The Lekki Free Zone in Lagos, Nigeria, is emerging as a pivotal economic hub, poised to revolutionize Nigeria’s economy. In this report, Africa Health Report Southwest correspondent, Korede Abdullah delves into the zone’s vast potential as a transformative business hub.
Better Days Ahead
Nigeria’s economy has been grappling with longstanding challenges, including a heavy reliance on oil exports, inadequate infrastructure, and pervasive corruption. Despite these hurdles, the country boasts significant opportunities for growth, driven by a large and youthful population, vast natural resources, and a rapidly expanding digital economy.
The government’s efforts to diversify the economy, invest in infrastructure, and promote entrepreneurship have shown promise, but implementation and policy consistency remain key concerns.
As Nigeria navigates its economic future, experts say the Lekki Free Trade Zone (LFTZ) is poised to play a pivotal role, offering a strategic platform for foreign investment, job creation, and export-driven growth. As a flagship project, the LFTZ is expected to drive economic diversification, boost manufacturing and industrialization, and enhance Nigeria’s competitiveness in the global market.
“With its proximity to Lagos, Nigeria’s commercial hub, and access to a vast market, the LFTZ is well-positioned to attract foreign direct investment, stimulate economic growth, and contribute significantly to Nigeria’s GDP, ultimately emerging as a catalyst for the country’s economic transformation.”, said Alhaji Ibrahim Sola Bashir, a chartered accountant, who spoke with our correspondent on Saturday.
Nigeria’s Economic Powerhouse
The Lekki Free Trade Zone (LFTZ) has been ranked as the most popular free zone in Nigeria and one of the fastest-growing free zones globally, according to a World Bank report.
As a special economic zone, the LFTZ offers minimal custom restrictions, making it an attractive destination for foreign investment. The zone is managed by the Nigerian Export Processing Zone Authority (NEPZA) and is located 60 km east of Lagos.
The development objective of the LFTZ project is to establish a free economic zone that promotes industry, commerce, trade, tourism, and recreation, while attracting foreign investment and creating employment opportunities.
The Lagos State government has allocated 16,500 hectares of land for the project, with 3,000 hectares already transferred to the developer. The state government holds an equity share in the project, which includes partners such as the Chinese Consortium, Tolaram, Rendevour, and Dangote Refinery.
The LFTZ is poised to drive economic growth and development in Nigeria, with the Lagos State government contributing to the construction costs of the zone’s infrastructure. As a flagship project, the LFTZ is expected to play a critical role in Nigeria’s economic future, attracting foreign investment and promoting economic diversification.
Lekki Free Zone Takes Shape
According to the Africa Health Report (AHR) findings, the Lekki Free Zone is being developed in three parts, comprising a residential district in the north, an industrial district in the middle, and a commercial, trading, and logistics district in the south-east.
The project was officially approved by the Chinese Ministry of Commerce in 2007 and is being developed in four phases, focusing on four major sectors of investment. The first sector will feature a commercial service area with markets, hotels, cultural centers, and other amenities.
The first phase of the project, covering 3,000 hectares, is expected to be home to manufacturing, warehousing, logistics industries, as well as commercial and trading investors. With an intended population of around 120,000 residents, the Lekki Free Zone is poised to become a major economic hub in Nigeria, driving growth and development in the region.
New Satellite City for Lagos
The Lekki Free Zone Development Company has revealed that land pricing in the zone is calculated per square metre, with real estate properties costing $60 per square metre and industrial land costing $200 per square metre.
The ultimate goal is to transform the Lekki Free Zone into a modern, multi-functional township, complete with state-of-the-art infrastructure for commercial and residential purposes.
Upon completion, the Lekki Free Zone will be a satellite city of Lagos, suitable for trading, industry, and residence. The project aims to create a thriving hub that will drive economic growth, create jobs, and improve the quality of life for its inhabitants.
With its strategic location and world-class infrastructure, the Lekki Free Zone is poised to become a major player in Nigeria’s economic landscape.
Game-Changing Refinery: Dangote’s Mega Project
The Dangote Refinery and Petrochemical Plant, owned by Africa’s richest man Aliko Dangote, is one of the most significant developments within the Lekki Free Trade Zone. This mega-project is set to become the largest single-train refinery in the world upon completion, with a refining capacity of 650,000 barrels per day. The refinery will not only meet Nigeria’s domestic demand for petroleum products but also position the country as a major exporter.
The Dangote Petroleum Refinery and Petrochemicals, a subsidiary of Dangote Industries Limited, is the world’s largest single-train petroleum refinery. The refinery covers an area of approximately 2,635 hectares and has a total storage capacity of 4.5 billion liters. It is designed to process a large variety of crudes and produce Euro-V quality gasoline and diesel, as well as jet fuel and polypropylene.
The refinery is designed to use the latest technology to comply with stringent guidelines and regulations to protect the local environment. It also has its own dedicated steam and power generation system with adequate standby units for reliable and uninterrupted utility supply. The refinery’s 435MW power plant can meet the total power requirement of Ibadan Distribution Company, covering five states.
The Dangote Refinery and Petrochemical Plant has been a game-changer for Nigeria’s economy, providing employment opportunities and increasing the country’s revenue through exports. With its state-of-the-art technology and massive production capacity, this mega-project is poised to make Nigeria a major player in the global petroleum industry.
Refinery Boom: Lekki Free Zone Set to Thrive
The Dangote Refinery is poised to generate an estimated annual market value of US $21 billion for Nigerian crude oil, with foreign exchange savings/earnings of US $9.9 billion. The refinery will also serve as a catalyst for the Lekki Free Zone, with 56% of its
production earmarked for export, generating approximately $17 billion in foreign exchange. According to experts, the refinery will add over $25 billion to Nigeria’s GDP through massive value addition within the country.
“The Lekki Free Zone is a game-changer for Nigeria’s economy,” says Director-General of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa. “The zone has the potential to attract significant foreign investment, create jobs, and increase Nigeria’s export earnings.”
Another expert, former CEO of the Nigerian Export Promotion Council, Mr. Segun Awolowo adds, “The Lekki Free Zone is strategically located to serve as a hub for exports, and the Dangote Refinery is a key anchor project that will drive growth in the zone.”
The refinery’s products will also serve as raw materials for the production of polyvinyl chloride (PVC), which has a wide range of industrial and everyday applications.
With its state-of-the-art infrastructure, including a port and quays, the refinery is well-positioned to serve both domestic and export markets. As the Lekki Free Zone continues to develop, it is expected to become a major driver of economic growth and development in Nigeria.
Powering Nigeria’s Industrial Hub
August last 2024, NNPC Gas Marketing Limited and NIPCO Gas Limited inaugurated a significant gas project to power industries at the Lekki Free Trade Zone in Lagos. The project, which includes the Lekki Power Plant and a 100 million standard cubic feet of gas per day facility, is expected to boost industrialization and economic development in the country.
According to Mr. Justin Ezeala, Managing Director of NNPC Gas Marketing Limited, “We are indebted to NIPCO Gas’ commitment and professionalism… We knew the gas business revolved around us and that we could deliver seamlessly to the industries in the zone.”
The project is a significant step towards unlocking Nigeria’s abundant natural gas resources for economic development. Mr. Nagendra Verma, Managing Director of NIPCO Gas, noted that the project will boost industrialization, employment opportunities, and the economy of the country.
Meanwhile, Dai Shunfa, Managing Director of Lekki Free Zone Development Company, said the project will enhance development in the zone, contribute to the economy, and boost local community capacity. With over 100 companies already operating in the zone, the project is expected to further drive economic growth and development in the region.
Lagos Takes Flight
The Lagos State Government has taken a significant step towards transforming the state’s infrastructure by signing a Memorandum of Understanding (MoU) with Summa Group, a renowned construction company, for the development and construction of the Lekki-Epe International Airport.
Governor Babajide Sanwo-Olu announced the agreement on his official X (formerly Twitter) account on Saturday, describing the project as a “transformative initiative” aimed at improving connectivity, boosting economic growth, and attracting global investments.
The Lekki-Epe International Airport is expected to enhance travel and create new opportunities for businesses and residents across the state.
According to Governor Sanwo-Olu, “This groundbreaking initiative is an essential part of our vision to improve connectivity in Lagos, stimulate economic growth, and draw in global investments”.
The airport will also have a significant impact on the Lekki Free Zone, making it an attractive destination for foreign investors and boosting economic activities in the region.
The MOU is significant to the Lekki Free Zone as it will increase the zone’s attractiveness to foreign investors, create jobs, and drive economic growth.
With the airport in place, the zone will become a major hub for business and commerce, further solidifying Lagos State’s position as a major economic player in Nigeria.
The project is also in line with the state’s 2025 budget, which allocates N1.052 trillion for infrastructure development, including the construction of key roads and bridges that will enhance access to the airport.
Lekki Deep Seaport Unveiled
The Lekki Deep Seaport project, unveiled by President Muhammadu Buhari, is a monumental achievement that promises to revolutionize Nigeria’s maritime industry. This $1.5 billion project is expected to inject at least $361 billion into the economy, creating over 169,000 direct and indirect jobs.
The port’s state-of-the-art infrastructure, including 13 quay cranes and a capacity of 2.5 million TEUs, positions it as a game-changing facility in West Africa.
The Lekki Deep Seaport’s significance extends beyond its economic benefits, as it is poised to transform the Lekki Free Zone into a global industrial hub. With its strategic location and modern facilities, the port will attract foreign investment, increase trade volumes, and drive economic growth.
The project’s impact will be felt across the region, with neighboring countries already expressing interest in using the port for their cargo operations.
As Nigeria’s first deep seaport, the Lekki Deep Seaport is a testament to the country’s commitment to infrastructure development and economic growth. The project’s success is a result of a joint effort between the federal government, the Lagos State Government, Tolarams Group, and China Harbour Engineering Company.
As the port begins operations, it is expected to become a major driver of economic growth and development in Nigeria and the West African region.
Idahosa Hails Lekki Free Zone as Economic Growth Driver
The Chairman of the Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, lauded the Lekki Free Zone as a critical driver of Nigeria’s economic growth.
According to Idahosa during a visit to the Lekki Free Zone by the Women Group on a business tour round the premises to explore the business opportunities, the zone has the potential to transform Nigeria’s economy by attracting foreign investment, promoting trade, and creating jobs.
He noted that the zone’s strategic location, world-class infrastructure, and business-friendly environment make it an attractive destination for investors and businesses.
“The Lekki Free Zone will play a significant role in diversifying Nigeria’s economy, reducing dependence on oil exports, and increasing the country’s global competitiveness.”, Idahosa said.
He commended the Lagos State Government and other stakeholders for their efforts in developing the zone, saying that their vision and commitment to creating a world-class free zone will have a lasting impact on Nigeria’s economic development.
“With its potential to drive economic growth, create jobs, and attract investment, the Lekki Free Zone is indeed a game-changer for Nigeria’s economy.”, Idahosa concluded.
Nigeria’s Economic Future: A Beacon of Hope
Analysts agree that Nigeria’s economic future is bright, with the Leki Free Zone playing a pivotal role in driving growth and development. As a strategic economic hub, the zone is poised to attract foreign investment, promote trade, and create jobs, ultimately transforming Nigeria’s economy.
With its world-class infrastructure and business-friendly environment, the Lekki Free Zone is expected to become a major driver of economic growth, reducing Nigeria’s dependence on oil exports and increasing its global competitiveness.
As the Lekki Free Zone continues to evolve, it is expected to become a beacon of hope for Nigeria’s economic future. With its potential to create over 169,000 jobs and inject billions of dollars into the economy, the zone is a game-changer for Nigeria.
As analysts predict, the Lekki Free Zone will not only drive economic growth but also improve the standard of living for Nigerians, making it a vital component of Nigeria’s economic future.
