IFC commits $50m to expand Lagos Free Zone
The International Finance Corporation has announced an equity investment of up to $50m in Lagos Free Zone Company to support the development and expansion of Nigeria’s first deep-sea port-based private special economic zone, the Lagos Free Zone.
The disclosure was made in a statement on Sunday, where IFC said the investment is aimed at addressing critical infrastructure gaps, attracting both local and global businesses, and contributing to Nigeria’s economic diversification agenda.
The funds will be directed towards the first phase of the 860-hectare Lagos Free Zone, focusing on land development, industrial facilities, and logistics infrastructure.
Owned by Singapore-based Tolaram, a diversified multinational group with operations across Africa, Asia, and Europe, the Lagos Free Zone is strategically integrated with the Lekki Deep Sea Port.
It is designed to provide an industrial ecosystem that facilitates efficient import and export operations, positioning Nigeria as a key player in global value chains.
With Nigeria’s economy projected to grow by 3.7 per cent by 2026, investments in infrastructure are vital to ensuring sustainable growth. When fully occupied, Lagos Free Zone is expected to create approximately 30,000 direct, indirect, and induced jobs while contributing significantly to Nigeria’s GDP upon completion.
IFC Regional Director, Central Africa and Anglophone West Africa, Dahlia Khalifa stated, “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.”
The investment in Lagos Free Zone also reflects IFC’s commitment to sustainable development, with a focus on green infrastructure.
Approximately 15 per cent of the investment is earmarked for climate-related initiatives, including Excellence in Design for Greater Efficiencies certified buildings and climate-resilient infrastructure.
The Managing Director at Lagos Free Zone Company, Adesuwa Ladoja, said, “IFC’s support represents a significant and positive recognition of our vision to establish Lagos Free Zone as a world-class industrial hub.
“This investment allows us to scale up the existing infrastructure to attract more foreign and local tenants while promoting sustainability and creating economic opportunities for Nigeria. Lagos Free Zone, integrated with Lekki Deep Sea Port, facilitates ease of doing business in Nigeria and supports the Federal Government of Nigeria’s drive for economic diversification and infrastructure development.
“We look forward to driving growth and delivering lasting impact through this transformative collaboration with the IFC.”
Lagos Free Zone is already home to several manufacturing brands like Kellogg’s, Dano Milk, Colgate, BASF, ADM, and Tata International.
This investment aligns with Nigeria’s ongoing economic reforms and IFC’s strategic frameworks, including the World Bank Group’s Nigeria Country Partnership Framework (2021–2025) and its 2015 Climate Action Plan.
This will prioritise economic diversification, the development of competitive clusters, and investments in climate-resilient infrastructure.
By addressing infrastructure bottlenecks and enhancing connectivity, IFC’s investment in Lagos Free Zone will unlock new opportunities for businesses and strengthen Nigeria’s position as a regional economic leader.
