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Nigerian President Muhammad Buhari has marked the opening of a $1.5 billion China-funded deep-sea port in the Lagos commercial hub that officials hope will help the West African nation’s ailing economy grow. .
The Lekki deep-sea port is one of West Africa’s largest ports and will not only relieve congestion for cargo that costs billions of dollars in annual revenue, but will also create hundreds of thousands of jobs, said Lagos Governor Babajide Sanwo Oru. said on Monday (January 23). .
The port, capable of handling at least 2.5 million standard 20-foot containers per year, will operate as a joint venture between the Nigerian government, Singapore-based Tolaram Group and China’s state-owned China Harbor Engineering Company.
Both foreign companies own a 75% majority stake in the project.
Nigeria is Africa’s largest economy, but growth has stagnated for years due to poor infrastructure and poor management.
Although Lagos has six major ports, over 80% of imports are processed through two ports in Lagos. Lagos has seen a significant drop in revenue as cargo is often diverted to other West African countries.
Expected economic effect
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.
“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.”
But experts argue that there will be “minimal differences” if existing pitfalls, such as ensuring connectivity between ports and inland areas, are not removed.
Lagos Governor Babajide Sanwo Orsaid said the first ships are expected to dock this Sunday, adding that ships docking at the port are “currently docked at both Tin Can and Apapa ports. It could be up to four times the size of the in Lagos.
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 made its mark on some of Nigeria’s most important infrastructure projects, 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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