INVESTMENT: New Lekki Port Will Generate $201bn Taxes & Royalties

It has been projected that the Lekki Deep Sea Port in Lagos, when operational, is capable of generating $158 billion through direct and induced businesses.

The port will also be the most cost efficient in the West African sub-region. Total investment in the port is estimated at $1.53b fixed assets and $800m in construction. Aggregate impact is estimated at $361b over 45 years, which will be over 200 times the cost of building it.

Additionally, the port will generate 169,972 jobs plus revenue totaling $201b to Lagos state and the Federal Government via taxes, royalties and duties.

The Lekki Port project is being executed in phases, with phase 1 already at 89% and to be completed in September 2022. Consequently, the port is expected to commence operations in the last quarter of this year.

PROJECT OVERVIEW & STRUCTURE
Lekki Port LFTZ Enterprise Limited was awarded the concession for 45 years by Nigerian Ports Authority (NPA) on a Build, Own, Operate and Transfer (BOOT) basis.

Under the agreement, LPLEL is required to develop, finance, build, operate and, at the end of the concession term, transfer the port to NPA. LPLEL will earn revenues through operations of the port.

Upon completion, Lekki Port will have a total of 3 container berths, 1 dry bulk berth and 3 liquid berths.

SHAREHOLDING STRUCTURE OF LEKKI PORT

A. INTERNATIONAL CONSORTIUM (led by Lekki Port Investment Holding Inc.)
— China Harbour Engineering Company Ltd. (CHEC) = 52.5%
— Tolaram Group = 22.5%

B. STATE & FEDERAL
— Lagos State Government = 20%
— Nigerian Ports Authority = 5%

TOTAL = 100%

SOURCES
http://www.lekkiport.com
http://www.punchng.com
http://www.businessday.ng
http://www.independent.ng
http://www.vanguardngr.com
http://www.shipsandports.com.ng
http://www.maritimetodayonline.com

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