Lekki port: FG, Lagos to share from $201 billion accruing from taxes, royalties

Authors:

Clinton Isidore

May 9, 2022 8:41 AM

The expected accruable returns will be over 200 times the cost of the project

Lekki port: FG, Lagos to share from $201 billion accruing from taxes, royalties

The federal government and the promoters of the Lekki deep seaport last week projected that the Lagos port has the capacity to generate more than $158 billion through direct and induced business once operation commences at the port.

The minister of information, Alhaji Lai Mohammed, speaking to newsmen during a tour of the port said that cargo lost to the ports of neighbouring countries will also be reclaimed as the port will be the most cost efficient in the sub-region.

He said that the investment was quite humongous to the tune of $1.53 billion dollars spent on fixed assets and $800 million dollars on construction.

The combined impact of the project has been placed at $361 billion in 45 years, which will be over 200 times the cost of the project, he added.

“In addition, it will create 169,972 jobs and bring revenues totaling $201 billion dollars to the state and federal governments through taxes, royalties and duties.

“The direct and induced business revenue impact is estimated at $158 billion dollars, in addition to a qualitative impact on the manufacturing, trade and commercial services sector.

“Beyond that, when it begins operation in the last quarter of this year, it will make it possible for Nigeria to regain the maritime business that was lost to ports in Togo, Cote d’Ivoire and Ghana. It is also a big boost to Nigeria in its quest to take advantage of the implementation of the African Continental Free Trade Agreement (AfCFTA).

“A major advantage we have to leverage is transshipment. With this port, Nigeria will become a transshipment hub and the revenue we are currently losing to our neighbouring countries will come here.

“As you know, this project is being done in phases. Phase 1 has reached 89 percent and will be completed in September this year” he said.

The Executive Secretary of the Nigerian Shippers’ Council, Emmanuel Jime, while speaking, was concerned about the high possibility of a repeat problem of gridlock currently witnessed along the access roads to the seaport in Apapa.

“I am worried about how cargoes will be evacuated when the seaport eventually comes mainstream” he said.

During his statement, the Managing Director of the Nigerian Ports Authority (NPA), Mohammed Bello-koko, assured stakeholders that the government is ready to do all that is needed and necessary to ensure smooth operations at the Lekki seaport when operations commence.