By Zik Gbemre

We were stunned recently when it was reported that the Lekki Deep Seaport project has received a major boost with the signing of a $629m financing facility (loan) with China Development Bank (CDB). It was reported that Four agreements, including the financing facility, were signed on recently by the Lagos State Government with the CDB to accelerate the completion of the project. The loan, according to a statement from the Lagos State Government, was secured from the Chinese bank after China Harbour Engineering Company, which owns majority shares in the project, signed a 45-year Concessionary Agreement with Lekki Port LFTZ Enterprise Limited to complete the Phase 1 of the project. It was also noted that After completion, the deep seaport would have two container berths of 680-metre long and 16.5-metre water depth as well as the capacity to be berthed by fifth generation container ships.

Now, the first thoughts that troubled us greatly, was the question of why would the Nigeria Government ‘borrow’ to build a new Seaport in Lekki, Lagos, when the Warri Port, the Calabar Ports, are crying for expansion and rehabilitation to create jobs for their people? Why should a country as big as Nigeria that is blessed beyond measure with so many coastal regions, especially in the Delta region areas of Delta State, be only known to have two functional Ports – Onne and Lagos Ports? And now they are trying to add another one – the said Lekki Deep Seaport still in Lagos. Whereas, there are many other Ports which have been left to decay and not function as they ought to. Why should we have the concentration of Port activities within the Maritime industry in Onne (Rivers State), and Apapa, Tin can (Lagos), with the Deep Lekki Seaport on the way – leaving other Ports like Delta Ports Complex not working as they should? Is it not appalling that majority of the goods imported into Nigeria comes only from the Lagos Ports, which leaves a large number of people from other regions alone for various business activities? The one that baffles us most is the policy that has made the Onne Port the only Port in the country to receive Oil and Gas Cargoes. Thereby rendering the Warri Port unutilized, despite being closest to the country’s Deepsea areas where the Oil and Gas exploration and production business activities are predominant.

It is evident that the South-West Politicians will not encourage the Warri, Koko, Sapele and Calabar Ports to become functional and utilized as they should. This is why we can conclusively say that tribalism and regionalism has been responsible for Nigeria’s UNEVEN DEVELOPMENTAL STRIDES. This lopsided ‘Political Economy of Nigeria’, is definitely not good for the country, as it will not encourage any significant economic growth for the country as a whole. For instance, it was during the Peoples Democratic Party (PDP) Federal Government administration of 2006, that the Onne Port (Nigeria’s largest port built with Federal Government money) was concessioned to Intel, a company in which the then Vice President, Atiku Abubakar, was said to have a major interest in. Though, they also concessioned the Warri and Calabar Ports to this same company, as well as Two Terminals in the Apapa Port in Lagos – all for 25 years, however, all other similar concessions done at that time were for a period of 10 years. To make matters worse, it was decreed literarily that all Oil and Gas cargoes entering Nigeria must berth at the Onne Port, creating a monopoly of sorts to the owner of Intel. This obviously created and incredible stream of revenue which allegedly accounts for Atiku’s tremendous wealth.

All of this makes one wonder why the neglect all these years, of the Warri Ports? Deltans and Nigerians have not seen the need to ask for a review of this disparity and partiality in the nation’s maritime industry. Come to think of it, what stops the Delta State Government for instance, from developing the OKWAGBE DEEPSEA PORT IN DELTA STATE? This is one area the Delta State Government needs to consider because the South-West Politicians will not bother about it.

Let us also be reminded that before the PDP administration, the Warri Ports were receiving Oil and Gas cargoes. But with their introduction of a self-centered-driven agenda in the nation’s maritime sector, all Oil and Gas cargoes for instance, meant for the Shell Nigeria Exploration and Production Company (SNEPCO) Deep Sea Bonga Field Operations, are received at the Onne Port. If one should look at the map of Nigeria carefully, one will see that the Escravos Terminal area in Warri, is just by the deep sea – closest to the said Bonga Field. In other words, Warri Port is far nearer to the deep sea where the Bonga Field is located. Yet, Oil and Gas cargoes for the Shell Nigeria Exploration and Production Company (SNEPCO) Bonga Field are still shipped to Onne, which is about 24 hours ship trip from Escravos in Warri to Onne. This is because the ships will first get to Escravos-Warri river, before sailing to Onne. The ship cargoes will then be offloaded and taken along a long journey with a smaller vessel down through Escravos-Warri to the deep-sea side of the Shell Nigeria Exploration and Production Company (SNEPCO) Bonga Field. Whereas, the Warri Ports are closer to the deep-sea where all the deep offshore Oil and Gas operations are taking place.

To further give us an insight to the sort of neglect the Warri Ports have suffered over the years, let us be informed that, while the Onne Port and the Ports in Lagos have over the years enjoyed the attention of the Federal Government and the infiltrated private investors, the Ports in Warri are left to decay. The Apapa Port for instance enjoys a “four-wheel gate of about 8 meters for oversize cargoes”, which, according to the Nigerian Ports Authority (NPA), gives it “an edge over others in the handling of oversized cargoes”. While that of the Tin Can Port terminal operators specialize in unique services, including dry and wet bulk cargoes, boxed or containerized cargoes etc., and that of Onne Port, has one of the biggest harbour mobile cranes in Africa (Liebherr 600) with a lifting capacity of 208 metric tons and 220 Gmk5220 grove twin cranes that has capacity of lifting single heavy cargo of 300 tons owned by (Intel) as the major Terminal Operators in the Port, and its operations cut across all cargoes, including Oil and Gas. The Onne Port is one of the largest Oil and Gas “Free Zone” in Africa – supporting exploration and production for Nigerian’s Oil and Gas industry activities. The Free Zone provides a logistics Oil Service centre for the Oil and Gas Industry in Nigeria both Onshore and Offshore. But this ‘concentration’ of the Maritime activities in Lagos and Onne Ports (which includes the activities in the Oil and Gas Industry), is not ‘evenly spread’ to boost the nation’s earnings/revenue, especially when we have other Ports in Delta State that can triple the Government’s earnings in this regard.

THIS WAS THE OBVIOUS REASON WHY THE FORMER LAGOS STATE GOVERNOR, MR. AKINWUNMI AMBODE, WHILE HE WAS STILL IN OFFICE, TASKED THE FEDERAL GOVERNMENT TO DO EVERYTHING WITHIN ITS POWERS TO REVIVE EXISTING PORTS IN OTHER STATES OF THE FEDERATION SO AS TO BRING ABOUT ‘PERMANENT SOLUTION’ TO THE PERENNIAL TRAFFIC CONGESTION IN APAPA AXIS OF THE STATE. Another thing to consider is the fact that, the Nigerian Maritime University Okerenkoko, was established because of the Maritime industry in Delta State. Then why is the Federal Government not making concerted efforts to develop the Delta Ports and make them functional as they should?

Mind you, DELTA PORTS, AS IT IS FONDLY CALLED, IS SAID TO POSSESS IMMENSE POTENTIALS, AND IS TAGGED “THE PORT OF THE FUTURE” BY THE NIGERIAN PORT AUTHORITY (NPA). ITS UNIQUENESS INCLUDES ACCESSIBILITY AND PROXIMITY TO STATES OF ANAMBRA, IMO, ENUGU, DELTA, EDO, KOGI, ONDO, BENUE, ABUJA, ETC COMPARED WITH OTHER OPERATIONAL PORTS IN THE COUNTRY. ACCORDING TO NPA, “THERE IS THE EMERGENCE OF NEW GROWTH DRIVERS IN THE EXPORT OF GAS BY THE EGTL [ESCRAVOS GAS TO LIQUID] FACILITIES WHOSE PRODUCTION AND CAPACITY IS NEXT TO NONE IN THE COUNTRY”. Experts in the Maritime industry have reportedly noted that the challenges facing the Delta Ports which have reduced its activities “to near zero”. The report highlighted government neglect, encroachment by host communities, and the need to dredge the port to attract bigger vessels. It was also stated that the revenue generated between 2007 and 2016 was $607.7m, while revenue collected amounted to $1.2347m. We can see the viability and the importance of getting the Warri Ports functional again by all means and as soon as practicable. It will address a whole lot of issues in Delta State from youth restiveness, criminal activities, unemployment, and also drastically transform the State’s economy as well as add to the nation’s growth.

While it was reported that, after the completion of the said Lekki Deep seaport, it would become the first Deep seaport in Nigeria and the container transportation hub in Africa. It would also release big pressure off the Apapa and Tin Can Island ports. However, LET IT ALSO BE KNOWN AND REITERATED HERE THAT LAGOS, IS NOT THE ONLY STATE IN NIGERIA THAT IS NATURALLY BLESSED WITH THE COASTAL REGIONS. ALSO, LAGOS STATE IS ALREADY ‘OVERPOPULATED’ AS IT IS. ALL BECAUSE VIRTUALLY ALL THE MAJOR ‘ECONOMIC ACTIVITIES’ IN ALL THE VARIOUS SECTORS OF THE COUNTRY ARE TAKEN/CONCENTRATED IN LAGOS. IF THOSE IN THE NIGERIAN GOVERNMENT SHOULD CONTINUE WITH THE WAY THEY ARE GOING, SOON, LAGOS STATE WILL BECOME AN ‘EPIDEMIC-TIME-BOMB’ THAT WILL EXPLODE. YOU DEVELOP A COUNTRY BY CONCENTRATING MAJOR ECONOMIC ACTIVITIES IN ONE STATE. YOU WILL ONLY BE CREATING SERIOUS PROBLEMS FOR THE PEOPLE THAT WILL BE LIVING IN THAT STATE.

The crux of the matter is that, the concentration of Maritime activities and other related Seaport economic activities in Onne and Lagos alone, is not helping the economy of Nigeria as a whole. These Seaports can be replicated and even more in the Ports in Delta State, which is centrally located. There is need for the Federal Government and relevant Stakeholders to make concerted efforts in this regard, so as to decongest the Maritime and Port activities in Lagos State, and Onne. It is in the light of this that we are urging for the need to focus and address the subject matter.
Zik Gbemre.
October 31, 2019

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