The Governor of Central Bank of Nigeria (CBN), Godwin Emefiele, says that the apex bank is ready to give more financial support to the Lagos Free Zone after already committing up to N100 billion into the project.
Emefiele disclosed this in Lagos after a tour of the 850 hectares project which is meant to turn around the economy of the country.
He said the CBN offered the N100 billion through its Differentiated Cash Reserves Requirement (DCRR) Regime.
He said: “You are the kind of industrialists that we are willing to partner with. We will continue to accord you priority to get the funds that you need, either in Naira or Dollars.
“We are ready to provide Naira and Dollars funding to assist you. I will advise that you do Naira loan because it is cheaper since you will spend the money here. We will continue to support businesses that have the potential to create more jobs for Nigerians”.
The DCRR is a regime where deposit money banks interested in providing credit financing to greenfield (new projects) or brownfield (new/expansion projects) in the real sector (Agriculture/ Manufacturing) may request for the release of their funds from their Cash Reserve Ratio (CRR) to finance the projects subject to the banks providing evidence that the funds shall be channeled towards projects approved by the CBN.
On the Lekki Deep Sea Port which is part of the Lagos Trade Zone projects, Emefiele said he will be glad to see the port act as the hub for Nigeria’s export drive.
“I believe with the port, we will see ease in exportation. Goods will be exported through the port and we will make forex available to manufacturers”.
Lagos Free Zone is owned and developed by Tolaram Group and the development is located in the Lekki axis – the sunrise development corridor in Lagos State.
Lagos Free Zone (LFZ) is uniquely integrated with the upcoming Lekki Deep Sea Port, which will allow for access to regional and international markets.
Emefiele also promised to engage the Infrastructure Corporation of Nigeria Limited (InfraCo), relevant agencies of the federal and Lagos State governments, as well as the private sector for the development of road infrastructure in the Lagos Free Zone to support the growing industrial activities at the Lekki-Epe axis.
He said this became expedient given the growth of industries in and around the Free Trade Zone, notably, Dangote Refineries and Tolaram Group, which have attracted economic activities and created heavy traffic in the area.
According to him, InfraCo, in aiding the road construction, would decongest the environs of the Lagos Free Zone with the active collaboration with the federal and Lagos State governments.
Specifically, he said the commencement of the Lagos Free Zone will help overcome the Apapa-Tincan Island port congestion.
Emefiele also said that the apex bank would partner the federal and state governments to see how InfraCo could ensure cargo evacuation from the port area, describing it as a big issue.
He said the CBN had raised about N23 billion to fund road infrastructure, to facilitate smooth evacuation of cargo out of the port.
“The entire idea is that with this Lagos Free Zone Port, we should be able to see a total decongestion of Apapa and Tin Can Island Port purely from the standpoint that it would take the traffic away from Apapa.
“And we are also afraid that with the single road that we have, which is the Lagos-Epe-Lekki road, which is already congested with traffic, the situation is going to worsen, even with Dangote Refinery. Yes, it is something that we are seeing and I, coming here today and I’ve been to Dangote Refinery several times and I know how long it takes to drive by road.
“So, what I’m trying to say is that we have realised the problem. InfraCo, luckily, is chaired by the CBN; the InfraCo board has been formally constituted; there is a CEO in InfraCo and as soon as we leave this meeting, I will be calling on InfraCo to begin the engagement.
“I will also be involved in engaging the Lagos state government, as well as the federal government through the Federal Ministry of Works to see what can be done on evacuating out of Lagos, but also how we decongest the traffic for people living around this axis”.
Haresh Aswani, Managing Director and Chief Executive Officer of Lagos Free Zone, said the company is happy at the support the CBN has given to the project and promised that some notable landmarks will be completed as scheduled.
He said the port will be operational in September and that by the end of 2024 the 300 hectares of the 850 hectares project will be delivered.
He added that the company has so far spent $2 billion on the project.
He stressed that a low-income housing project will be completed by the company to provide houses for its workers.