The International Finance Corporation (IFC) has announced an equity investment of $50 million in Lagos Free Zone Company to support the expansion of the Lagos Free Zone (LFZ).

The funding will be channelled into the first phase of the 860-hectare territory and is expected to help bridge infrastructure gaps, attract both local and international businesses, and drive economic diversification.

The signing of the agreement, which took place in Lagos on Friday, saw investors optimistic about its influence on Nigeria?s trade and industrial future.

?Lagos Free Zone is poised to become a transformative hub for industrial activity, driving job creation and enhancing Nigeria?s competitiveness in global markets,? said Dahlia Khalifa, regional director of the IFC in Central Africa and Anglophone West Africa during the signing ceremony.

?[The LFZ] will provide an integrated industrial ecosystem for efficient import and export operations, serving as a gateway for Nigeria?s integration into global value chains,? the organisation wrote in an official statement.

Owned by Singapore-based Tolaram, a multinational group operating across Africa, Asia, and Europe, LFZ is integrated with the Lekki Deep Sea Port, designed to be West Africa?s largest and most advanced port, facilitating international trade. It is already home to major manufacturers including Kellogg?s, Dano Milk, Colgate, BASF, ADM, and Tata International.

Once fully operational, the LFZ is expected to generate about 30,000 jobs, contributing to Nigeria?s GDP and propelling the country?s economy towards a 3.7 percent growth projected by the World Bank.

According to Adesuwa Ladoja, managing director and ceo of LFZ Company, ?This investment allows us to scale up existing infrastructure, attract more foreign and local tenants, promote sustainability, and create economic opportunities for Nigeria.?

The project aligns with the World Bank Group?s Nigeria Country Partnership Framework (2021?2025) and its 2015 Climate Action Plan, with about 15 percent of the funds earmarked for climate-related initiatives, including Excellence in Design for Greater Efficiencies (EDGE)-certified buildings and climate-resilient infrastructure.

?[The Lagos Free Zone] facilitates ease of doing business in Nigeria and supports the Federal Government?s economic diversification and infrastructure agenda. We look forward to driving growth and delivering lasting impact through this transformative collaboration with the IFC,? said Ladoja. (BusinessDay)

*PLS USE PHOTO OF LAGOS FREE ZONE

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