Lekki Deep Seaport port will make Nigeria a hub in Africa — Lai Mohammed

It is said that the size of a country’s seaport has a direct impact on its economy. Similarly, the operations at the port determine how fast a country’s economy can grow. For a nation, like Nigeria, with an estimated population figure of about two hundred million people that depend solely on imports from other nations, the coming into mainstream operation of Lekki port would be an added advantage.

There is no gainsaying that seaports play a critical role in the continent’s economic development and not only to the countries along the coast line, but to landlocked nations.

The new port would be a big boost to Nigeria’s quest to take advantage of the implementation of the African Continental Free Trade Agreement (AfCFTA), and would also enable the nation leverage on transshipment.

By its big market and size, Nigeria ports ought to be the transhipment hub for West and Central Africa if well harnessed.

For example, in 2021, imports surged 44.4% to N2194 billion while exports rose at a softer 11% to N1070 billion.

However, considering the first quarter of 2021, the country’s trade gap widened to a record high of N3944bn from N330bn in the same period a year ago, as imports surged 54% to N6851bn, its highest level in over 12 years.

This is entirely due to higher purchases of energy goods (1347%), agricultural goods (141%) and raw materials (109%). Conversely, exports fell 29.3% to N2907 billion, as shipments fell primarily for manufactured products (-43.7%) and crude oil (-34.5%). China, India, the Netherlands, Spain and the US were the main trading partners in Q1.

Similarly, the volumes of cargo handled at the nation’s seaports dropped to 78.4 million metric tonnes in 2020 from 80.2 million metric tonnes recorded in 2019. This represents a decline of 2.24 per cent.

The ports also recorded a decline in ship traffic as a total of 3,972 ships called in 2020 as against 4,251 in 2019.

Interestingly, the aggregate impact of Lekki Deep Seaport to the economy of Nigeria, according to the Minister of Information and Culture, Lai Mohammed, is put at $361bn in 45 years, and would be over 200 times the cost of building it.

He said in addition, it will create 169,972 jobs and bring revenues totalling $201bn to state and federal governments through taxes, royalties and duties when it becomes fully operational, stressing that it would also be the economic game changer for Nigeria

“The facilities here are first class, with seven ship to shore cranes and 21 RTG cranes. No port in Nigeria currently has this. The port is expected to handle about 18,000 TEUs, almost tripping the size of other existing ports in Nigeria. It is more than four times the number that can currently be handled by our other ports.

“In all, this is another example of the first class infrastructure being developed across the country by the current administration,” he said.

With this in mind, Lai Mohammed, during his recent tour of the Lekki Deep Seaport, outlined some of the positive impacts the port would add to the nation’s economy by the time it becomes operational.

The Minister noted that the port would be the first-largest deep seaport in the subregion in terms of cargo throughput and one of Africa’s six-largest container ports.

The Minister, in his brief stated that the port would be West Africa’s market leader in conventional bulk and wet cargos.

The Minister explained that Lekki Deep Sea Port which is within the Lagos Free Zone, is located about 65 kilometres east of Lagos.

While addressing stakeholders in the Maritime sector during the visit, the Minister said the port is a Build, Own, Operate and Transfer. He added that it is a massive project, which would be a game changer and a pace setter.

According to him, It is the deepest sea port in Nigeria and West Africa, and that in itself is a unique advantage. It covers a land area of 90 hectares and has a concession period of 45 years.

“It is a consortium that includes China Harbour Engineering Company, Tolaram, Lagos State Government, Nigerian Ports Authority and Lekki Port Investment Holding Inc.

“I called it a game changer because of the impact it will have on the nation’s economy and the jobs it will create, among others. The investment is huge: $1.53bn on fixed assets and $800m on construction.

“But the aggregate impact has been put at $361bn in 45 years, which will be over 200 times the cost of building it. In addition, it will create 169,972 jobs and bring revenues totalling $201bn to state and federal governments through taxes, royalties and duties.

“The direct and induced business revenue impact is estimated at $158bn, in addition to a qualitative impact on manufacturing, trade and commercial services sector,” he added

Lai stated that beyond that, when it begins operation in the last quarter of this year, it will make it possible for Nigeria to regain the maritime business that was lost to ports in Togo, Cote d’Ivoire and Ghana, while also serving as a big boost to Nigeria in its quest to take advantage of the implementation of the African Continental Free Trade Agreement (AfCFTA).

“A major advantage we have to leverage is transshipment. With this port, Nigeria will become a transshipment hub and the revenue we are currently losing to our neighboring countries will come here. That’s big. As you know, this project is being done in phases. Phase 1 has reached 89 percent and will be completed in September this year,” he said.

The Honourable Minister stated that the project’s promoters have done exceedingly well going by the level of work done so far and the quality of world-class facilities that will be utilised at the port; adding that no port in Nigeria can boast of such first-class infrastructure.

The Lekki Deep Sea Port, now at 89% completion rate, will be delivered in September, while commercial operations are expected to begin by December this year.

In his remarks, the Managing Director of Lekki Port, Mr. Du Ruogang lauded the Federal Government for the immense support that Lekki Port has received thus far. He noted thatLekki Port has made significant progress in completing the construction of the port, having achieved critical milestones within the shortest possible time despite the challenges of the COVID-19 global pandemic.

Mr. Ruogang assured the Honourable Minister and the other guests that Lekki Port and the EPC Contractor, China Harbour Engineering LFTZ Enterprise, are committed to ensuring that the port is delivered on schedule and becomes operational by December, 2022.