NPA Seeks Private Investment As Lekki Port Hits Capacity

The Nigerian Ports Authority (NPA) has known as for elevated non-public sector funding in port infrastructure following the exhaustion of the capability of Lekki Deep Sea Port barely three years after its commissioning.

The Managing Director of NPA, Dr Abubakar Dantsoho, made the decision whereas addressing maritime buyers on the ongoing World Ports Conference in London, the place he recognized Nigeria’s rising inhabitants, urbanisation and infrastructure gaps as alternatives for funding within the maritime sector.

Dantsoho mentioned the rising quantity of cargo dealt with by the ports required further capability to accommodate larger vessels and better volumes of imports and exports.

He famous that authorities alone couldn’t finance the event of larger and deeper seaports, urging buyers to benefit from the alternatives throughout Nigeria and different African nations.

“Nigeria at independence in 1960 had a population of 45 million people. Today, about 60 years later, there are more than 260 million people. The investment needed in ports to meet this expansion and growth can only happen if the requisite private investment is attracted and retained,” he mentioned.

The NPA boss mentioned the nation had recognized infrastructure gaps in its ports and recognised the necessity to enhance capability to obtain larger vessels and transfer extra cargo for export.

He added that port infrastructure improvement was capital-intensive, making non-public funding essential to speed up growth throughout the continent.

“So, the governments in both West Africa and generally in Africa have realized that the government cannot fund development of bigger or deeper sea ports, hence the need for your investment to move speedily into Africa,” he mentioned.

Dantsoho cited Lekki Deep Sea Port in Lagos for instance of the rising demand for port capability, saying the ability, commissioned about three years in the past, had already exhausted its capability.

He mentioned the port was constructed at a price of $1.6 billion with funding from the Chinese authorities in partnership with China Harbour.

“But as of today, just about 3 years later, the capacity of the new deep-sea port that is Lekki has been exhausted. So, which means that clearly, we need more capacity to be able to contain the volumes,” he mentioned.

Dantsoho mentioned the rise in cargo volumes was additionally contributing to the NPA’s income.

“And for us as Port Authority, we are happy that we are capturing more of the cargo, the volumes are going up, because that is the only way that we can also increase our value, the revenue that we expect to make from these transactions,” he mentioned.

He additionally recognized Nigeria as the most important vacation spot for cargo coming into the West African market, citing its inhabitants compared with neighbouring nations.

According to him, Ghana has a inhabitants of 34 million, Côte d’Ivoire 32 million, Togo 9 million and Benin Republic 14 million, whereas Nigeria has greater than 260 million folks.

He mentioned the inhabitants distinction meant that almost all cargoes arriving within the subregion, notably from China, ultimately entered the Nigerian market.