The development of Lekki Deep Sea Port has been conceptualized 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 optimized 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 170,000 new jobs. Furthermore, Lekki Port will spur the economic development around the Lekki sub-region and the wider Lagos State through rapid industrialization.
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 non-recourse project finance basis with majority of financing being raised internationally.
MACRO ECONOMIC IMPACT
DIRECT ECONOMIC IMPACT
- 169,972 jobs to be created from Port operations.
- Approximately US$ 20 bn to be spent on employee salaries
- Revenue to state and federal agencies from taxes, royalties and duties of approximately US$ 201 bn
CATALYTIC ECONOMIC IMPACT
- Direct and induced business revenue impact of US$ 158 bn
- Qualitative impact on Manufacturing, Trade and Commercial Services Sector
- Lekki Port will have an aggregate impact of approximately US$ 361 bn on Nigerian economy over the term of concession
- Project offers a multiplier effect of more than 230 times of total cost