Free Zone in Lekki To Work Together With Gluwa On Blockchain Technology

Jamie Larson

• 2 min read
Free Zone in Lekki To Work Together With Gluwa On Blockchain Technology

The Lekki Free Zone Development Company (LFZ) is in discussions with Gluwa, a blockchain technology company, as part of an effort to increase its economic impact in Nigeria. In order to promote trade cooperation, business growth, and sustainability among new and current Free Zone firms, the two parties are looking to collaborate and employ blockchain. In addition, the alliance will look into the possibility of developing a virtual free zone inside the Lekki free zone.

Mr. Tomiwa Idowu, the head of strategy, innovation, and special projects at Lekki Free Zone, revealed that conversations between LZF, the Nigerian Export Processing Zones Authority, and the Gluwa team are under progress.

Idowu said in a statement that the partnership, when it is complete, will work similarly to the integration of OpenSea and Compound by developing a dashboard for the tokenization of goods into NFTs (non-fungible tokens) and offering digital asset-backed loans for new and existing businesses looking to fund operations and/or expand their operations.

Idowu explained his plan to modernize the industrial and commerce sector in Nigeria and all of Africa, with the Lekki Free Zone at the focus of this transformation.

Idowu expressed his excitement about the partnership's immense potential, which would further cement Lagos State's position as Africa's top sub-national in terms of innovation, economic growth, and income production.

"Our Governor has always been a firm believer in fast-paced development, which means using technology to skip bureaucracy and go directly to solving immediate problems," he said, praising Lagos State Governor Babajide Sanwo-Olu as a beacon of progress and optimism for the country as a whole.

Tae Oh, the chief executive officer of Gluwa, stated that the company is eager to collaborate with the Lekki Free Zone because it is the biggest and most developed Free Zone in Nigeria and is close to both the Dangote Refinery and the deep-sea port. Oh added that trading has been the foundation of the Nigerian economy and that annual volumes amount to billions of dollars.

"We think the sector's digitization can enable us to unlock its full potential," he continued. Manufacturers will be able to transact internationally via the blockchain, for example, using a uniform procedure to digital items produced or processed inside the zone in conjunction with a market system on web3.

"All trades will be registered and receive benefits from the Lekki Free Zone, including no taxes and unrestricted movement of goods. The Lekki Free Zone will send the items directly to the deep-sea port once the in-Zone Customs Processing Center has cleared them for export.

"This will shorten wait times, get rid of human error, exponentially increase Nigeria's non-oil exports, and keep the country's trade balance positive. We think NEPZA represents the future of trade and business in Africa, even though we are currently ironing out the specifics and a framework with them.

On Gluwa

Gluwa is an open finance platform that uses blockchain technology to link funds from developed markets to loan opportunities in emerging economies. Investors can participate in debt-financing arrangements with emerging market fintech lenders using the Gluwa Invest platform, which offers the decentralized infrastructure needed to raise and disburse cash anywhere in the world and offers up to 15% APY.

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