With a proposed $9
billion Dangote Refinery and Petrochemical Company, the Lekki-Epe International
Airport, the Lekki Deep Seaport, and other mega infrastructure to be built in
the Lekki Free Trade Zone (LFTZ), the lekki corridor of Lagos State is an emerging
investment haven in Sub-Saharan Africa.
Many multi-billion
dollar projects have either taken off or are in the process of doing so within Lekki-Epe,
some of the mega projects that have raised the adrenalin of the residents
because of their job potential include the proposed $9 billion Dangote Refinery
and Petrochemical Company, the proposed Lekki-Epe International Airport, the
Lekki Deep Seaport in Akodo, Ibeju-Lekki Local Council of the state, and the
Lekki Free Trade Zone (LFTZ), in Ibeju Lekki, which is about 15 minutes from Epe.
Within the Lekki free
trade zone, infrastructure, such as hotels, golf courses, resorts and business
areas for local and international brands are expected to spring up. These are
complemented by an aggressive development of the various tourism potential in
the axis, as well as investments in real estate and road construction. The area
boosts of excellent road networks, which together underscore the position of
Epe as Nigeria’s emerging business and investment hub.
Already, the development of the Lekki Deep Seaport has begun.
The shareholders’ agreement has been executed while preliminary works have
started at the site for the Phase 1 of the project expected to cost $1.5
billion. This was after Tolaram group, a Singaporean firm and parent company of
Lekki Port Lagos Free Trade Zone, LFTZ, Enterprise, completed its environmental
impact assessment study of the project in line with the World Bank guidelines.
When completed, the port would reduce the pressure on the Apapa and Tin-Can
Island ports and also support business activities at the LFTZ.
The Lekki Port, spread across 90 hectares of land, is a Private
Public Partnership, PPP, with the Nigerian Port Authority (NPA), Lagos State
Government and other non-government bodies, is expected to contribute over
N32.2 trillion to the government treasury when completed by 2016. More than 10,
000 jobs are projected to be created directly and indirectly during the
construction period while more than 169,000 jobs would be generated directly
and indirectly when it becomes fully operational.
Managing Director of Lekki Port, Haresh Aswani, is optimistic
that when completed, the port will spur economic development around the Lekki
sub-region and the whole of Lagos State through rapid industrialization. He
disclosed that to ensure smooth and efficient operations, the company engaged
the services of global consultants in the mould of The Louis Berger group, a
United States-based project management consultant; a coastal and maritime
engineering firm; and TBA Netherlands, a maritime terminals and software
consultant, among other firms.
“Lekki Port has been conceptualized on the basis of a
significant gap in projected demand and capacity needed to be met in conveying
goods to and from Nigeria. The demand is attractively high and the available
capacity will not be sufficient to meet this demand. The economic viability of
the port is founded on this unmet demand,” Aswani explained, adding that while
Tolaram group holds about 45 per cent, the Federal Government through NPA and
Lagos State government has about 20 per cent each.
Because the LFTZ was envisioned as an investment haven, its promoters
thought it wise to build an ultra-modern international airport in the area to
complement activities at the zone and also provide alternative air transport
services in the state. The Lekki-Epe International Airport is designed to
handle about five million passengers annually with provision for a modular
terminal for future expansion. Preliminary works on the airport project have
commenced with the clearing of 150 hectares (runway), 4.5km of the access road
and 9km of perimeter road.
The Lands Bureau has since completed the crop enumeration on the
designated site for the airport. This was to facilitate the payment of
compensation to affected land owners and farmers. The proposed airport, like
other projects, would be built and managed by private investors in line with
the present administration’s policy on PPP.
At the inauguration of the LFTZ, Lagos State Governor Babatunde
Fashola declared: “The LFTZ is beginning to take shape. The master plan is
being realised; investors are trooping in. Tank farms and major refineries are
springing up to service the demands of the country and make room for export.
The refineries create a major selling point and release of the opportunities
that lie ahead in this zone, create opportunities for the local people and the
potentials for Lagos and the Nigerian economy.”
The Dangote Refinery and Petrochemical Company for which Aliko
Dangote, billionaire businessman and president, Dangote Industries Limited
(DIL) is committing $9 billion, no doubt represents that unique selling point
and release of the investment opportunities in the Lekki/Epe Corridor. DIL has
since signed a loan agreement valued at $3.3 billion with a consortium of 12
local and international banks to establish the biggest petroleum refinery and
petrochemical/fertiliser plant.
The credit facility, jointly packaged by Standard Chartered Bank
as the global coordinator, and Guaranty Trust Bank (GTBank), as the local
coordinator, represents the first tranche of financing for the project by the
banks. Other participating banks are Access Bank, Zenith Bank, Ecobank Nigeria,
Fidelity Bank, First Bank Nigeria, Standard Bank of South Africa, United Bank
for Africa, UBA, FirstRand Bank, First City Monument Bank, and Diamond Bank.
Dangote will contribute $3 billion to the total cost of the project estimated
to be $9 billion. The plant has a completion date of 2016.
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