Lekki Deep Seaport: Nigeria stakes its economic future on a port 75% owned by China.

President Muhammadu Buhari of Nigeria has celebrated the completion of a $1.5 billion deep seaport built by China in the commercial center of Lagos, which officials hope will help the struggling economy of the West African country grow.

According to Lagos Governor Babajide Sanwo-Olu, the Lekki Deep Sea Port, one of the largest in West Africa, will relieve cargo congestion that costs the city’s economy billions of dollars each year while also generating hundreds of thousands of employees.

The Nigerian government, Lagos state, Singapore’s Tolaram Group, and the state-owned China Harbor Engineering Company will run the port as a joint venture. The port’s container terminal can accommodate at least 2.5 million 20-foot standard containers annually. 75% of the company is owned by both foreign businesses.

Nigeria has the largest economy in Africa, but due to inadequate infrastructure and poor management, growth has been stagnant for many years. Although the country has six significant seaports, more than 80% of imports are handled by just two of the Lagos ports, where traffic congestion has resulted in a significant revenue loss because cargoes are frequently redirected to other West African countries.

With estimated economic advantages of more than $360 billion, the authorities claim the new deep seaport on the eastern fringe of Lagos will shift traffic from clogged ports and shore up earnings.

However, experts contend that if current obstacles are not removed, such as establishing links between ports and inland locations, it would only make a “minimum effect.”

According to Ayotunde Abiodun, an economic expert with the Lagos-based SBM Intelligence firm, “There is weak and underinvested rail network connectivity, and the roads are not in top condition.” Additionally, the port’s process automation needs to be given top priority.

The Lagos governor stated that ships docking at the port “may be up to four times the size of vessels that currently berth at both Tin Can and Apapa ports,” the other two ports in Lagos, once the port starts to operate with the first commercial vessel coming Sunday.

According to Cui Jianchun, the Chinese ambassador to Nigeria, the project would stimulate economic growth throughout the nation, not just in Lagos.

This is the nation’s economic engine, according to Jianchun, not just for the governor of Lagos but also for the Federal Republic of Nigeria. “This is investment equity. This is an investment, not a loan or other form of borrowing.

According to expert Abiodun, the port has “immense potential” for Nigeria’s economy, which is struggling with a 33% unemployment rate and a failing economy. However, he stressed that industry participants must cooperate in order for this to happen.

Interagency collaboration on significant issues affecting industry operators is required in the maritime sector, according to Abiodun. “A more worrying issue has been these agencies’ emphasis on income generation rather than providing quality services. Change is required here.