Nigerian government approves construction of Lekki deep sea port for N200 billion

The government also approved N30 billion for construction of 12 roads nationwide.

The Federal Government on Wednesday approved the construction of the Lekki deep sea port estimated to cost N200 billion or $1.354 billion.

This was announced by the Information Minister, Labaran Maku, who briefed journalists at the end of the weekly meeting of the Executive Council of the Federation, FEC, on Wednesday. The meeting was presided over by Vice President Namadi Sambo.

Mr. 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.

He said the sea port, which would be the first in Nigeria, has been planned for several years and received 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," Mr. Maku said.
The funding for the project is to be done 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.

Mr. 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.

Mr. Maku added that the port would create over 162, 000 jobs and help to facilitate the decongestion at the various ports built initially to handle 60,000 tonnes but which are now handling over 100,000 tonnes.

In his contribution, the Minister of Transport, Idris Umar, who presented the memo on the port to FEC, said the development of the Lekki Deep Sea Port will be through a public, private partnership.

"The project upon completion will generate the sum of USD379 billion and the fact that the port plays a vital role in the economy.

"After deliberations, Council approved the project in favour of Messrs Lekki Ports LFTZ Enterprise (the project proponents) at an estimated cost of $1, 354, 500,000.00 (one Billion, three hundred and fifty four million, five hundred thousand Dollars) under the concession agreement dated 21st April, 2011.

"Council approved the issuance of a Guarantee to cover financial obligation of the NPA to pay compensation in the event of expropriation, war, civil disturbance, breach of contract and other event of default as per the concession agreement for the development of the port, as $800 out of the project cost is to be funded through debt financing while the balance of USD 554,500,000 (five hundred and fifty four million, five hundred thousand Dollars) is to be contributed by equity," he said.

The FEC also approved the award of nine road contracts at N15.716 billion. They include the construction of Kankara-Gurbi Road in Katsina state at N1.4 billion and the construction of Isoko Ring Road in Delta State at N2.1 billion.

Others include the Construction/rehabilitation of Yashi-Duguri-Yalo Road (Duguri-Dungare-Yalo Section) in Bauchi State at N1.75 billion and the Jarmai-Bashar Road in Plateau State at N1.38 billion.

Government also approved the construction of Benin/Adumagbae-Egba-Akure Road in Edo/Ondo states at N3.287 billion and the reconstruction of Nung Udoe-Etinan-Ekom-Iman Road in Akwa Ibom State at N2.383 billion.

The Minister of State for Works, Bashir Yuguda, who stated this at the post FEC briefing, also announced the award of contract for the rehabilitation of Wukari/Akwana Road in Taraba State at N3.97 billion.

Other road contracts approved include the construction of Ajase/Offa/Erin-Ike/Osun State Boundary Road in Kwara State at N1.24 billion, Takum-Dongawa Road (15km) in Katsina-Alato Katum at N1 billion, River Ebba Bridge at Cheche, Katcha in Niger State at N1.48 billion, and rehabilitation of Amanwaozuzu-Uzoagba-Eziama-Orie-Amaohia road in Imo State at N1.275 billion.