‘Fuel Subsidy Removal, Naira Devaluation Responsible For Our Under-performance – Lekki Port

BY GBOGBOWA GBOWA

Operators and management of the Lekki Deep Sea Port Lagos says President Bola Ahmed Tinubu’s economic policy direction was responsible for the under-utilization of its installed operational capacity since the commencement of commercial activities in the port in 2023.

The company lamented that despite developing capacity utilization of 1.2 million Twenty-foot Equivalent Units (TEUs), the port is currently handling only about 20 per cent of its projected cargo throughput.

Regardless, management says the $1.5 billion Lekki Deep Seaport has concluded plans to drive up operations from 287,000 TEUs handled in 2024 to 500,000 TEUs by the end of this year.

According to reports monitored in Lagos on Thursday, Lekki Port Deputy Managing Director, Mr. Daniel Odibe said the port is currently  targeting more international transhipment cargos destined for West African neighbouring countries.

Odibe explained that with the projected operational expansion the port is optimistic to overcome the prevailing economic challenges and the unfortunate shortfall it has suffered in the past two years; even as he noted that cargo volumes are already, gradually improving and that the port processed 222,000 TEUs throughput half of the current year, January to June 2025.

He expressed optimism that the gradual rise following the commencement of transhipment activities to landlocked and neighbouring countries will be sustained to achieve the desired growth in a progressive curve.

National dailies quoted Odibe as saying: “Lekki Port currently receives between 10-12 vessels every month, and Lekki Port transhipment operations have also increased substantially.

“Lekki port is currently doing international transhipment to Togo, Benin Republic, Ghana and Abidjan, and some landlocked countries. We are picking up because the Naira is gradually picking up.

Identifying the factors that challenged its projected growth within the past three years, Odibe said, “Volumes fell because of Naira depreciation and the removal of the subsidy, and this caused a setback in our projection. As of 2023, when we started operations, we did 54,289 TEUs, and as of June of this year, we have done 222,000, and we are projecting 500,000 TEUs.”

This is even as he explained that the vessel turnaround time at Lekki Port currently stands at 48 hours as against one hour and 25 minutes for truck turnaround time, while cargo dwell time is 16 days.

Also speaking, Managing Director Chief of the Port, Wang Qiang, said efforts are continuing to raise the bar of operation to international standards.

Wang, who was reportedly represented by the Chief Operating Officer of the port, Young Qiang said, “We continue to push the envelope, set the bar higher to uphold our position as West Africa’s deepest sea port.

“The result of our unrelenting commitment to world-class standards is visible in the gigantic footprints we are putting on the map of maritime trade in Africa, deploying technology, driving operational efficiency, and shaping regional trade”, he said.

Although the port operators claimed that it receives between 10-12 vessels every month, checks with the Nigerian Ports Authority (NPA) ‘Shipping Position’ the authority’s cargo traffic information bulletin presented a lesser figure.

It will be recalled that after over three false timeline for its official commissioning by the last administration, the Lekki Port eventually took off on 31^st October 2022 following its launch by former President Muhammadu Buhari.