Chinese Investor Injects $629m Into Lekki Seaport Project, Sign MoU With Lagos

Eight years after it commenced in 2011, there was a renewed hope for the eventual completion of the Lekki Deep Seaport project in Lagos over the next 30 months.
This followed Wednesday’s signing of four agreements with China Development Bank (CDB), including a $629m financing facility to accelerate the completion of the project, which was witnessed by Governor Babajide Sanwo-Olu of Lagos State, on Wednesday.
The loan, according to a statement by Gboyega Akosile, chief press secretary to the governor, was secured from the Chinese bank, after China Harbour Engineering Company (CHEC), which owns majority shares in the project, signed a 45-year concessionary agreement with Lekki Port LFTZ Enterprise Limited (LPLTZ) to complete the Phase 1 of the deep seaport project.
After completion, the deep seaport would have two container berths of 680-meter long and 16.5-meter water depth, besides having the capacity to be berthed by 15 generation container ships, which has a capacity of 18,000 TEU ship.
Governor Sanwo-Olu described the development as “another milestone” for Lagos in infrastructural development and commerce, noting that the agreements ended the long period of uncertainty that had trailed the delivery of the project.
The completion of the project, he continued, would invigorate the state’s economy and push it up in the index of largest economies in the world.
According to Sanwo-Olu, “this is a new beginning for us in Lagos. We have achieved another milestone in our efforts to transform the State and accomplish the 21st-century economy ambition. As a Government, we are fully in support of the project. We will do all we can to ensure the terms of the agreements signed today are delivered within 30 months as agreed and we expect the outcome would catalyse Lagos’ fifth-largest economy and take it up more in the index of largest economies in years to come.”
In the coming weeks, the Governor said more trade agreements would be signed with foreign investors, adding that his administration would continue to explore investments and partnerships that would accelerate growth and benefit residents of the State.
Commenting also, Chairman, Lekki Port, Biodun Dabiri, said the development of the seaport was strategic for the growth of the Lekki Free Trade Zone, pointing out that it would make “immense impact” on the nation’s economy by creating more than 200,000 jobs, while generating about $350bn in revenue for the State over the period of the concession.
Continuing, he assured that “the loan facility represents a significant milestone, which when combined with foreign direct investment of $230 million through equity injection by CHEC, will ensure successful delivery of the seaport and reposition Nigeria as the transshipment hub in sub-Saharan Africa upon the conclusion of the second phase.
“The project is strategic for the economic growth of Lekki Free Zone, as it would support the massive industrial and petrochemical complex being embarked on in the Northern and Southern quadrant of the zone with investment over the next three years peaking at over $20 billion.
“With Lekki Airport in view, there will be an emergence of a Harbour City which would be internationally connected by air and also with world-class integrated transport network of roads, rail, and bridges.”
Dabiri said the concessionary agreements had the support of both the Federal and the Lagos governments, observing that the investors agreed with the terms and conditions laid down by the Nigeria Port Authority (NPA) and Lekki Worldwide Investment.
Also commenting, CHEC Chairman, Lin Yichong, said the Chinese engineering firm took interest in the deep seaport to help Nigeria strengthen its maritime infrastructure and business by building the first deep seaport that would ease pressure at the Tin Can Island and Apapa ports.
Phase 1 of the project, Yichong said, will be built with an annual handling capacity of 1.2m TEU, adding that the capacity would be increased to 2.5m TEU upon the completion of the second phase.
Upon completion, he continued, the Lekki port “would become the first deep seaport in Nigeria and the container transportation hub in Africa. It would also release big pressure off Apapa and Tin Can Island ports. In the course of the construction of the project, it is expected that a huge number of employment opportunities would be generated for residents of Lagos.”
CDB Deputy General Manager, Zhang Aijun, said the bank approved the facility, given the strategic importance of the project to Lagos’ economic growth. He said the bank considered the investment as a basis for expanding its business in Nigerian and contributing to the development of the nation.
Managing Director of Tolaram Group in Africa, Haresh Aswani, hailed Lagos Government for supporting the project since the beginning, adding that the completion of the deep seaport would change the narrative of foreign partnerships with the government of Nigeria.
The signing of the four agreements, which was witnessed by the Oba of Lagos, Rilwan Akiolu, Consul General of Chinese Embassy in Lagos, Chu Maoming, and representatives of key stakeholders in the project.
Other agreements signed by the CDB, CHEC, and LPLEL include the Completion Agreement, Sponsor Support Agreement and Tripartite Keep Well Agreement.

Photo caption: Chairman of China Harbour Engineering Company (CHEC), Lin Yichong (second left), in a handshake with Governor Babajide Sanwo-Olu of Lagos State (third left), during the signing of Agreement for the funding of Lekki Deep Seaport project between the Chinese Development Bank and Lekki Free Trade Zone Company Limited, in Lagos on Wednesday, October 23, 2019. With them are Deputy General Manager, China Development Bank, Zhang Aijun (left); Managing Director, Tolaram Group – Africa, Haresh Aswani (third right); Consul General of China in Lagos, Chu Maoming; and Chairman, Board of Lekki Port, Biodun Dabiri.