As Indian businesses grapple with steep US tariffs of up to 50% on exports worth nearly USD 49 billion, Nigeria’s Lagos Free Zone (LFZ) emerges as a game-changing opportunity. Adesuwa Ladoja, LFZ’s Managing Director and CEO, told PTI that Indian companies in sectors like textiles, leather, and automotive components can bypass these trade barriers by manufacturing or assembling products in LFZ, which offers preferential access to major global markets.

“Nigeria’s exports to the US face tariffs as low as 14%, a significant advantage over the high duties imposed on Indian-origin goods,” Ladoja explained. By setting up operations in LFZ, Indian firms can produce goods in Nigeria and export them to the US at a fraction of the cost, maintaining competitiveness in one of the world’s largest markets. Additionally, LFZ provides access to the European Union’s Generalized System of Preferences (GSP), enabling zero or low-duty exports to European markets.

Beyond the US and EU, LFZ serves as a gateway to the African Continental Free Trade Area (AfCFTA), a massive market of 1.4 billion people with progressively reduced intra-African tariffs. “LFZ is a strategic trade enabler, allowing Indian companies to diversify supply chains, tap into Africa’s growing consumer base, and build resilience against global trade disruptions,” Ladoja said.

Also Read: US Tariffs Threaten India’s Textile Exports

The zone’s integration with Lekki Port, West Africa’s deepest seaport, enhances its appeal. This infrastructure ensures seamless access to Nigeria—Africa’s largest consumer market—and neighboring West and Central African countries. Ladoja highlighted plans to further strengthen LFZ’s ecosystem by investing in renewable energy and digital infrastructure, positioning it as a hub for industrial growth.

Indian companies are already seizing the opportunity. Tata International, for instance, operates an assembly plant in LFZ, producing commercial vehicles for the Nigerian market. “LFZ is not just a workaround for tariffs; it’s a long-term strategic base for Indian businesses to leverage Africa’s demographic dividend and create sustainable value,” Ladoja emphasized.

As global trade dynamics shift, LFZ offers Indian firms a unique chance to mitigate tariff challenges, expand into high-growth markets, and redefine their global strategies. With its robust infrastructure and trade advantages, Lagos Free Zone is poised to become a cornerstone for India-Africa economic collaboration.

Also Read: West Bengal Faces Rs 45,000-Crore Hit from US Trade Blow