Nigeria has extended an invitation to Indian businesses, especially those hit by high US tariffs, to set up manufacturing or assembling units in the Lagos Free Zone (LFZ) that faces tariffs as low as 14 per cent.
Speaking on the issue on Sunday was Adesuwa Ladoja, CEO and Managing Director, LFZ, who acknowledged that recent tariff adjustments in the US have created real challenges for Indian companies, particularly in sectors like textiles, leather and automotive components.
"What makes Lagos Free Zone uniquely positioned is Nigerian exports to the US face tariffs as low as 14 per cent, significantly lower than those applied to many other countries,” she said, and added that for Indian businesses, “this means that by setting up in LFZ, they can manufacture or assemble products in Nigeria and enjoy a considerable tariff advantage compared to shipping directly from India”.
The US has imposed 50 per cent tariff on a wide range of Indian-origin products which may affect almost USD 49 billion worth of exports to America. The tariffs came into effect on August 27, 2025.
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Besides providing preferential access to the the US, Ladoja said LFZ also offers preferential access to other major global markets.
Tata International has already established an assembly plant within the Lagos Free Zone, from where Tata assembles commercial vehicles for the Nigerian market.
"Nigerian exports benefit from the Generalized System of Preferences (GSP) with the European Union, creating opportunities for Indian businesses to reach European markets with zero duty/low duty tariffs," she said.
Since LFZ grants access to the African Continental Free Trade Area (AfCFTA), it unlocks a market of 1.4 billion people with progressively reduced intra-African tariffs, she informed.
LFZ’s ecosystem is uniquely strengthened by its integration with the Lekki Port, the deepest seaport in West Africa that took 23 years to be established.
For Indian firms, she said this creates a direct and efficient gateway not only into Nigeria, which is the largest consumer market in Africa, but also into neighbouring West and Central African markets.
With promises to “deepen integration with Lekki Port to position LFZ as the most efficient gateway for trade”, Ladoja said they are working to strengthen renewable energy and digital infrastructure “to support the next wave of industrial growth”.
That makes LFZ not only a short-term solution for tariffs; but also a strategic base for Indian enterprises to build resilience, tap into Africa’s demographic dividend, and create long-term value, the Nigerian official added.
"In essence, LFZ is not merely a cost-saving alternative but a strategic trade enabler, allowing Indian companies to de-risk global supply chains, sustain competitiveness in advanced markets like the US and EU, and scale rapidly across Africa," she summed up.
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