FG Moves To Deepen Lekki Channel Beyond 16.5m To 19m

The Federal Government has approved maintenance dredging of the $1.5 billion Lekki Deep Seaport channel, initially increasing its depth from 16.5 meters to 17 meters, with a long-term target of 19 meters.

Speaking during his first official visit to Lekki Port over the weekend, Abubakar Dantsoho, Managing Director of the Nigerian Ports Authority (NPA), accompanied by senior management staff, urged the port to strengthen its transshipment operations to serve landlocked neighbouring countries.

Abubakar Dantsoho stated, “The rise in throughput volume at Lekki Port is exciting. 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 port’s efficiency is driving steady increases in transshipment numbers, meeting the maritime needs of neighboring 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. So it’s very pleasing to note the rising export figures, and we hope that the export volume will double or even triple shortly. And because of that, we still have to reaffirm our commitment as NPA management to do what we can do within our 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.

“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. We have also agreed that it is your company, China Harbour Engineering Company (CHEC) will do the dredging.

“CHEC is going to be the contractor for the dredging project. On a normal day, NPA would have used Lagos Channel Management (LCM), our joint venture company, where we control 60 percent of the equity. But because we also wanted to enhance the relationship and make the partnership stronger, we accepted the idea that CHEC could 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.”

On automation, the NPA MD stated, “Now, the other thing I want to mention is the automation issue that you have raised. Now, luckily for you, and most likely because you are the most current or the latest port that we have in Nigeria, it is expected naturally that all those things that are required for a modern port should be here. Lekki Port is up to date with the technologies, and we are very happy about that. The technology that is here will be part of the main requirements for deploying the port community system, which is a precursor for keying into 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. So I really appreciate that Lekki Port has done well in the area of technology deployment.”

On the channel survey, the NPA MD explained that the contract had been awarded.

“We have awarded the contract for the survey of the channel, which is also a major requirement of the international port and harbour and navigation systems. This will give us more optimisation in the area of channel management around Lekki Port.”

On Lekki Port’s request for a reduction in Ship Dues, the NPA MD explained that the Authority buys dollarized equipment to ensure port efficiency.

“We keep buying Navigational Buoys, Tug Boats, and other equipment to ensure efficiency in port operations across the country. Because many of the things that we buy are bought in dollars, 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.

“When the Single window is finally deployed, and 95 percent of port processes become paperless, the revenue at the ports will triple. Electronic transactions will completely or to a large extent, eliminate unreceipted payments in our ports. 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.”

The NPA MD also commended the Management of Lekki Deep Seaport for sustaining superior performance.

It remains unwavering in its commitment to providing all necessary support to optimize the port’s potential.

Speaking earlier, the MD of Lekki Port, Wang Qiang, presented several key requests for policy support to the NPA MD.

“We request an adjustment of tariff structure to reflect service costs and inflation, as well as a reduction in ship dues specifically for large vessels and feeders, to enhance port competitiveness. Provision of Night Pilotage Services to enable 24/7 operations and improve vessel turnaround time, amongst others,” the Lekki Port MD stated.

The NPA MD also visited the $19.5bn Dangote Petrochemicals Refinery and met Aliko Dangote, Africa’s richest man.