FG, Lagos’ll make $201bn revenue from Lekki port – Minister

Agency Report
Agency Report

The revenue to come to the Federal Government and Lagos State Government from the Lekki Deep Seaport located at the Lagos Free Zone is about N201bn, the Minister of Labour and Culture, Lai Mohammed, said on Wednesday.

In his speech after a tour of the facility located some 65km east of Lagos, the minister described the seaport, a build, own, operate and transfer concern, as a massive project, a game-changer, and a pacesetter.

“It is the deepest seaport in Nigeria and West Africa, and that in itself is a unique advantage. It covers a land area of 90 hectares and it has a concession period of 45 years,” he stated.

He added, “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.”

On the amount of investment in the seaport, Mohammed said, “$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 N201bn to state and Federal Governments through taxes, royalties and duties.

“The direct and induced business revenue impact is estimated at N158bn, in addition to a qualitative impact on manufacturing, trade and commercial services sector.”

Mohammed noted that beyond the revenues from the facility, when the seaport begins operation in the last quarter of this year, it would make it possible for Nigeria to regain the maritime business that was lost to ports in Togo, Cote d’Ivoire and Ghana.

He said the port was also a big boost to Nigeria in its quest to take advantage of the implementation of the African Continental Free Trade Agreement.

“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 neighbouring countries will come here. That’s big,” the minister stated.

He said the project was being done in phases, as phase one had reached 89 per cent and would be completed in September this year.

“The facilities here are first class. We have seven ship-to-shore cranes and 21 RTG cranes. No port in Nigeria currency has this,” Mohammed stated.

He added, “The excellent equipment is why this port can do 18,000 teu, which is more than four times the number that can currently be handled by our other ports.

“Also, the project is self-sufficient in required electricity. It is now ready to generate up to 10 megawatts and the total capacity is 16MW.”

He further noted that the Lekki seaport would continue to receive the support of the Federal Government to ensure its successful completion and usage.

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