FG To Withdraw 20% Equity In Lekki Free Trade Zone

The Federal Government has disclosed plans to withdraw its 20 percent equity holding in the Lekki Deep Sea port development, which is aimed at developing Lekki Free trade Zone in Lagos State.

The Federal Government holds 20 percent equity in the project, representing, $118 million; the Lagos State Government, holds 18.5 percent, while the Tolaram Group of Singapore has 61.5 percent.

The Minister of Transport, Mr Rotimi Amaechi said this, yesterday, after a two day conference of the African Ports Evolution (APE) held in Accra, Ghana. Mr Amaechi, who emphasized the need for a level playing field for all the promoters of deep sea ports in the country, noted that investors out of fear, have always wanted government’s involvement in project developments as a guarantee for sustainability.

The Minister, however, assured investors of continuity of projects in Nigeria, irrespective of the government in power. He added that while the other deep sea ports are being developed independent of the Federal Government via hundred percent private sector participation, it will be wrong for the government to take up equity interest in the Lekki Free Trade Zone.

He cited the Badagry Deep Sea Port development, where the promoters have earmarked $2.2 Billion for its development without the involvement of the Federal Government, reiterating that the government lacks money for such project at the moment.

The deep seaport until now, is a joint venture project of the Federal Government, which is being represented by the Nigeria Ports Authority, NPA, the Lagos State Government, Lekki LFTZ Enterprise and a Singaporean based investor, the Tolaram Group.
Vanguard