How Lekki Deep Seaport drives Nigeria’s maritime industry

Nigeria’s deepest seaport, the Lekki Free Zone has emerged as a key driver of growth and development in the country’s maritime industry. As a strategic economic hub, the Lekki Free Zone offers unparalleled opportunities for wealth creation, job creation, and industrial growth. By leveraging its prime location and state-of-the-art infrastructure, the Lekki Free Zone is reshaping the landscape of Nigeria’s maritime sector and positioning the country as a major player in the global economy.

Investment inflows into the Lekki Free Zone in Lagos, Nigeria, have continued to increase partly because of its strategic location near West Africa’s deepest seaport. Lekki Free Zone Development Company (LFZDC) steers the affairs of the zone.

LFZDC was formed in May 2006 as a Joint Venture Partnership under the Nigeria Export Processing Zones Act. This partnership includes a consortium of Chinese companies as the majority shareholder, along with the Lagos State Government (LASG) and Lekki Worldwide Investments Limited (LWIL).

Additionally, LFZDC is authorised by both the Federal Government of Nigeria through the Nigeria Export Processing Zones Authority (NEPZA) and the Lagos State Government to exclusively develop, operate, administer, and manage the South/West Quadrant of the Lekki Free Zone project.

The commissioning of operations at Lekki Deep Sea Port in January 2023 has stimulated a substantial increase in investment interest from both domestic and international sources for Lekki Free Zone Development Company (LFZDC). This port operation is poised to propel LFZDC into a prominent position as an economic powerhouse for Nigeria.

Meanwhile, the Lekki Deep Sea Port, is a multi-purpose, deep sea port in the Lagos Free Zone and is the only currently operating deep sea port in the country, having started full commercial operations in April 2023. It is the largest seaport of Nigeria and one of the biggest in West Africa.

Recently, the Lekki Deep Sea Port welcomed the CMA CGM – SCANDOLA, the largest vessel to ever dock in Nigeria. During this momentous event, Bolatito Ajibode, deputy managing director of the Lekki Free Zone Development Company, emphasised that the Lekki Free Zone is home to more than sixty-five companies out of the approximately six hundred operating within the fifty-two Free Trade Zones in Nigeria.

Furthermore, fifteen additional companies are presently at various stages of plant construction within the zone. These developments position the Lekki Free Zone to generate significant business opportunities for the Lekki Deep Sea Port.

The Lekki Free Zone, situated near the newly opened Lekki Deep Sea Port, forms a dynamic economic powerhouse that promises to revolutionise trade and industry in Nigeria. This strategic alignment allows for seamless and efficient movement of goods between the port and the zone, creating a conducive environment for businesses to thrive.

The establishment of the Lekki Deep Sea Port has generated immense opportunities for additional investments in the Lekki Free Zone. Its strategic location ensures that goods can be transported swiftly, reducing logistical complexities and costs. This synergy between the seaport and the free trade zone is poised to accelerate economic growth not only for Lagos State but for Nigeria as a whole.

According to estimates by the United Nations Conference on Trade and Development (UNCTAD), more than 80 per cent of global merchandise trade by volume is transported by sea. Ports play a pivotal role in facilitating the cost-effective movement of goods, underpinning global trade networks, especially in African countries.

Maritime powers such as Britain, the Netherlands, and Singapore stand as testaments to the vital role ports play in driving economic development. These countries have leveraged their ports to enhance trade, attract foreign investments, and create jobs, leading to significant economic prosperity.

By providing berthing facilities, cargo handling equipment, and logistical services, ports act as gateways for the movement of commodities, manufactured goods, and raw materials.

They serve as hubs for global trade, connecting different regions and facilitating the exchange of products. In African countries, ports are seen as catalysts for unlocking economic potential, promoting industrialisation, and fostering sustainable development.

The Lekki Free Zone and the Lekki Deep Sea Port embody the potential for transformative economic growth in Nigeria. This strategic partnership is a beacon of hope for businesses, investors, and policymakers alike. As goods flow seamlessly between the port and the zone, industries can flourish, jobs can be created, and Nigeria’s economy can reach new heights of prosperity.

Recounting economic benefits of LFZ synergy with Lekki Sea Port

The Lekki Free Zone project under the LFZDC aims at developing, operating and managing a modern Free Zone per international practice by optimally utilising the advantages of Lagos as the important distribution hub in West Africa. The project will further enhance the economic cooperation between Nigeria and China in light of their mutual complement and compatibility of resources. It will also optimise the Nigerian industrial structure and improve the national living standard.

This project’s proximity to the Lekki Deep Sea Port, West Africa’s largest seaport is a veritable engine for national wealth creation. Equipped with cutting-edge technology, it has a capacity of 15,000 containers and 2.5 million twenty-foot equivalent units (TEUs), aiming to alleviate port congestion and optimise cost-effectiveness for importers and exporters.
It holds the potential to stimulate Nigeria’s economy, create employment opportunities, and establish the country as a regional maritime hub. The port’s impact extends beyond Nigeria, contributing to infrastructure development in Africa.
Investment opportunities

The Lekki port is an essential driver of economic growth for the Lekki Free Trade Zone (LFTZ), supporting the massive industrial and petrochemical complex development in the zone. This project, with over $20 billion in investment over the next three years, is set to transform the LFTZ into a vibrant multi-purpose facility encompassing industrial, manufacturing, residential, and tourism zones.

LFTZ offers numerous incentives for investors, including 100 per cent ownership and capital retention, profit and dividend repatriation, tax breaks, licence waivers, and various concessions. With these benefits, the LFTZ aims to attract foreign direct investment to Lagos State and Nigeria, positioning itself as a prime destination for investment in the country.

The development of trade, commerce, and investment in the LFTZ will lead to an industrial revolution in the real estate sector, creating numerous direct and indirect investment opportunities for real estate developers and foreign investors. This transformation will shape the real estate landscape and contribute significantly to the overall economic growth and development of Nigeria.
Looking ahead

Lekki Free Zone’s proximity to the Lekki Deep Sea Port stands as a strategic and well-timed intervention designed to tackle the challenges faced by the Nigerian Maritime Industry. Its potential impact is immense and should not be underestimated.

Stakeholders must seize the opportunities it offers. The port’s commencement of operations brings forth the promise of fostering a conducive environment, leading to substantial economic gains.

Benefits are anticipated for both the state and individual stakeholders within the industry. It will alleviate the congestion experienced at other ports, ultimately enhancing operational efficiency and boosting profitability.