[ad_1]
Four free trade zones have attracted a total investment of $8bn within their years of operations, contributing to local economic activity and fostering international trade relations, officials of the FTZs have said.
The zones, located in Lagos State include the Lagos Free Trade Zone, Lekki Free Trade Zone, Alaro City, and the Lagos Deep Offshore Logistics.
The investments in the FTZs were disclosed by officials of the facilities during a recent media tour of the zones organised by the Nigeria Export Processing Zones Authority.
According to them, $2.5bn was attracted to develop the Lagos FTZ, while the Lekki FTZ reached $4bn in attracted investment. $1bn has been invested in the development of Alaro city and $500m to develop LADOL, a privately owned logistics and engineering facility.
Free trade zones, according to NEPZA, create an environment that enhances economic growth and development of export-oriented manufacturing in the non-oil sector of the economy.
Earlier this year, the Managing Director of NEPZA, Olufemi Ogunyemi, said Nigeria’s free zones, numbering 46 licensed in 2022, had provided 38,429 direct employment jobs and an additional 172,930 indirect jobs as of the end of 2023.
Speaking to our correspondent during the media tour, the Manager of Business Development and Marketing, Lagos FTZ, Chinju Nwankwo-Udora, said the zone established in 2012 had achieved remarkable accomplishments through world-class infrastructure to enable ease of doing business for its investors.
She noted that the zone currently accommodates 30 registered and operational companies with plans to attract 150 companies in the coming years.
She said, “The Lagos Free Trade Zone has contributed about $2.5bn in committed investments and employed investments, These include the Lekki ports project which was $1.2bn, the land acquisition of the free zone and other factories that have been set up and infrastructure we have been put in place till date.”
She added that in 2023, LFZ contributed over N40bn in customs duties, and over N400m was remitted as PAYE to the Lagos State government.
She said that facilities have been established to enhance the ease of doing business, stressing that, “Enterprises only have to bring in their types of machinery and plug-and-play.
“By the time we finish our infrastructure, we plan to have 150 companies in the zone creating thousands of jobs and looking forward to contributing 2.5 per cent to the country’s Gross Domestic Product.”
Speaking also, the LFZDC Deputy Managing Director, Bolatito Ajibode, stated that approximately 3,200 workers come to the zone each day to earn a living, highlighting the significant employment opportunities created by the zone.
“The level of foreign direct investment that we have attracted in the free zone. Today we can say that the zone in terms of investments is more than $4 to $5bn from infrastructure to respective industries and raw material production.
“In terms of revenue to the government, we also remit pay as you earn tax to the state government,” she noted.
The former banker added that the zone, which is the largest trade zone with a land area of 3,000 hectares, currently has 60 enterprises in operation and an additional 30 under construction across various sectors, including manufacturing, real estate, logistics, recreation, and oil and gas.
On its challenges, she noted, “The first challenge is the road infrastructure from Lekki to Eleko junction, but that has been handled by Dangote and will be completed soon.
“Another challenge is the devaluation of the naira. We currently sell in dollars, and it has been a bit of a challenge for investors, whether coming in or going out, especially Nigerian investors, to buy our land.
“We have different options for large-scale manufacturers and small retailers, but it’s people who have deep pockets that can come in. Nigerian investors struggle to cough out the money, which is why we have more foreigners here, like 80 to 20 per cent.”
As a solution, she said the company has implemented a buy now and pay later policy to assist businesses set up their operations.
The Managing Director of LADOL, Dr Amy Jadesimi, speaking with The PUNCH, also highlighted the need to boost manufacturing activities through free trade zones.
She stated that the zone, which serves as a logistics hub for multinational industrial and offshore companies, intends to diversify into agricultural processing, parts manufacturing, and other industrial activities.
“In 23 years, we have invested $500m, and we are looking at directly and indirectly creating 30,000 jobs, and in creating those jobs, we want to make Nigeria an industrial hub,” The University of Oxford
“We have had every challenge you can think of; we are developing infrastructure and facilities to overcome these hurdles. One of the biggest hurdles is the self-belief in Nigerians. If we supported each other, no foreigner would do what a Nigerian would do in their country. We have to believe in each other more and I believe if we do that, challenges and barriers would have been easier to manage.”
Meanwhile, Alaro City has highlighted opportunities in free trade zones for domestic and foreign investors that could be tapped for growth and development.
The Project Director, Morgan Oriahi, said that the city’s proximity to the Lekki Deep Seaport, the airport, and well-integrated road infrastructure, were part of the business growth enablers in the free zone.
[ad_2]
Source link