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By Steve Agbota, [email protected]
“With Lekki Port scheduled to commence commercial operation in the last quarter of the year 2022, it would make it possible for Nigeria to regain the maritime business that was lost to ports in Togo, Cote d’Ivoire and Ghana.
“It is also 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 would become a transshipment hub and the revenue we are currently losing to our neighboring countries will come here,” these were the words of the Minister of Information and Culture, Alhaji Lai Mohammed, on his recent visit to the project in Lagos.
By its big market and size of the population, Nigeria ports suppose to be the transhipment hub for West and Central Africa but due to crisis like infrastructure and dept draught among other challenges that bedeviled the current nation’s seaports especially the two busiest ports in Lagos, Nigeria lost its maritime hub status and transshipment cargoes to neighboring countries.
Around the world, seaports with best Infrastructure turn to be a shipping hub port to support shipping and trade.
But, unfortunately, Nigeria transhipment hub status was lost to Togo, Benin Republic, Cameroun and Ghana who have developed modern ports with infrastructure such as deeper draught that can accommodate larger vessels.
While these countries can take a vessel with 16 meters draught, none of Nigerian seaports draught can go beyond 13 meters. This made it difficult for transshipment in Port or accommodate POST PANAMAX vessels with a capacity of about 8000 TEU and 47.5 feet draft.
Unfortunately, the final destination of the content of the bigger vessels that call at neighbouring countries is Nigeria because of the large population and seize of Nigerian markets.
For instance, while Nigerian ports draught was between eight and 13 meters which cannot accommodate mega ships, the least draught in other neighbouring ports is 6meters.
The draught of the neighbouring ports of Togo is 15.5 meters while Benin Republic has 15 meters, Ghana 19 meters while Cameroun has 16 meters draught level.
With this larger draught, most Nigeria bound goods by mega ships were transhipped from these countries with smaller vessels.
Stakeholders optimistic that the $1.53 billion Lekki Port with 16.5 meters draught and 1,523 meters of quay wall, rated the deepest in Africa; no doubt, Nigeria would regain its maritime hub status both in West and Central Africa.
However, Daily Sun learnt that the project would inject about $360 billion into the Nigerian economy when the project is completed.
Speaking in Lagos recently, the Minister of Information and Culture, Lai Mohammed, said the Federal and Lagos State government would generate $ 201 billion through taxes, royalties and duties from the Lekki deep seaport.
He said the port would have a great impact on the economy as it is going create 169,972 jobs and enable Nigeria to regain the maritime businesses it lost to ports in Togo, Cote d’Ivoire and Ghana. He said with the port, Nigeria will become a transshipment hub, adding that the revenue the country is currently losing to neighbouring countries would be regained.
“The investment is huge, $1.53 billion on fixed assets and $800 million on construction. But the aggregate impact has been put at $361 billion in 45 years, which would be over 200 times the cost of building it. The direct and induced business revenue impact is estimated at $158 billion, in addition to a qualitative impact on manufacturing, trade and commercial services,” he said.
On the issue of roads, the Minister said the Lagos State government, Federal Government and Dangote Group are in a private partnership to improve and widen the road to ensure efficient cargo evacuation.
“We are concerned about the efficient evacuation of goods and services at the port. The ultimate goal is to connect this port with the rail link for optimal use.
“A project that when completed will give us the best seaport in West Africa. We are not unaware that we need to do a lot to ensure that the port becomes efficient, but we are on the right track,” he said.
Conversely, the Minister of Transportation, Rotimi Amaechi in a recent inspection of the project, said that the privately funded project, is expected to allow investors recoup their money after, which they will handover the seaport to the Federal Government.
“The project will contribute about $360 billion over the years. It sounds much, but we actually need more of that money to accomplish what we want to achieve. But obviously taxes will be collected here and even them (contractors) will pay taxes. I am not sure there was any taxes mentioned in the agreement, but I doubt there is any tax exemption.
“So, we will collect taxes here, the confidence in giving them the project is because of the taxes that we will collect here that will help us in the construction of other projects,” he added.
“This is the first seaport in Nigeria. What we had all these while are river ports , Tincan is a river port, Apapa is a river port and port Harcourt too. Right here, you have 16.5 metres drafts which is good for the country, but the country needs more than just one of this port because of the increase in commercial activities in the future.
Lekki deep seaport for test run in December
“We need just more than Lagos deep seaport and for me before I leave office, I will emphasize on the construction of the Bonny deep seaport,” he added
Amaechi expressed his willingness to connect the Lekki deep seaport to a rail line, lamenting however that paucity of funds remain a challenge.
Also speaking, the Managing Director of Lekki Deep Seaport, Du Ruogang, said the port would change the economic landscape of Nigeria and become a hub in the West and Central African region.
He said the second phase of the port would commence in about six to seven years time, adding that in the long-term, the third phase of the port would be developed.
Ruogang appealed to the government for support in the transshipment policy, which he said is an important target for the port.
He also called for government’s support in the cargo evacuation system, noting that the roads connecting to the port are not satisfactory to the demands of the evacuation requirements of the port.
The General Manager/Head of Government Relations and Security, Lekki Freeport Terminal, Fubara Awanta, said with the draft of the port, which is the deepest in West Africa, Nigeria should not lose the huge revenue that it would make from the port due to several bottlenecks.
He appealed to the government to ensure the key roads connecting the port should be completed to boost cargo evacuation as the short-term support, while for the medium term the government should assist in ensuring the movement of consignment through barging.
“In the course of doing barging there are so many additional fees that will be paid like Cabotage, if all these additional costs are not well managed, most persons will not want to evacuate their cargoes that is why you see from the point of calculating our return on investment, our pricing must be highly competitive,” he noted.
The Executive Secretary, Nigerian Shippers Council (NSC), Emmanuel Jime, raised concern over badge creation modalities out of the port, which he said is a critical component, noting that if not careful, Lekki port will become like Apapa and Tin Can in terms of cargo evacuation.
Responding to their pleas, the visiting minister assured them that the government was passionate about developing the business environment, noting that the idea of Presidential Council on Enabling Business Environment was to ensure the country is competitive.
