Lekki Deep Sea Port, one of the largest in West Africa, is anticipated to ease shipping congestion that costs billions of dollars while also creating hundreds of thousands of employees. Nigeria’s new seaport expected to drive country’s growth.
President Muhammadu Buhari of Nigeria has celebrated the completion of a $1.5 billion deep seaport built by China in the commercial centre of Lagos, which officials hope will help the struggling economy of the West African country grow.
According to Lagos Governor Babajide Sanwo-Olu, the Lekki Deep Sea Port, one of the largest in West Africa, will relieve cargo congestion and generate hundreds of thousands of employees in addition to saving the city billions of dollars annually.
At least 2.5 million 20-foot standard containers can be handled annually by the port’s container terminal-will be operated as a joint venture between the Nigerian government, Lagos state, Singapore-based Tolaram Group and state-owned China Harbor Engineering Company.
The port started to operate on Monday. The project is 75 per cent owned by the two foreign corporations.
Nigeria has the largest economy in Africa, but due to inadequate infrastructure and poor management, growth has been stagnant for many years.
With estimated economic advantages of more than $360 billion, the authorities claim the new deep seaport on the eastern fringe of Lagos will shift traffic from clogged ports and shore up earnings.
However, experts contend that if current obstacles are not removed, such as establishing links between ports and inland locations, it would only make a “minimum effect.”
More than 80% of the nation’s imports are handled by only two of Lagos’s major seaports, where congestion has resulted in a significant loss in revenue despite the country having six major seaports.
“There is poor and underinvested rail network connectivity, and the roads are not in top-notch condition,” said Ayotunde Abiodun, an economic analyst with the Lagos-based SBM Intelligence firm.
“Also, the automation of processes at the port must be prioritized.”
As the port begins to operate with the first commercial vessel, the Lagos governor said ships docking at the port “could be up to four times the size of vessels that currently berth at both Tin Can and Apapa ports,” the other two ports in Lagos.
Nigeria’s new seaport expected to drive country’s growth. According to Cui Jianchun, the Chinese ambassador to Nigeria, the project would stimulate economic growth throughout the nation, not just in Lagos.
Nigeria’s economy is largely driven by trade and agriculture, but widespread insecurity in the agriculturally prosperous north, falling foreign direct investments, and pervasive corruption have slowed economic growth amid falling crude oil prices.
In order to boost the economy through key projects, the government has turned to foreign lenders and financiers, including China, whose influence can be seen on some of Nigeria’s most vital infrastructure, such as rail networks and airport terminals.
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