KEY POINTS
• Ogun State and DP World sign agreements covering a proposed investment of more than $7 billion.
• Gateway Deep Seaport and Blue Marine Special Economic Zone are expected to expand Nigeria’s maritime and industrial capacity.
• Proposed port will feature a four kilometre berth and 18 metre draft for larger vessels.
• Projects are projected to create more than 50,000 direct jobs at full development.
MAIN STORY
President Bola Tinubu has assured domestic and foreign investors of regulatory clarity, policy stability and a predictable business environment as Nigeria seeks to attract long term investment.
Tinubu gave the assurance in Paris during the signing of Memoranda of Understanding between the Ogun State Government and DP World covering the proposed Ogun State Blue Marine Special Economic Zone and Gateway Deep Seaport.
The projects involve proposed investments exceeding $7 billion and are intended to strengthen Nigeria’s maritime economy, expand productive capacity and develop a major trade and industrial corridor.
Tinubu described the agreements as a combination of capital, expertise, execution capacity and government support, while welcoming DP World as a major global port and logistics operator.
He said the Federal Government would provide the regulatory and institutional support required for the projects and hold all parties accountable for meeting their commitments.
The proposed Ogun Waterside port is expected to have a four kilometre berth and an 18 metre draft, allowing it to handle larger vessels.
The facility is also expected to ease pressure on Lagos ports, including Apapa and Tin Can Island, while reducing logistics costs and providing another trade gateway for Nigeria.
Tinubu said the port and economic zone could also strengthen Nigeria’s position under the African Continental Free Trade Area by providing access to a continental market of about 1.4 billion people.
The Blue Marine Special Economic Zone is proposed to cover 10,000 hectares, with the combined projects requiring initial investment of more than $7 billion.
“At full development, the projects are projected to create more than 50,000 direct jobs and many additional indirect opportunities,” Tinubu said.
He added that the projects would support non oil export earnings and expand Nigeria’s productive capacity.
The President credited the Ogun State Government, led by Governor Dapo Abiodun, with securing land and structuring the investment framework for the projects.
He said the state’s actions had helped reduce project risks and described the arrangement as an example of cooperative federalism.
Tinubu said the Federal Government would support road, rail and power connectivity required for the projects, while also working to strengthen investment security and remove bureaucratic obstacles that could hinder implementation.
He said the Blue Marine Special Economic Zone was already attracting interest from global manufacturers, while the Gateway Deep Seaport would provide infrastructure needed to support the zone’s industrial development.
“A port moves cargo; a port integrated with a special economic zone helps to build an economy,” the President said.
Tinubu also identified the Lagos to Calabar Coastal Highway as an important part of the corridor, saying its 28 kilometre Ogun section would connect the port and economic zone with Lagos and the wider Nigerian hinterland.
He said the projects would form part of a strategic corridor near the proposed Nigerian Navy Operating Base and Dockyard and connect with the OK LNG Project, linking the industrial cluster with Nigeria’s energy and gas export ambitions.
The signing ceremony was attended by Abiodun and members of the Ogun State delegation, including Secretary to the State Government Tokunbo Talabi, commissioners and a representative of the host community.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, Nigeria’s Ambassador to France, Ayodele Oke, and NPA Managing Director, Abubakar Dantsoho, were also present.
DP World Group Chief Executive Officer Yuvraj Narayan, SkyKapital Managing Director Karim Noujaim and other investors and project partners also attended.
THE ISSUES
- The proposed investment of more than $7 billion places the port and economic zone at the centre of Ogun’s plans to develop a larger maritime and industrial corridor.
- The proposed deep seaport is intended to provide additional capacity for handling larger vessels while easing pressure on existing Lagos ports and reducing logistics costs.
- The economic zone is designed to connect port infrastructure with industrial activity. Tinubu said global manufacturers had shown interest in the zone, while the port would provide infrastructure supporting its viability.
- The projects are also being positioned to strengthen Nigeria’s participation in continental trade by creating a trade gateway linked to the African Continental Free Trade Area.
- Successful implementation will depend on the planned supporting infrastructure. The Federal Government has pledged road, rail and power connectivity alongside measures to address bureaucratic obstacles and investment security.
WHAT’S BEING SAID
“The agreements before us bring together vision, expertise, capital and execution capacity.”- Bola Tinubu, President of Nigeria
“At full development, the projects are projected to create more than 50,000 direct jobs and many additional indirect opportunities.” – Bola Tinubu, President of Nigeria
“A port moves cargo; a port integrated with a special economic zone helps to build an economy.” – Bola Tinubu, President of Nigeria
WHAT’S NEXT
The Federal Government and Ogun State Government are expected to facilitate the road, rail and power connections required to support the projects.
The proposed Gateway Deep Seaport and Blue Marine Special Economic Zone will then require continued coordination among government, DP World, investors and other project partners for implementation.
BOTTOM LINE
Ogun State and DP World have signed agreements covering projects with proposed investments exceeding $7 billion in a deep seaport and special economic zone. The projects are intended to expand maritime capacity, support industrial development and create more than 50,000 direct jobs at full development.
