A partnership between Lekki Free Zone Development Company, the Nigerian Export Processing Zones Authority, and Gluwa, a blockchain technology company is set to create a virtual free zone in the Lekki Free Zone.
According to a statement issued by LFZ, the duo is also seeking ways of enhancing the adoption of Blockchain Technology in its enterprises.
On its part, Gluwa stated that digitalizing Nigeria’s business economy could enhance the potential in the sector.
According to the Chief Executive Officer of Gluwa, Tae Oh, its partnership with the Lekki Free Zone is informed by its size and proximity to the Deep-Sea port and the Dangote refinery.
“Trading has been the bedrock of the Nigerian economy, with annual volumes running into billions of dollars. We believe the digitization of the sector can allow us to harness its full potential. For instance, a standard process to digitize goods manufactured or processed within the zone in tandem with a market system on ‘Web 3’ will allow manufacturers to trade globally via the blockchain.”
“As soon as the goods get settled for export by the in-Zone Customs Processing Center, they will get shipped out straight from the Lekki Free Zone via the Deep-Sea port. This would reduce delays, eliminate human errors, exponentially drive-up Nigeria’s non-oil exports and sustain a positive trade balance for the nation. While we are still working out the fine details and a specific framework with NEPZA, we believe it is the future of commerce and trade in Africa,” he said.
Also commenting on the partnership, Lekki Free Zone’s Head of Strategy, Innovation, and Special Projects, Tomiwa Idowu, stated that the firm will be able to provide digital asset-backed loans for businesses.
This, Idowu said will be similar to the integration of OpenSea and Compound.
“I am extremely excited and motivated by the endless possibilities and enormous potentials of such a partnership, it would further establish Lagos State as Africa’s leading sub-national in terms of innovation, economic development, and revenue generation,” he stated.