News / Asia

China and Nigeria Building Huge Free Trade Zone in Lagos

China and Nigeria are building one of Africa's largest free trade zones in the commercial capital, Lagos. Chinese companies will use the facility to manufacture goods for export throughout Africa.

On the tip of the Lekki Peninsula in Lagos, Nigeria and China are building a 16,000 hectare free trade zone to develop local manufacturing and reduce Nigeria's dependence on imported consumer goods.

It is one of the fastest growing areas in Lagos State and will soon have a new deep water port, an international airport and new hotels as part of a 60-40 partnership between the Chinese government and Lagos State.

Adeyemo Thompson is deputy managing director of the Lekki Free Zone Development Company. He says construction is on schedule for Chinese shareholders that include the China Railway Construction Corporation and the China-Africa Development Fund.

"In accordance with the master plan and the projections that we have made, I think, the first phase of the zone, that is the 3,000 hectare zone, will probably be close to a $5 billion investment, that is inclusive of the infrastructure we going to put on the ground, the roads, the power plants, the water plants," Thompson said.

The global financial crisis has reduced demand for Chinese goods in the United States and Europe. Thompson says the Nigerian free trade zone gives Chinese companies greater access to growing African markets for consumer goods, electrical equipment, and industrial products.

"Part of the reason why Lekki Free Zone is so attractive to the Chinese is that, the Chinese government is encouraging those companies which are shutting down in China to move out," he added. "There are funds which the government has provided for these companies to encourage them to move out to come and set up their factories in other parts of the world. We have that market. Now the Nigeria government is also encouraging investors to go to China and probably buy those factories, which are shut down, maybe at a quarter of the price and bring them into Lekki, set it up and manufacture those goods which you know you have 100 percent market right here."

Lagos State Governor Babatunde Fashola says the free trade zone will help develop Nigeria's manufacturing sector while cutting prices for consumers.

"There is a huge market immediately waiting, when you look at the how much our people spend importing goods from across the world, or for how much they pay in excess baggage at major airports, bringing this here is like bringing home prosperity," said Fashola.

Nearly 90 percent of products used in Nigeria come from outside the country. The free trade zone will allow Nigerians to buy many of the same products now produced in China without the cost of importing them, while creating jobs for Nigerian workers.

Chinese firms gain both more immediate access to African markets and far cheaper routes to ship their "Made in Nigeria" exports to Europe.

You May Like

Video On the Scene: In Gaza, Darkness Brings Dread and Death

Palestinians fear nighttime raids, many feel abandoned by outside world, VOA's Scott Bobb reports More

African Small Farmers Could Be Key to Ending Food Insecurity

Experts say providing access to microloans, crop insurance, better storage facilities, irrigation, road systems and market information could enable greater production More

University of Michigan Wins Solar Car Race

Squad guided its student-designed solar-powered vehicle to fifth consecutive time victory in eight-day bi-annual American Solar Challenge More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid