Special Economic Zones in the OIC Region:
Learning from Experience
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 Miscommunications over terms of partnership: Expectations between the Nigerian and
Chinese partners were at odds with one another with regards to capital investments and
responsibility for building infrastructure in the zone; and
 Local community disputes about resettlement terms, the construction of utilities lines
through their communities, as well as the employment of Chinese workers for
construction. This caused project delays and resulted in transferring 5 percent of the
shares of the Nigerian partner to the local community.
 Limited infrastructure on the Lekki Peninsula is proving to be a stumbling block for
businesses needing to transport goods and people to the port or airport in Lagos. The
new port is still in the development phase and the airport is still at the feasibility phase,
as discussions between the government, firms conducting the feasibility assessment and
investors are ongoing.
These key challenges are now being addressed through various strategic reforms in the Free
Zones Administration in Nigeria.
Summary Lessons Learnt
 Learning from past experiences (where only the Federal Government of Nigeria were
involved) helped the Lekki Free Zone change the way Free Zones were governed and
operated. The inclusion of State government and private sector helped catalyse the
development of the Lekki Fee Zone;
 Choosing a location attractive to investors has been key to Lekki’s development – with
the zone being near Lagos (Nigeria’s commercial hub), a major port, airport and other
major infrastructure;
 Providing an environment in which it is easier and cheaper to do business than the
broader national territory. Nigeria has provided this through both non-fiscal incentives
(such as the one-stop-shop), as well as fiscal incentives (such as tax holidays and duty
exemptions on imported raw materials for processing);
 Key partnerships with the private sector – and in the case of Lekki, the Chinese private
sector. There has been significant involvement of the private sector in the development
and operation of the zone; and
 Having a stable political environment helped grow investor interest in Nigeria and in
turn the Lekki Free Zone.