Finance

FG says Lekki deep seaport to generate $201 billion revenue, to create 170,000 jobs


The Federal Government has said that the Lekki deep seaport which is expected to be completed before the end of the year would create about 170,000 jobs to boost Nigeria’s economy.

This is as the project is expected to bring revenues of about $201 billion to federal and state governments through taxes, royalties and duties as well as an aggregate impact of $361 billion in 45 years upon the commencement of operations.

This was made known by the Minister of Information and Culture, Alhaji Lai Mohammed, during a routine tour of the port, on Wednesday, saying that the port project was critical to the nation’s economic development.

Mohammed described the Lekki Deep Seaport which is regarded as the deepest seaport in West Africa, as a game-changer in the maritime sector with the capacity to turn Nigeria into a shipping hub, boost the economy and create jobs.

What the Minister of Information and Culture is saying

Mohammed said, “We have just concluded a tour of the Lekki Deep Sea Port here at the Lagos Free Zone, located some 65 kilometres east of Lagos.

“We are here again, we have seen for yourselves, the Lekki Deep Sea Port, a Build, Own, Operate and Transfer concern, is a massive project, a game-changer and a pacesetter.

“It is the deepest seaport in Nigeria and West Africa, and that in itself is a unique advantage. It covers a land area of 90 hectares and it has a concession period of 45 years.

“It is a consortium that includes China Harbour Engineering Company, Tolaram, Lagos State Government, Nigerian Ports Authority and Lekki Port Investment Holding Inc.

”I called it a game-changer because of the impact it will have on the nation’s economy and the jobs it will create, among others. The investment is huge: 1.53 billion dollars on fixed assets and 800 million dollars on construction.

”But the aggregate impact has been put at 361 billion dollars in 45 years, which will be over 200 times the cost of building it. In addition, it will create 169,972 jobs and bring revenues totalling 201 billion dollars to the state and FG through taxes, royalties and duties.

“The direct and induced business revenue impact is estimated at 158 billion dollars, in addition to a qualitative impact on manufacturing, trade and commercial services sector.

“Beyond that, when it begins operation in the last quarter of this year, it will 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 transhipment. With this port, Nigeria will become a transhipment hub and the revenue we are currently losing to our neighbouring countries will come here. That’s big.’’

He expressed satisfaction with the level and quality of work on the port and said that the project was done in phases, saying Phase 1 has reached 89% and would be completed in September 2022.

He said that the facilities in the port were first class, adding that 7 ships to shore cranes and 21 RTG cranes has been made available and commended shareholders of the port for deploying such first-class equipment for its operations.

What you should know

  • The Lekki Deep Seaport, designed to be a significant game-changer in Nigeria’s maritime economy and constructed by China Habour Engineering firm, is a $2 billion investment in the Lagos Free Trade zone initiated by Tolaram Group, a Singaporean company.
  • The deep seaport is expected to generate huge job opportunities for Lagos residents as well as boost the Federal Government’s efforts to decongest the Lagos ports in Apapa and Tin Can.
  • The Minister of Transportation, Rotimi Amaechi, had in January 2022, said that the Lekki deep seaport will be completed in 2022 with its operations automated
  • The Lagos State Governor, Babajide Sanwo-Olu, had in March 2021, said that the Lekki Deep Seaport is expected to begin operations by the first quarter of 2023, as the construction firm, China Habour Engineering firm had made tremendous improvement with the project



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