IFC invests $50m in Lagos Free Zone to boost infrastructure, drive economic diversification

The International Finance Corporation (IFC) says it has signed an equity investment deal of $50 million with the Lagos Free Zone Company (LFZ) to support Nigeria’s industrial growth and economic diversification.

Dahlia Khalifa, IFC regional director, Central Africa and Anglophone West Africa, spoke during the official signing on Friday in Lagos.

Khalifa said the investment was to support the development and expansion of Nigeria’s first deep sea port based in the Lagos Free Zone.

She said the investment was designed to address critical infrastructure gaps, attract local and global businesses, and contribute to Nigeria’s economic diversification agenda.

The IFC director added that the funds would support the first phase of the 860-hectare Lagos Free Zone, focusing on land development, industrial facilities, and logistics infrastructure.

Khalifa also said the facility owned by Tolaram, a diversified multinational group with operations across Africa, Asia, and Europe, would provide an integrated industrial ecosystem.

“This would drive efficient import and export operations, serving as a gateway for Nigeria’s integration into global value chains,” Khalifa said.

She noted that with Nigeria’s economy projected to grow by 3.7 percent by 2026, investments in infrastructure were 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 Gross Domestic Product (GDP) upon completion,” she added.

“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.”

‘15% OF INVESTMENT EARMARKED FOR CLIMATE-RELATED INITIATIVES’

Khalifa said approximately 15 percent of the investment was earmarked for climate-related initiatives, including Excellence in Design for Greater Efficiencies (EDGE)-certified buildings and climate-resilient infrastructure.

Commenting on the investment, Adesuwa Ladoja, LFZ managing director, said that IFC’s support represented a positive recognition of the vision to establish Lagos Free Zone as a world-class industrial hub.

Ladoja said the investment allowed the company to scale up existing infrastructure to attract more foreign and local tenants while promoting sustainability and creating economic opportunities for Nigeria.

She said the Lagos Free Zone integrated with Lekki deep sea port, facilitated ease of doing business in Nigeria and supports the federal government’s drive for economic diversification.

“We look forward to driving growth and delivering lasting impact through this transformative collaboration with the IFC,” Ladoja said.

“This investment aligns with Nigeria’s ongoing economic reforms and IFC’s strategic frameworks which prioritise economic diversification, development of competitive clusters, and investments in climate-resilient infrastructure.”

Ladoja said by addressing infrastructure bottlenecks and enhancing connectivity, IFC’s investment will unlock new opportunities for businesses and strengthen Nigeria’s position as a regional economic leader.