Nigerian Ports Authority (NPA) the China Development Bank and other stakeholders have yesterday signed a memorandum of understanding (MoU) on the facility agreement for the Lekki Deep seaport.
The Managing Director, Nigerian Ports Authority (NPA) Hadiza Bala Usman was represented at the ocassion by the Executive Director, Marine & Operations, (NPA) Dr. Sokonte Huttin Davies.
The Lekki Deep seaport is being constructed by Tolaram Group with interests by Lagos state government, Nigerian Ports Authority.
Tolaram has closed financing this week for what could be the busiest port in the western side of Africa, and this could help transform Nigeria’s economy which has taken a lot of hits in the past few years.
This project would be the biggest development Tolaram has ever undertaken and a long way from its roots as a textile trader founded by Indians in Indonesia in the 1940s, as disclosed by Tolaram’s managing director for Africa and grandson of its founder, Haresh Aswani.
“This is a real game changer for us, doing project financing of this scale. It is easy to raise money for a factory — you need $30 million, $50 million. But you want to raise $800m? That’s a whole different ballgame,” he said.
According to Mr Aswani, this new port will be financed with $630 million from the China Development Bank, and $470 million in equity from the state-owned China Harbour Engineering Company, which has a 52.5 percent stake and will build it.
Also, by this equation, this means that 22.5 percent will belong to Tolaram, while the Nigerian Ports Authority (NPA) will possess 5 percent, and the Lagos state government owns the remaining 20 percent.