San Francisco, California, September 21, 2022, Chainwire
As part of a drive to strengthen its contribution to the Nigerian economy, the Lekki Free Zone Development Company (LFZ) is in talks with Gluwa, a blockchain technology company. The pair is looking to partner and use blockchain to enhance business collaboration, growth and sustainability among new and existing free zone enterprises. The partnership will also explore the creation of a virtual free zone within the Lekki Free Zone.
The Head of Strategy, Innovation and Special Projects, Lekki Free Zone, Mr. Tomiwa Idowu disclosed that talks are ongoing between the LZF, the Nigerian Export Processing Zone Authority and the Gluwa team.
In a statement, Idowu explained that the partnership, if finalized, will create a dashboard for product tokenization in NFTs (Non-Fungible Tokens) and provide digital asset-backed loans to new and existing enterprises seeking funding for operations and/or OpenC and Expand their business similar to the integration of compounds.
Idowu shared his vision to innovate the trading and industrial sector across Nigeria and Africa, bringing it into the modern information age with the Lekki Free Zone at the centre.
“I am extremely excited by the huge potential of such a partnership, which will further establish Lagos State as a leading sub-state in Africa in terms of innovation, economic development and revenue generation,” Idowu said.
He hailed Lagos State Governor, Babajide Sano-Olu as a beacon of progress and hope for the nation in general, saying: “Our governor has always been a firm believer in fast-paced development, which involves using technology to leapfrog bureaucracy. Going straight to solving the problem immediately.”
Chief Executive Officer of Gluwa, Tae Oh noted that the firm is interested in partnering with the Lekki Free Zone as it is the largest and most developed free zone in Nigeria with close proximity to the deep-sea port as well as the Dangote refinery, saying : “Business has been the bedrock of the Nigerian economy, annually Volumes are running into billions of dollars.”
He added: “We believe digitization of the sector will enable us to exploit its full potential. For example, an ideal process of digitizing products produced or processed within the zone with a market system in Web3 would allow manufacturers to trade globally via blockchain.
“All trades will be registered and benefit from Lekki Free Zone incentives, such as zero taxes and free movement of goods. As soon as the goods are settled for export through the in-zone customs processing centre, they will be shipped directly from the Lekki Free Zone via the deep sea port.
“This will reduce delays, eliminate human error, accelerate Nigeria’s non-oil exports and maintain a positive trade balance for the nation. While we are still working out the finer details and a specific framework with NEPZA, we believe it is the future of trade and commerce in Africa.
About glue
Gluwa is an open finance platform that connects capital with emerging market credit opportunities from developed markets using blockchain technology. By providing a decentralized infrastructure rail to raise and distribute capital anywhere in the world, investors can use the Gluwa Invest platform to participate in debt-financing deals with emerging market fintech lenders, earning up to 15% APY.
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