Lagos Free Zone targets $12bn contribution to Nigeria’s GDP

 • To create 32,000 jobs in 10years

By Amechi Ogbonna

AFTER investing an estimated $2.5billion developing the Lagos Free Zone, it’s managing director, Mr. Dinesh Rathi, at the weekend said the facility would contribute about $12 billion to Nigeria’s GDP over the next 30 years.

This, he said will be made possible through increased economic activities in the zone, which has an ultra modern port considered as Nigeria’s first seaport with a draft of over 16.5 meters.

Speaking on the progress of work at the project commissioned in April this year, Mr Rathi said the 850 hectares zone has already recorded about $2.5billion investment interest with over $2.3billion already realised.

According to him, about 24 warehouses have since been completed on the sprawling free zone while rapid progress is being made with potential offtakers/ investors from within and outside the country to increase utilisation of facilities in the zone.

Over the next 10 years, the LFZ boss expressed optimism that about 32,000 jobs will be provided by companies op- erating in the zone, to more than double its current 15,000 jobs capacity which will go a long way into reducing the na- tion’s unemployment market.

Already Rathi said that about 15 percent of senior management positions in Tolaram Nigeria Limited, the owners and managers of the Lagos Free Zone are occupied by Ni- gerians, even as he confirmed that more than 70 percent of the raw materials used in its various manufacturing facilities are currently sourced in the country.

On fears being expressed by many observers that the notorious Apapa gridlock was already in the making at the LFZ access roads, Rathi assured that the zone built two truck parks with capacity to accommodate over 150 trucks at once, while it is working with the Lagos state government to create a call up system that would ensure efficient logistics and haulage of cargoes from the zone.

Listing some of the challenges of operating from the zone he said “Part of our challenges border on Nigeria’s tough business environment which we also see as transitory, because government is doing a lot in the area of road construction and expansion. Some of the roads are good but we expect further expansion and upgrade to improve the efficiency of our operations.”

He also expressed optimism that the nation’s macro economic environment would improve as the new ad- ministration comes on board on May 29, so that more off- takers would occupy more of the facilities at the zone.
Also speaking during the tour of its port facility, the LGZ Port’s safety manager, Mr Samuel Azanar, said it is the first seaport to be developed in Nigeria as all existing ones can best be considered as river port on account of their low draft