Indian Firms' Tariff Strategy: Leveraging Nigeria's Lagos Free Zone

Amid heightened US tariffs on Indian goods, Nigerian officials spotlight the potential of the Lagos Free Zone (LFZ) as a strategic manufacturing hub for Indian enterprises. This initiative is aimed at providing an advantageous trading position by reducing tariff burdens significantly.

Adesuwa Ladoja, LFZ's Managing Director, notes that the zone can help Indian companies, especially in textiles, leather, and automotive sectors, to navigate the increased US tariffs. The LFZ offers an attractive tariff of just 14 per cent on Nigerian exports to the US, compared to higher rates from other countries.

Ladoja stresses that the zone's strategic location, coupled with the presence of the deepest seaport in West Africa, makes it a favorable point for Indian firms to access not just the US and European markets but also a burgeoning African market of 1.4 billion people. Companies like Tata International are already leveraging these benefits by establishing assembly plants within LFZ.

(With inputs from agencies.)