FG partners Chinese firm to dredge Lekki deep seaport channel

The federal government has approved the maintenance dredging of the $1.5 billion Lekki Deep Seaport channel, increasing its depth from 16.5 meters to 17 meters.

Abubakar Dantsoho, managing director (MD) of the Nigerian Ports Authority (NPA), announced during his maiden visit to Lekki Port, accompanied by senior management staff of the authority, over the weekend.

During the visit, Dantsoho said the dredging is an initial phase as the federal government aims to achieve a depth of 19 meters.

He urged Lekki Port to enhance trans-shipment volumes to landlocked neighbouring countries.

“Lekki’s capacity to berth super post-panamax vessels and deliver rapid cargo and vessel turnaround positions is a game-changer for Nigeria’s export competitiveness, particularly for agro-allied products, as the African Continental Free Trade Area (AfCFTA) gains traction,” the MD said.

“The port’s efficiency is driving steady increases in transhipment numbers, meeting the maritime needs of neighbouring countries and supporting NPA’s goal of achieving economies of scale.

“This enhanced competitiveness fuels demand, boosts foreign exchange inflows, and contributes significantly to Nigeria’s year-on-year trade surplus, reinforcing the national economy.”

Dantsoho said rising export figures are encouraging, adding that NPA hopes “the export volume is going to double or even triple in the nearest future”.

“And because of that, we have to still reaffirm our commitment as NPA management to do what we can possibly do within our own powers and with the support of the federal government to ensure that this trend, this beautiful throughput trend you have shown us, continues to grow and increase,” he said.

“So what are we doing to ensure that this trend continues? We are doing about five things. Now, number one, the Minister of Marine and Blue Economy, Adegboyega Oyetola, with the recommendation of the Nigerian Port Authority, has gotten the approval for the dredging of the channel at Lekki Port.

“This is something that we have been working towards, something that we’ve been discussing for almost two or three years. And finally, we give God the glory that it has happened.”

‘CHEC IS CONTRACTOR FOR DREDGING PROJECT’

Dantsoho said the NPA has agreed that China Harbour Engineering Company (CHEC) will be the contractor for the dredging project.

“On a normal day, NPA will have used Lagos Channel Management (LCM), which is our joint venture company, where we control 60 percent of the equity,” he said.

“But because we wanted to also enhance the relationship and make the partnership stronger, we accepted the idea that CHEC can go ahead and do the dredging. So I think that’s a clear indication of how serious and how supportive we can get when it comes to issues of Lekki Port.”

The MD said Lekki Port is equipped with modern technology, adding that “we are very happy about that”.

Dantsoho added that the technology aligns with the requirements for deploying the port community system, a precursor to implementing the national single window.

“We are hoping that other port locations or other terminals will very soon also have 100 percent capability in terms of technology deployment so that once we deploy the port community system, keying into it would not be an issue,” he said.

“So I really appreciate that Lekki Port has done well in the area of technology deployment.”

On Lekki Port’s request for a reduction in ship dues, the MD explained that many of the equipment the authority purchases to ensure port efficiency are dollarised.

“We keep buying navigational buoys, tugboats, and others to ensure efficiency in port operations across the country,” he said.

“Because many of the things that we buy are dollarised, in as much as it’s necessary to lessen the burden of Lekki Port payments to the government, Lekki Port should also know that we need to have more money to be able to buy more of these things and also ensure that personnel who are running them are also well paid.”

The MD said once the single window is fully deployed, with 95 percent of port processes becoming paperless, port revenue will triple.

“Electronic transactions will completely or near completely eliminate unreceipted payments in our ports,” he said.

“When this happens, it is believed that we are going to make more money. At that point, I think NPA will look at the possibility of bringing down the ship dues.”

Dantsoho also commended the management of Lekki Deep Seaport for sustaining superior performance.