Nigerian firms access the American market more effectively.
In her remarks, LFZ Chief Executive Officer Adesuwa Ladoja described the Zone as Nigeria’s most attractive investment hub, offering modern amenities such as integrated port access, warehouses, a gas plant, emergency services, broadband internet, and residential and industrial facilities. She called on the U.S. diplomatic mission to assist in attracting more American businesses, emphasizing that the Zone’s ecosystem enables high returns on investment while contributing significantly to Nigeria’s economic growth and job creation.
Ladoja also credited the Nigerian Federal Government for its ongoing support, noting that infrastructure developments like the Lagos-Calabar Coastal Highway and a proposed rail line will greatly enhance cargo movement from the zone. She concluded that the LFZ is playing a critical role in expanding Nigeria’s export capacity, especially under trade agreements like the African Continental Free Trade Agreement (AfCFTA), making it a vital engine for the nation’s prosperity.
Source: Punch