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President Muhammadu Buhari says the Federal Government is not shying away from its commitment to the creation of an enabling environment and improved national security in aid of new investments in the economy.
He spoke, Thursday, at the opening of the Ikeja Bus Terminal, built by the Lagos State government, to raise the standard and quality of public transportation services in Nigeria’s commercial city.
According to Buhari, the government at the centre is also working to change the narrative of transportation architecture nationally by expanding and extending rail infrastructure. He lauded Lagos State for taking on similar projects to cater for the state’s increasing population. The population of Lagos is estimated at over 21 million.
Governor Ambode, justifying the need for the project, said it was to meet the daily connectivity needs of the people, who deserved better transportation infrastructure and services.
Ambode said in line with the resolve of his government to reform the public transportation space, similar projects are being cited in different parts of the metropolis, while 820 of the 5,000 high capacity buses being brought in to strengthen the system, will arrive in September this year.
According to Ambode, the Ikeja Bus Terminal is one of the flagship transport infrastructure under the State Bus Reform Initiative. He disclosed that the first phase of the programme will see 13 new bus terminals introduced including major terminals at Oshodi, Yaba, Ojota, Agege and the already completed Tafawa Balewa bus terminal.
“We have commenced the introduction of 5,000 new buses into the Lagos economy in the next 3 years. We will inject 820 environmentally-friendly high capacity buses in the first phase of this reform by September 2018, 300 new bus stops, three bus depots, and an intelligent transport system which will aid Lagos residents to plan their journeys on our public transport system,” Ambode said.
Ambode also acknowledged the approval of President Buhari, for the import-duty waiver received on the buses in the phase one of the state transport programme, adding that a further step in the implementation of the programme will see the state assemble the buses in Lagos in what should create jobs for the people.
Ambode assured that that the state aside its commitment to the 27-kilometre blue line rail from Okokomaiko to Marina, was in discussions with various investors and stakeholders on the Red Line rail which will run from Alagbado to Marina.
President Buhari, also on Thursday, flagged off the commencement of major construction works at the project site of the $1.53 billion Lekki Deep Seaport, 12 years after the project was announced with fanfare.
The project is being promoted by Tolaram Group, the Lagos State government and the Nigerian Ports Authority (NPA).
Buhari represented by Vice President Yemi Osinbajo, said the deep sea port was particularly important to the presidency because it is in tandem with Federal Government’s plans to diversify the nation’s economy.
He said:”I understand that this will be one of the largest deep Sea Ports in Sub-Sahara Africa, with all that has been put in place here.”
The Vice president further said that the promoters of the project were targeting about 1.5 million Twenty Foot Equivalent Units (TEUs) container capacity yearly, which is expected to grow to about 2.7 million and 4.7 million TEUs when the port become fully operational.
“With this, the Lekki Deep seaport will become one of the best deep water ports in our region and serve as a hub for port operations in the whole of West Africa,” Osinbajo said.
“The promoters also plan to dredge the port channel to about 16 meters which is not currently obtainable in any port in the country. This is an indication that ships of larger capacity, Panamax, Post Panamax ships and very large crude carriers will now be able to visit Nigerian ports, and achieve greater efficiency and economies of scale, which will generate significant revenue for the Nigerian economy,” he said.
“This is important to us because it is in sync with our economic and recovery plans. Our plan is to create a private sector-driven economy, which is crucial. In this case, the Lagos State government and the Nigerian Ports Authority are the face of government. We will continue to create an enabling environment for such businesses to thrive. I commend all the stakeholders involved, I know there will be challenges but we will continue to support you,” he said.
Speaking on behalf of Lagos State, the deputy governor, who represented Governor Akinwunmi Ambode, said the project became necessary so as to provide berthing for larger vessels, which is the growing global trend in container shipping.
She said the Lekki port would be equipped with the best infrastructure and terminal services to attract and maintain large volume shipping line customers.
On the economic potentials of the project, she said: “An estimated $2.23 billion dollars is expected to be injected into the economy in terms of construction and fixed assets, with the completion of the Lekki Deep Sea Port. This amount is expected to rise to an aggregate of $3.61 billion over a 45-year concession period in the Nigerian economy,” she said.
The Deputy Governor added that the container terminal will have a 1,200m long quay, three container berths and a storage yard with over 15,000 ground slots. She added that the terminal is expected to be delivered in 2020.
“The Lekki Deep Sea Port with all the facilities will ease the pressure on Apapa and Tin Can ports. This journey started in 2007 and it has been eventful and challenging. It is expected that 170,000 direct and indirect jobs will be created as a result of this project,” she added.
Navin Nahata, Chief Executive Officer of Lekki Port, lauded Lagos State, NPA and the major stakeholders in the development of the Lekki port project, for unwavering support so far on the project.
He said that the commencement of construction could not have been possible without the stakeholders. He also commended the federal ministry of transport and other regulatory agencies for their commitment to making the port a reality.
Nahata assured all stakeholders especially the shareholders that Lekki Port and its strategic partners will work assiduously to deliver a world-class port that would make Nigeria the transhipment hub for West Africa.
Rotimi Amaechi, Minister for Transportation, commended the NPA, Tolaram Group and China Harbour Engineering, the EPC contractor for the port project, for the development of the landmark project.
He said the ports concession agreement covered 45 years on a build, own, operate and transfer basis. “This will be the first deep seaport in Nigeria, and will help to improve the capacity of Nigerian ports to generate both inbound and outbound cargoes.”
In her welcome address, Hadiza Bala Usman, managing director of the Nigerian Ports Authority (NPA) said that the funding for the Lekki Deep Seaport project is structured at equity and debt ratio of 20:80 respectively.
“In line with the commitment of the Federal Government to promote private sector investment, the NPA has a fully paid 5 percent minimal investment, enough to give it a stake and give the investors comfort that would enable it perform its oversight technical regulatory functions without being unduly hindered by commercial considerations. The other 95 percent interest is owned in a 18: 8 ratio by the Lagos State Government and the Tolaram Group, respectively,” she explained.
Usman said that of the 75 percent owned by the Tolaram Group however, the Federal Government holds a further 15 percent shareholding to the value of $107.78 million converted into shares from a pre-2002 FG grant to promoters of Tolaram Group towards financing the Viva Methanol Project.
Usman said the vision of the NPA was to provide the enabling environment for Nigeria to have the best ports in Africa and the flag-off event moves the authority closer to that reality.
“As statutory regulators of ports in the country, the NPA is committed to providing the technical support and regulatory environment that would see to the timely completion of construction work and ensure efficient operations and management of the port upon commissioning,” she added.
Haresh Aswani, managing director of Tolaram Group, who assured that the project would be completed within the next three years, said that it will generate billions of dollars in revenue for the Lagos and Federal Government.
According to him, the flag-off has not only put to rest all doubts around the project but ensures the completion of the project within three years. He said the project would support and enhance the growth of various free zones in the Lekki area.
“Upon completion, the port facility will have three container berths, one dry bulk berth, three liquid berths, 16.5-meter draught, 600 meter turning cycle and 2.7 million Twenty Foot Equivalent Unit (TEUs) per year. Built over 90 hectares of land in the heart of the Lagos Free Trade Zone, Lekki Port is situated just 65 kilometres east of Lagos city and slated to be completed in 2020,” he said.
JOSHUA BASSEY & AMAKA ANAGOR-EWUZIE
