The International Finance Corporation (IFC) has announced an equity investment of up to $50 million in Lagos Free Zone Company. This funding is designed to support the development and expansion of the Lagos Free Zone (LFZ)—Nigeria’s pioneering deep-sea port-based private special economic zone. This investment not only addresses critical infrastructure gaps but also serves as a catalyst for attracting both local and international businesses, driving economic growth, and advancing Nigeria’s diversification efforts.
Spanning 860 hectares and strategically located next to the Lekki Deep Sea Port, Lagos Free Zone is a premier industrial hub owned by Tolaram, a multinational conglomerate based in Singapore. The zone offers a state-of-the-art industrial ecosystem that streamlines import and export processes, enhancing Nigeria’s competitiveness in global trade.
The initial phase of development, funded by IFC’s investment, will focus on land development for industrial facilities; construction of world-class logistics infrastructure; development of climate-resilient and sustainable industrial spaces.
With Nigeria’s GDP expected to grow by 3.7% by 2026, infrastructure investments like this are essential to maintaining growth. When fully developed, Lagos Free Zone is projected to create 30,000 direct, indirect, and induced jobs, further establishing it as a key economic engine for the country.
IFC’s Dedication to Nigeria’s Economic Growth
This investment is part of IFC’s larger strategy to promote inclusive economic growth across Africa. Dahlia Khalifa, IFC’s Regional Director for Central Africa and Anglophone West Africa, highlighted the investment’s significance in boosting Nigeria’s competitiveness.
“This investment reflects IFC’s commitment to fostering inclusive economic growth and sustainable development in Nigeria. Lagos Free Zone is poised to become a transformative hub for industrial activity, driving job creation and enhancing Nigeria’s competitiveness in global markets. We are proud to partner with Lagos Free Zone in building the infrastructure necessary to attract global and local businesses, enabling Nigeria to achieve its full economic potential.”
A central component of IFC’s investment is its focus on sustainability. About 15% of the funds will be directed toward climate-friendly infrastructure, including: EDGE-certified buildings for greater efficiency, climate-resilient infrastructure to reduce environmental risks, and energy-efficient solutions aligned with Nigeria’s sustainable development goals.
This emphasis on green infrastructure supports IFC’s Climate Action Plan and the World Bank Group’s Nigeria Country Partnership Framework (2021–2025), reinforcing the nation’s efforts to integrate sustainability into industrial growth.
Lagos Free Zone is already home to major global and regional manufacturers such as Kellogg’s, Dano Milk, Colgate, BASF, ADM, and Tata International. With IFC’s backing, the zone’s infrastructure will be enhanced, making it even more appealing to both foreign and domestic investors.
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