Investors led by APM Terminals’ Global Investment Limited are discussing with the Nigerian Ports Authority (NPA) on the $3 billion Badagry Deep- sea Port project. The project when completed would be concessioned for 45 years period to handle an annual throughput capacity of 1.8 million Twenty-foot Equivalent Units (TEUs). Unlike Lekki Port’s $361 billion within the concession period, the port is expected to generate $53.6 billion revenue for government.
The proposed site of the project is located 55 kilometres west of Apapa port in Lagos. The approved deep-sea port is an initiative of a consortium led by APM Terminals, Orlean Invest, Oando, Terminal Investment Limited and Macquarie. It was learnt that the NPA Managing Director, Mohammed Bello- Koko, and his management team were already in discussion centered on the takeoff of the Badagry project, which was conceived in 2016 to take the pressure off the overstretched Lagos ports.
The investment team was led by Martjin Van Dongen, the Global Head, Business Development of APM Terminals Global Investment Limited. Bello- Koko revealed that the two teams discussed how to optimise the potential of the Badagry Deep Seaport. He noted: “Discussions focused on optimising the potentials of the upcoming Badagry Deep Seaports and other new ports as NPA Management intensifies action toward the vision to make Nigeria the maritime logistics hub for sustainable port services in Africa.”
In 2016, the Federal Government conceived the idea of developing deep seaports in the country to position Nigeria as the hub of maritime activities in the West African sub-region. The proposed deep sea ports project include Lekki deep sea port, which has already taken off, the Ondo deep sea port, Ibom Deep seaport and Badagry deep seaport. While preparations for the take- off of both the Ondo and Ibom sea ports projects are in top gear, that of the Badagry project was initially bogged down by technicalities and disagreement between NPA and the promoters of the project.
However, in November 2012, APM Terminals and its consortium partners announced plans to develop the Badagry deep seaport. In 2020, the NPA disclosed that the promoters paid $500,000 as a commitment deposit into an escrow account to signify their commitment towards the port project. However, NPA kicked against the initial Outline Business Case (OBC) for the port, which has been reviewed to include the suggestions of the authority.
The Federal Government, however, has approved a concession arrangement for the development of the Badagry deep seaport project over a period of 45 years. The approval was finalised following a presentation by the Federal Ministry of Transportation at the Federal Executive Council (FEC) during the last administration of President Muhammadu Buhari. According to officials, the port is expected to generate $53.6 billion in revenue over the 45 years concession period.
The proposal for the project was announced in 2012. Feasibility studies have been completed and construction works are yet to start. The project will be implemented in four phases, with the overall project cost estimated to range between $2 billion and $3 billion. Also, it is expected that the new port will primarily ease pressure on the existing ports of Lagos, Apapa and Tin-Can Ports, which handle approximately 85 percent of the country’s non-oil throughput.
It will further alleviate the burden on the country’s existing ports, which are on the verge of exceeding their cargo handling capacities, and address the country’s annual container traffic, which is expected to grow to 10 million Twenty-foot Equivalent Units by 2030. When fully built, the deep- water full-service port will be one of the largest in Africa with 7km of quay and 1,000 hectares (2,470 acres) of dedicated yard.
It will include state-of-the- art facilities for container, bulk, liquid bulk, Ro/Ro and general cargo as well as oil and gas operations support and a barge terminal. Plans for the adjoining Badagry Free Trade Zone will include a power plant, oil refinery, industrial park and warehousing and Inland Container Deport functions.
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