The development of Lekki Deep Sea Port has been conceptualised on the basis of a significant gap in projected demand and capacity. Market studies indicate that the demand for containers is expected to grow at a CAGR of 12.9% up to 2025. However, given the expansion constraints on the existing infrastructure, the capacity in Lagos is incapable to meet the growing demand. The capacity shortfall for container terminal facilities in Lagos is projected to be 0.8 million TEUs in 2016 going up to 5.5 million TEUs in 2025. The strategic location, flexible and optimised layout and modern facilities provide Lekki Port a distinct competitive edge over any other port facility in the West African region.
In addition to bridging the capacity deficit, Lekki Deep Sea Port will have significant positive impact estimated at USD 361 billion over the term of concession. It is expected to contribute more than USD 200 billion to the government exchequer and create close to 163,000 new jobs. Furthermore, Lekki Port will spur the economic development around the Lekki sub-region and the wider Lagos State through rapid industrialisation.
The Project enjoys a development structure that is first of its kind in Nigeria. This is the single largest private investment in infrastructure in Nigeria being developed on project finance basis with majority of financing being raised internationally. Success of this project will pave the path for further foreign direct investment in the country in the infrastructure sector.
Benefits of Free Trade Zone
Lekki Port also enjoys a whole host of benefits since it has the license to operate as a Free Trade Zone entity under the
NEPZ Act. Key benefits include: