The Federal Executive Council on Wednesday, August 3, 2022, approved the sum of $2.59bn for the development of the Badagry Deep Seaport project under a Private-Public Partnership in line with the government’s goal to make Nigeria the maritime hub for the West and Central African sub-region. The Minister of Transportation, Mu’azu Sambo, disclosed this to State House Correspondents shortly after the Federal Executive Council meeting chaired by the President, Major General Muhammadu Buhari (retd.), at the Council Chambers of the Presidential Villa, Abuja.
The concession was granted to Badagry Port Development Limited (BPDL). BPDL is wholly owned by Quinn McGrath Marine & Environmental Services Limited (QMMESL), an indigenous formidable maritime investment subsidiary of the Quinn McGrath Group.
The Badagry Deep Sea port project in Lagos State is a strategic step towards the development of Nigeria as a global maritime hub. Nigeria is strategically located at a significant point in the Atlantic Ocean, with about 853 kilometres coastline, which gives us a geographic advantage to become a maritime hub for not only the West and Central African region, but also the entire maritime trading world. And with over 70 per cent of cargo bound for West and Central Africa destined for Nigeria, the country also has a huge commercial advantage.
The Badagry Deep Seaport, planned to be Africa’s biggest and most advanced seaport when it becomes operational, would help to maximise this extraordinary maritime potential, more so given the strategic location of Badagry in the region.
The Minister of Transportation explained that, under a Build-Own-Operate-Transfer delivery system, the port will be operated by the private sector for 45 years after which it will be reverted to the government. He noted that the project will generate $53.6bn in revenue and create about 250,000 jobs; while making Nigeria a maritime hub in West Africa.
He said, “I presented a memo today at council with respect to the development of the Badagry Deep Seaport under the public-private partnership arrangement, where the private sector will inject money for the development of the port and at the end of the concessionary period, the port reverts to the Federal Government of Nigeria through the Nigerian Ports Authority.
“The project cost as contained and approved in council based on the final business case as approved by the Infrastructure Concession Regulatory Commission in line with extant laws stood at $2.59bn. It has to be developed in four phases with milestones and a concessional period of 45 years. Reversion is, like I said to the Federal Government of Nigeria.”
“This is to further the government’s goal of making Nigeria the maritime hub of the West and Central Africa sub-region. This project, it may interest you to know, will also generate total revenue of over $53.6bn over the concession period. It will create about one quarter million jobs and also attract foreign direct investments to the country and help in improving Nigeria’s economy in general and the wellbeing of Nigerians.”
Speaking on the strategic importance of the port, The Lagos State Governor, Babajide Sanwo-Olu said: “The Badagry Deep Sea Port Project is not just one project; it is a multi-level opportunity for progress for all the people of this State in view of the volume of trade and quantum of investment opportunities that would spring up in the area when the project commences, and when it is completed and operational. Very importantly, employment and capacity building for the teeming youth and women in the affected communities will be prioritised.”
The port will also include facilities for handling containers, dry bulk, liquid bulk, roll-on-roll-off, and general cargo, as well as oil and gas operations support.
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