Lagos Free Zone in Nigeria offers Indian businesses preferential access to the US market, bypassing high tariffs. A strategic trade enabler.
LFZ Managing Director and CEO Adesuwa Ladoja, in an interview with PTI, stated that recent tariff adjustments in the US have created real challenges for Indian companies, particularly in sectors like textiles, leather and automotive components.
The US has imposed 50 per cent tariff on a wide range of Indian-origin products which may affect almost USD 49 billion worth of exports to America.
“What creates Lagos Free Zone uniquely positioned is Nigerian exports to the US face tariffs as low as 14 per cent, significantly lower than those applied to many other countries.
“For Indian businesses, this means that by setting up in LFZ, they can manufacture or assemble products in Nigeria and enjoy a considerable tariff advantage compared to shipping directly from India,” she stated.
Besides the US, Ladoja stated LFZ provides preferential access to other major global markets.
“Nigerian exports benefit from the Generalized System of Preferences (GSP) with the European Union, creating opportunities for Indian businesses to reach European markets with zero duty/low duty tariffs,” she stated.
Ladoja also noted that LFZ grants access to the African Continental Free Trade Area (AfCFTA), unlocking a market of 1.4 billion people with progressively reduced intra-African tariffs.
“In essence, LFZ is not merely a cost-saving alternative but a strategic trade enabler, allowing Indian companies to de-risk global supply chains, sustain competitiveness in advanced markets like the US and EU, and scale rapidly across Africa,” she stated.
Ladoja emphasised that LFZ is not only a short-term solution for tariffs; it is a strategic base for Indian enterprises to build resilience, tap into Africa’s demographic dividfinish, and create long-term value.
LFZ’s ecosystem is uniquely strengthened by its integration with Lekki Port, the deepest seaport in West Africa.
For Indian firms, she stated this creates a direct and efficient gateway not only into Nigeria, the largest consumer market in Africa, but also into neighbouring West and Central African markets.
“We will deepen integration with Lekki Port to position LFZ as the most efficient gateway for trade, while also strengthening renewable energy and digital infrastructure to support the next wave of industrial growth,” Ladoja stated.
Tata International has established an assembly plant within the Lagos Free Zone. From this facility, Tata assembles commercial vehicles for the Nigerian market.
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