Lagos Free Zone can provide preferential access to US market: Nigeria to Indian businesses

LFZ Managing Director and CEO Adesuwa Ladoja, in an interview, said that recent tariff adjustments in the US have created real challenges for Indian companies, particularly in sectors like textiles, leather and automotive components.

New Delhi: Indian businesses, mainly those hit by high US tariffs, can manufacture or assemble products in Lagos Free Zone (LFZ) in Nigeria, which provides preferential access to the US and other major global markets, a Nigerian official said on Sunday.

LFZ Managing Director and CEO Adesuwa Ladoja, in an interview with PTI, said 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 makes 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 said.

Besides the US, Ladoja said 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 said.

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 said.

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 dividend, 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 said 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 said.

Tata International has established an assembly plant within the Lagos Free Zone. From this facility, Tata assembles commercial vehicles for the Nigerian market.