The country head, Nigeria, Alaro City, Yomi Ademola has said that the Lekki Free Zone (LFZ) has become a ray of hope for local and foreign direct investments (FDIs) and a way to address the problem of unemployment in a significant development for Nigeria’s economic landscape.
Disclosing this at a media parley in Lagos, Ademola stated that the presence of industrial plots in the LFZ, along with simplified regulations and investment incentives, is attracting foreign investments and domestic capital, resulting in the development of a thriving industrial ecosystem.
He said, “Every business wants to reduce their costs and increase their profitability. At the end of the day, that is what capitalism is about. We’re a free market economy. We want people to bring those jobs and invest here. Most multinational companies who have left Nigeria, have significant relationship with the ports. Nine out of 10, if not 10 out of 10 would prefer to have their companies situated close to the port.
The Lekki Deep Sea Port is already generating more revenue for the Nigerian Ports Authority (NPA) than Apapa. Meanwhile, the largest ship coming into Apapa is roughly 4,000 Twenty-foot Equivalent Units (TEUs) capacity. On the other hand, the ships coming into Lekki Deep Sea Port are 16 to 18,000 TEUs – three and a half to four times more.”
Speaking on the Alaro City project, Ademola said the city will help to bridge the housing deficit that is linked to the industrializtion drive in the free zone.
He said, “Alaro City is designed to accommodate everybody. We have residential homes and the other size of the city is for industrialization. We have completed about 200 units, out of the 576 units of apartment. We want more SMEs in Nigeria and foreign investors to take advantage of these unique opportunities.
“For instance, Aerial Foods, which produces ready-to-use therapeutic food, is situated at Alaro City. The company not only produces for Nigerians, but is currently exporting to other countries. For a company that needs to be efficient, looking to reduce costs, without compromising jobs or value proposition to their customers, then LFZ is the place for you.
“If you can bring down the amount of money you need to borrow from banks at high interest rate to pay for your working capital, including significant duty bill by locating in a free zone, that transforms the prospects of your company’s outlook, because you are saving millions of naira, that you would have spent on transportation, levies, duties, as companies situated in the LFZ are exempted from paying income tax, withholding tax on dividends, Value Added Tax and customs and excise duties, among others. Because of these benefits, we are attracting foreign investments, we are attracting new jobs and new opportunities.
Moreover, we can generate hard currencies by exporting to other countries. So, with the LFZ, we are bringing technologies, new jobs and attracting foreign investments into our country.”
