Barring any unforeseen circumstances, the newly built Lekki Deep Seaport may well be a major contributor to lifting the economy out of the doldrums, if the government, industry operators, and other stakeholders in the economy make optimum utilisation of the world-class port project. Kunle Aderinokun writes
The news of the inauguration of Lekki Deep Seaport in Lagos last Monday came comforting and enveloped the country. That was not surprising because the coming of the Deep Seaport is seen as a sweet relief from harrowing years at the seaports across the country, characterised by decrepit infrastructure and difficult processes.
Actually, many have been dreaming of a new dawn in port infrastructure and processes, not with the poor operating environments nay bottlenecks at the Lagos Port (Apapa Port) and Tincan Island Port as well as the sub-optimal performance of the other ports. That is why the business communities across the country went agog when the Lekki Deep Seaport was inaugurated by President Muhammadu Buhari and immediately became operational to provide the needed succour.
The Lekki Deep Seaport, located at Itoke village, Ibeju-Lekki, in Lagos State, is a $1.5 billion development, which is a joint venture between the federal government, through the Nigerian Ports Authority (NPA), Lagos State Government, Tolarams Group (owners of the Lagos Free Zone), and China Harbour Engineering Company.
Apart from inaugurating the deep seaport, Buhari also led Governor Babajide Sanwo-Olu of Lagos State; Minister of Transportation Muazu Sambo; Chinese Ambassador to Nigeria, Ciu Jianchun; top government officials; and traditional rulers to witness the offloading from the ship, sailing under the flag of Malta.
According to Sanwo-Olu, the Lekki port would accommodate vessels four times the size of the vessels that currently berth at Apapa and Tin Can Island Port and the operations generate thousands of direct and indirect jobs.
Sambo noted the letter of intent between the proponents of Lekki Deep Seaport and its financial partners was signed as recently as April 2019 and by January 2023. He disclosed the Lekki Deep Seaport had already been designated as Customs Port and approved Wharf and published in the Federal Government Official Gazette.
Estimating the employment generation through the port, Sambo said over 170,000 jobs would be created as operations commence.
In his goodwill message, Jianchun said the landmark gateway project jointly built by five parties from four countries was a fitting example of a good business model.
The Chinese Ambassador to Nigeria stated, “This project is a joint venture between China, Nigeria, and Singapore, and is run by a French company. The model of ‘five parties from four countries’ is a way of taking advantage of the wisdom and strength of all parties.”
He pledged that China would promote the business model to pursue a win-win outcome, particularly, in support of the growth, development, and progress of Nigeria.
He added, “The government doesn’t need to worry about the existence of guarantees or debt risks. It also shows that the investment climate in Nigeria can be trusted. We have every reason to be confident in Nigeria’s future development.”
In his remarks, Managing Director of NPA, Mohammed Bello-Koko, said the Lekki Deep Seaport would be the deepest and most modern port in the, with a depth of about 16.5 meters, adding that it would be able to bring in bigger vessels and more cargoes.
Bello-Koko believes that, “Economics of scale would set in and we believe that the cost of doing business in this country will be lower compared to other countries and it will also provide employment opportunities and it will be more efficient. It will also be a model for other upcoming deep sea ports in Nigeria.”
Managing Director of Nigeria Export Processing Zones Authority (NEPZA), Prof. Adesoji Adesugba, recalled that when the construction of the port began in June 2020, with the flag-off by Mr. President, very few Nigerians believed that it would become a reality, especially with the challenges of COVID 19 ravaging the country and the entire world at the time.
“Therefore, we should all be proud as Nigerians that this has not only become a reality, but a free zone has built and completed the largest sea port within four years, which will reposition Nigeria as a regional hub globally for maritime business,” he added.
He gave the assurance that NEPZA would continue to give Lagos Free Zone and, indeed, all free zones licensed under it, the institutional support required to sustain the project and all other projects in the free zones.
Adesugba stated, “We are ready to lead in partnering with agencies at national and sub-national levels and the private sector to provide the needed support for this investment to thrive.
“Particularly, we will partner with the Nigeria Customs Service to perform its role effectively to achieve the objective of making this project stand as a testament to the legacy of President Muhammadu Buhari.
“We must not allow the momentum generated by the commissioning today to wane. All hands must be on deck to sustain this reality.”
Away from the euphoria of the new port, it is pertinent to point out that the government may have failed to correct the mistakes of the previous port projects in terms of ancillary development. That is, especially, in the area of port access road infrastructure. One critical infrastructure required for any port is a solid access road. As it stands, in the Lekki corridor access road to and fro the deep sea port is yet to be developed. Ordinarily, one would wonder how trucks leaving the port facilities would move through the Lekki corridor to Victoria Island and other areas.
Investigations revealed that while the Ogun State government has constructed Ijebu Ode-Epe road, to date, the Lagos State government, which conceived the Lekki Free Trade Zone, the area where the port is located, is yet to have a tailor-made road for this gargantuan development in the area.
Nevertheless, sources privy to the project volunteered the information that there is road construction along the corridor. According to one of the sources, the government has already started the dualisation of the Eleko-Epe road with concrete to accommodate the weight and pressure of traffic.
But this is tantamount to putting the cart before the horse. The expectation is that government should have put the road infrastructure in place long before such major projects in the area are operational.
That said, in any country of the world, a port system or seaport plays a significant role(s) in facilitating the development of the economy. No, doubt, the strength of an economy is measured by the volume and value of goods traded and services provided. These include in-country and external/international trading of tangible and intangible goods. To create a flurry of activities that would energise the economy, there has to free flow of goods. As such, the need for a functional and efficient port system cannot be overemphasised. Therefore, having a functional and efficient port system is a necessity for economic growth.
Port development in Nigeria dates back to the 19th century but before then, since the 15th century, there had been explorative activities by the European missionaries and businessmen along the coast which stretched from Calabar to Lagos, which necessitated the need for a port.
By 1914, the first steamer entered the Lagos harbour and two months later, vessels commenced operations using the facilities at the Customs wharf on Lagos Island. However, Calabar Port is reputed to be the longest-serving seaport in the country. Apart from the Lekki Deep Seaport, which is Nigeria’s first deep seaport, there are six old ports in the country, located in Apapa, Tincan Island, Onne and Port Harcourt in Rivers; Warri in Delta; and Calabar in Cross River.
Following the commencement of operations at the Lekki Deep Seaports, maritime industry and economist analysts have shared their thoughts on what the development means to the economy.
Managing Director of Meiracopp Nigeria Limited (MNL) and Special Adviser on Strategy & Policy to the Chairman of the Governing Board at Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Chijioke Mama, believed the new Lekki deep seaport is an indisputable game changer. According to him, it exemplifies the kind of infrastructural development that is imperative in a new Nigeria.
“As a modern deep seaport, it is poised to further catalyze trade and commerce in Nigeria, Western and Central Africa regions. There is no better time to have such a critical infrastructure, as we match towards 400 million people in the next few decades,” he said.
Pointing out that, “If we manage to flip our economy from import-focus to export-focus,” Mama noted, “It is infrastructures like this that will competitively and seamlessly push Nigerian products into regional and global markets.”
Besides, he said, the development equally underscored the relevance of Public-Private Partnership for development in an emerging economy like ours. He believed, “If we have this replicated across a few other sectors; Nigeria’s economic trajectory will significantly change.”
On her part, former President of Women in Maritime, Hajia Bola Muse, said the development was highly commendable and a plus to the maritime sector.
Muse believed the new seaport would help facilitate trade under the AfCFTA. As well, she said with the project, the future of the country’s economy is bright, given the multispectral participation at the port.
The Public Relations Officer, Nigeria Customs Service, Comptroller Timi Bomodi, said the addition of the Lekki Deep Seaport to the list of “fully functional customs ports in Nigeria” means a lot.
“As the only deep seaport in Nigeria, it has the capacity of hosting extremely large vessels with a carrying capacity beyond what any other port in the country can receive. It will also serve as a transit and transhipment hub for other vessels thereby adding value to the blue economy. With the anticipated increase in cargo, we at Nigeria Customs expect a commensurate increase in revenue.
This will greatly add to the revenue-collecting drive of the Service. As a fully automated port with enhanced scanning capabilities, trade facilitation will also be greatly enhanced thereby making it attractive to most port users,” the spokesman noted.
Bomodi also pointed out that, “the potentials of the Lekki deep sea port are enormous as it also doubles as a hub for the free trade zone with manufacturing and export potentials.”
As for economist and professor of banking and finance, Prof. Uche Uwaleke, the Lekki seaport would have a multiplier effect on the economy. “Aside from facilitating imports and exports of goods, it opens doors for foreign investments as well as enhances the image of Nigeria as the country with the deepest seaport in West Africa, thereby positioning her for key roles in the context of AfCFTA,” he pointed out.
The Lekki seaport, Uwaleke added, would “ease the pressure currently faced by the older ports in Lagos and will be a boost to the CBN’s RT200 billion dollars programme, which has a dedicated port terminal as its major pillar.”
“Perhaps, more importantly, this massive project creates job opportunities for Nigerians and will help grow the GDP of the country. It is equally a source of revenue for the Lagos State government and the Federal government who are among the shareholders,” he believed.
“These positives justify the need to develop other ports in several parts of the country such as the Calabar, Warri, and Onitsha,” the don added.
However, an economist and Chief Executive Officer, The CFG Advisory Ltd, Mr. Adetilewa Adebajo, lamented that it took the government 20 years to decide to build a port in two years at the cost of US$ 1.5 billion, blaming the delay on vested interests.
According to him, vested interest is killing infrastructure development in Nigeria. “We should have built at least four more ports in the 20 years we can afford it and they are highly profitable ventures.”
Nevertheless, with the deep seaport now standing and operational, the onus is on the government and its agencies to get their acts together and avoid threading the path that led to the decay of the old ports so that the economy and the people would be able to derive the gains of its establishment.
