Business
Lekki Port: Firm Signs Pact With NPA, LASG
The Lekki Port Investment Holding Incorporated – the lead promoters of Lekki Port LFTZ Enterprise, has signed a shareholders agreement with the Nigerian Ports Authority and Lagos State Government.
A statement from LPIHI said the signing ceremony was held at the office of the Governor of Lagos State recently. It noted that the agreement paved the way for equity participation in Lekki Port by NPA, which will hold 20 per cent in the project, and LASG, which will hold 18.15 per cent. Foreign investors, led by the Tolaram Group, Singapore through LPIHI, will take up the balance of 61.85 per cent.
According to the statement, the Managing Director, NPA, Mr. Habib Abdullahi, recognised that Lekki Port would contribute greatly to the Nigerian economy. After the signing of the agreement, he was quoted as saying, “The project will enhance the country’s economy because the Federal Government has identified the maritime sector as one that has a great potential of boosting the country’s revenue.”
The Commissioner for Commerce and Industry, Mrs. Olusola Oworu, who represented Lagos State at the occasion, said the existing ports in the country were full and the port facilities no longer had sufficient capacity. She said the project was conceived out of the need to have a modern and truly deep-sea port that could accomodate large vessels.
The Managing Director, Tolaram Group in Nigeria, Mr. Haresh Aswani, said the signing of the agreement demonstrated how the public and private sectors could collaborate to create a world-class infrastructure for Nigeria. He said, “The development of Lekki Port through this partnership exemplifies Nigeria’s readiness for Foreign Direct Investment.”
The statement noted that the Lekki Port would be the single largest private infrastructure investment in Nigeria. The port will be a world-class multi-purpose facility that will serve the West African region. It will be equipped with modern infrastructure, equipment and terminal services to attract and serve large shipping lines.
It said, “Facilities at the port would include a 1.5km long breakwater, 6km long and 14m deep approach channel, 670m diameter turning circle and 1.5km long quay wall. The port will accommodate three container berths, four liquid bulk berths and one dry bulk berth.
“In addition, two other significant milestones were achieved in the third quarter of 2012. First, LPLE awarded the engineering, procurement and construction contract to China Harbour Engineering Company, the world’s largest marine contractor. CHEC will be responsible for the design and construction of the port on a lumpsum turnkey basis.”
It added, “Secondly, the container terminal sub-concession was awarded to International Container Terminal Services Incorporated. ICTSI is a leading global container terminal operator, who will equip and manage Lekki International Container Terminal in line with international standards. They were both awarded their respective contracts after a rigorous international bidding process.”
Some Commercial drivers in Port Harcourt have said that the Federal Government’s N1,350 fuel discount is yet to reduce their daily operating cost.
A cross session of commercial drivers who spoke to The Tide correspondents in Port Harcourt said they are yet to feel the impact of the government discount, adding that most filling stations in the city are even selling above the pump price
A driver Jude Ogbo who operates the mile 1 Rumuokoro axis of Port Harcourt said plies the discount has not reflected in his daily fuel expenses.
“Since the discount was announced, many filling stations still sell at the old price. When you go there, you discover they sell you two litres at the price of one. For now, we have not seen any reduction,”_ he said.
Another commercial driver, Comrade Ishmael Uzeho who operates within the Port Harcourt metropolis, said the discount is not being implemented across the country.
“How has the discount affected us? I will say it has not. Many stations are not working. Only NNPC is working and that is just one person in the whole country. If government really wants to help, let the fuel price go down properly,”_ he said.
Uzeho added that if the price of fuel goes down, transport fares will also go down. He noted that his route fare has remained at N500.
On his part, Mr. Moses Dapa, Supervisor at Sam Jaja Foundation Transport Company, said the company has not increased its fares despite the high cost of fuel.
“We are still running normal price. We charge N2,000 and N5,000 depending on the destination. We will not increase our price. I don’t know about other parks, but for Sam Jaja, we are maintaining normal price,”_ Dapa said.
He appealed to passengers to understand that drivers are not using high fuel price as an excuse to charge excessive fares.
Other drivers who spoke said the federal government should monitor the NNPCL retail stations to ensure that the directive is implemented.
Recalled that The Federal Government in abid to reduce transportation cost in the country had announced a 30-day margin discount at NNPC Retail stations across the country from October 1 to 31,
However investigation revealed that the policy is yet to affect transportation cost in the country.
By; Stephens Sopakriba and Saint Davies
In a press statement released to The Tide’s source on Friday in Abuja, the group said Nigeria had a significant resource advantage due to its vast natural gas reserves.
“At a time when global energy markets face unprecedented volatility and rising operational costs, Nigeria stands on a massive resource advantage with its vast natural gas reserves,” the group said.
Highlighting this potential, Alfa Designs urged the nation to move past complaints over energy costs and aggressively embrace Compressed Natural Gas (CNG) as a sustainable engine for economic growth.
While federal policy adjustments have sought to cushion the impact of global energy shocks, industry experts emphasised that long-term relief hinges on a rapid, nationwide transition to gas.
“Transitioning away from expensive traditional petroleum products promises to ease the financial burden on ordinary citizens.
“It will also reposition Nigeria as an attractive industrial hub capable of drawing foreign direct investment and driving job creation,” it said.
To demonstrate the practical feasibility of this transition, the group said it recently partnered with a global Original Equipment Manufacturer (OEM) to lower the entry barriers for commercial drivers.
“By negotiating directly with the manufacturer, we reduced the total cost of acquiring and installing a CNG conversion kit for commercial tricycles (commonly known as Keke NAPEP) from up to N700,000 down to under N450,000.”
The group said this shift offers dramatic immediate financial benefits for local operators, with petrol currently selling at roughly N1,390 per liter.
It said that, in comparison, at a CNG equivalent price of about N98 per liter, a daily commercial driver using 10 liters of fuel reduces its daily energy expenditure from N13,900 to N3,980.
“This represents a daily net savings of N9,920, or more than 71 per cent.
“Over a standard 26-day working month, drivers save over N257,000, allowing them to fully recover the cost of the CNG conversion in less than 46 operational days.”
The company further stated that when scaled nationally, the economic implications are monumental.
“Nigeria consumes approximately 50 million liters of gasoline daily, costing roughly N69.5 billion per day.
“A nationwide 71 per cent reduction in fuel expenditure would generate daily national energy savings of N49.6 billion.
“On an annualised basis, this shift equates to approximately N18.1 trillion, or $13.5 billion, kept within the domestic economy.”
The group added that those recurring national savings would offer a vital mechanism to help address Nigeria’s estimated $2.3 trillion infrastructure deficit.
It said reinvesting those funds into the economy helps eliminate the 30 to 40 per cent operational overhead currently consumed by imported fossil fuels.
“The resulting boost to corporate margins expands the national tax base, generates reliable user-fee revenues to make major transit projects bankable, and creates a self-sustaining financial cycle,” it said.
