ADM expands African presence with new facility in Lagos Free Trade Zone

NIGERIA – Archer Daniels Midland (ADM) has reinforced its presence in Africa with the launch of a new facility at Nigeria’s Lagos Free Trade Zone (LFZ). 

Located within the LFZ, an industrial ecosystem developed by Singapore-based Tolaram, the facility is expected to serve as a hub for innovation, collaboration, and product development. 

The zone provides direct access to the Lekki Deep Sea Port and is projected to generate approximately 30,000 jobs once fully occupied.

Expanding animal nutrition and human nutrition portfolios

ADM is already a significant player in Nigeria’s animal nutrition sector, operating a manufacturing plant in Lagos and maintaining a distribution network across three centers. 

The company supplies additives and ingredients to animal feed producers, while also expanding its Human Nutrition and Carbohydrate Solutions businesses in the country.

“The Lagos Free Trade Zone offers a unique opportunity for businesses to thrive, with its strategic location, world-class infrastructure, and favorable business environment,” said Segun Oyinloye, Marketing Communications Manager at ADM. 

“ADM’s facility is designed to take full advantage of these benefits, providing a hub for innovation, collaboration, and growth with next-generation thinking.” 

Broader expansion efforts across Africa

ADM’s expansion in Lagos follows a series of strategic investments across Africa. 

In September 2024, the company established a new office and advanced laboratories in Nairobi, Kenya, aimed at driving research and development in food, beverage, and animal nutrition solutions. 

These facilities focus on tailoring products for local markets, including beverages, alternative proteins, and livestock feed.

Earlier in 2024, ADM strengthened its footprint in South Africa with the acquisition of Comhan, a flavor distributor, reinforcing its global investments in the flavor production sector. 

The company now operates flavor production facilities in China, Germany, and the United States, further expanding its innovation capabilities.

IFC investment fuels growth of Lagos Free Trade Zone

The Lagos Free Trade Zone has attracted significant investment interest, with the International Finance Corporation (IFC) recently announcing up to US$50 million in equity funding to support its expansion. 

The investment is aimed at enhancing infrastructure and boosting industrial activity within the zone.

“Lagos Free Zone is poised to become a transformative hub for industrial activity, driving job creation and enhancing Nigeria’s competitiveness in global markets,” said Dahlia Khalifa, IFC’s Regional Director for Central Africa and Anglophone West Africa. 

“We are proud to partner with Lagos Free Zone in building the infrastructure necessary to attract global and local businesses, enabling Nigeria to achieve its full economic potential.” 

Financial challenges

Despite its expansion efforts, ADM reported a 9% decline in revenue for the 2024 fiscal year. 

The company posted US$85.53 billion in revenue, down from US$93.94 billion in 2023, citing challenges in its Ag Services and Oilseeds division, as well as shifting global trade and regulatory policies.

To counter these financial pressures, ADM has outlined cost-saving measures ranging from US$500 million to US$750 million over the next several years, with targeted savings of US$200 million to US$300 million in 2025.