THE Lagos State governor, Babajide Sanwo-Olu, has said that the proposed Badagry seaport would generate $53 billion over the 45-year period it would be operated by concessionaires.
Already, the state government has received the Federal government’s approval for the project, which will cost $2.5 billion to build.
Sanwo-Olu made this statement via his official Twitter handle on Friday, October 14, 2022, while highlighting the importance of the project to the state.
He said, “Bringing development to every part of Lagos is a vital aspect of the long-term strategic plan for our state; this is why the Badagry Deep Sea Port which has now been approved for concession on approximately 496 hectares of land by the Federal Executive Council is very important.
“The Deep Sea Port is part of a Free Trade Zone (FTZ) area seated on approximately 1,104 hectares of land, the FTZ comprises of the Port Zone, Logistics Zone, Industrial Zone and a Power Hub. The port upon completion will generate over $53bn within the concession period.”
The Deep Sea Port is part of a FTZ area seated on approximately 1,104 hectares of land, the FTZ comprises of the Port Zone, Logistics Zone, Industrial Zone and a Power Hub.
The port upon completion will generate over $53bn within the concession period.
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— Babajide Sanwo-Olu (@jidesanwoolu) October 14, 2022
The governor added that the port would create additional 250,000 jobs, and provide training and development opportunities to Lagos, while also increasing government revenue, improving the regional and global position of Nigeria’s maritime sector, and reducing transportation costs.
The Director-General of the Nigerian Maritime Administration and Safety Agency, (NIMASA), Dr Bashir Jamoh, had praised the Badagry Deep Seaport project, describing it is a strategic step towards the development of Nigeria as a global maritime hub.
Jamoh stated this when he paid a courtesy visit on the paramount ruler of Badagry kingdom, De-Wheno Aholu Menu Toyi 1, the Akran of Badagry on Janruary, 6, 2021.
He said, “Nigeria is strategically located at a significant point in the Atlantic Ocean, with about 853 kilometres coastline, which gives us a geographic advantage to become a maritime hub for not only the West and Central African region, but also the entire maritime trading world. And with over 70 per cent of cargo bound for West and Central Africa destined for Nigeria, we also have a huge commercial advantage.
“The Badagry Deep Seaport, planned to be Africa’s biggest and most advanced seaport when it becomes operational, will help to maximise this extraordinary maritime potential. This is more so given the strategic place of Badagry in the region.”
The port is proposed to be about four kilometres of quay and approximately 620 hectares of dedicated port facilities.
It will include facilities for handling containers, dry bulk, liquid bulk, roll-on roll-off, and general cargo, as well as oil and gas operations support.
The president of the Shippers Association of Lagos State, Jonathan Nicol, faulted the concessioning of the proposed seaport for 45 years, saying it did not make much business sense.
Nicol said, “Certainly 45 years is blind. Concessioning a port to one investor shows that it has already been hijacked by the financiers, who probably are hiding under concession. Normally, projects like this are given a period of incubation: first 10 to 15 years. Then, renewal can take place with amendments to the concession contract.”
He added that the feasibility study of the port must have posted so much income within the period without highlighting unforeseen challenges.
“Operational costs may be less, compared with those of the Nigerian ports, and cargo dwelling time may be beneficial to the shippers. All these will pose a serious challenge to our new Bagadry port,” he explained.
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