The Trouble With The Proposed Badagry Deep Seaport

BY EGUONO ODJEGBA

Thirteen years after the proposed Badagry Deep Seaport was conceived, the project seem far from been realized, and somehow believed to be jinxed by multifaceted and unending obstacles, which  cuts across interests that are profound and far reaching; both economic, legal and political.

Registered with the Corporate Affairs Commission (CAC) of Nigeria in October 2, 2012 with registration number 1068718, the Badagry Deep Seaport has suffered a number of failed timelines for the commencement of its construction.

Accordingly, forecasts and operational permutations for its performance predicated against 2030 has all fallen like a pack of poorly arranged cards. The development has since created a cacophony of discordant tunes bringing in its wake newer challenges and uncertainties, in addition to reinforcing doubts in certain quarters about the commitment of the critical stakeholders: the federal and Lagos state government, together with the promoters of the project and associated stakeholders.

While government officials at both the federal and state level have unavoidably resorted to the shifting of the goal post at critical moments, the immediate past Minister of Transportation, Mu’azu Jaji Sambo in 2022 reaffirmed that the Badagry Deep Seaport planned on Build-Own-Operate-Transfer basis under a  Public Private Participation (PPP) arrangement is projected to create about 250,000 jobs and generate $53.6bn revenue.

In an attempt to understand the underlying factors that has produced the sorry state of the proposed seaport project, we have a duty to re-examine the following elements.

Ownership of Badagry Deep Seaport

As a legal business entity, the Badagry Deep Seaport is roughly speaking, a tripartite equity holding between the Federal Government represented by the Nigerian Ports Authority (NPA), Lagos State Government and Badagry Port Development Limited, promoter of the project.

The Badagry deep seaport project is believed to be an initiative of a consortium led by APM Terminals, Orlean Invest, Oando, Terminal Investment Ltd and Macquarie; among other investors, some of which inclusion are still shrouded in secrecy.

In 2022, the Minister of Transportation, Sambo reaffirming the port’s ownership and operational structure and agreement said almost enthusiastically that the Badagry Project was something to look forward to.

“I presented a memo today at council with respect to the development of the Badagry Deep Seaport under the public-private partnership arrangement, where the private sector will inject money for the development of the port and at the end of the concessionary period, the port reverts to the Federal Government of Nigeria through the Nigerian Ports Authority.

“The project cost as contained and approved in council based on the final business case as approved by the Infrastructure Concession Regulatory Commission (ICRC) in line with extant laws stood at $2.59bn. It has to be developed in four phases with milestones and a concessional period of 45 years.”

The True Ownership Controversy

Gov. Babajide

While on the surface the ownership structure is limited to the aforementioned partners namely, NPA, LASG and the Promoters, indigenes of the land suspect that there is more to the bargain that could harm them substantially in the future; even as they worry over perceived plot to at some point dispossess them of their ancestral land and turn them into fugitives.

A report by the popular online newspaper, Sahara Reporter quoted a source as saying that whereas the affected people in the 13 communities in Badagry West are happy and look forward to the project, they perceive tendencies he says manifestly cunning and targeted at grabbing their land; hence the people became overly cautious and withdrawn, signaling the lack of interest that initially attended the proposal.

He also claimed that the promoter who is also fronting for some local Nigerian commercial banks and international maritime business organizations cannot be trusted.

He reportedly further alleged that the promoter is misleading the investors, citing the instance of  ‘no land associated dispute’ as a case; while insisting that the promoter is yet to pay compensation on the land nor presented a resettlement cost outlay.

The source according to Sahara Reporter is also alleging other sinister motives aimed at manipulating the record of the acquired their land for the proposed project.

“Along the lines, they kept expanding and changing details of the coverage area. The initial ask was 228,083 hectares of land, which surprisingly is bigger than the most ports around the world and the number keeps changing every time in a very opaque arrangement.

“Also, 13 actively inhabited communities are currently being asked to vacate their ancestral homes without any concrete arrangement as to relocation or compensation, neither has there been any direct consultation or meetings between these private business partners and the landowners, talk less of any architectural drawing of the actual proposed project, detailing the coverage area”, the source allegedly told Sahara Reporter.”

Sambo, immediate past minister of transportation

The Sahara Reporter source continued: “This is an agenda for forced displacement and a formula for making the landowners IDPs on their ancestral land by strangers conducting their private business with a good measure of greed.

“Only a portion of the proposed land coverage is needed for the project while the remaining huge expanse has already been shared on paper by the promoters of the project and Lagos state officials.

“The project is being aggressively promoted by a company called Badagry Port Development Limited. Badagry Port Development Limited had told a huge lie to their partners, as contained in their executive summary, claiming that there are no land dispute issues on the proposed area”, he lamented.

Demand for Equity Participation

In 2020, the Mobee of Badagry Kingdom, High Chief Menu Toyon, pointedly demanded for direct meeting with the actual investors aimed at reportedly resolving all disputes associated with the proposed acquired land as well discuss their equity holding in the deep seaport project.

The Badagry Mobee who doubles as the spokesman of the 13 affected communities, complained that so far, APM Terminals, evidently the biggest equity holder in the project share holding and other stakeholders had not addressed the host communities concerns regarding their (host communities) equity participation.

He said, “Some peoples’ properties are going to be used, some people will be relocated, let APM Terminal come and meet with the stakeholders and talk to us. Though we held a meeting about two years ago, we have not heard from them since then.

Bala, ex- NPA CEO

“The state government will be having 20 percent, federal government will be having 20 percent and APM Terminal will be having 60 percent, which is 100 per cent; what percentage are they giving to owners of the land?”, he asked rhetorically.

“My grandfather was among the first farmers at the Gberefu beach land in the 1880s and till now, we the stakeholders have nothing to show that things are coming to Badagry. For now, there is no disagreement between the federal or state government and the stakeholders, but what we are expecting now since the inauguration has been done in Denmark by (Governor) Ambode Akinwunmi where he appointed Ernest Shonekan, the former interim president and chairman of the APM Terminal is for parties to reach a compromise on the issues at stake.”

The Badagry royalty said they are happy that a project of the nature is coming their way, he owever demanded that the deal must be fair and straight.

Dantsoho, MD NPA

“In 1873, arbitrators were appointed on this axis, I have the document and everything is with me. Now before starting anything, there must be peace accord, amiable settlement between the stakeholders and APM Terminal.

“We welcome the idea, it is in a very good direction but at the same time, we are in fear that what happened in Niger Delta does not to happen in Badagry.”

It will be recalled that Governor Sanwo-Olu Babajide of Lagos State at a meeting with the host communities in 2022 had said the government was expecting approval for the port project in April to allow for construction work begin in June same year as a commitment of his administration to see the project kick off.

“About 10 years ago during the administration of one of my predecessors, Mr. Babatunde Raji Fashola, this Sea Port Project, which is the reason we have organised today’s community engagement, was conceived as a flagship project that when fully operational, would not only boost the fortunes of the people of Badagry, but, also transform the entire economy of our State and that of the entire West African sub-region.

“We need to go to Abuja to get a re-ratification because it is NPA that owns the license for port. So, we need to get ratification from Abuja. That process has started and we are praying that before the end of April, we will get that ratification. Once we get that ratification, by the grace of God we will plan to see if we can start something by June. Once we get that ratification, two months, we must activate something. We want to start the project as soon as possible. We want to deliberately push development to this axis.

“The Badagry Deep Sea Port Project is not just one project; it is a multi-level opportunity for progress for all the people of this State in view of the volume of trade and quantum of investment opportunities that would spring up in the area when the project commences, and when it is completed and operational. Very importantly, employment and capacity building for the teeming youth and women in the affected communities will be prioritized”, he stressed.

TO BE CONCLUDED TOMORROW