By Charles Ilechukwu

As a developing economy, Nigeria needs the component of Foreign Direct Investments (FDIs) to complement local efforts, in order to achieve the desired objective of economic stability for improvement of the standard of living of the people.

Despite concerted efforts that have been made by successive administrations to encourage local production of goods and items that are consumed in the country, there still remains a yawning gap that needs to be filled by FDIs, if the country is to achieve its objective of a developed economy.

The issue of FDIs and their catalytic role in a country’s economic growth came up for discussion at a one-day Trade Summit that was organized recently by Alaro City Free Trade Zone, in Lagos. The event brought together key stakeholders including policymakers and private sector operators, to discuss ways in which Nigeria could be repositioned to become a production economy, rather than a consumption-based one, which has so far defined our very existence as a nation.

My takeaway from the one-day event was that now, more than ever, Nigeria must focus more on production for export, in addition to meeting the needs of its growing population. This shift is particularly crucial as the world moves away from fossil fuels – the cornerstone of the country’s economy. Free trade zones would play a critical role in driving the production level required to enable Nigeria to make an impact not just in Africa, but on the world stage.

This is even more important as the African Continental Free Trade Area (AfCFTA) – potentially the largest market on the planet with an estimated 1.3 billion people – comes into existence.As conversations centre around repositioning the Nigerian economy to be production-driven with an eye on export, Alaro City is arguably the country’s best and most attractive investment location today.

Rendevour, Africa’s largest private city builder, appears to have realised the crucial role of free trade zones in Nigeria’s quest to become a production economy. This is evident in the fact that Alaro City appears to be the most business-friendly Free Trade Zone in the country.

The city is planned to be built on 2,000 hectares of land within the Northwest Quadrant of the Lekki Free Trade Zone and equipped with critical infrastructure like good access roads, 24-hour electricity from a privately-owned 100 megawatts-capacity power plant, water capacity of one million litres per day, Information and Communication Technology (ICT), a central sewage and drainage system, and gas and dark fibre infrastructure.

It has all the trappings of a modern free trade zone. Alaro City’s readiness to lead Nigeria’s transition from an import-dependent economy to an export-driven one, is evident in its rapid growth; in just five years, it has become home to over 70 private sector organisations of different sizes and capacities.

These include globally renowned brands, such as Mantrac (Caterpillar) and HMD, along with one of Nigeria’s leading indigenous conglomerates, the BUA Group. This speaks volumes about investors’ faith in the city.The decision by Ariel Foods, a major therapeutic food supplier for UNICEF, to set up shop in Alaro City is a testament to the integrity and credibility of Rendeavour, which has expanded outside Nigeria with presence in four other African countries which include Ghana, Tanzania, Democratic Republic of the Congo, and Kenya.

Dhiren Chandaria, Managing Director of Ariel Foods, spoke of how he took a gamble and ignored advice against coming to Nigeria, based on negative perceptions of the country. Instead, he decided to visit the country, and Alaro City in particular, after being convinced by Yomi Ademola, Managing Director of Rendeavour.

It is a gamble that has paid off, handsomely. Ariel Foods is not only reaping the benefits of operating in Alaro City; from its 28,000 square-metre plant, it has turned Nigeria from a net importer to a net exporter of therapeutic foods, exporting to 26 countries around the world. Chandaria’s testimony could not offer a better endorsement of Nigeria, and Alaro City in particular, as an investment destination. With more business leaders like Chandaria being convinced of the conducive Nigerian environment, by the day, the achievement of an economic paradigm shift is more likely than ever before.

One of the advantages What Alaro City enjoys as an early bird in the zone is that it sits within vicinity of landmark projects that will change the business landscape of Nigeria’s economic nerve centre – the new Lekki International Airport, the Fourth Mainland Bridge, the Lekki Deep Sea Port, and the Dangote Refinery and Petrochemical plants.

•Ilechukwu, a public affairs analyst, writes from Lagos.