Investments In LFT Projected To Hit $3.5bn By 2024
Investments at the Lagos Free Zone (LFT) is to hit $3.5billion by 2024 as more companies are expected in the area.
Established in 2012, the Lagos Free Zone fully owned by the Tolaram Group is located in Lekki and has over $2billion in Foreign Direct Investment to date.
Already, five commercial banks are jostling to operate in the zone according to Dinesh Rathi, the Managing Director of the zone who explained that 20 companies had commenced operations in the area.
“We expect investment in this area to hit $3.5billion by 2024. Presently, we have close to $2billion investment here. The Lekki Deep Seaport which is inside the Lagos Free Zone alone has around $1.2billion investment as of today, and that value is still growing. The Lagos Free Zone in itself has around $400million that has been invested into it by Tolaram Group.
The other companies that are currently located within the Lagos Free Zone have also invested around $400million in terms of investment. So for now, we have about $2billion invested in the Lagos Free Zone and we expect that to grow to $3.5billion in two years’ time.
“We have about 20 companies operating inside the Lagos Free Zone as of today. Some of the companies include Kelloggs factory, Raffles Oil, Sane building system, Insignia Print Technology amongst others.
Just last week, Main One launched its optic fibre broadband services at the zone, giving every firm domiciled within the Lagos Free Zone opportunity to have access to unfettered internet services.
About five banks including Stanbic IBTC that is there already, have signified interest and the other four are expected to join very soon.
“The benefits for companies operating from inside the Lagos Free Zone is enormous. Companies operating from the Lagos Free Zone are exempted from all taxes, levies and rates from the Federal, State and Local Governments.
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Numerous benefits accrue to companies operating in zone including no import duty on goods imported from outside the country into the Lagos Free Zone while they will also enjoy remittances of profit and dividends without Withholding Tax.
There is also 100 per cent repatriation of capital investment for operators within the Lagos Free Zone in addition to 100 per cent foreign ownership of businesses within here amongst others.
Rathi explained that the numbers were expected to grow once the Lekki Deep Seaport commences operation by September of 2022.
On accessibility into the Free Zone, Rathi added that the roads leading into the Free Zone is being expanded in anticipation of the volume of operations that will commence very soon.
“The Eleko road is currently being expanded and the Lekki-Epe road is being converted into a dual-lane from Ibeju-Agbe to T-junction at Epe.
Epe road to Ijebu-Ode is being upgraded also while Itoikin to Ijebu-Ode road is also being expanded and upgraded too. A new road, the seventh axial road is being built under a Public-Private partnership arrangement.
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