After US Tariff Hike, Nigeria Invites Indian Firms to Manufacture in Lagos Free Zone
Tariff: Ladoja said that apart from the US, LFZ will also facilitate access to other major global markets of the world. He said that goods made in Nigeria benefit from GSP in the European Union countries, and they have to pay less duty or zero duty.
The US has imposed a 50 percent tariff on India, which is likely to affect India's trade of about $49 billion. Now Nigeria has extended an offer to Indian industries. Nigeria has proposed manufacturing in its Lagos Free Zone (LFZ). The Lagos Free Zone offers easy access to the US and other major global markets. LFZ Managing Director and CEO Adesuwa Ladoja said that the US tariff has created significant challenges for Indian companies, especially in textiles, leather, and automobiles.
Ladoja explained that 'the specialty of Lagos Free Zone is that Nigerian exports to the US attract a minimum duty of up to 14 percent, which is much lower than the duties imposed on many other countries. In such a situation, Indian companies can establish production units in LFZ and send goods to the US at lower tariffs." Ladoja added that beyond the US, LFZ will also facilitate access to other major global markets. He noted that goods manufactured in Nigeria benefit from GSP in the European Union countries and are subject to low or zero duties.
Ladoja also mentioned that production in LFZ will provide access to the market of 1.4 billion people across Africa. He said, 'LFZ is not only a cost-saving option, but also a business strategy that reduces the risk for Indian companies." It is worth noting that Tata International has established an assembly plant in the Lagos Free Zone. Tata assembles commercial vehicles for the Nigerian market at this facility.
