Africa's Top Economic Magazine

Lagos Ports to Welcome 39 Ships in January as Buhari tells Africa to Expand International Trade

The Nigerian Ports Authority (NPA) has said a total of 18 ships discharged petrol, bulk wheat, general cargo, gypsum, bulk sugar, palm oleum, bulk coal, automobile gasoline and jet fuel, among other items, at Lagos ports.

The authority also said that 16 other ships are expected to arrive the ports between the 18th and 30th day of January, carrying frozen fish, containers, bulk sugar, general cargo, bulk salt, base oil, bulk gypsum and petrol. It further noted that five other ships had arrived the port and were waiting to berth with jet fuel, automobile gasoline and petrol, bringing to 39 the cumulative number of ships expected to berth in Lagos within the period under review.

In a related development, President Muhammadu Buhari has urged African countries to expand and diversify their participation in international trade to explore the benefits of the African Continental Free Trade Agreement (AfCFTA).

Buhari made the call during the recently held ninth African Shippers’ Day, with the theme: “African Continental Free Trade Agreement: A Veritable Platform for African Shippers’ to Mainstream into Global Trade.” The Nigerian leader said that the participation of African countries in international trade would create wealth, generate employment and reduce poverty.

However, according to him, deepening regional integration to scale up supply capacity and build regional value chain was essential to the continent’s economic transformation.

“For AfCFTA to have a positive influence on long-term investment in productive capacities, African government must develop appropriate supporting policies, build the requisite infrastructure and ensure an educated work force.

“We will need to actively promote productive employment and decent work place, women’s empowerment, food security and reduction in inequalities,” he said.

Buhari maintained that, in Nigeria, AfCFTA would be a game-changer when it comes to stimulating intra-African trade because the more ambitious the trade liberalization, the greater the expansion of Nigerian exports to its African partners.

According to him, “specifically, Nigeria’s exports to the rest of African will increase by more than 15 per cent in fishery, textile, leather, wood and papers, metals, electronics, vehicles and transport equipment and machinery.

“Following the AfCFTA reform, Nigeria’s exports will increase significantly to other African sub-regions, outside West Africa, with most impressive expansions to countries such as Botswana, Cameroon, Egypt, Ethiopia, Kenya, Malawi, Morocco, Mozambique, Namibia, Rwanda, Tanzania, Uganda and Zimbabwe.”

He noted that for AfCFTA to be the platform that would propel African importers and exporters onto the global trading platform, participating member countries must undertake bold domestic structural reforms to scale up the supply capacity of the region.

In his contribution, Dr Bashir Jamoh, the Director General, Nigerian Maritime Administration and Safety Agency (NIMASA), urged the forum to come up with roadmap that would place Africa ahead of others in the international market.

Jamoh noted that collaboration between shipping, port and logistics would go a long way in ensuring efficiency and sustainability in the industry.

On his part, Mohammed Bello-Koko, the Managing Director of the Nigerian Ports Authority (NPA), said that automation remained vital tool for port efficiency. The NPA Boss said that was why the NPA was working with the International Maritime Organization to deploy Port Community System in Nigerian Ports to bring all stakeholders under one platform for ease of doing business.

Earlier, Emmanuel Jime, the Executive Secretary, Nigerian Shippers’ Council, said the re-orientation and re-organization of intra-African trade should start from the sub-region. According to him, when the region gets it right in West and Central Africa, it will be much easier to connect and freely trade with other regions of the continent.

Jime reiterated that African countries need to create smooth integration of their transport networks and trade policies, as well as the required awareness among the economic operators in the sub-region.

CBN Gives Interswitch Payments Service Holding Company License

A Payments Service Holding Company (PSHC) license has been granted to Interswitch Group by the Central Bank of Nigeria (CBN).

This followed an earlier announcement by the CBN regarding new licensing categories for participants in the Nigerian payments system.

The integrated payments solution provider is among the first to receive this authorisation from the country’s apex bank.

According to the regulator, the PSHC regulation requires companies with existing or prospective operations across multiple license categories to set up a PSHC. The activities of each of the PSHC subsidiaries operating within those respective licensing regimes are clearly delineated for clearer accountability, effective risk management and the enablement of better regulatory oversight by the CBN.

A statement from Interswitch, a leading financial technology in Africa, outlines that Interswitch’s Group Holding Company retains ownership of the PSHC in Nigeria as well as its other subsidiaries outside of Africa.

The issuance of the PSHC licence coincides with Interswitch’s 20th-anniversary commemoration, which has seen the company cement its position as a pioneering and integral enabler that has actively supported the growth and development of fintech and payments progressively across Africa over the last 20 years.

It also serves to reinforce Interswitch’s progressive outlook as a frontier-driving company which keeps pushing boundaries to facilitate the creation of new ecosystems that help businesses and individuals scale and thrive, in line with its purpose of inspiring Africa to greatness through innovation, value-creation and excellence.

“Twenty years ago, we placed a bet on the latent potential we saw in the introduction of e-payment channels at the time, particularly ATMs for the delivery of cash just-in-time, and today, we are gratified to see how far the financial technology and payment systems in Nigeria have grown.

“On the back of our receipt of this additional license, we remain strongly committed to a close partnership with the Central Bank of Nigeria to facilitate the delivery of the Payments Vision (2025) and, of course, the National Financial Inclusion Strategy,” the founder and Group CEO of Interswitch, Mr Mitchell Elegbe, remarked.

He further reiterates Interswitch’s resolute focus on its over-arching mission to continue championing technology solutions that connect and empower individuals, businesses, and communities across the continent.

World Bank warns CBN on impact of Naira redesign on small businesses

The World Bank has cautioned that the newly redesigned naira, which entered circulation last week, may have a detrimental impact on economic activity, particularly for impoverished Nigerians, due to the timing and short transition time.

The Washington-based bank revealed this in a new report titled, “Nigeria Development Update.”

This came amid the mixed reactions that had trailed the newly redesigned notes.

The Central Bank of Nigeria issued new N1000, N500, and N200 notes last month as part of efforts to reduce excess currency in circulation, ransom payments for abduction, terrorism financing, and counterfeiting, among other things.

The World Bank, in its analysis, however, warned that the new regulation would significantly affect small firms especially those with day-to-day cash transactions.

The World Bank has cautioned that the newly redesigned naira, which entered circulation last week, may have a detrimental impact on economic activity, particularly for impoverished Nigerians, due to the timing and short transition time.

The Washington-based bank revealed this in a new report titled, “Nigeria Development Update.”

This came amid the mixed reactions that had trailed the newly redesigned notes.

The Central Bank of Nigeria issued new N1000, N500, and N200 notes last month as part of efforts to reduce excess currency in circulation, ransom payments for abduction, terrorism financing, and counterfeiting, among other things.

The World Bank, in its analysis, however, warned that the new regulation would significantly affect small firms especially those with day-to-day cash transactions.

The report read in part, “While periodic currency redesigns are normal internationally and the naira does appear to be due for it since naira notes have not been redesigned for two decades, the timing of and short transition period for this demonetization may have negative impacts on economic activity, in particular for the poorest households.

“International experience suggests that rapid demonetizations can generate significant short-term costs, with small-scale businesses, and poor and vulnerable households, potentially being particularly affected due to being liquidity-constrained and heavily reliant on day-to-day cash transactions.

“At present, households and firms already face elevated financial pressures from prolonged, high inflation, recently compounded by external food and fuel price shocks, and the severe floods, and phasing out existing naira notes over a short time period may add to their challenges.”

Geregu Power targets N17bn revenue for Q1 2023

Geregu Power Plc is targeting to achieve N17.12 billion in revenue during the first quarter of 2023.

This is contained in its Q1 2023 earnings forecast released via the Nigerian Exchange (NGX).

The company is projecting to rake in N1.75 billion in gross profit. It will also target profits before and after tax of N5.02 billion and N3.39 billion, respectively.

Also, note that the projected income tax for the period is N1.63 billion, even as the cost of sales was projected at N9.27 billion for the period.

Geregu Power Plc posted revenue of N39 billion in its Q3 2022 unaudited financial report. This is less than N54 billion reported during the corresponding period of 2021.

The decline, according to the company, was due to nationwide force majeure declared by Shell Petroleum Development Company Limited on the Forcados oil terminal pipeline. The force majeure impacted gas supplies to the plant, particularly between July and September.

The company further commented on the revenue shortfall in its unaudited financial statements for the third quarter of 2022, saying:

“The decline in revenue was largely due to gas supply constraints in Q3, 2022, which eventually led to the drop in the capacity delivered and energy sent out of 1314439Mwh as of 30 September 2022 as against Capacity delivered and Energy sent out of 1855920Mwh as at 30 September 2021,” the company said.

In the meantime, the company adopted an effective cost-saving strategy that saw administrative costs reduce from N10.9 billion to N2.9 billion in 2022, thus cushioning the effect of the revenue shortfall.

The operating profit stood higher at N16 billion, up from N15.1 billion in the nine months of 2021.

An increase in finance cost, largely attributable to the medium-term bond of N40.085 billion issued by the company in 2022 for its planned acquisition, moderated the Profit Before Tax and Profit After Tax to N13.9 billion and N10 billion respectively.

Nigeria to spend 123% of revenue on debt servicing in 2023 – W’Bank

DEBT servicing will gulp 123.4 per cent of the Federal Government’s revenue in 2023.

World Bank Lead Economist for Nigeria, Alex Sienaert, made the projection in a presentation he delivered in a forum on latest update on Africa’s finance outlook to round off 2022.

Speaking while presenting the paper with the title’ “Nigeria Public Finance Review – Fiscal Adjustment for Better and Sustainable Development Results”, Sienaert projected that debt servicing would gulp 100.2 per cent of Federal Government revenue by the end of 2022.

According to him, this was a decline from the earlier projection in its October report on Africa.

“Borrowing more is not the solution: debt costs are rising rapidly, squeezing non-interest spending. Debt servicing has surged over the past decade and is expected to continue increasing over the medium-term, crowding out productive spending,” he said.

It will be recalled that Nigeria’s public debt recently rose to N44.06trillion in the third quarter of 2022.

According to a press statement published on the website of Debt Management Office, while total public debt stock rose from N42.84trillion recorded in the second quarter to N44.06trillion in the third quarter of 2022, this showed 2.85 per cent increase quarter-on-quarter with Nigeria acquiring N1.22trillion debt within three months.

10 Most indebted states in Nigeria (2022)

The Debt Management Office has provided information pertaining to the state of Nigeria’s debt stock as of the third quarter of 2022. As of September 2022, the country’s total domestic debt stocks for all states had increased to 5.36 trillion Naira, an increase of 128.44 billion Naira from the previous quarter’s 5.28 trillion Naira.

In addition, the states’ domestic debts increased by N1.16 trillion from N4.12 trillion in September 2021 to the same time last year. In the meantime, Nigeria’s total public debt stock reached a record high during the time under review, reaching $103.31 billion.

Domestic debts made up 61% (or $63.25 billion) of the total debt, while external debts made up 39% of the debt stock. Intriguingly, the stock of total debt rose by $16.74 billion from the previous year.

Lagos, Delta, and Ogun State saw the greatest year-over-year growth in terms of actual value, while Oyo, FCT, and Delta saw the greatest percentage growth.

Nigerian states with the most debts
Rank State Debt (Naira)
1. Lagos  877,035,995,031.70
2. Delta 272,612,510,528.95
3. Ogun 241,782,021,304.96
4. Rivers 225,505,011,356.00
5. Akwa Ibom 219,617,660,991.63
6 Imo  207,520,959,471.52
7. Cross River 175,198,799,155.96
8. Oyo 160,071,143,937.27
9. Plateau 151,903,415,543.09
10. Bayelsa 151,158,248,963.07

1. Lagos

Debt: 877,035,995,031.70 Naira

With a debt of 877,035,995,031.70 Naira as of September 2022, the state of Lagos is the most indebted in the nation. The Lagos debt accounts for almost 20% of the total debt owed by the states and the Federal Capital Territory (FCT).

Lagos is Nigeria’s largest economy and contributes over 15% to the country’s GDP. The state is home to over 21 million Nigerians, and with that much moth to feed, the state’s indebted situation is stable in economic reality.

2. Delta State

Debt: 272,612,510,528.95 Naira

Delta State is one of the major oil-producing states in the country with a population of over 5 million people. As of September 2022, the state had a domestic debt stock of 272,612,510,528.95 Naira, which accounts for 7.2% of the total state debt stock and puts it far behind the other states.

Delta’s debt management success was proven in the September 2022 debt profile for states and the FCT, the state’s debt dropped by over 20% from  378.88 billion Naira in June 2022 to 272, 612,510,528.95 Naira in September 2022.

3. Ogun State

Debt: 241,782,021,304.96 Naira

Ogun state comes third as the most indebted state in Nigeria has a total debt of over two billion Naira accounting for over 6% of the total debt held by states and the FCT.

The state is argued to be home to most industries in Nigeria. The state since the past decade has undergone a tremendous infrastructural upgrade with concentrations on transportation, housing, health care and others.

The state of Ogun has a population of over 3 million people and a GDP of over 10 billion dollars. The state is also one of the top ten internally generated revenue states in Nigeria.

4. Rivers State

Debt: 225,505,011,356.00 Naira

As of June 2022, Rivers State had a total domestic debt stock of N225.51 billion or 4.3% of all states’ domestic debts. From N213.17 billion as of June 2022, Rivers State’s debt stock increased by 5.8% year-over-year, but it remained unchanged for the past three months to finish at 225,505,011,356.00 Naira in September 2022.

The state of Rivers is argued to be the capital of Nigeria’s oil-rich concentration. Several oil companies dealing upstream, downstream and midstream operate from Rivers or have headquarters and branch offices in Rivers state. The state over the years has undertaken extensive infrastructure upgrades, levelling its facilities to that of standard cities across the world.

5. Akwa Ibom State

Debt: 219,617,660,991.63 Naira

The oil-rich state of Akwa Ibom is the 5th most indebted state in the country with a debt of over 219 billion Naira. The present debt saw a fall from the June 2022 debt of Ogun state to the tune of over 20 billion Naira.

Just as most states on the list, the state of Akwa Ibom has undertaken extensive development in the last 10 years, with concentrations on infrastructure, education, and health care.

6. Imo State

Debt: 207,520,959,471.52 Naira

With a total domestic debt stock of over 207 billion Naira as of September 2022, Imo State ranked fifth on the list, accounting for 4% of the overall state debt profile. From N149.51 billion as of September 2021, Imo State’s domestic debt stock increased by 40.7% year over year.

On a quarter-on-quarter premise, the homegrown obligation load of Imo State expanded by 2.83% from N204.61 billion recorded as of June 2022. The state currently holds the title of the fastest-growing indebted state quarterly. Imo state is also the most indebted state in the southeastern region of the country and the only southeastern state indebted to the tune of over 200 billion Naira as of September 2022.

7. Cross River State

Debt: 175,198,799,155.96 Naira

Cross River is a tourism and agriculture-centred economy in the south-south region of Nigeria. The state has battled unemployment and the growing number of people living in poverty in the state for a long.

The debt of Cross Rivers state is more than 175 billion Naira as of September 2022.

8. Oyo State

Debt: 160,071,143,937.27 Naira

Oyo state is the third most indebted state in Nigeria with a debt of over 160 billion Naira. The state’s debt grew by over 40% from its previous debt in June 2022.

The state has undertaken rapid investments in its agriculture sector to grow throughout the state.

9. Plateau State

Debit: 151,903,415,543.09 Naira

Plateau state is a state located in the north-central region of Nigeria. The state is the most indebted northern state in the country with a debt of over 151 billion Naira as of September 2022.

The state of Plateau has a population of over 3 million people and n economy of over 5 billion dollars.

10. Bayelsa State

Debt: 151,158,248,963.07 Naira

The state of Bayelsa is another oil-rich nation in the south-south region of Nigeria. The state is one of the least populated states in Nigeria with less than 2 million people but with a powerful economy of over 5 billion people.

The debt of the state of Bayelsa as of September 2022 is over 151 billion Naira.


As of September 2022, the total stock of external debt was over 50 billion dollars (16.61 trillion Naira), which is roughly the same as the level in June 2022, when it was 40 billion dollars (14.53 trillion Naira).

As of the end of September 2022, Lagos, Delta, and Ogun States topped the list of Nigerian states with the most domestic debt, accounting for over 35% of all domestic debts of the 36 states of the federation, including the FCT.

Nigeria: ‘Integration of Lekki Port With LFZ’ll Change Nigeria’s Economic Fortunes’

The Chief Executive Officer, Lagos Free Zone, Mr. Dinesh Rathi has expressed confidence that the integration of Lekki Port with Lagos Free Zone would be a major catalyst to bringing about huge economic fortunes for Nigeria.

Rathi disclosed this during a panel discussion of the West Africa Property Investment Summit titled, “Industrial Infrastructure, Special Economic Zones, and Masterplanned Developments,” held in Lagos.

He noted that for Nigeria to realise its economic potential, the country must begin to focus on planned city developments like the special economic zones to fast-track development and enhance the economic well-being of its people. According to him, Lagos Free Zone is a classic example of a planned development that can drive growth given its integration with Lekki Port, which is well-equipped with world-class infrastructure to enhance the ease of doing business.

He further explained that the combination of LFZ and the commencement of operations at Lekki Port remains a game changer that would help to unlock the country’s economic opportunities.

“What we have also done apart from creating Lekki Port as a gateway and transhipment hub is the creation of a free zone that is well equipped with world-class infrastructure- warehouses, standard factories, logistics park, etc. All of these are to make the operator come in and plug and play. Operators or investors can thrive in the zone because it provides them with the resilience since they can do it in the most efficient and optimised manner”, he said.

Nigeria’s foreign trade drops to N11.6 trillion in Q3 2022 as oil export falls

Nigeria recorded a total foreign trade of N11.59 trillion in the third quarter of 2022, representing a 9.7% decline compared to N12.84 trillion recorded in Q2 2022. 

This is, however, 10.7% higher than the N10.47 trillion recorded in Q3 2021.

The latest stat is contained in the newly released foreign trade report by the National Bureau of Statistics (NBS).

Nigeria’s international trade fell to its lowest level since the third quarter of last year as a result of a huge decline in crude oil export earnings. Specifically, crude oil export fell by 21.2% to N4.66 trillion in Q3 2022 from N5.91 trillion recorded in the previous quarter.

Further breakdown: Imports increased by 4.2% quarter-on-quarter to N5.66 trillion compared to N5.44 trillion recorded in Q2 2022, while it increased by 6.2% from N5.34 trillion recorded in the corresponding period of 2021.

  • Also, export fell by 19.9% to N5.93 trillion in Q3 2022 from N7.41 trillion recorded in Q2 2022, although it increased by 15.5% on a year-on-year basis (Q3 2021: N5.14 trillion).
  • The value of Re-Exports in the third quarter of 2022 stood at N25.04 billion, showing an increase of 160.16% compared to the value recorded in the second quarter of 2022 but declined by 86.07% compared to the corresponding quarter of 2021 (N179.81 billion).
  • The top five export destinations in the third quarter of 2022 were Spain with a share of 14.72%, India with 10.44%, France with 7.25%, the Netherlands and Indonesia with 7.09% and 7.00%, respectively.
  • Trade balance, which is the difference between export and import fell to N269.3 billion in the review quarter, representing an 86.3% decline compared to N1.97 trillion recorded in the previous quarter.

  • The imports: The value of total imports stood at N5.66 trillion in the third quarter of 2022 (+4.2% QoQ). This brings the total export in the first nine months of the year to N17 trillion compared to N14.9 trillion recorded in the same period of 2021. 
  • Agricultural imports in Q3 2022 stood at N512.91 billion, representing an increase of 10.44% when compared to the value recorded in the second quarter of 2022 (N464.45 billion) and by 6.37% when compared to the value recorded in the corresponding quarter of 2021 (N482.21billion). 
  • Raw material imports stood at N649.21 billion in Q3 2022. The value fell by 6.74%, when compared to the value in Q2 2022 (N696.12 billion) but rose by 23.9% when compared to the value recorded in Q3 2021 (N523.97 billion). 
  • Solid minerals import in the third quarter of 2022 stood at N37.66billion, this is 2.58% lower than the value recorded in Q2 2022 (N38.66 billion) and 28.6% higher than the value recorded in Q3 2021 (N29.93billion). 
  • The value of other oil products imports in the third quarter of 2022 stood at N1.61 trillion, indicating an increase of 9.11% from Q2 2022 (N1.48 trillion) but declined by 4.63% compared to the value recorded in the corresponding quarter of 2021 (N1.69 trillion). 

The Exports: Nigeria’s export stood at N5.93 trillion in Q3 2022, indicating total export of N20.44 trillion between January and September 2022, as against the N13.14 trillion recorded in the corresponding period of 2021. 

  • The value of agricultural goods exports stood at N84.21 billion in Q3 2022 indicating a sharp decline of 40.6% when compared to the value recorded in Q2 2022 (N141.77 billion) and an increase of 6.03% when compared to the value recorded in Q3 2021 (N79.41 billion). 
  • Nigeria’s export of raw material goods in Q3 2022 was valued at N186.02 billion showing a drastic decrease of 49.87% and an increase of 23.58% compared to values recorded in Q2 2022 (N371.10 billion) and Q3 2021 (N150.52billion) respectively. 
  • Solid minerals exports in Q3 2022 were valued at N22.47 billion indicating an increase of 7.07% compared to the value recorded in Q2 2022 (N20.99 billion), this is also 22.69% higher than the N18.31 billion recorded in the corresponding period of 2021. 
  • The exports value of energy goods in Q3 2022 stood at N13.84 billion indicating a decrease of 36.20% when compared to the value recorded in Q2 2022 (N21.70 billion) and also decreased by 28.21% compared to Q3 2021 (₦19.28billion). 

What this means: The drop in Nigeria’s total merchandise trade in the third quarter of the year is attributable to the 19.9% drop in export earnings, which is a result of a drop in crude oil earnings. 

  • The decline in Nigeria’s crude oil earnings may be attributed to the continued volatility in the crude oil market and the decline in the country’s oil output, which has affected its ability to earn as much from the bullish oil prices. 
  • On the other hand, importation has remained high albeit a 4.2% quarter-on-quarter increase, which is an indication of Nigeria’s sustained petrol import amidst the rise in agric imports. The rising cost of goods and services in most advanced economies has also affected Nigeria’s import bill. 

Ardova’s Apapa terminal project to be ready by 2023

Ardova plc, one of Nigeria’s major integrated energy companies, has announced that the Apapa Terminal redevelopment project (ATRP) will come on-stream in the second quarter of 2023.

The ATRP project sites consist of the construction of a 20,000 metric tonnes (MT) liquefied petroleum gas (LPG) Storage Facility, the upgrade of current fuel terminals and Lubricants, Tank Modifications, and the upgrade of the Lubricant Blending Plant.

According to the indigenous company, it has completed the front and back-end engineering, conceptual and detailed engineering design, and raised the requisite funding to complete the project.

Ardova embarked on the project in 2019 as part of its long-term plan to ensure an efficient transition to renewable and cleaner energy sources.

‘‘Since inception in 2019, we have made good progress with the Apapa Terminal redevelopment project. Presently, we have secured all regulatory approvals and the necessary infrastructure for a state-of-the-art completion,” said Moshood Olajide, Chief Financial Officer, Ardova, while giving an overview of the progression of the projects.

He said the company has also acquired a 15 million hydrant water system for hazardous purposes.

“Our target is to have the project ready by the first quarter of next year for effective use. At its completion, the storage facility, the largest of its kind in West Africa will contribute to a 25 percent increase in Nigeria’s LPG storage capacity and support government’s plan in providing alternative clean energy sources to the populace.

‘‘We are on course to accelerate the transition to renewable energy to enhance sustainable cities and communities in line with Sustainable Development Goals. Ardova will continue to set the pace and lead the path to growth and development,” the CFO said.

Ardova Plc, a downstream Oil and Gas company is a major distributor of fuel and gas for domestic and industrial use.

‘‘Ardova Plc is proud to have made consistent progress on the Apapa Terminal Redevelopment Project. This is one of the outstanding initiatives that speak to our readiness in embracing a new world of value with futuristic delivery,” said Olumide Adeosun, Chief Executive Officer, Ardova Plc.

“This initiative has made good progress due to the relentless effort of our team and our strategic partners in offering innovative low-carbon fuels approach to provide for energy deficit across the West African region.”

In addition, Adeosun re-emphasised the company’s insistence on growth through the expansion of infrastructural assets and platforms for transformation.

The indigenous firm has an extensive distribution network of 545 retail stations across the six geo-political zones of Nigeria.

$1.5 Billion Lekki Deep Seaport Set For Operations In January 2023

Barring all unforeseen circumstances, the $1.5 billion Lekki Deep Seaport, In Lagos State would officially be inaugurated by President Muhammadu Buhari in January 2023.

This is according to the Lagos State Governor, Babajide Sanwo-Olu, while addressing the bi-annual Non-Oil Export Summit held in Lagos.

He promised also that the state government will continue to provide the space and opportunities for businesses to thriv.

He said that work on the Lekki Deep Seaport had been completed and that the project would be inaugurated by the President in January 2023, to finally provide enormous opportunities for exporters to ply their trade and improve the export earnings of the country, especially in the non-oil sector.

He urged stakeholders to continue to promote a public-private partnership that will drive growth.

Already, the landlocked countries of Chad, Mali and Niger Republic have indicated interest of routing their cargoes through Nigeria, when the the Lekki Deep Seaport begins operation.

What You Need To Know About The Project

The development of Lekki Deep Sea Port has been conceptualised on the basis of a significant gap in projected demand and capacity. Market studies indicate that the demand for containers is expected to grow at a CAGR of 12.9% up to 2025.

However, given the expansion constraints on the existing infrastructure, the capacity in Lagos is incapable to meet the growing demand. The capacity shortfall for container terminal facilities in Lagos is projected to be 0.8 million TEUs in 2016 going up to 5.5 million TEUs in 2025. The strategic location, flexible and optimised layout and modern facilities provide Lekki Port a distinct competitive edge over any other port facility in the West African region.

In addition to bridging the capacity deficit, Lekki Deep Sea Port will have significant positive impact estimated at USD 361 billion over the term of concession. It is expected to contribute more than USD 200 billion to the government exchequer and create close to 163,000 new jobs. Furthermore, Lekki Port will spur the economic development around the Lekki sub-region and the wider Lagos State through rapid industrialisation.

The Project enjoys a development structure that is first of its kind in Nigeria. This is the single largest private investment in infrastructure in Nigeria being developed on project finance basis with majority of financing being raised internationally. Success of this project will pave the path for further foreign direct investment in the country in the infrastructure sector.

Benefits Of The Free Trade Zone

Lekki Port also enjoys a whole host of benefits since it has the license to operate as a Free Trade Zone entity under the NEPZ Act.

Key benefits include:

  • Complete holiday from all federal, state and local government taxes, rates, and levies.
  • Duty free importation of capital goods, machinery/ components, spare parts, raw materials and consumable items in the zones.
  • 100% repatriation of capital, profits and dividends.
  • Permission to sell 100% of goods into the domestic market.
  • For prohibited items in the custom territory, free zone goods are allowed for sale provided such goods meet the requirement of up to 35% domestic value addition.
  • Direct economic impact
    • 169,972 jobs to be created from Port operations.
    • Approximately US$ 20 bn t be spent on employee salaries
    • Revenue to state and federal agencies from taxes, royalties and duties will amount to approximately US$ 201 bn
  • Catalytic economic impact
    • Direct and induced business revenue impact of US$ 158 bn
    • Qualitative impact on Manufacturing, Trade and Commercial Services Sector
    • Lekki Port will have an aggregate impact of approximately US$ 361 bn on Nigerian economy over the term of concession
    • Project offers a multiplier effect of more than 230 times of total cost