Alaro City, a 2,000-hectare city development, is telling investors, both domestic and foreign, that free trade zones are home to opportunities that could be tapped for growth and development.
The city, which is located within the Northwest Quadrant of the Lekki Free Zone in Lagos, is a joint venture between the Lagos State government and Rendeavour, Africa’s biggest new city builder, whose mixed-income cities provide homes, offices, industrial areas, schools and hospitals.
It is a self-sustaining city furnished with industrial grade standard roads, including an 8-lane, 60-meter-wide boulevard which is one of the largest privately owned roads in Africa. The road, according to Yomi Ademola, Alaro City’s managing director, will be delivered in October this year.
Ademola, at an interactive session with select journalists in Lagos, highlighted the benefits and opportunities that investors who have taken position in the city enjoy and which are also available to prospective investors by reason of being located in the free trade zone.
According to him, the city is marked by superior infrastructure which include 6km completed roads, 100 MVA scalable power supply, scalable gas distribution, industrial and potable water supply, sewage treatment, high-speed fibre information communication technology, and city management services. The city’s power supply comes from its privately owned independent power plant (IPP).
He added that the city’s proximity to Dangote Refinery, the Lekki Deep Seaport, the Airport plus well integrated roads infrastructure are part of the business growth enablers in the free zone.
He explained why, today, Lekki Port and not Apapa is a preferred destination for shipping business, saying that the Lekki Port berths much larger ships than Apapa and that the congestion which was a byword for Apapa, is largely controlled in Lekki Port.
“Lekki Port has a call up system that is working already; the port has an automated system; ensures that no truck is parked along the road and, of course, no vehicle is seen around the port area if it has no business there,” Ademola said, pointing out that the Lekki Epe Expressway will not be congested as is feared in some quarters.
The construction of the Regional Road and the Fourth Mainland Bridge by the Lagos State government, he said, are meant to complement and check possible gridlock on the Lekki Epe Expressway which is also getting considerable attention from the state government.
“Alaro City has been deliberate in its efforts to provide an enabling environment for businesses. Critical road infrastructure investments within the city and connections to the Lekki Expressway and Deep Sea Port allow businesses to optimize manufacturing and foster trade with partners across Nigeria and around the world,” Ademola emphasized.
He noted that the city has a good track record of productivity with SMEs, international companies, multinationals, and domestic players as a distribution and production hub, citing Ariel Foods, which operates in the therapeutic food sector where Nigeria is a net importer. Others are global and local business such as BUA Group, Mantrac Caterpillar, Ariel Foods, Kenol, SANA Group and international real estate developers and investors.
On the whole, he said, about 73 companies operating in various sectors of the economy have taken position in the city and are all enjoying the benefits of operating within a free trade zone. These include global and local business such as BUA Group, Mantrac Caterpillar, Ariel Foods, Kenol, SANA Group and international real estate developers and investors.
Another major development in the city is the TY Developments which sits on 90,000 square metres. It is being developed to offer Grade A logistics park and cold room services on completion. It is still under development.
Ademola revealed that, for the simple reason that they are established in Alaro City, businesses enjoy an increase in profit of approximately 43 percent from the various free zone’s tax incentives which include exemption from income tax on free zone income.
There is no withholding tax on dividends; no VAT on free zone purchases, and no customs and excise duties and there are controls foreign exchange transactions.
