Ibeju Lekki in the Ibeju Lekki Local Government Area, southeast of Lagos, is home to the Lekki Free Trade Zone (LFTZ).
A Free Trade Zone is an area within which goods may be landed, handled, manufactured or reconfigured, and re-exported without the intervention of Custom authorities.
The zone is a region where a group of countries have agreed to reduce or eliminate trade barriers, the basic objective being to enhance foreign exchange earnings, develop export-oriented industries and generate employment opportunities for the host country.
The Lekki Free Trade Zone stands as a beacon of Nigeria’s commitment to economic diversification and industrialization. Strategically positioned to drive commerce and attract investment, its potential remains largely untapped due to logistical bottlenecks, with the absence of a functional electronic call-up (e-call up) system posing a significant challenge to efficient cargo movement.
The zone is a major catalyst for the development of Lagos state, and indeed Nigeria and it came about as a result of collaboration between Chinese and Nigerian governments.
The Lekki Free Zone covers a total area of about 155 square kilometres and is about 50km from the city center. It currently plays host to many high-net-worth businesses
Facing the Atlantic Ocean in the south and bordering with Lekki Lagoon in the north, Lekki Free Trade Zone has easy access to the Western African market of about 300 million population and the European and USA market with a population of about 600 million.
Arguably, the biggest investment in the Lekki Free Trade Zone is the Dangote Refinery and Petrochemical plant. The Dangote refinery which is the largest single line refinery in the world has a processing capacity of 650,000 barrels of oil per day while the gas pipeline project, according to Dangote, “is meant to supply 3 billion cubic feet of gas daily to Lagos and its environ which can guarantee uninterrupted power supply in Lagos on completion, as it will generate 12,000 megawatts of power”.
But, the emerging traffic chaos around the Lekki Free Trade Zone may hunt Lagos for a long time to come, unless the government does something urgently.
The first introduction of an electronic call-up system in Nigeria was at Apapa and Tin Can Island ports in February 2021, which marked a significant stride toward resolving the chronic congestion that had plagued Lagos’ primary maritime gateways. This digital platform, known as “eto,” (which is a Yoruba language for orderliness) was designed to manage truck movements, ensuring an orderly flow and reducing the notorious gridlock that had become synonymous with Apapa.
No doubt, the implementation of the “eto” has yielded positive results, including a notable decrease in traffic congestion and a reduction in haulage costs by about 65%.
However, the system was not without challenges. Issues such as middlemen engaging in ticket racketeering, selling access slots at exorbitant prices, and the persistence of corrupt practices among enforcement officials undermined the system’s efficiency. These obstacles highlighted the necessity for continuous oversight, infrastructure enhancement, and stringent enforcement to maintain the system’s integrity.
Transitioning to the Lekki-Epe corridor, the urgency for a functional e-call up system becomes even more pronounced. The Lekki Free Trade Zone has rapidly evolved into one of West Africa’s most significant industrial hubs, housing major enterprises such as the Dangote Refinery, Lekki Deep Sea Port and other high-powered industries. The operationalization of these facilities has led to a substantial increase in truck traffic, intensifying the risk of severe congestion along the corridor.
Recognizing this challenge, the Lagos State Government announced plans to implement an E-Call Up system for the Lekki-Epe axis, initially slated for August 1, 2024, and later rescheduled to September 23, 2024. Despite these announcements, the system’s deployment has experienced delays, raising concerns among stakeholders about the potential replication of Apapa’s logistical nightmares in the LFTZ.
The delays in implementation can be attributed to several factors, including the need for comprehensive infrastructure development such as holding bays and the establishment of a robust digital framework to prevent malpractices observed in Apapa. Stakeholders have emphasized that without these critical infrastructures, the E-Call Up system alone may not effectively address the congestion issues.
Expectedly, the persistent congestion at Lekki’s port and its adjoining corridors have led to delays, inefficiencies, and increased operational costs for businesses. Without a well-structured system for managing truck movements, the LFTZ risks replicating the chaotic experiences of the Apapa and Tin Can ports, where uncontrolled access has contributed to gridlock and stifled economic activity. The deployment of an E-Call Up system is, therefore, not just necessary but urgent to prevent the Lekki axis from descending into logistical disarray.
Moreover, the politics surrounding the concessioning of the call-up system cannot be overlooked. The selection of system operators and the terms of engagement must be transparent and focused on efficiency, rather than vested interests. Lessons from the Apapa experience underscore the importance of selecting competent operators and ensuring that all stakeholders, including truck operators, port authorities, and enforcement agencies, are collaboratively engaged in the system’s deployment and operation.
An efficient e-call up system will streamline truck movement, ensuring that only scheduled vehicles gain access to loading and offloading areas. This will eliminate indiscriminate parking, reduce turnaround time, and enhance the ease of doing business within the trade zone. Moreover, a digitalized system will foster transparency, reduce corruption, and ensure that port operations align with global best practices.
Despite previous commitments from regulatory authorities, compliance among truck operators remains abysmally low. Therefore, stakeholders, including government agencies, port operators, and the private sector, must collaborate to enforce strict adherence to the e-call up regime. Incentives for compliance and penalties for violations should be introduced to drive a culture of discipline in logistics management.
The Lagos State Government, in collaboration with private sector partners, must prioritize the construction of adequate holding bays and off-corridor parking facilities to accommodate the influx of trucks servicing the LFTZ. Additionally, the selection of operators for the call-up system should be conducted transparently, with a focus on technical competence and a track record of effective logistics management. Continuous engagement with all stakeholders, including truck drivers, port operators, and enforcement agencies, is essential. Training programmes should be instituted to familiarize users with the system and to emphasize the importance of compliance.
If possible, a dedicated task force should be established to monitor the system’s operation, address malpractices such as ticket racketeering, and ensure strict adherence to the call-up schedules. Public awareness campaigns should also be launched to educate stakeholders about the benefits and operational procedures of the E-Call Up system, fostering cooperation and reducing resistance to its implementation.
As stated earlier, the Lekki Free Trade Zone holds immense potential for economic growth and industrialization in Nigeria. To fully realize these benefits, it is imperative that proactive measures, including the prompt and effective implementation of a functional truck call-up system, are in place to prevent the logistical challenges that have historically beset other ports.
A dysfunctional Lekki Free Trade Zone negates the objectives of economic transformation, trade facilitation, and job creation. If Nigeria is to fully harness the benefits of this industrial hub, then a functional system is non-negotiable. The time to act is now, before the Lekki port corridor becomes a nightmare.
