WITH clear exemptions from withholding tax on dividends, Value Added Tax (VAT) on free zone purchases, tax exemptions on free zone income, Customs and excise duties, and foreign exchange controls, the Nigerian real estate firm Rendeavour Nigeria Development Company Limited has called on banks, other financial institutions, and local and foreign investors to explore vast opportunities in Alaro City.
The company has invested a substantial $5 billion in a 2000-hectare planned development, creating a thriving business environment for over 150 businesses and generating more than 50,000 jobs in Nigeria. Alaro City, a joint venture between Rendeavour, Africa’s largest new city and industrial park builder, and the Lagos State Government, is one of the fastest-growing real estate and urban development projects in Nigeria.
The project spans 2,000 hectares of land, featuring areas for offices, logistics and warehousing, homes, schools, healthcare facilities, hotels, entertainment, and 150 hectares of parks and open spaces.
Speaking to newsmen in Lagos last week, the Country Head and Managing Director of Rendeavour, Yomi Ademola, said Alaro City is a catalyst for foreign direct investment and a nurturing ground for local businesses and SMEs.
According to him, the Lekki seaport is already generating more revenue for the Nigerian Ports Authority than Apapa, with ships coming into Lekki free zone having a capacity of 16,000 to 18,000 TEUs, two and a half to four times bigger than the largest ship in Apapa, which is roughly 4,000 TEUs.
“If you want to talk about efficiency, supply chain, seasonality in terms of availability of raw materials, taking advantage of pricing needs, and international standards close to your production facility, reducing transportation costs, then you come to the free zone,” he assured.
Ademola emphasized that companies wanting to come to Nigeria are looking for opportunities beyond Lagos or the Southwest. They are interested in distribution networks and supply chains, with many companies realizing tens of billions in duty-free shipments, which can easily be used to settle wage bills.
This is beneficial for companies seeking efficiency and cost reduction without compromising jobs.
“Locating in a free zone transforms the prospects of companies because you are saving 20 to 30 percent; you are bringing in your input 60 to 80 percent from a seaport that is closer, quicker, and with lower transportation costs into the free zone,” Ademola emphasized.
“We are on a mission to be the international trade hub for Africa, a mixed-use development with the structure of a modern city. Alaro City is bigger than the entire Victoria Island. If you are looking for a unique investment in Nigeria that would most likely be safe and protected, then investing in Alaro City would be a great choice. There are many investment options available within the Alaro City community. Most companies leaving Nigeria would find Alaro City conducive for siting their plants,” he stated.
The multinational property development company is backed by American, Norwegian, British, and New Zealand investors. Located in the Northwest Quadrant of the Lekki Free Trade Zone, Alaro City is being developed with a design led by world-renowned urban master planner Skidmore, Owings & Merrill (SOM), famed for planning and designing Canary Wharf in the United Kingdom and the famous Burj Khalifa in the United Arab Emirates (UAE).
The strategic location, flexible and optimized layout, and modern facilities give Lekki Port a competitive edge over any other port facility in the West African region.Ademola also mentioned that Alaro City is a mixed-use project featuring residential, commercial, and industrial developments.
Over 65 reputable multinational companies, including BUA Sugar Limited and Mantrac, already occupy the industrial section.
The residential area features blocks of two, three, and four-bedroom apartments developed by Universal Homes, an award-winning property development company with British origins. Additionally, an eight-lane roadway is being constructed within the estate.
“If you own a commercial or industrial property at Alaro City, you will enjoy benefits such as 0 percent VAT on all purchases, 0 percent corporate income tax (up to 32 percent savings), 20 to 25 percent savings on construction costs, zero expatriate quotas, speedy processing of goods at the port, and easy repatriation of funds,” he said.
The city generates its own electricity through renewable and clean energy sources and is being designed as a live, work, and play city.
Once fully developed, residents would have little or no reason to go outside the city. Alaro City will feature malls, hotels, shopping centers, restaurants, offices, schools, worship centers, parks, play areas, sporting facilities, and many green areas.
The residential areas will primarily provide accommodation for individuals and families, while the commercial and industrial areas will offer employment opportunities for both residents and non-residents.
“Alaro City is arguably one of the well-planned cities in Lagos. It’s also going to be an enclosed city that allows the monitoring of entry and exits with adequate security,” Ademola assured.
Rendeavour is a company that builds new cities in the growth paths of some of Sub-Saharan Africa’s fastest-growing urban areas. It currently has a portfolio that includes the development of over six cities across Africa. These cities include Tatu City in Kenya, Appolonia and King City in Ghana, Jigna in Abuja, Nigeria, Roma Park in Zambia, and Kiswishi in the Democratic Republic of Congo.
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