Lekki Deep Seaport Project timeline and all you need to know

Lekki Deep Seaport 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. Slated for completion in 2020, 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. Below is Lekki Deep Seaport Project timeline and all you need to know about the project from beginning to the present date.

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2008

Design of business plan, EIA

Concluded various feasibility studies

2011

Concession agreement

2012

EPC contract SHA

2014

FEC Approval, Mof guarantee

May 2015 Construction work at the Lekki Deep Seaport in Nigeria commences

The US$1.65bn project was awarded to the China Harbour Engineering Limited by the Lekki Deep Seaport management during the kick off ceremony. The amount of money issued will cater for the first phase of the project. However, according to Haresh Aswani the Managing Director of LPLE confirmed the total Lekki port project construction cost adds up to US$792m
The Lekki Deep Seaport project is scheduled for completion with full operation in 2019 and when completed, the port will be ranked as one the deepest sea ports in Africa particularly in the Sub-Saharan Africa given that it has a deepened length of 16.5m. The port will also be capable of handling about 10,000 post-Panamax container vessels with a TEUs capacity.
Nonetheless, the port is expected to have an annual output capacity of about 1.5million TEUs which in due time the number is expected to go up by 1.2million TEUs. When fully finished the vital requirements the port will also accommodate annually 16.7million MT liquid cargo as well as 4million MT dry bulk cargo.
Confirmed by the Lekki Deep Seaport MD, Mr. Aswani, the port main objective is to a  provide long lasting congestion solution as well as creating convenient massive spur investments in line with the Lagos Free Trade Zone terms and conditions that leads to positive response concerning the overall economy in the country.
The project will however, provide a benefit package of 170,000 direct job opportunities to the Nigerians injecting about US$361bn to the country’s economy within a concession phase.

October 2015: Nigeria commits US$118mn to Lekki Seaport project

The multi-billion Lekki Seaport project, which is slated to start in July this year, has received a boost of US$118m from the Federal Government. This was revealed by the Managing Director of Nigerian Ports Authority, Mallam Habib Abdullahi.

The amount will add in to the support of the project by the African Development Bank, European Investment Bank, Standard Bank, Standard Chartered Bank, Diamond Chartered Bank and African Finance Corporation (AFC) in terms of funding.  Tolaram Group is the major sponsor for the project and has promised full completion. Lekki Seaport project’s, Mr. Haresh Aswani, has said the completion timeline expected is 40 months. He said private investors would build their industries knowing of the port development.

The  Lekki Seaport project is a joint venture between the Lagos State Government and a Singaporean investor, Tolaram Group aiming at easing the present congestion in Nigerian premier port, Apapa Quay, Lagos. Roads to facilitate cargo evacuation will also be built and developers have gotten approval for new road construction according to Aswani. He said they had done  road study together with Lagos state Government and that the core investor was working with the government on a master plan.

The Lekki Deep Seaport project will also provide job opportunities. Nigeria has also planned construction of other seaports projects – Badagry deep seaport, Olokonla port in Ogun state, Ogidigben port in Delta state, and the Ibom deep seaport in Akwa Ibom State and completion of Lekki will be inspirational to the projects, according to the NPA MD.

“The total amount of the federal government’s stake in this project is $118 million. What we had as at last year was US$5.04m and we have already paid that. We have already started making payments on this because there was an allegation that the government has not started making payments. That is totally wrong. We have already paid our own dues as at last year. For the year 2015, we have made enough provision to pay up the remaining amount that is due to us. It is still with the government but we have already made an agreement with them and we will pay it up by the end of the year,” MD Abdullahi added.

The Lekki port development project falls under the Greenfield ports development programme, in which other projects have been proposed for Warri, Delta; Ibeno, Akwa Ibom State; Agge, Bayelsa State, and Bagary.

April 2016: Completion of Lekki Seaport in Nigeria slated for 2019

Nigeria’s deepest seaport in sub-Saharan Africa, Lekki Seaport to be completed in 2019. Lagos State Governor, Akinwunmi Ambode pledged the complete the US$1.7bn project.

Speaking at the formal unveiling of the Office of Overseas Affairs and Investment which will also be known as Lagos Global, Governor Ambode further revealed the state’s mission to involve prospective investors in critical sectors such as transportation, health, power, agriculture, tourism, housing, ICT and manufacturing.

He also gave an assurance that the state will eye for more investments in line with the State Development Plan (2012-2015).

Governor Ambode added that the Badagry Creek Industrial Park, a $1.3 billion investment meant for completion in 2018 and the $12 billion Dangote Refinery and Petrochemical Park were among other investments coming to the state.

State’s Government Secretary, Tunji Bello said that, the state government is focused on ensuring Lagos remains a choice destination for massive Foreign Direct Investments (FDIs), including the Lekki seaport project.

Renowned economist, Prof. Pat Utomi, while lauding the initiative, said Lagos economy must therefore be a 24 hours one and that the growth of the state required significant co-operation from neighbouring states.

Utomi said Lagos offers hope for rapid growth of the country as it has the capacity to serve as the yard-stick to measure and encourage development, but that there has to be a concerted effort to make the state a more attractive idea of a developmental state, and that there must be a well done plan to round up everything that Lagos represents in terms of possibilities through a branding process.

Governor Ambode has ordered the State Public Works Corporation (LSPWC) to immediately embark on extensive repairs of the ever-busy Lagos-Badagry Expressway.

However, according to Ayotunde Sodeinde, General Manager and Special Adviser to the Governor on Public Works, LSPWC had already mobilized its workers to immediately commence work on the several sections of the highway. Work on the highway will involve giving a new look to the drainage systems as all potholes will be covered.

January 2018 Construction work kicks off on Lekki Deep Seaport in Nigeria

NTP to EPC contractor

Financial close achieved

Construction work on the Lekki Deep Seaport in Nigeria has kicked off in earnest after the project stalled for years. This is according to the management of Lekki Port LFTZ Enterprise.

Upon completion Lekki Deep Seaport will be one of the most modern ports, supporting the burgeoning trade across Nigeria and the entire West African region; providing the connection to the global shipping network.

Acting Director General of the Infrastructure Concession Regulatory Commission (ICRC) Chidi Izuwah said during the inspection of the project that the Federal Government and the 36 states are expected to earn about US $361bn as revenue when operation begins at the sea port in Lagos. 

The port construction is being carried out by two major companies:China Harbour Engineering Company Limited (CHEC), the engineering and construction arm of China Construction and Communication Company (CCCC) and Louis Berger Group, USA.

“We are working tirelessly in conjunction with China Harbour Engineering Company to deliver a port which will be a state-of-the-art, model deep sea port, not only in Nigeria but in sub-Saharan Africa,” said Izuwah.

Also read: Completion of Lekki Seaport in Nigeria slated for 2019

Apart from the Lekki Deep Seaport, Nigeria is also planning the construction of another port in the southern part of the country. Ibom Deep Seaport will be situated in Akwa Ibom state within a licensed free trade zone.

Promoters of the project have already started looking for investors to help in its construction.

When fully developed, the container terminals will be able to accommodate up to 13 New Panamax Class container vessels and two very large feeder vessels.

However, a report released mid last year appeared to cast doubt on the viability of port projects in West Africa with Lekki port being one of them.

The report from a consultancy firm, Drewry, observed that most sea port projects across the West African region are now in uncertain waters amid a change in the location and nature of transshipment hubs serving the market.

April 2018 Deepest seaport in Sub-Saharan Africa gets an operator

Promoter of Lekki Deep Seaport, Lekki Port LFTZ Enterprise (LPLE), has signed a Memorandum of Understanding with CMA CGM Group, a French container shipping giant to operate the future container terminal of the seaport.

Recently, Nigeria President Muhammadu Buhari flagged-off the construction of the US $1.5bn Lekki Deep Seaport, the first deep seaport in the country. On completion, the port will have  one dry bulk berth, three liquid berths, two container berths, 1,200-meter-long quay and 13 quay cranes which will have a capacity of 2.5 million TEUs, with 16-meter depth.

CMA CGM now the official terminal operator will be responsible for operations, maintenance and marketing of the container terminal at Lekki Deep Sea Port through its subsidiary CMA Terminals.

According to Navin Nahata, Lekki Port LFTZ Enterprise Chief Executive Officer the agreement signing with the CMA CGM Group is a significant step towards the right direction in the actualization of the Port, which will become the deepest port in Sub-Saharan Africa.

“We are excited about this development because CMA Terminals is a world class port operator and can be relied upon to provide international port standard delivery services at par with most modern ports around the world to the Nigerian port customers,” said Mr Nahata.

Also read: Construction work kicks off on Lekki Deep Seaport in Nigeria

On the other hand Farid Salem, Executive Officer of the CMA CGM Group said that they are pleased to sign the Memorandum of Agreement with LPLE to operate Lekki Port’s container terminal. “With CMA CGM’s unique service offering and expertise combined with our logistics and inland services, our presence in Lekki Port will benefit the entire Nigerian supply chain and market as well as neighboring countries,” he said.

During the official flagging-off ceremony graced by the Vice President, Professor Yemi Osinbajo on behalf of President Muhammadu Buhari, the Federal Government of Nigeria also pledged a total support to the Lekki Port project .

CMA CGM Group

When completed, Lekki Port is expected to ease the unbearable congestion at the port of Lagos. Nonetheless, the project is fully in line with the CMA CGM Group’s development in the region. Additionally, Lekki Port’s container terminal will also allow the Group to develop its presence into West Africa’s first consumer market as well as serving as a transshipment hub, especially to the neighboring countries such as Togo and Benin.

Known as the second largest shipping company in Africa, CMA CGM Group has assured the Nigerian government of its fully commitment in developing the port infrastructure. The Group has a network of 75 agencies and nearly 1,400 experts particularly in the sub-Saharan Africa.

October 2019 US $629m deal inked for Lekki Deep Seaport project

US $629m financing agreement was signed by China Development Bank (CDB) with the government of Nigeria for the development of the Lekki Deep Seaport project, Nigeria’s  first deep seaport.

Lekki State Governor, Mr. Babajide Sanwo-Olu who witnessed the signing said that the deal involves a 45-year concessionary agreement between China Harbour Engineering Company (CHEC), which owns majority shares in the project and Lekki Port LFTZ Enterprise Limited (LPLTZ). They will work together to complete the Phase 1 of the deep seaport project.

Also Read:Nigeria approves construction of Bakassi Deep Seaport

Lekki Deep Seaport project

The deep seaport will feature two container berths of 680-metre long and 16.5-metre water depth and will also have the capacity to be berthed by fifth generation container ships, which has a capacity of 18,000 TEU ship. When fully developed, the container terminals will be able to accommodate up to 13 New Panamax Class container vessels and two very large feeder vessels.

The port construction is being carried out by two major companies:China Harbour Engineering Company Limited (CHEC), the engineering and construction arm of China Construction and Communication Company (CCCC) and Louis Berger Group, USA.

Upon completion, Lekki Deep Seaport will be one of the most modern ports, supporting the burgeoning trade across Nigeria and the entire West African region; providing the connection to the global shipping network. the Federal Government and the 36 states are expected to earn about US $361bn as revenue when operation begins at the sea port in Lagos. It is slated for completion in 30 months.

The Lekki port development project falls under the Greenfield ports development programme, in which other projects have been proposed for Warri, Delta; Ibeno, Akwa Ibom State; Agge, Bayelsa State, and Bagary.

2020

Construction of Chele camp completed.

Visit to the construction site by external parties suspended due to the COVID-19 (Coronavirus) pandemic.

An infusion of over US $221m equity funding received from China Harbour Engineering Company (CHEC).

In October, construction of the 680m long quay wall commenced, with the driving of the first sets of piles underway. Speaking at the flag-off ceremony at the project site, the Chief Executive Officer of Lekki Port, Mr. Ruogang Du, said that the commencement of piling of the quay wall, which is a major phase of the construction, symbolises a significant step towards the timely delivery of the project.

In late November, Mr. Rotimi Amaechi, Nigeria’s Minister of Transportation directed Dr. Magdalene Ajani, the Permanent Secretary of the Ministry, and the legal department to document an agreement with the Lekki Port LFTZ Enterprise Ltd., to ensure that the port becomes operational in 2022. The Minister of Transportation gave this directive while inspecting the project.

May 2020 Lekki Deep Sea Port Project in Nigeria receives US $221m funding from CHEC

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.

Also Read: US $629m deal inked for Lekki Deep Seaport project

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.

2021

In late March, it was announced that the deep sea port is 48% complete and will begin commercial operations in the first quarter of 2023. According to Lagos state governor, Babajide Sanwo-Olu, the investors have given the government commitment to finalize the project in the first quarter of 2023.

“We will fulfill all our parts to make sure this date becomes reality. With the level of work we have seen, I’m truly excited. It is more gratifying that we are taking up this assignment with all energies required and we all can see what we can achieve when we work together,” said the governor during his working tour of the Lekki Deep Sea Port at the Lagos Free Trade Zone.

In late April, Commissioner for Economic Planning and Budget in Lagos State, Sam Ebugbe, said that the state government has designed several intervention projects for seamless take-off of the port in the next two years. He further added that the Lekki Deep Seaport would reduce congestion at Apapa Port in the state and would be four times bigger than the Apapa port.

In early May, Lekki Port LFTZ Enterprise Limited announced that construction of the Lekki Deep Seaport has reached almost 50% with the completion of the 1,909m long core of the main breakwater, while work on the quay wall and landside infrastructure has reached advanced stages. This significant milestone of the completion of the core of the main breakwater was achieved on Thursday, April 29, 2021.

The Managing Director, Lekki Port LFTZ Enterprise Limited, Mr. Du Ruogang, assured that construction would be completed as scheduled with a targeted commercial operations date in Q4 2022. He affirmed that the container terminal operator – Lekki Freeport Terminal, a subsidiary of CMA/CGM is ready to commence operations once the construction is completed.

In early May, Lekki Port LFZ Enterprise Limited received US $60m which is the first instalment of the US $629m loan facility from the China Development Bank for the seaport project.

In late May, the Managing Director of Lekki Port LFTZ Enterprise Limited (LPLEL), Mr. Du Ruogang, reaffirmed the commitment of the company to meet the 2022 target date set for the completion of the project.

He further disclosed that construction work on the project has so far moved at a fast pace reaching 51% completion, adding that some major milestones such as completion of Eastern breakwater had been achieved.

In mid-July, the Minister of Transportation, Rotimi Amaechi expressed satisfaction over the level of progress recorded on the construction of the Lekki Deep Sea Port project. He further urged the promoter of the Deep Seaport, Lekki Port LFTZ Enterprise Limited, to fast track construction work and see to it that the Port commences operation by 2022.

The minister was speaking during an inspection of the Port by the Federal Ministry of Transportation and other government agencies including the Nigerian Ports Authority (NPA), the Nigeria Shippers Council (NSC) and the Nigerian Maritime Administrative and Safety Agency (NIMASA).

In early August, it was announced that the Lekki Deep Sea Port Project is moving forward according to schedule with 58.15% of the construction works have been completed so far.

May 2021 China disburses US$ 60M for construction of Lekki Deep Sea Port, Nigeria

Lekki Port LFTZ Enterprise Limited has received US$ 60M, which is the first installment of the US$ 629M loan facility from China Development Bank (CDB) for the construction of the Lekki Deep Sea Port in Nigeria. 1

This was disclosed by Mr. Du Ruogang, the Managing Director of Lekki Port LFTZ Enterprise Limited while briefing the delegation of the Federal Ministry of Transportation and other stakeholders during the ministry’s first quarterly monitoring visit to the project site.

Also Read Sokoto-Tambuwal-Jega-Makera Road Project in Nigeria: FEC approves additional US$ 22m

Ruogang said that the funds were received on Thursday, April 29, 2021, as the company had satisfied all conditions precedent for the release of the funds, adding that this first installment of the US$ 629M loan facility was a major breakthrough in the quest to deliver the world-class deep seaport and to ensure that commercial operations commence before the end of 2022. 1

The US$ 629M loan facility agreement with the policy financial institution under the direct leadership of the State Council of China was signed in Lagos back in 2019.

About the port project

The port is being built by China Harbour Engineering, a subsidiary of China Communications Construction Company on a 90ha piece of land in the 830ha Lagos Free Zone, created back in 2012 to stake Nigeria’s capital city claim to be the West African region’s premier manufacturing and logistics hub. 1

The project is so far 50% complete with the 1,909m long core of the main breakwater fully complete, and work on the quay wall and landside infrastructure at advanced stages. When fully complete the port will have a total of 3 container berths, 1 dry bulk berth, and 3 liquid berths.

It will be one of the most modern ports in West Africa, offering enormous support to the burgeoning commercial operation across Nigeria and the entire West African region.

January 2022

Lekki Deep Seaport project was reported to be on schedule as construction works reached 80 percent. Lekki Port LFTZ Enterprise Limited revealed a month progress report which stated that it was optimistic that with the continued support of the stakeholders, the scheme was on track for the port operation to commence in the coming months.

The work on dredging and reclamation was 89.93 percent completed with Quay wall being at 85.65 percent. The Breakwater was 79.66 percent completed while landside infrastructure, works was at 67.82 percent, bringing total works carried out on the scheme as at 6th of January 2022 to 79.68 percent completion stage.