Rating Release

 Agusto & Co. hereby affirms the “Bbb” (long-term) and “A2” (short-term) ratings assigned to Lagos Free Zone Company (“LFZC” or “the Group”) with a stable outlook 

The ratings expire on 30 June 2027.

Agusto & Co. hereby affirms the “Bbb” (long-term) and “A2” (short-term) ratings assigned to Lagos Free Zone Company (“LFZC” or “the Group”). These ratings reflect the Group’s strategic position as the developer, operator and manager of the Lagos Free Zone (“the Zone”), Nigeria’s only special economic zone fully integrated with a deep-sea port. The rating also recognises LFZC’s dollar-denominated revenue base, which provides a natural hedge against currency volatility, its adequate liquidity profile, and the strong financial support from its ultimate parent, Tolaram Pte Limited (“Tolaram” or “the Parent”), alongside strategic institutional investors, the International Finance Corporation (“IFC”) and the Bank of Industry (“BOI”). Furthermore, the growing commercial activity at the Lekki Deep Sea Port (“the Port”), continued infrastructure expansion within the Zone and the Group’s diversified funding sources are expected to support its long-term growth objectives. However, the rating is constrained by weak profitability, negative operating cash flow in FYE 2025, working capital pressure and execution risks associated with the Group’s ambitious expansion plans.

Lagos Free Zone Company is responsible for developing, operating and managing the Lagos Free Zone, an 860-hectare special economic zone situated within the Lekki Industrial Corridor in Lagos State. The Zone is promoted by Tolaram Pte Limited and anchored by an integrated deep-sea port, operates under a cluster-based “Live-Work-Play” model that encompasses industrial, logistics, commercial and residential developments. LFZC operates through six subsidiaries involved in utilities provision, power generation, terminal development, commercial real estate development and funding activities. As at 31 December 2025, the Zone hosted a strong base of multinational and domestic enterprises, including globally recognised brands such as Kellogg’s, Colgate-Palmolive, Arla Foods, BASF, Archer Daniels Midland (ADM), Guala Closures and Tata International, alongside several Nigerian commercial banks and logistics operators. We believe the Port’s increasing cargo throughput and the Zone’s integrated infrastructure positions LFZC favourably to benefit from Nigeria’s growing industrialisation and trade activities.