Sunday, August 8, 2010

USA Africa Dialogue Series - The Lekki Airport And Free Trade Zone

The Lekki Airport And Free Trade Zone

Building an international airport in Lekki is an integral part of a
larger holistic plan to accelerate the industrial growth and
commercial development of Lagos State, to open up its southeastern
axis, spread out the metropolis and reduce congestion throughout the
city. The project is a Public Private Partnership (PPP) venture funded
by private investors. The Lagos State government is only making
provision of the land and legislative relief for investors. The new
airport will be built adjacent to the 16,500 hectare Lekki Free Trade
Zone (LFTZ) modeled somewhat after such global commercial hubs like
Dubai, Hong Kong, Singapore and South West China. The LFTZ project is
expected to showcase more than 500 Local and International companies
and already has about 70 companies (most of them Chinese) have
registered and have been allocated undeveloped land on which to build
their industrial and commercial facilities. Among other things, the
new airport will serve as a magnet for investors to the Lekki Free
Trade Zone.

The foreign companies are bringing in funds for the basic
infrastructure for the first phase, which will cover power, water,
sewage and some roads and then the land will be leased to prospective
investors. Proceeds from the land will be used for further development
of the zone. Local investors will also be actively courted to
participate in financing the venture.

The LFTZ will create over 100,000 skilled jobs and the attendant
multiplier effect on the local economy and social structure. The
participation of the foreign companies in the zone is also designed to
transfer skills to local Nigerians. For every non-Nigerian technician
or expert working in the LFTZ, there should be four Nigerians
acquiring new skills and developing much needed capacity for the
country. Whatever jobs can be given to the local community will be
given to them, ultimately creating employment.

The enterprises in the Free Trade Zone will enjoy a series of
regulatory reliefs and incentives, a host economy with 150 million
potential customers, and an anchor to the 1 billion odd consumers on
the African continent.

The new airport in Lekki, will facilitate the delivery of raw
materials, and personnel to the new commercial hub and at the same
time bring relief to many commuters in the Lekki-Epe axis, which will
no longer need to go all the way to Murtala Muhammed International
Airport, Ikeja when traveling in or out of Nigeria. To further reduce
traffic in this axis due to the on-going development in the Lekki
area, the Lekki Expressway is being expanded to take in more traffic
and eliminate congestion. The Lekki Concession Company (LCC) has
completed the first phase and is now working on the second phase,
which will expand the Expressway to the Third Roundabout and other
phases will follow in earnest.

Also earmarked for development in the comprehensive infrastructure
Master Plan for the Lekki sub-region are the Coastal Lagoon Roads and
other arterial and inter-connect roads that will provide more outlets
into and out of Lekki. Two bridges have been planned to link Lekki
with Ikoyi and the Mainland. A suspension bridge is to link Lekki
Peninsula to Osborne Road in Ikoyi, which means that traffic heading
to Ikoyi can connect directly without going through the perennial hold
ups in Victoria Island. Work has commenced on this already by Julius
Berger Nigeria Plc. Similarly; there is a fourth Mainland Bridge that
will link Lekki to Ikorodu on the Mainland. The State government has
done an excellent job in planning this vehicular traffic movement and
wider inner roads to cope with the new developments in Lekki. These
developments will now reduce the commuting time to Lekki from Ikoyi
and the Mainland Lagos, while also opening up the access from Victoria
Island following the expansion on the Lekki Expressway.

The development of waterways is another medium through which the Lagos
State government plans to improve traffic into and out of Lekki.
Fortunately, Lekki is surrounded by waterways on each side -Atlantic
Ocean in the South and the Lagoon in the North. The provision of
numerous jetties and movement of people and vehicles by ferries has
been planned for immediate implementation. This would mean that
traffic will be diverted through the waterways bound to the Mainland,
Apapa, Badagry and other key locations in Lagos surrounded by water.
The entire project is aimed at developing, operating and managing a
modern Free Trade Zone in accordance with international practice by
making full use of the advantages of Lagos as being the important
distribution hub in West Africa.

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