The International Finance Corporation (IFC) will invest up to $50 million to support the development of the Lagos Free Zone in Nigeria, Singapore-based Tolaram, which owns and operates the zone, has announced.
This investment will accelerate the development of the 860-hectare first phase of the Lagos Free Zone by expanding land development, industrial facilities and logistics infrastructure to address Nigeria’s critical infrastructure gaps and enhance its global competitiveness. With direct access to the Lekki Deep Sea Port, the Lagos Free Zone is uniquely positioned to create an efficient integrated industrial ecosystem that will facilitate seamless import and export processes. This will position Nigeria to play a key role in global value chains.
This investment will help Nigeria solidify its position as a regional economic hub in Africa and drive long-term prosperity, while creating new business opportunities by removing bottlenecks in key infrastructure and improving connectivity.
“Tolaram has been operating in Nigeria for a long time and is committed to realizing the country’s economic potential,” said Navin Nahata, Tolaram’s Executive Director of Fintech and Infrastructure. “Our significant investment in the Lagos Free Zone will serve as a springboard to address infrastructure challenges while creating a conducive environment for local and international businesses to thrive.”
Adesuwa Ladoja, Managing Director/CEO, Lagos Free Zone Company, said: “IFC’s support is a recognition of our vision to develop the Lagos Free Zone into a world-class industrial hub. IFC’s investment will enable us to expand our existing infrastructure to attract more local and international businesses, while promoting sustainability and creating economic opportunities for the nation. Connected to the Lekki Deepwater Port, the Lagos Free Zone will facilitate the smooth operation of business in Nigeria and support the Federal Government’s drive for economic diversification and infrastructure development. We look forward to this innovative collaboration with IFC to accelerate growth and deliver lasting impact.”
The Lagos Free Zone is home to Nigeria's most advanced deep-water port, the Port of Lekki, and several manufacturing companies, including Kellogg's, Dano Milk, Colgate, BASF, ADM, and Tata International.
Once fully operational, the Lagos Free Zone is expected to create 30,000 direct, indirect and induced jobs, which will provide long-term benefits to the Nigerian economy. With Nigeria’s economic growth projected at 3.7% in 2026, this investment is essential to ensure the country’s continued growth and economic resilience.
“IFC’s commitment to fostering inclusive economic growth and sustainable development in Nigeria and this investment is in line with that commitment,” said Dahlia Khalifa, IFC’s Regional Director for English-speaking Central and West Africa. “Lagos Free Zone will be a hub for innovation in industrial activity, job creation and enhancing Nigeria’s global competitiveness in the global marketplace. IFC is proud to work with Lagos Free Zone to build the infrastructure needed to attract local and global businesses and support Nigeria to achieve its economic potential.”
Meanwhile, the investment in the Lagos Free Zone also reflects IFC’s commitment to sustainable development centered on green infrastructure. Approximately 15% of the total investment is allocated to climate-related initiatives, including green Excellence in Design for Greater Efficiencies (EDGE) certified buildings and climate-resilient infrastructure.
This investment is in line with Nigeria’s ongoing economic reforms and is aligned with IFC’s broader strategic frameworks, including the World Bank Group’s Nigeria Country Partnership Framework 2021-2025 and the 2015 Climate Action Plan. Both frameworks prioritize economic diversification, development of competitive business clusters, and investment in climate-resilient infrastructure.
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