President Muhammadu Buhari is currently in Lagos State. One of the reasons he visited Nigeria’s economic hub was to commission several “legacy projects,” which include the Lekki deep-sea port.
The brand-new deep-water port that is now being built is called the Lekki Port, situated in Lagos State’s Lekki Free Trade Zone. The port is being built as a component of a bigger initiative to strengthen Nigeria’s economy and infrastructure.
The port will be able to handle huge vessels, and it is anticipated that it will significantly improve trade and commerce in the nation.
Boosting the Economy
The project (Lekki deep-sea port) is anticipated to boost regional economic growth and provide thousands of new jobs.
The port is also anticipated to draw foreign investment and aid in the diversification of the Nigerian economy.
However, because the port will accommodate large vessels and improve the effectiveness of cargo handling, it is also anticipated to expand trade and commerce within the nation.
In terms of how much the port will generate, there have been lots of projections. It is difficult to predict because it will depend on a number of variables, including the volume of trade, the effectiveness of cargo handling, the success of the broader project, etc.
Revenue Projection
The Lekki Port is a major success story for public-private partnerships in infrastructure development in Nigeria, according to the Infrastructure Concession Regulatory Commission (ICRC) of Nigeria, and is anticipated to have a $461 billion economic impact over the course of 45 years.
The Nigerian Government owns 5%, Lagos Government 20% and Lekki Port Investment Holding Inc. owns 75% through the Special Purpose Vehicle (SPV- Lekki Port LFTZ Enterprise Limited).
The economic impact would be revenue from duties, royalties, and taxes of $201 billion and a direct and indirect business impact of $158 billion.
ICRC said it expects over $361bn economic impact expected in 45 years. “ Land Area – 90 Hectares, Concession Term- 45 years, First Deep Sea Port in Nigeria and Deepest Port in West Africa.
“A multipurpose Port which has 3 Container berths, 3 Liquid, and 1 Dry Bulk Berth
“Concession Model: Build, Own, Operate, and Transfer (BOOT). Economic Impact and Project Cost: They added the project had a cost of $1.5 billion in assets and $800 million on construction in all phases.
“$361 billion (Revenue from duties, royalties, taxes $201bn, Direct/Indirect business impact: $158bn).”
