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Government to earn $201b from Lekki deep sea port

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Lekki deep sea port

The federal and state governments are expected to earn about $201 billion as tax, royalty and duty from the Lekki deepsea port in Lagos when completed.

The project, which is expected to stimulate Nigeria’s merchandise trade, is about 50 per cent completed, with expectations to commence commercial operations in the fourth quarter 2022.

The Managing Director, Lekki Port, Du Ruogang, who disclosed this during a media tour of the project, said the company is targeting an earlier date for commencement of operations at the port.

Already, the breakwater is 63.27 per cent completed while dredging is 55.75 per cent; quay wall is 43.14 per cent and landslide infrastructure is 27.83 per cent completed.

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Ruogang said the partners have estimated that about $1.53 billion would be spent on fixed assets, while $800 million would go into construction.

He said the project would offer a multiplier effect of more than 230 times of total cost of $1.57 billion when completed.

According to him, the port operation would create about 169,972 jobs, while revenue to state and federal agencies from taxes, royalties and duties would amount to about $201 billion.

He announced that the company was able to satisfy all the conditions precedent for the disbursement of the loan facility from China Development Bank.

He said: “We have achieved many milestones on the project including the equity infusion of $221m by China Harbour Engineering Company in its capacity as an investor. Based on this development, China Harbour is now the majority shareholder in Lekki Port.

“We have secured the partnership of Lekki Port Free Terminal (CMA) a French company with vast experience worldwide, to run the container terminal when it is operational.”

While explaining some of the features of the Deep Sea Port which has been described as the first in Nigeria upon completion, the Chief Technical Officer, LPLEL, Steven Heukelom noted that five-ship to shore cranes and 15 rubber tyre gantry cranes are being put in place to ensure ease in cargo evacuation, thus enhancing operation at the Port.

Heukelom revealed that the Port, which is being constructed on 90 hectares of land and through the Build, Own, Operate and Transfer (BOOT) arrangement would comprise of three container, three liquid and one dry bulk berths.

According to him, the company has equally secured the partnership of Lekki Port Free Terminal (CMA CGM) a French company with vast experience worldwide, to run the container terminal when it is operational.

The port with 2.7 million TEUs projected yearly capacity will have 600 meters turning circle and 16.5 meters draught.

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