‘Activation of the green channel improves efficiency and predictability of cargo movement.’

Ashish Khemka, director, Finance and Operations, Lagos Free Zone, in this interview with BusinessDay’s Osa Victor Obayagbona, says that, from a financial perspective, the Green Channel reduces time-related logistics costs and variability, which are significant for import-dependent manufacturers. Excerpt

From a finance and operations perspective, what does the activation of the Green Channel fundamentally change for Lagos Free Zone and its tenants?

The activation of the Green Channel fundamentally improves the efficiency and predictability of cargo movement between Lekki Deep Sea Port and the Lagos Free Zone. Operationally, it creates a structured, customs-supervised corridor that removes many of the traditional bottlenecks associated with port exit processes. From a financial perspective, it reduces time-related logistics costs and variability, which are often significant for import-dependent manufacturers. For tenants, this means faster cargo availability, improved production planning, and a more reliable industrial operating environment within the zone.

How does this development impact cost structures for manufacturers and distributors operating within the Lagos Free Zone?

The Green Channel directly addresses several cost drivers in the logistics chain. By reducing truck waiting time, cargo dwell time, and exposure to demurrage, it lowers avoidable holding costs that typically inflate the landed cost of raw materials and finished goods. Over time, these efficiencies improve overall supply chain economics for manufacturers and distributors. This is particularly important for high-volume or time-sensitive industries, where even small delays can translate into meaningful cost pressures.

How does the integration with the Nigeria Customs Service enhance compliance while still accelerating cargo movement?

The Green Channel is designed on the principle that speed and compliance must move together. All cargo using the corridor is pre-declared and electronically manifested before movement. Containers are sealed under customs supervision at the port and transit through controlled checkpoints with surveillance and manual verification. Upon arrival in the Free Zone, physical examination and clearance by the Nigerian Customs Service remain mandatory. This structured visibility allows Customs to maintain strong oversight and risk control while eliminating procedural inefficiencies that do not add compliance value.

Cargo security and transparency are major concerns for investors. How does the Green Channel address these from a systems and monitoring standpoint?

Security and transparency have been embedded into the physical and digital design of the corridor. The Green Channel is fully fenced and continuously monitored through 24/7 CCTV coverage from the port to the Free Zone entry. Checkpoints are manned, vehicle details and timestamps are recorded, and containers remain under customs seal throughout the journey. In addition, reconciliation and audit mechanisms provide a clear operational trail for each shipment. Together, these measures provide investors with strong assurance on cargo integrity and regulatory transparency.

As the only free zone integrated with Lekki Deep Sea Port, how does the Green Channel strengthen Lagos Free Zone’s competitive positioning in West Africa?

Physical proximity to a deep seaport is a structural advantage, but the Green Channel converts that proximity into measurable operational performance. By enabling controlled, rapid movement from vessel discharge to free zone clearing and examination, Lagos Free Zone can offer a more predictable and efficient logistics experience than many competing locations in the region. This strengthens LFZ’s positioning as a preferred base for manufacturers and distributors serving Nigeria and the broader West African market effectively.

What does this approval signal to international investors evaluating Nigeria as a manufacturing and distribution hub?

The approval sends a positive signal that Nigeria is making deliberate progress toward more efficient and transparent trade facilitation. It demonstrates close institutional coordination between the Nigeria Customs Service and the Lagos Free Zone to support industrial growth while maintaining regulatory discipline. For international investors, this balance between efficiency, visibility, and compliance is a key consideration when evaluating manufacturing and distribution locations.

From a working capital standpoint, how does reducing demurrage and truck wait times affect tenant liquidity and business scalability?

Logistics delays typically translate into inventory being tied up longer than necessary, which directly impacts working capital. By shortening the cargo cycle and reducing demurrage exposure, the Green Channel enables tenants to turn inventory faster and free up cash that would otherwise be locked in the supply chain. Improved liquidity supports better production continuity and allows businesses to scale operations more confidently within the Zone.

What operational safeguards are in place to ensure the integrity of cargo movement within this customs-sanctioned corridor?

The corridor operates on multiple layers of control. Cargo must be pre-declared and electronically manifested prior to movement. Containers are sealed under Customs supervision, and movement is restricted to a fenced route with manned checkpoints. Batch release protocols, continuous CCTV monitoring, and mandatory physical examination at the LFZ examination yard further strengthen control. These safeguards are complemented by reconciliation and post-transaction audit processes led by the Nigeria Customs Service.

Looking ahead, how does this milestone align with Lagos Free Zone’s long-term strategy to become the premier gateway for regional and international trade?

The Green Channel is a critical building block in the Lagos Free Zone’s long-term logistics and industrial strategy. By tightening the interface between the port and the Free Zone and delivering faster, more reliable cargo movement under Customs oversight, LFZ is creating the type of high-confidence trade environment required by global manufacturers. Over time, this strengthens the Zone’s role as an efficient gateway for Nigeria and West Africa and supports broader national objectives around industrialisation, trade facilitation, and ease of doing business.