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Africa’s Deepwater Port: A $1,25 Billion Investment That Will Generate $205 Billion and Transform Global Trade

Written by Bruno Teles
Published 21/01/2025 às 20:42
Africa’s Deepwater Port: A $1,25 Billion Investment That Will Generate $205 Billion and Transform Global Trade
The African Deepwater Port will generate $205 billion over 45 years from taxes, fees and royalties. In addition, the trade, industry and services surrounding the port will also contribute to this huge result.

Built in Nigeria with Chinese investment, the African Deep Water Port has the capacity to handle 2,7 million containers per year, promises to create almost 170 jobs and position the continent as a global commercial powerhouse.

Built with an investment of over US$1,25 billion, the port is much more than a gigantic structure; it is a promise of transformation for West Africa. Since its inauguration in April 2023, it has been described as a “game changer” for regional maritime trade. But what makes this port so special?

Why is Lekki Port a game changer?

Before Lekki, Nigeria's ports were in crisis. Many were old, with limited capacity, and could not keep up with the country’s population and economic growth. Lagos, Nigeria’s largest city, suffered from congestion at its two main ports. Lekki was designed to solve this problem, operating efficiently to process 2,7 million containers per year. With this capacity, it alleviates logistical bottlenecks and positions Nigeria as a strategic hub in Africa.

China's role in the development of Lekki Port

China financed and built the African Deepwater Port, investing heavily to ensure its modern and efficient operation. Chinese companies own 75% of the project, showing the country’s interest in strengthening trade ties with Nigeria and expanding its influence in Africa.
China financed and built Africa’s deep-water port, investing heavily to ensure its modern and efficient operation. Chinese companies own 75% of the project, showing the country’s interest in strengthening trade ties with Nigeria and expanding its influence in Africa.

Who would have thought that China would be so deeply involved in a Nigerian project? The port was 75 percent financed by China Harbour Engineering Company and the Tolaram Group, with the remainder controlled by Nigerian government entities. The partnership demonstrates China’s growing influence on the African continent, driving infrastructure development in exchange for bilateral economic benefits.

This collaboration has resulted in a modern project, strategically positioned to attract international trade and generate billions in revenue.

Long-term economic benefits for Nigeria

And the return on investment? Impressive. The port is estimated to generate US$205 billion over 45 years. It will create almost 170 direct and indirect jobs, a significant boost to the local economy. These figures show that the Lekki Deep Sea Port is not just a physical structure, but an economic engine for the country.

Tax collection and expected royalties have the potential to finance other projects infrastructure, in addition to strengthening sectors such as manufacturing and commerce.

The connection with the Dangote Refinery

Lekki is not alone in this transformation. Located next to the Dangote Refinery, Africa’s largest oil refining complex, the port creates a perfect synergy. With a refining capacity of up to 650 barrels per day, the refinery complements the port, making the Lekki Free Trade Zone a true ecosystem for industrial development.

This proximity reduces logistical costs and increases the competitiveness of Nigerian exports, especially in the energy sector.

Regional and global impacts of Africa’s deep-water port

Lekki’s impact extends beyond Nigeria. As one of West Africa’s largest deep-water ports, it strengthens international trade routes, connecting the region to global markets. The ability to handle large volumes of cargo attracts investors and companies interested in exploring Africa’s potential.

More than that, the port positions Nigeria as a key player in global trade, helping the continent compete on equal terms with other emerging economies.

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Paulo Roberto Bianchi
Paulo Roberto Bianchi
22/01/2025 10:13

China always at the forefront.👏👏👏👏👏

Michel
Michel
23/01/2025 11:49

China is betting on economic integration with the world and especially with emerging and underdeveloped countries. The United States and Europe should do the same and this would avoid wars and illegal immigrants in both Europe and the United States.

Bruno Teles

I talk about technology, innovation, oil and gas. I update daily about opportunities in the Brazilian market. With more than 3.000 articles published in CPG. Agenda suggestion? Send it to brunotelesredator@gmail.com

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