Lekki Deep Sea Port Project currently under construction at the Lagos Free Trade Zone in Ibeju-Lekki, Nigeria, has received an infusion of over US $221m equity funding from China Harbour Engineering Company (CHEC).
This was made known by Mr. Biodun Dabiri, the Chairman of Lekki Port LFTZ Enterprise Limited the company in charge of the development. Dabiri said that the equity injection coming at this time despite the global economic meltdown caused by the COVID-19 pandemic, shows the deep commitment of CHEC to the success of the project which will significantly contribute to fast-tracking the timely delivery of the project and bring about economic prosperity to the West African region.
Lekki Deep Sea Port Project overview
Lekki Deep Sea Port Project was awarded to Lekki Port LFTZ Enterprise Limited by Nigerian Ports Authority on a Build, Own, Operate and Transfer (BOOT) agreement. Under this agreement, LPLEL is required to develop, finance, build, operate the port for a period of 45 years and transfer it to NPA thereafter.
The Project is the single largest private investment in infrastructure in Nigeria being developed on non-recourse project finance basis with majority of financing being raised internationally.
Expectations for the project
Upon completion Lekki Deep Sea Port will be sub-Saharan Africa’s deepest port and Nigeria’s first deep sea port with a total of 3 container berths, 1 dry bulk berth and 3 liquid berths which are key in bridging the current capacity deficit of the port.
It is also expected to have significant positive impact estimated at US$361B over the term of concession and it is also expected to contribute more than US$200B to the government exchequer in addition to creating close to 170,000 new jobs. Furthermore, Lekki Deep Sea Port will spur the economic development around the Lekki sub-region and the wider Lagos State through rapid industrialization.