ICRC sees $361bn revenue potential in Lekki deep seaport within 45 years
By Innocent Obasi
The Infrastructure Concession Regulatory Commission (ICRC), an agency of the federal government of Nigeria charged with the responsibility to develop and implement a public-private partnership framework, has said that the recently commissioned Lekki Port will contribute over $361 billion economic impact in 45 years.
The ICRC made this disclosure in a statement following President Muhammadu Buhari’s commissioning ceremony of the first deep seaport in the country.
The commission explained that the economic impact would be revenue from duties, royalties, and taxes at $201 billion and also a direct/indirect business impact of $158 billion.
The commission outlined other features, including the first deep sea port in Nigeria and deepest Port in West Africa has a land Area of 90 hectares, concession term of 45 years, a multipurpose Port which has three container berths, three liquid and one dry bulk berth. It added that the concession model constitutes the Build, Own, Operate and Transfer (BOOT) strategy.
ICRC further disclosed that the project had a cost of $1.5 billion in assets and $800m on construction in all phases of which the Nigerian Government owns five per cent, the Lagos State government owns 20 per cent and the Lekki Port Investment Holding Inc owns 75 per cent through the Special Purpose Vehicle (SPV- Lekki Port LFTZ Enterprise Limited).
Du Ruogang, the managing director of Lekki Port LFTZ Enterprise Ltd. (LPLEL), said that the port will boost Nigeria’s Gross Domestic Promote (GDP) and facilitate trade volume.
Ruogang also said that other benefits include; improvement of external trade competitiveness through improved port efficiency, cost-effective port operations and services, and improved turnaround time for cargo handling and clearance.
He further maintained that with the Lekki Port, Nigeria will witness significant growths in maritime traffic, global trade, and strengthen connectivity and capability to provide efficient and reliable services.
“Lekki Port, no doubt, will be a critical engine that will drive the Nigerian economy upon commencement of operations. I am equally confident that it will help to reinforce Nigeria’s status as a regional maritime hub and enable many related industries to flourish,” Ruogang added.