Economy

Chinese Firm Builds $50m Manufacturing Hub in Lagos

Published

6 years ago

07/04/2019

By Dipo Olowookere

A manufacturing hub believed to gulp about $50 million has been constructed by a Chinese company known as Longrich in the Lekki Free Zone of Lagos State

On Sunday, Lagos State Governor, Mr Akinwunmi Ambode, performed the pre-launch of the facility, expressing optimism that the facility would go a long way to create jobs and boost the nation’s foreign exchange earnings.

Mr Ambode said the facility was another success story of the efforts of his administration to attract investment as well as an eloquent confirmation of the strategic importance of the free trade zone to the state’s economy.

He said a total of 25 companies were presently setting up manufacturing plants within the zone, saying it was indeed gratifying that the efforts to drive investments were yielding positive results.

The Governor disclosed that the most important thing to him was that whether in government or outside of government, factories were springing up in the zone, thereby creating job opportunities for the people and improving the economy of the State.

According to the Governor, “One of the most fulfilling feelings in life is to see one’s efforts yield positive results. It gives me immense satisfaction to be here today to witness this Pre-Launching Ceremony of Longrich Nigeria Manufacturing Plant to be located in the Lekki Free Zone in Lagos State, Nigeria.

“At the inception of this administration, one of our core focus areas was attracting investments to our State; to create employment for our people and wealth for our investors. Today’s event is one of those crowning moments that confirm that our efforts have been rewarded.”

Governor Ambode particularly commended Longrich Group of Companies for the decision to site the $50 million factory in Lagos of all the cities and countries in Africa, saying the State and the country stand to benefit immensely from the investment.

“I have been informed that this Lekki Longrich facility, upon completion, would not only be the hub for the distribution of the products to the African sub-region but would provide employment for at least 1,000 new workers in our State and boost the nation’s foreign exchange earnings from exportation of manufactured products to other African Countries.

“If we go by the success story of Longrich in China and the company’s track record, there is no doubt that Longrich Nigeria would be modelled after the world-class LONGLIQI Bio-Industrial Park in China which covers an area of more than 133 hectares and serves as location of LONGLIQI Bio-Science Co., Ltd,” Governor Ambode said.

While describing the firm as a global brand with range of top class quality products and unique business model, the Governor also lauded the fact that Longrich had created wealth for over 500,000 people who are trading in more than thirty brands of the company, with the majority of the traders residing in the state.

Besides, Governor Ambode assured that the state government would continue to play its role as business enablers, especially by providing the necessary infrastructure and services required to support all investors and businesses who decide to make Lagos their home.

“Our administration has embarked on massive and ambitious projects. We have introduced public sector reforms and policies aimed at making it easier to do business in our State.

“Our governmental institutions like the Ministry of Commerce, Industry and Cooperatives, Office of Public Private Partnership and Office of Overseas Affairs and Investment (Lagos Global) are, more than ever before, in the fore front of providing an enabling business environment for local and foreign investments to thrive.

“These are just a few indicators to assure you of our commitment to securing not just Longrich’s investment in the South-West quadrant of Lekki Free Zone but to secure and attract more investments to our State,” he said.

The Governor, who described the Lekki Free Zone as the flagship of the state government’s industrial development drive, said aside the physical amenities, the facility also comes with a bundle of incentives that propel business prosperity.

He added that with the ongoing gas pipeline laying to the zone nearing completion, power generation costs, which accounts for significant production cost, would soon be significantly reduced, just as he reiterated the commitment of the State Government to sustain the business environment and protect all investments in the State.

Earlier, Chairman of Longrich, Mr Xu Zhiwei commended Governor Ambode for creating the enabling environment for businesses to thrive in the State, saying it was on record that the Governor’s efforts made the setting up of the factory which would fully take off in October, 2019 possible.

“I want to thank Governor Ambode. He gave us the enabling environment; he gave us the full support; he embraced our dreams and believe in us. We can also feel the safety and security in Lagos State,” Zhiwei said.

Economy

Nigeria Plans New Tax Incentives to Boost Agriculture, Energy Investments

Published

12 hours ago

23/04/2025

Adedapo Adesanya

By Adedapo Adesanya

The Nigerian government is planning to offer tax incentives to firms investing in key sectors such as agriculture and energy to boost projected growth.

This is part of a new scheme known as the Economic Development Incentive (EDI), which will address long-standing inefficiencies in the current Pioneer Status Incentive (PSI).

The proposed investment-driven incentive framework is designed to stimulate real economic activity by tying tax relief directly to verifiable investments and part of the country’s ongoing tax reform efforts.

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, disclosed this in a keynote address at BusinessDay’s Policy Intervention Series held on Tuesday, April 22 in Lagos.

He said a review of the PSI revealed structural flaws that have undermined its effectiveness.

“Once granted a pioneer status, companies may import goods classified as pioneer products tax-free, effectively allowing them to operate without tax obligations—even with minimal value addition to the economy,” he said.

The incentives will mainly be in the form of a multiyear tax credit that companies can use to reduce what they owe the government, Mr Oyedele further explained.

He said investments in sectors including agriculture, energy and manufacturing will enjoy the tax credit based on a prescribed minimum amount of investment for a period ranging from 10 to 20 years.

Mr Oyedele also reiterated that the country has initiated reforms to boost tax revenue as a share of gross domestic product to 18 per cent by 2027 from 13.6 per cent in 2024, adding these proposals seek to drive growth in priority sectors of the economy.

Also, investors in utility projects like power, waterways and ports will have to invest at least N200 billion to qualify for the tax credit.

He explained that if a company invests N10 billion in Year 1, it earns a N500 million tax credit each year for five years and if an additional N5 billion is invested in Year 2, that new investment begins its own five-year 5 per cent cycle—N250 million annually until Year 6 and if the company continues investing progressively, each round of investment starts a new five-year cycle of tax credits, potentially extending the benefit period up to 10 years.

The tax maven further stated that if a business has a N15 million tax liability in a given year and applies N25 million in tax credits, its liability is wiped out entirely, with the N10 million balance rolled over to subsequent years and that if a company fails to follow through on its investment plan or halts capital deployment, unused credits are forfeited and this accountability mechanism ensures that only consistent and credible investments are rewarded.

Economy

Unlisted Securities Exchange Slips 0.35% Post-Easter Break

Published

15 hours ago

23/04/2025

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange slid by 0.35 per cent on Tuesday, April 22 after the return from the Easter break, with the market capitalisation falling by N6.79 billion to N1.917 trillion from the N1.924 trillion recorded last Thursday, and the NASD Unlisted Security Index (NSI) declining by 11.60 points to 3,274.78 points from the previous session’s 3,286.38 points.

Yesterday, the share price of Central Securities Clearing System (CSCS) Plc went down by 60 Kobo to close at N21.50 per unit versus the preceding session’s N22.10 per unit and Geo-Fluids Plc lost 18 Kobo to end at N1.62 per share, in contrast to last Thursday’s N1.80 per share.

On the flip side, the price of FrieslandCampina Wamco Nigeria Plc appreciated by 16 Kobo to quote at N37.80 per unit versus the previous trading day’s N37.64 per unit.

During the session, there was a 40.5 per cent increase in the volume of securities transacted to 174,634 units from the 124,266 units traded in the previous trading day, but the value of transactions slumped by 43.9 per cent to N2.86 million from N5.1 million, and the number of deals dropped by 48.4 per cent to 16 deals from 31 deals.

At the close of business, Impresit Bakolori Plc remained the most active stock by volume on a year-to-date basis with a turnover of 533.9 million units worth N520.9 million, followed by Okitipupa Plc with the sale of 153.6 million units for N4.9 billion, and Industrial and General Insurance (IGI) Plc with 71.2 million units valued at N24.2 million.

Also, Okitipupa Plc remained the most valued stock on a year-to-date with the sale of 153.6 million valued at N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with a turnover of 14.8 million units worth N572.0 million and Impresit Bakolori Plc with a turnover of 533.9 million units sold for N520.9 million.

Economy

Naira Crumbles to N1,603/$1 at Official Market

Published

15 hours ago

23/04/2025

Adedapo Adesanya

By Adedapo Adesanya

It was a bad day for the Naira on Tuesday, April 22 as its value plummeted against the United States Dollar by N3.23 or 0.2 per cent at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

It was the first trading session in the official market after the long Easter Break which started last Friday.

The Nigerian Naira was exchanged with the greenback yesterday at N1,603.16/$1, in contrast to the preceding trading day’s rate of N1,599.93/$1.

However, the local currency closed flat against the Pound Sterling and the Euro in the spot market at N2,120.24/£1 and N1,817.69/€1, respectively.

At the parallel market, the Naira appreciated against the US Dollar during the session by N10 to sell for N1,610/$1 compared with the previous trading session’s N1,620/$1.

In the cryptocurrency market, most of the tokens improved on Tuesday, buoyed by renewed investor optimism and fresh hopes of an ease in US-China trade tensions.

Earlier on Tuesday, remarks from US Treasury Secretary Scott Bessent, who reportedly told investors at a closed-door JPMorgan event that the tariff standoff with China was unsustainable.

Mr Bessent said de-escalation would come “in the very near future,” characterizing current conditions as a “trade embargo.” However, he cautioned that a more comprehensive deal between the two nations could take even years.

Then President Donald Trump, speaking to reporters in the White House later, said that US tariffs on China “will come down substantially” from the current 145 per cent level, allaying concerns of a spiraling trade war.

Ethereum (ETH) jumped by 10.6 per cent to $1,784.93, Dogecoin (DOGE) appreciated by 10.3 per cent to $0.1812, Cardano (ADA) added 9.9 per cent to trade at $0.6971, and Solana (SOL) gained 7.9 per cent to close at $151.25.

Further, Ripple (XRP) grew by 7.5 per cent to $2.25, Bitcoin (BTC) expanded by 6.2 per cent to $93,822.95, Litecoin (LTC) increased by 5.8 per cent to $84.22, and Binance Coin (BNB) went up by 2.3 per cent to $617.20, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) sold flat at $1.00 each.