Nigeria Risks Losing $27.29bn Investment in Delta Seaport Project
The lead promoter of the Escravos Seaport Industrial Complex (ESIC) project in Delta State, Mercury Maritime Concession Company (MMCC), has warned that Nigeria stands to lose a $27.29bn investment if necessary government approvals are not granted by the end of June. Rear Admiral Andrew Okoja (rtd), Chairman of MMCC, issued this warning on Tuesday, citing prolonged delays by both the Federal and Delta State Governments as the primary obstacle to the project’s commencement.
Okoja stressed that investors are prepared to fund the project, which is crucial for Nigeria’s economic revitalisation. EDIB International of Hong Kong had earlier this year expressed its willingness to invest $27.29bn in developing the ESIC project. The deep seaport, located in Escravos (Gbaramatu Island/Omadino) within Warri South-West Local Government Area, would be a joint venture with MMCC.
Initiated in 2019, the ESIC project aims to develop 31,000 hectares of land into a multifaceted industrial complex, featuring a deep seaport, crude oil refinery, gas complex, independent power plant, airport, and nature park. Okoja highlighted that the lack of timely approvals from the government could result in missed opportunities for job creation and economic growth.
“This project has the potential to significantly boost the nation’s economy from its current distressing state,” Okoja remarked. He added that the ESIC project would open Delta State and seven other states, including the FCT, to international investment in trade, commerce, and industry.
“ESIC would transform the Delta State economy and those of the beneficiary states from a rural-driven economy with sporadic urban development to a metropolis-driven economy of international dimensions,” Okoja added.
The ESIC is structured as a public-private partnership under the Infrastructure Concession Regulatory Commission Laws of the Federal Government of Nigeria. Modelled after the Lekki Deep Seaport/Free Trade Zone, the project aims to address chronic port congestion and serve the economic interests of the Niger Delta, eastern, and some northern states.
Furthermore, Okoja noted that the ESIC project would complement the ongoing Lagos-Calabar coastal highway. He detailed that the project sought a 50-year renewable concession lease, which would eventually revert to the Federal Government, along with an extension to 99 years for other infrastructure and land.
“It is important to note that by this arrangement, ownership of the deep seaport would revert to the Federal Government at the end of the 50-year concession,” Okoja explained. He also mentioned the Delta State Government’s willingness, expressed in May 2022, to lease 31,000 hectares of land for the project.
Okoja underscored the necessity of integrating road, rail, and marine connectivity to optimise cargo flow. He urged the Federal and Delta State Governments to confirm the previous administration’s approvals and provide necessary guarantees to enable the release of funds by EDIB International Limited, the development partner and financier.
“We advise the Federal and Delta State Governments to take advantage of this three-week grace period before the expiration of this deadline, or else the funds earmarked for ESIC will be diverted to other needy African nations,” Okoja pleaded.
