IFC Signs Investment Deal with Lagos Free Zone

The International Finance Corporation (IFC) has announced a $50 million equity investment in the Lagos Free Zone Company (LFZ) as part of its commitment to strengthening Nigeria’s industrial sector and fostering economic diversification.

The investment aims to bridge infrastructure gaps, attract local and international businesses, and create a globally competitive industrial hub in Nigeria.

The official signing ceremony took place in Lagos on Friday, with key figures such as Christian Mulamula, Principal Country Director of IFC; Dahlia Khalifa, Regional Director for Central Africa and Anglophone West Africa, IFC; Sergio Pimenta, Regional Vice President for Africa, IFC; Haresh Aswani, Chief Executive of Tolaram; Adesuwa Ladoja, Managing Director/CEO of Lagos Free Zone; and Ashish Khemka, Director of Finance and Operations at LFZ, all in attendance.

Speaking on the significance of the investment, Dahlia Khalifa highlighted that the funds will go toward the development of essential infrastructure to enhance the Lagos Free Zone’s attractiveness to investors. “This investment underscores IFC’s commitment to fostering economic growth in Nigeria by providing the necessary infrastructure to drive industrialization. Our goal is to create a competitive and sustainable business environment that will attract global investors,” she stated.

The $50 million investment is designated for the first phase of the 860-hectare Lagos Free Zone, focusing on land development, industrial facilities, and logistics infrastructure to support manufacturing and export-driven enterprises. Sergio Pimenta emphasized the IFC’s long-term vision, saying, “Nigeria is a key market for IFC, and we believe that the Lagos Free Zone has the potential to become one of the most attractive industrial hubs in Africa. This investment is part of our broader strategy to enhance private sector-led growth and increase economic opportunities.”

Adesuwa Ladoja described the IFC’s backing as a major milestone, underscoring the confidence of international investors in Nigeria’s industrial potential. “We are excited to have IFC as a strategic partner in this journey. This investment will help accelerate the development of world-class infrastructure that will make the Lagos Free Zone a preferred destination for businesses,” she said. She also noted that approximately 15% of the investment will be allocated to climate-related projects, including green infrastructure and climate-resilient initiatives, in line with global sustainability goals.

President Bola Tinubu commended the Tolaram Group for securing this significant investment, stating that it reflects the success of Nigeria’s economic policies and demonstrates global confidence in the country’s business environment. “The Lagos Free Zone is a critical part of our economic strategy, and we appreciate the support of international partners like IFC in realizing our vision for a prosperous Nigeria,” he remarked. “This investment will create jobs, boost exports, and position Nigeria as a key player in Africa’s industrial landscape.”

Owned by Tolaram Group, the Lagos Free Zone integrates industrial and logistics operations to streamline import and export activities. The zone offers a favorable business environment with efficient customs procedures, reliable infrastructure, and strategic proximity to the Lekki Deep Sea Port. Haresh Aswani highlighted the long-term benefits of the investment, stating, “This partnership with IFC will enable us to develop the necessary infrastructure to support businesses, create jobs, and enhance Nigeria’s position in global trade.”

With IFC’s support, the Lagos Free Zone is poised to become a major hub for manufacturing, trade, and investment, further positioning Nigeria as a leading industrial economy in Africa. This investment marks a significant step toward realizing Nigeria’s ambition of creating a world-class industrial corridor, with the potential to transform the nation’s economic landscape by providing a solid foundation for businesses to thrive. As the Lagos Free Zone continues to expand, its impact on Nigeria’s economic growth, job creation, and global trade competitiveness is expected to be substantial.