Lekki Port: Innovating Nigeria’s approach to trade for modern future

Lekki Port is the first deep-sea port in Africa’s biggest economy and one of the largest deep-water ports in West Africa. Built on a 90-hectare land area, the port is Nigeria’s first fully automated port equipped with world-class machines that are better imagined in movies.

Dipo Oladehinde joined officials of the company on a tour of the facility and found that the facility can promote a blue economy diversified from reliance on oil and gas as the main sources of revenue.

Since the concept of developing deep sea ports has gained traction across the globe for decades now, records have shown that the development as an economic infrastructure has tremendously influence positively on the growth of countries that took the initiative.

The United Nations Conference on Trade and Development (UNCTAD) estimates showed more than 80 percent of global merchandise trade by volume is transported by sea, and ports play a vital role in ensuring the efficient and cost-effective movement of goods.

A cursory look at the economic history of Britain, Netherlands, and Singapore, reputedly referred to as the maritime powers in the world, undoubtedly proves the important role such ports have played in the development of their economies.

These ports are the lifelines of global trade, serving as hubs that connect producers, suppliers, and consumers across continents.

The UN trade group believes ports provide a platform for the efficient exchange of goods, fostering economic growth and development worldwide.

It added, “By providing berthing facilities, cargo handling equipment, and logistical services, ports facilitate the movement of commodities, manufactured goods, and raw materials, enhancing global trade networks, especially in African countries”.

While the ability to export products or import inputs efficiently will be key to helping African countries engage more comprehensively with global trade, a new World Bank report finds that even many African countries with major sea ports can still take longer delays than the average European or North American country.

As African countries heavily rely on international trade to boost their economic fortunes, they need to improve customs operations and transport infrastructure. This would have a huge impact on logistics in sub-Saharan African countries, according to a World Bank report.

To change the narrative, some private investors have embarked on one of the region’s most ambitious infrastructure projects, the Lekki Deep Sea Port.

Located approximately 40 miles to the east of Lagos the port covers over 90 hectares, it represents the first expansion of the country’s ports in 25 years and is part of an ambitious plan of development for Africa’s biggest economy.

The development of the seaport located in the Lagos Free Trade Zone initiated by the Tolaram Group was conceptualised on the basis of a significant gap in projected demand and capacity.

Market studies indicated that the demand for containers in the region is expected to grow at a steady Compound Annual Growth Rate (CAGR) of 12.9 percent in 2025.

Given the expansion constraints on the existing infrastructure, the capacity in Lagos was incapable of meeting the growing demand.

“The strategic location, flexible and optimised layout, and modern facilities give Lekki Port a competitive edge over any other port facility in the West African region,” Adesuwa Ladoja, the executive director of Lekki Deep Sea Port said during the tour.

Prior to the operationalisation of the port, which recently acquired the status of a trans-shipment hub, the African continent lacked a regional trading hub aside from South Africa, which may be described as the trading hub for Southern Africa.

The emergence of the deep seaport in Nigeria positions it on the path to acquiring the status of West Africa’s trading hub.

“The speed of construction and completion would not have been possible without deep pockets of foreign investments,”

BusinessDay’s findings showed the total cost of construction of the Lekki seaport was estimated at $800m while fixed assets cost stood at $1.53bn.

The project is unique in Africa as the continent’s coastline has relatively few natural harbors large enough to accommodate today’s modern ships. In addition to being the first of its kind for Nigeria, it is also one of the largest ports in sub-Saharan Africa.

The first phase, which has been completed, developed the overall layout including a five-mile-long navigation channel, a nearly 2,000-foot turning basin, a 62-foot depth throughout the port, as well as the breakwater and berths.

The container terminal consists of three berths at a nearly 4,000-foot quay and a container storage yard with over 15,000 slots. It is the first Nigerian port with ship-to-shore super-post-Panamax cranes. The container port can handle an annual throughput of 2.7 million TEU.

When fully completed the port will also have a liquid bulk terminal with three additional berths with a capacity to handle vessels up to 160,000 dwt. There will also be a tank farm connected by pipelines running to the breakwater. The dry cargo terminal will have the capacity to handle up to four million metric tons of dry bulk per year.

“This is the gateway to the maritime and beyond. I have not seen any investment like this anywhere other than in Dubai. This port can generate hundreds of millions of dollars in revenue for Nigeria and hundreds of thousands of jobs,” Lawerence Smith, the chief operating officer at Lekki Port said.

The new Lekki Deep Sea Port is 75% owned by the China Harbour Engineering Company and Tolaram group, with the balance shared between the Lagos state government and the Nigerian Ports Authority.