By Alex C
Lekki Port, Nigeria’s first ever private/public partnership, touted to revolutionise the maritime sector and spur unprecedented economic growth, has received a major boost with the recent conclusion of the due diligence required by one of its key investors, the Nigerian Ports Authority (NPA), putting it on a firm footing to see it become operational by 2018.
With this development, the much anticipated funding from shareholders expected to fuel rapid construction of the Lekki Port will now be ploughed into the project, so that the next phase of development can commence in earnest.
The deep seaport is a $1.5 billion public private partnership project between the Federal Government (represented by the NPA), the Lagos State government and the Tolaram Group. A shareholder’s agreement to this effect was signed in December 2012, among all three parties.
Lagos State’s equity and that of the Tolaram Group are in place, while NPA is in the process of making its equity contribution into the project. It is a standard procedure for due diligence to be conducted by shareholders before infusion of equity into a project.
NPA has carried out and concluded its due diligence on the project through a credible auditor, KPMG, to ensure accountability, transparency and value for money of the project, which is essential and crucial to a project of this magnitude. The NPA on its part has also got its Federal Government budget approved by the House of Assembly.
Federal Executive Council approval for the project and issuance of the Finance Guarantee were received in December 2013.