- Sector: Industry
- Country of operations: Nigeria
Champion of industry
Lagos Deep Offshore Logistics (LADOL) is a special economic zone, built on a disused island inside Apapa Port, at the entrance to Lagos Harbour, Nigeria, which started in 2000. The free zone provides a base for large industrial projects and was initially focused on attracting companies working in the oil and gas sector.
In January this year, it celebrated a significant milestone with the arrival of the Egina, a huge floating production storage offloading (FPSO) vessel owned by French oil giant Total. “It is the largest project of its kind in the world, and the first FPSO to be fabricated and integrated in Africa and also the largest vessel ever to berth in Nigeria,” says Amy Jadesimi, CEO. “It demonstrated that the most complex global industrial projects can
be completed in Nigeria.”
The zone says that companies based there enjoy operating costs that are up to 50% lower than outside the area, something which has proved particularly attractive in recent years when oil prices were relatively low. “LADOL’s value add is that it lowers operating costs,” says Amy. “The fall in oil price led to a rapid increase in activity at LADOL due to this strong value proposition.”
The oil and gas sector may have been a natural place to start, given its importance to the Nigerian economy, but LADOL has now expanded its focus to include other industries, starting with agriculture and technology. Once full, the zone will provide jobs for around 5,000 people, but its impact will be far greater than that, with as many as 50,000 direct and indirect jobs supported by businesses operating in the zone.
“LADOL is targeting non-petroleum sector tenants that want to engineer, manufacture and train sustainably, proving that local private companies can drive economic diversification,” says Amy. “The company is committed to a virtuous cycle of local job creation, private sector expansion, improved quality, competition and even lower costs.”