HOW far can facilitators of the proposed Deep Seaports in Lagos, Akwa Ibom and other locations go?After the initial delay over regulatory and land-related issues, promoters of the projects now face a   series of tough challenges including the looming prospects of higher borrowing costs.

The development, which is not unconnected with dwindling revenue, is according to observers expected to continue throughout this year (2016) and beyond.

According to experts, the ongoing economic challenges occasioned by drastic drop in the price of crude oil from about $120 about two years ago to $38 as at press time is a direct threat to the proposed Deep Seaports in some parts of the country.

Though a Private Partnership Project, the proposed Deep Seaports are expected to attract some funding from the Federal and State Governments.

Besides, some maritime observers are questioning the economic viability of some of the proposed ports in view of the current economic realities confronting Nigeria and other oil producing nations.

Technically, the main benefit of a Deep Seaport is its ability to handle larger vessels and by extension stimulate economic activities.

Indeed, the immediate past administration of President Goodluck Jonathan had declared its resolve to facilitate the development of Deep Seaports in Lekki, Lagos State,  Akwa Ibom State, Badagry in Lagos State, Olokola in Ondo State, Ogidigben  near Escravos in Delta State, and Agge in Bayelsa State.

However, investigation revealed that inadequate plan, lack of adequate funding coupled with dispute over land and other regulatory issues have slowed down some of the Port projects considerably.

I want to use this opportunity to advise promoters of the projects to carry out more research before making more commitment. There is need for adequate funding plan. The truth is, for now, we don’t need more than one or two Deep Seaports in Nigeria

But, promoters of the proposed Deep Seaports insist the projects must continue in the interest of all stakeholders.Already, facilitators of the Lekki Deep Seaport disclosed that over $1.65 billion has been committed to the development of the port, in addition to $400 million spent to develop Lagos Free Trade Zone (LFTZ).

The LFTZ, is viewed by some observers as a major advantage to the proposed Lekki Deep Seaport, expected to come on stream in 2019.

In a chat with The Guardian on Monday, an economist, Matthew R. Otoide, described the proposed Deep Seaports as a welcome development, noting however “there is need to plan adequately in order to prevent challenges in future”.
Otoide said: “I want to use this opportunity to advise promoters of the projects to carry out more research or feasibility study before making more commitment. There is need for adequate funding plan. The truth is, for now, we don’t need more than one or two Deep Seaports in Nigeria.”

Speaking on behalf off facilitators to one of the proposed Deep Seaport, a source who preferred to remain anonymous explained that the project slowed down due to issues, which bothers on land ownership and documentations.

The source said: “The project is on course. Presently, I don’t have the mandate to speak. I will speak at the appropriate time”.
The Lagos State Government had in July 2015 declared that work on Badagry Deep Sea Port, will commence in the “next two months”, simultaneously with the 10-lane Lagos-Badagry Expressway project.

The State Governor, Akinwumi Ambode spoke while on an inspection tour of the Lagos-Badagry expressway, Mile-2 light rail and Badagry Deep Sea port projects.

According to Ambode, the proposed Deep Sea port is of great interest to the state in terms of job creation and development of new settlements and towns.

The Executive Secretary, Nigerian Shippers Council (NSC), Hassan Bello, in a chat with The Guardian said the proposed Lekki Deep Seaport would be of tremendous benefits to landlocked countries that channel their cargo through Nigeria.

Meanwhile, the Chairperson, Technical Committee of Ibom Deep Sea Port and Ibom Industrial City, Mrs Mfon Ekong Usoro recently outlined summary of activities for the realisation of the proposed Deep Seaport.

According to Usoro, soon after its inauguration, the Committee held a Two-Day retreat for an in-depth study and analysis of the existing Outline Business Case (OBC) for the Project and to design a road map for the two Projects – Ibom Deep Sea Port and Ibom Industrial City.

Meanwhile, Pursuant to the Technical Committee’s recommendations,  the State Governor commissioned the construction of access road to the Project site and “issued the Certificate of Occupancy for the Deep Sea Port in favour of the Nigerian Ports Authority (NPA) as required by law”.

According to Usoro, the Technical Committee enjoys full independence in its work “with no government interference.”Lekki Deep Seaport is expected to attract and handle Post-Panamax container vessels of up to 10,000 Twenty foot Equivalent Units (TEUs) coupled with an annual throughput capacity of 1.5 million TEUs.

The proposed port project, financed by six international banks is being built on a tripartite arrangement between the Federal Government, represented by Nigerian Ports Authority (NPA), the Lagos State Government and private inventors, represented by Tolaram Group of Singapore.

According to its promoters, the proposed port is being designed to reduce pressure at the already congested Lagos Seaports and tackle gridlock along Apapa axis.

Providing an update on its ongoing operations and activities, recently, the LFTZ Head of Legal Services, Mrs Ololade Oladipupo in a statement, revealed that there are about 17 registered enterprises within LFTZ with five of them currently fully operational, adding that “it is projected that they will bring in over $600 million in FDI (Foreign Direct Investment) in the near future’.

Oladipupo was quoted in the statement as saying that the various incentives being offered to investors within LFTZ and the one- stop- shop services have also served as major catalyst to attracting investments in the Zone.
She explained that given the huge plans for LFTZ, it is expected that it will serve as a commercial hub for both local and international investors in the nearest future.

According to the statement, the LFTZ was envisioned with the aim of promoting the vision of the Federal Government by contributing significantly to the growth of FDI and employment generation.
LFTZ was established in 2002 and is located on  65km east of Lagos, currently covering an area of 805 hectares in the Ibeju – Lekki area of Lagos State.

When fully developed, LFTZ is expected to  house about 250 industries, including petroleum, petrochemical, food and beverages, chemicals & pharmaceuticals, metals & engineering, non-metallic minerals and agri-commodity manufacturing complexes.

The statement explained that LFTZ will also offer “excellent infrastructure including power plant, natural gas and other utilities coupled with modern facilities such as residential units, recreational areas, supermarkets and restaurants, banks, medical facility, corporate centre and offices”.

Oladipupo said the free trade zone regime was promoted by the Federal Government as a means of encouraging FDI, the development of trade and industry as well as the generation of employment in Nigeria.

The statement said: “In line with this, there have been a couple of established Free Trade Zones within the Ibeju – Lekki Axis, including Dangote Refinery, the Lekki Free Zone which is jointly owned by the Lagos State Government and the Chinese consortium, and the Lagos Free Trade Zone.

“Within Lagos Free Trade Zone is an integrated deep sea Port being promoted by Lekki Port LFTZ Enterprise in conjunction with Lagos State Government and Nigerian Ports Authority, which occupies an area of 90 hectares with the capability to handle container, liquid and dry bulk cargoes”.