Home [ MAIN ] COVER FG To Generate $562bn From Lekki Sea Port In 45 Years

FG To Generate $562bn From Lekki Sea Port In 45 Years

Lekki Port

The Lekki Deep Sea Port is anticipated to bring in $562 billion in revenue for the federal government in 45 years.

This was revealed at the Private Public Partnership Consultative Forum held at the business’s corporate headquarters in the Lagos Free Trade Zone, Lekki-Expressway, by the company’s top management staff over the weekend.

The company is prepared to begin operations in the first quarter of 2023, according to Laurence Smith, Chief Operating Officer, and Daniel Odibe, Head, Regulatory and Procurement, who addressed several leaders of important ministry and departmental agencies separately during the forum.

Smith cites the first quarter of 2023 as the main operating deadline for the port, with full construction completion anticipated by this September.

“The port is being constructed at the cost of $1.5billion and from studies, we expect that it will have an aggregate impact on the economy to the tune of $361billion over 45 years and it will also generate about 170, 000 jobs with another $201b as revenue to the federal and state governments in terms of taxes, royalties.

“With the location in a free trade zone, which of course, houses a lot of manufacturing companies, trading and commercial services we expect that it will have a huge impact on the economy,” Smith said.

Echoing similar sentiments, Odibe said, “The port has a land area of 90 hectares on built-own and transfer operations basis with the NPA for 45 years. It will have three container berths and one dry port berth when it is completely built.

“The advantage of having a bigger deep sea port is getting bigger vessels in. In shipping, it is a big cost advantage if you can have bigger vessels because of the operating cost for shipping lines. It reduces the cost of transportation.

“Currently, in West Africa, we have bigger ports in Tema, Ghana, Lome and Abidjan. So in a way, the country has been losing cargoes to these countries because there is no big deep sea port. So with Lekki Port been here, it is going to attract cargo naturally here.”

Odibe made the following statement regarding the port’s ownership structure: “China Harbour Engineering Company is the majority shareholder with 52 per cent of the total shares, Tolaram, which also owns the LFTZ, has a 22.5 per cent stake; the Federal Government through the NPA maintains 5 per cent while Lagos State Government has 20 per cent. So altogether, they form a special purpose vehicle to operate the port.”

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