TradeInvestNigeria Staff
Posted on: Tue, 17 Jun 2008
The Chinese consortium partnering the Lagos State Government in the development of the
Lekki Free Trade Zone is committed to transfering skills to local workers. Pic: Jaco Maritz
The Lekki Free Trade Zone is located on the Lekki Peninsula southeast of the city of Lagos on the Lekki Lagoon. It is a new city under development and is one of the fastest developing urban areas with an annual economic growth rate of 16.8%.
Close to the vast market that is the metropolis of Lagos, a planned deep sea port will provide exporters with even better access to regional and international markets. At the core of the development strategy adopted for the FTZ is a public private partnership. A highly successful collaboration with a consortium of Chinese companies has already seen the installation of major infrastructure as part of phase one. This infrastructure includes a specially dedicated power plant to ensure that the zone is well served for energy and is independent of the national grid. Similarly, water and sewage treatment plants are under construction to cater to the rapidly developing city.
There is abundant land available for industrial projects. The first phase comprised the development of 3 000 hectares and a 350-hectare launch area was planned for commissioning in May 2008.
The sea port is planned to maximise the area's prime position with the type of industries set to develop around the port being heavy industries such as petrochemicals and oil refineries.
The zone will be sealed by fencing walls and dedicated police stations will provide good security, while the 80km-long Lekki-Epe expressway will soon link the zone to central Lagos. Manufacturers in all sectors are encouraged to take advantage of the benficial position of Lekki FTZ – and the very beneficial trading conditions for producers and exporters associated with a free trade zone. There are openings and access to a plentiful supply of raw materials for investors in fields such as agri-processing, clothing and textiles, food and beverages, forestry, mining and pharmaceuticals.
Opportunities in almost every imaginable sphere abound as the vision for Lekki FTZ envisages the creation of everything needed in a modern city: industry (light and heavy), commerce, retail, housing and tourism. The beaches adjoining Lekki's lagoon and oceanfront are the site of considerable activity already, with a golf course under construction and plans in place for various hotels, beach resorts and private villas. Fitness and spa centres and conference facilities are also planned, with a five-acre mixed development (one, two and three-bedroom apartments) designed to house employees of the various hospitality ventures.
Economic reform has been underway in Nigeria since 1999 and has served to markedly improve the investment environment and encourage the private sector as the driving force for economic growth. Good results have been achieved in the privatisation of heavily subsidised government-owned enterprises in the fields of energy, telecoms and transportation. An anti-corruption policy is being pursued with commitment and vigour by the Nigerian federal government in order to achieve higher efficiency rates and better service. These reforms have resulted in transparency and openness in Nigeria’s economic development and have removed the bureaucratic obstacles that hindered the development of the economic private sector.
Nigeria's high level of openness, the abolition of restrictions on foreign ownership of business and free repatriation of foreign investment capital and profits, huge consumer market potential, rich energy resources and abundant human resources have made the country one of the destinations with the highest profit yield and investment returns in the world. As the 'economic capital' of Nigeria, Lagos is the economic, financial and trade hub of the country and West Africa. The Lekki Free Trade Zone is the culmination of the more liberal investment policies of the federal and Lagos State governments.
As the sole executive administration of the zone, Lekki Free Trade Zone Development Company will consist of representatives from various relevant government departments of both China and Nigeria, including Customs authorities, the Lagos State government and the Nigeria Export Process Zone Authority (NEPZA) so as to ensure the maximised granting of the preferential policies and incentives for investors in the zone. The incentives available to investors in the Lekki FTZ are among the most favourable in Africa and compare very well with those offered anywhere in the world. They include: 100% foreign ownership of investment; one-stop approvals; no import or export licenses; tax holidays; unrestricted remittance of capital and duty free importation of raw materials. In addition, products made in Nigeria enjoy preferential tariff concessions in the European Union.
Investors interested in opportunities at the Lekki Free Trade Zone should contact:
Lekki Worldwide Investments Limited
Contact: Mr TAB Disu - Managing Director
Email: infonigeria@gan.co.za
