Tata International secures space in Lagos Free Zone

^{Anand Sen, Managing Director, Tata International Limited (left) and Navin Nahata, Managing Director, Infrastructure and Fintech, Tolaram (right). Photo credit: Premium Times Nigeria}

Tata International, the trading and distribution division of India’s Tata Group, has entered into a partnership with the Lagos Free Zone (LFZ), owned by Singapore-based conglomerate Tolaram. Tata will lease a 6,000sqm facility within the LFZ to bolster its operational capacity in Nigeria.

The LFZ, an 850-ha industrial zone, is situated on the outskirts of Nigeria’s commercial hub. It offers businesses essential infrastructure and a variety of incentives, including tax-free remittance of profits and dividends; exemptions from government taxes, levies, and rates; and the ability to export finished goods into the Nigeria Customs Territory.

Tata International first established a presence in Nigeria in 2006. Its operations in the country include the distribution of commercial vehicle brands from Tata Group subsidiaries as well as John Deere tractors and agricultural equipment. The company also offers back-up power generating sets from the American company, Kohler. Beyond these, Tata International engages in trading agricultural commodities and supplying farm inputs like fertilisers and seeds. Its Nigerian portfolio further includes supplying industrial chemicals, procured from suppliers in China and India, and representing Indian companies in the pharmaceuticals and medical products sectors.

Launched in 2012, the LFZ is currently in its initial development phase, encompassing 300ha of land. The first phase is anticipated to conclude by the end of 2024, with the entire zone expected to reach completion within a 15 to 20-year period. Presently, the LFZ hosts over 30 registered enterprises – including notable names like Kellogg's, Colgate-Palmolive, Arla Dairy, and BAS – having attracted over US$2.5bn in committed foreign direct investment projects to date. The zone's development plan allocates 70% for industrial activities, 20% for logistics and support services, and the remaining 10% to real estate projects.

Earlier this year, Tolaram officially inaugurated the Lekki Deep Sea Port, situated within the free zone. As Nigeria's deepest port, it has the capacity to accommodate vessels up to four times larger than those currently docking at Lagos' other maritime facilities. This new port is anticipated to boost Nigeria's trade volumes and alleviate congestion at the city's existing docks. Companies in the LFZ have the advantage of seamlessly moving goods to and from the Lekki Deep Sea Port.

Tolaram has been operating in Nigeria for over 45 years, with its business interests spanning consumer goods, infrastructure, and fintech.

 

References

‘Taking risks, addressing need, and diversifying business’, NTU-SBF Centre for African Studies, 15 July 2022

‘History as Buhari inaugurates $1.5bn Lekki Deep Sea Port, witnesses first cargo ship offloading’, ThisDay, 24 January 2023

‘Tolaram’s Lagos Free Zone issues US$38m bond for further expansion’, NTU SBF Centre for African Studies, 18 April 2023

‘Tata International expands operations in Nigeria at Lagos Free Zone’, Lagos Free Zone, 24 November 2023

‘Global footprint’, Tata International, Accessed 26 November 2023

‘Speciality’, Tata International, Accessed 26 November 2023

‘Our journey and company profile’, Tata Africa Holdings, Accessed 27 November 2023

‘Incentives’, Lagos Free Zone, Accessed 27 November 2023

‘Company profile’, Tata International, Accessed 27 November 2023