The $629 million deal for the construction of Lekki Deep Seaport project is an attestation of robust investor confidence in Lagos State, the Lagos Chamber of Commerce and Industry (LCCI) has said.
Babatunde Paul Ruwase, president of the LCCI, said that Lagos takes a front seat as the most attractive investment destination in Nigeria. Ruwase spoke at the closing ceremony of the Lagos International Trade Fair on Sunday.
The Lekki Deep Seaport project is jointly financed by a consortium of six banks, which include the African Development Bank (AFDB), the European Investment Bank (EIB), Standard Chartered Bank (SCB), RMB, Africa Finance Corporation (AFC) and Standard Bank.
It is jointly owned and developed by the Tolaram Group, the Nigerian Ports Authority (NPA) and the Lagos State government as equity investors.
While China Development Bank owns 52.5 percent equity, Tolaram Group owns 22.5 percent, while the Nigerian Ports Authority and the Lagos State government own 5 percent and 20 percent, respectively.
Ruwase cited official data by the National Bureau of Statistics which showed that Lagos State attracted $4.13 billion worth of foreign capital in the second quarter 2019 – 72 percent of total $5.82 billion imported to Nigeria – as a testament to the state’s capacity to attract investors. He said the state continued to show readiness to partner private investors for inclusive growth and development.
Ruwase commended the resilience and faith of investors in the Nigerian economy while calling on governments at all levels to address the issues of enabling business environment in the country, especially regarding infrastructures.
“We need to do this in order to fully harness the huge enterprising resource of domestic and foreign investors for the diversification of our economy and the welfare of our people,” he said.
The Lekki port is expected to decongest the overburdened Apapa and Tin Can ports which entertain 5,000 trucks every day, according to the LCCI.
Nigeria loses N600 billion in customs revenue, $10 billion (N3.6trn) in non-oil export sector and N2.5 trillion in corporate earnings across various sectors on annual basis due to the poor state of Nigerian ports, the LCCI said in a report.
Babajide Sanwo-Olu, Lagos State governor, expressed confidence that the Nigerian economy would experience new value addition, innovation and socioeconomic development with new businesses created at the fair.
Represented by Lola Akande, Lagos State commissioner for Commerce, Industry and Cooperatives, Sanwo-Olu said the state government was aware of the urgent need for a permanent ultramodern fair and exhibition complex, assuring that the government was exploring all avenues towards providing a structure befitting the status of the state.
“I am aware that the numerous trade experiences of the fair would translate to increase in Gross Domestic Product (GDP) for Lagos State, enhanced social economic capital for our citizenry through the temporary jobs, new investments and business opportunities that have sprung up over the last 10 days,” he said.
