Lekki Free Zone is in talks with an American company to adopt blockchain

Nigeria-based Lekki Free Zone Development Company (LFZDC) is speaking with United States-based blockchain company Gluwa to use blockchain to “foster trade collaboration, growth and sustainability among new and existing free zone enterprises,” according to a press release published by the U.S.-based company on September 21.

The details

• When finalized, the partnership will make it possible for goods to be tokenized as non-fungible tokens (NFTs) and provide asset-backed loans to enterprises, according to the release.
• The partnership would also explore the creation of a virtual free zone within the Lekki Free Zone.

What they’re saying

• Tomiwa Idowu, LFZDC’s head of strategy, innovation and special projects, said:

“I am extremely excited by the enormous potential of such a partnership, which would further establish Lagos State as Africa’s leading sub-national in terms of innovation, economic development and revenue generation,” said

• Tae Oh, Gluwa’s chief executive officer, said:

“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 Web3 will allow manufacturers to trade globally via the blockchain.”

Before now

• Lekki Free Zone’s move to adopt blockchain comes weeks after The Nigeria Export Processing Zones Authority (NEZPA) disclosed that it was in talks with crypto exchange Binance to establish a virtual free zone.