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The growing population of Lagos State
requires a level of economic growth to meet its future needs. The answer is found
in Lekki Free Trade Zone. Adeola Akinremi writes that the recent tour of the
business hub by the state governor, Akinwunmi Ambode, has given a fillip to the
prospect of the trade zone in delivering the economic prosperity of the state
In the middle of a speech in May, the
new Lagos State Governor, Akinwunmi Ambode, made a personal aside. “We are all
witnesses to the economic downturn and dwindling revenues at the national and
state levels,” he said. “The present economic situation has affected the financial
profile of most states in the country.” The point was clear: Lagos cannot
depend on federal allocation, if it must meet its social infrastructure needs.
So on a recent Wednesday, when Ambode
stepped into the new business hub—that the state is preparing for its megacity
status—to observe the pace of work, he was simply walking the talk. And with
his appearance, every activity inside the Lekki Free Trade Zone came to a halt.
The heavy duty equipment and the workers manning them were silent, albeit momentarily.
Everyone on location wanted to catch a glimpse of him. They all wanted to hear
him speak too.
Yes, based on China’s success story,
free trade zones have sprung up around the country, but the one in Lagos is the
biggest and most crucial one. Its location in the commercial capital of
Nigeria means a lot in leapfrogging the country’s economy, though a Lagos State
Government initiative.
To be sure, Lekki’s deep-seaport will
be one of the most sophisticated in the world, and the area’s vast size will
provide for warehouses storing millions and millions of trade wares. Of
course, the compliment of a nearby refinery will make the zone an important
energy export hub as well.
The port according to plan will
create over 162,000 jobs and help to facilitate decongestion at Nigeria’s other
ports, built initially to handle 60,000 tonnes, but which are now handling over
100,000 tonnes of cargo.
According to the Lekki Port LFTZ
Enterprise, the port is designed to accommodate the largest vessels in the
world and is expected to cover an area of 90 hectares with room for expansion,
making it able to handle four million tonnes of cargo. Within 45 years, the
government plans to see a $345bn payoff on the port, making it highly
profitable.
But development at the free zone has
not been rapid as planned. Expectedly, for Ambode, the key focus now is
to make the zone workable for business and more importantly, to make it deliver
the promise of economic prosperity to Lagosians and by extension, the whole of
Nigeria.
For about five hours, Governor Ambode
along with his team including Permanent Secretaries and Directors in the
ministries directly involved in the multibillion dollar project painstakingly
went round for a first-hand account of activities in the free trade zone.
His words and posture suggested his
administration’s readiness to actualise the alluring master plan of the zone,
conceptualised with designs for the roads and ultra-modern infrastructure.
First stop was at the administrative
office of the zone, where the governor with his team had a session with a
consortium of Chinese investors, executives of the Lekki Free Zone Development
Company and the Lekki Worldwide Investment Corporation, managing partners of
the zone.
The meeting not only afforded the
delegation to do an appraisal of the work done so far with the new governor,
the challenges that could hamper the smooth running of the project were also
given strong consideration.
For instance, the Chairman, Lekki
Free Zone Development Company (LFZDC), Otunba Olusegun Jawando after expressing
optimism that in couple of years, the zone which sits on 16,500 hectares of
land will become a must see for global investors, said funding is a challenge.
Also, the Managing Director, Lekki
Free Zone Development Company, Mr. Ding Yonghua, listed road network, provision
of a sea port, as well as funds as critical to the milestones to be achieved in
the area.
He explained that presently, of the
four quadrants of road network within the Zone, only two have been opened up for
access where development is already ongoing by some investors.
Yonghua told the delegation that he
was optimistic that construction on the other two quadrants will open up the
zone for more willing investors.
He also intimated the delegation of
the need for the sea port to commence operation as soon as possible. This he
believes will go a long way to ease the mode of moving heavy duty containers
and materials into the zone.
According to Yonghua, despite the
counterpart funding provided by the state government and the principal
investors, a lot more is required to speed up work in the zone.
Now, Ambode who has fed his curiosity
responded to inspire the investors. He assured them that his administration
will do all within its powers to fast track work in the zone giving his word
that in a matter of months, work will commence on the seaport.
According to him, his administration
will provide the necessary incentives required to hasten the development of the
zone expected to accommodate series of investments.
"I came here to see the level of
development that is going on here. The Free Trade Zone is a major catalyst for
the development of Lagos State,” he said. “It was started during the
administration of Asiwaju Bola Ahmed Tinubu and continued by my predecessor,
Mr. Babatunde Raji Fashola".
He added: “Whatever it is that we
need to do together alongside with the community, we have gotten their
commitment that we would join hands together to move this project
forward."
The governor said his administration
will also look at the seaport which has been idle for about nine years,
promising that work will commence in earnest.
"There is no way we would have
this Free Trade Zone if the port is not activated. It needs to be reviewed. My
administration will look at it and make sure the port is activated and
construction starts immediately”, Ambode said.
But he also threw a challenge at the
management to scale up the marketing strategy of the zone so as to woo more
investors to buy into the project.
And when that was done, Ambode came
face-to-face with the residents of the neighbourhood that hosts the free trade
zone.
Keeping his word to run an all
inclusive and compassionate government, he gave them an opportunity to air
their fears as well as hopes for the project.
Speaking on behalf of the residents,
Chief Kamilu Ahmed listed some of the challenges facing the residents of the
area, to include lack of electricity, good roads and jobs for unemployed
graduate youths living within the community.
Ahmed said most of the residents gave
up their lands for the LFTZ to come alive, saying the decision to back the
project was based on the belief that it would be beneficial to them and their
families.
But he said for over five years, the
communities within the area have coped without electricity, calling on the
governor to intervene on their behalf.
He also appealed to the governor to
use his goodwill to ensure that graduates from his community are given
consideration for jobs in the course of the development of the zone.
To that, Ambode said, “I want to
assure the people here that the issue of electricity will be looked at. It is
surprising that some communities here do not have electricity in the last five
years. In the next four weeks something must happen. It is totally unacceptable
and we would make sure that we bring succor to our people.
"That is why we are in
government and that is what they have told us that we should do and that is
what we will do every day in this administration."
He praised the community and the
consortium of Chinese companies for supporting the state in the project.
He also commended the residents of
Ibeju Lekki community for their peaceful way of accommodating the project,
while appealing for more perseverance for the completion of the project as it
would be a last long investment for the state and the country at large.
"I am happy for the peaceful
way the residents conducted themselves, especially with the release of their
land. I assure you all that all of us will benefit greatly when
completed", he said.
He also assured the residents that
qualified youths will be considered for employment into agencies of the
government.
Done with addressing the residents,
the governor and his team proceeded to inspect the zone, making brief stops at
various points where serious investors have already taken off.
An oil refinery, fertilizer plant,
cement plant as well as a petrochemical plant being undertaken by the
industrialist, Alhaji Aliko Dangote was one of such points where the governor
inspected, with appreciable work already ongoing at the site.
The project area, under consideration
is estimated to be about 60,000 hectares excluding the areas allocated for the
Lekki Free Trade Zone, seaport and International airport.
When it is completed, the Lekki FTZ
will be developed and turned into a new modern city with integration of
industries, commerce and business, real estate development, warehousing and
logistics, tourism and entertainment among others. That way, the place of Lagos
in Nigeria would have been redefined.
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