Lekki Deep Sea Port To Bring In $201BN In Taxes, Generates 169,972, Royalties–Lai Muhammed

Lekki Deep Sea Port To Bring In $201BN In Taxes, Generates 169,972, Royalties–Lai Muhammed

The minister of information and culture , Lai Muhammed has said that the the federal government will earn about $201 billion through taxes, royalties and duties as well as generate 169,972 jobs from the the Lekki Deep Sea Port eaglessightnews has learnt.

In a recent reports by PoinBlankNews, Mr Lai said with reduced port cost, automation that the Lekki Deep Seaport will bring to bear when it becomes operational by the end of last quarter 2022, the nation will wrestle lost cargoes from neighboring ports.

Speaking to journalists after conducting an on-the-spot assessment of the Lekki Deep Seaport, the minister said the port will be the deepest in West and Central Africa, thereby, receive vessels that are five times bigger than vessels that call at Lagos seaport.

He said the stakeholders have identified port cost, lack of automation and cargo dwell time as factors responsible for the abandonment of Apapa and Tin-Can port for port of Lome, Togo, Ghana, Benin Republic and Cote D’Ivoire.

Lai stressed that, with the economic of scales, the cargoes coming to the country will be cheaper and that will enable Nigeria wrestle its lost cargoes from neighboring ports.

He said, “we will have the deepest seaport in west Africa. That means vessels that are five time, six times bigger that we couldn’t handle today will come and when we look at the economy of scales, then it becomes cheaper to ship goods through this port.”

He also said the facility has again repositioned Nigeria to regain the maritime business that was lost to ports in Togo, Cote d’Ivoire and Ghana, stressing that it is also a big boost to Nigeria in its quest to take advantage of the implementation of the African Continental Free Trade Agreement (AfCFTA).

The minister, while inspecting construction work at the site in Lekki, Lagos, reaffirmed that the project, which is located some 65 kilometres east of Lagos, will be completed in September 2022.

He said: “I callit a game changer because of the impact it will have on the nation’s economy and the jobs it will create, among others.

“The investment is huge: 1.53 billion dollars on fixed assets and 800 million dollars on construction.  But the aggregate impact has been put at 361 billion dollars in 45 years, which will be over 200 times the cost of building it. In addition, it will create 169,972 jobs and bring revenues totalling 201 billion dollars to state and federal governments through taxes, royalties and duties.

“The direct and induced business revenue impact is estimated at 158 billion dollars, in addition to a qualitative impact on manufacturing, trade and commercial services sector

“Beyond that, when it begins operation in the last quarter of this year, it will make it possible for Nigeria to regain the maritime business that was lost to ports in Togo, Cote d’Ivoire and Ghana. It is also a big boost to Nigeria in its quest to take advantage of the implementation of the African Continental Free Trade Agreement (AfCFTA)” he said.

Mohammed also said that the major advantage Nigeria has to leverage is transshipment, stressing that with the port, the country will become a transshipment hub and the revenue it is currently losing to  neighboring countries will be earned.

The Lekki Deep Sea Port, is a consortium that includes China Harbour Engineering Company, Tolaram, Lagos State Government, Nigerian Ports Authority and Lekki Port Investment Holding Inc.