Investors’ commitment of billions of funds at the Lagos Free Zone (www.LagosFreeZone.com), the first privately owned special economic zone in Nigeria, offers a glimmer of hope not only for prospective local investors and by and large, the Nigerian business community, but also for the entire region as the LFZ has the potential business model that is worthy of emulation.
Punitive tax regimes of some of the backwards Asian nations effectively prevent prospective investors from short-term and long-term commitments in most of the so called ‘ Free Trade Zones’ in some of the Asian countries. These conditions, more or less, might prevail in other parts of the Commonwealth of Nations.
It is obvious that the mantra of rapid growth in business, subsequent creation of wealth and creating business-friendly and investor-friendly economic environment with a vibrant financial sector is, nothing, but, the promotion of free trade and de-regulation in successive economies.
An important fact that governments in the Commonwealth should be taken into consideration in formulating economic policies, is that gone are the days of Neomercantilism and its allied policy regime, that among other restrictions, firmly attempted to legitimise the idea that a country’s promotion of exports and discourage of imports, control capital movement, and centralising currency decisions in the hands of a central government arguers well for a country’s economy.
Contrary to that belief, it has been proven over the years, beyond a slightest doubt, that countries, which had been out of the map of international trade and Financial Services like Singapore and Hong Kong, have, in fact, become not only bustling cities and hubs of investments, International trade and Financial Services, thanks to the visionary leaders, who adapted liberal economic policies, de-regulations, clear-cut and predictable tax regimes, globalisation and International Trade.
Lagos Free Zone (LFZ) seems to be an embodiment of that policy imperatives that have been tried and tested and that have brought prosperity to the nook and corners of once impoverished nations such as Singapore.
Lagos Free Zone (LFZ) the first privately owned special economic zone in Nigeria with an integrated deep-sea port, has already attracted several reputed global brands, a testimony of the investor-friendly policies and investors’ confidence in them.
Strategic location
It is located in a strategic position with ample access to sea, air and land; 65kms east of Lagos, in the close proximity and instantaneous vicinity to the upcoming Lekki Deep Sea Port.
Perhaps, the most important idea behind the entire LFZ is to enhance the ease of doing business in Nigeria.
The idea of the ease of doing business in Nigeria is more or less, reflected in the impressive portfolio of the private developer of the LFZ, the Singapore based Tolaram Group, which has been in business for decades in Nigeria.
International Private Developer
Tolaram Group founded in 1948, is the promoter and the private developer of the Lagos Free Zone. Headquartered in Singapore, the Group is operational in Asia, Africa, and Europe and its products being sold in over 75 countries. The group’s portfolio of businesses has grown leaps and bounds, expanding into diverse areas such as fast-moving consumer goods, Financial Services, Digital Services, Infrastructure, Energy, Textiles, Real Estate and Agriculture.
Investor confidence
LFZ has already started to attract world class investors and global brands such as Kellogg (USA), Colgate (USA), Indofoods (Indonesia), Arla Foods (Denmark), BASF (Germany) and an impressive array of other investors. It is, again, a testimony to not only the investors’ confidence, but also to the potential business opportunities in the Nigerian economy.
Current status
As of now, the LFZ has more than 15 operational entities and the 830-hectare (ha) LFZ site will eventually accommodate more than 100 businesses and would provide, at least, 50,000 residential facilities with modern and state-of the art living spaces, offices and play areas. In addition, it will offer real estate investors and developers with appealing prospects.
Apart from the industrial manufacturing and port-based logistics cluster at LFZ, the LFZ offers a host of opportunities in the area of commercial developments such as multi-tiered housing, office spaces, business and leisure hotels and Healthcare and Educational projects.
Host of Facilities and incentives at LFZ
The Lagos Free Zone avails investors the opportunity of reaping the full potential of the West African market. The array of facilities include encroachment-free land acquisition, single window clearance, dealing with construction permits, tax payment and meeting energy needs.
In addition, the LFZ offers prospective investors a very attractive array of incentives such as guaranteed preferential policies and incentives by the Federal Government of Nigeria. These incentives include repatriations, import, operational benefits, 100% Repatriation of Capital Investment in the zone at any time with capital appreciation of the investment, Remittances of profits & dividends earned by investors in the zone without payment of withholding tax, Up to 100% finished goods may be exported into Nigeria Customs Territory on the payment of appropriate duties along with a valid license.
Other attractive benefits are zero Federal, State and local Government taxes, levies and rates, zero import duties applicable on goods imported from outside the country, no import or export license required and 100% foreign ownership of business allowed in the zone.
Given the host of incentives and facilities, LFZ would poise to become a role model in the region and is, definitely, worthy of emulation.
Edited by Elishya Perera
