Rating Release
Agusto & Co. affirms the “Bbb” rating assigned to Lagos Free Zone Company (“LFZC” or “the Company”) with a positive outlook.
The rating expires on 30 June 2026.
Agusto & Co. affirms the “Bbb” rating assigned to Lagos Free Zone Company (“LFZC” or “the Company”) with a positive outlook. This rating reflects the gradual improvement in LFZC’s core earnings following the commencement of commercial operations at the Lekki Deep Sea Port (“the Port”). The rating also recognizes the Company’s expanding infrastructure and dollarized revenue, which have enhanced its resilience to currency fluctuations and strengthened its debt servicing capabilities, especially given that most of its loans are denominated in naira. Furthermore, the strong financial support from its ultimate parent, Tolaram Pte Limited (“Tolaram” or “the Group”), and strategic investor, the International Finance Corporation (IFC), is expected to enhance its liquidity and support future infrastructure development at the Lagos Free Zone (“the Zone”). However, the rating is tempered by suboptimal occupancy rates at the Zone’s standard industrial and warehouse facilities, a situation compounded by a cautious investment landscape amid the country’s economic challenges. Additional concerns pertain to the Company’s concentrated ownership profile and the need for stronger governance practices.
Lagos Free Zone Company holds the license for and operates the Lagos Free Zone—the first privately owned economic zone in Nigeria. Spanning 860 hectares and integrated with a deep seaport, the Zone is promoted by Singapore-based Tolaram Pte Limited (formerly Tolaram Group Incorporated). Designed around the “Live-Work-Play” concept, the Zone will be equipped with built-up standard industrial and warehouse facilities. As at 31 March 2025, the Zone is home to 40 registered enterprises, including prominent global brands such as BASF, Kellogg’s, Colgate, Arla, Dufil, Tata, Guala Closures, Archer Daniels Midland (ADM) and several local brands (including five commercial banks). Notably, most of these entities are affiliated with Tolaram Pte Limited.
