The Nigeria Goverment approves $1.354bn for Lekki deep sea port

The Federal Government of Nigeria  has approved about N200 billion ($1.354 billion) for the construction of the Lekki deep sea port in Lagos State, South-West Nigeria.

The was announced made on Wednesday by the Minister,for Information Labaran Maku, while briefing the press at the end of the weekly meeting of the Executive Council of the Federation (FEC) presided over by Vice President Namadi Sambo.

Maku said the port, expected to be completed in about four years, will put an end to the present congestions at the various ports in the country, including the Apapa port complex. He said the sea port, which would be the first in Nigeria, has been in the pipeline for several years after receiving anticipatory approval about ten years ago.

“The current administration, seeing the huge benefit of the project, had taken over the project to be executed under a PPP arrangement, while Federal Government also renegotiated the concessionary period in favour of Nigeria from 50 down to 45 years,” Maku said.

The funding for the project is to be provided by the Federal Government, state government, and private investors.

The Federal Government is expected to contribute 20 per cent equity; Lagos State Government, 18.5 per cent; while the private investors are to contribute 61.85 per cent.

The port is designed to handle the largest vessels in the world and is expected to cover an area of 90 hectares with room for expansion and 6 KM in length which will be dredged by the contractors.

Maku said the port is designed to handle 4 million tonnes of cargo. He said the width of the chanel leading to the port is put at 200 meters to be dredged to a depth of 17.5 meters, with a width of 300 meters making it the deepest in the West Africa.

The Nigerian Ports Authority, NPA, is also expected to garner over $9.3 billion made up of $2.6 billion from marines services and royalty and $6.7 billion from share of profits from the investments, over the 45 years.