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Nigerian President Muhammadu Buhari on Monday (23 January) opened a $1.5 billion China-funded deep-sea port at the commercial hub of Lagos.
The Lekki deep-sea port is one of West Africa’s largest ports and will not only relieve congestion in cargo that costs billions of dollars in annual revenue, but will also create hundreds of thousands of jobs, said Lagos Governor Babajide Sanwooru. said on Monday.
The container terminal is a port capable of handling at least 2.5 million standard 20-foot containers per year and is operated as a joint venture between the Nigerian government, Lagos State, Singapore-based Tolaram Group and state-owned China Harbor Engineering Company. increase. Both foreign companies own a 75% majority stake in the project.
Divert traffic away from congested ports
Nigeria is Africa’s largest economy, but growth has stagnated for years due to poor infrastructure and poor management. Although it has six major ports, over 80% of the country’s imports are handled through two ports in Lagos.as cargo is often diverted to other West African countries, congestion leads to significant loss of revenue.
Officials say the new deep-sea port at Lagos’ eastern end is expected to divert traffic from the congested port and support revenue, with economic gains of more than $360 billion.
But experts argue that there will be “minimal differences” if existing pitfalls, such as ensuring connectivity between ports and inland areas, are not removed.
“The rail network connectivity is poor and underinvested and the roads are not in top condition,” said Ayotunde Abiodun, an economic analyst at Lagos-based SBM Intelligence. “We also need to prioritize automating processes at ports.”
When the port opens for business with the first commercial vessels to arrive on Sunday (January 29), Lagos governor said ships berthed at the port would be “up to four of the vessels currently docked at both Tincan and Apapa ports.” It could double in size,” he said. » His two other ports in Lagos.
According to Cui Jianchun, China’s ambassador to Nigeria, the project will boost economic development not only for Lagos but for the country as a whole.
“This is an economic engine not only for the Governor of Lagos, but also for the Federal Republic of Nigeria,” Jangchun said. “This is investment equity. This is not a loan. This is not a loan. This is an investment.”
Decrease in foreign direct investment
Agriculture and trade are the main drivers of Nigeria’s economy, but widespread unrest in the agriculture-rich north, declining foreign direct investment and widespread corruption are slowing economic growth amid declining earnings from crude oil. increase.
Governments are turning to international lenders and financiers to support economic growth through important projects. Among them is China, which has left its mark on some of Nigeria’s most important infrastructure, such as rail networks and airport terminals.
The port has “enormous potential” for Nigeria’s economy, which is battling a 33% unemployment rate and a sluggish economy, analyst Abiodun said, while industry insiders said the He added that we must work together to achieve
The maritime sector “needs interagency engagement on key issues affecting operators in the industry,” Abiodan said. This has to change. ”
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