Wednesday , June 12 2024
FG Approves Snake Island Port Development to Attract $1 Billion Investment

FG Approves Snake Island Port Development to Attract $1 Billion Investment

The Federal Government has granted an approval for the development of Snake Island Port in Lagos by Nigerdock targeted at attracting $1billion private investment while enhancing operations in the Nigerian maritime industry.

The investment is to be executed through Public Private Partnership (PPP) arrangement, with a new 45-year concession agreement.

In a statement, Nigerdock stated: “In a landmark resolution, the Federal Government of Nigeria approved the commencement, expansion and development of Snake Island Port which is set to be a significant milestone for the Nigerian maritime and shipping industry.

“The investment, which is to be executed through PPP arrangement, is with a new 45-year concession agreement for Snake Island Port with the Federal Government that allows for an expanded operational scope and will attract about $1 billion in private investment.

“This approval highlights the importance of PPPs in driving economic growth and development in Nigeria, with the country experiencing a growth in PPPs over the last decade across different sectors from energy to infrastructure, transportation, and telecommunications.

“Investments in Nigeria’s ports will improve efficiency in cargo handling and reduce turnaround times for vessels, high cost of shipping and the challenges currently experienced in logistics services. Achieving significant cost savings for businesses increases competitiveness and provides a more business-friendly environment compared to other African countries.

“Nigerdock was originally awarded Free Zone and Port Development Status by the Presidency in 2005, leading to the establishment of Snake Island Integrated Free Zone (SIIFZ) in the same year. The Nigerian Ports Authority (NPA) and Nigeria Customs Service also approved direct shipping for the facility in 2017, with the NPA green-lighting cargo handling operations in 2021’’.

 

About Bukola Olanrewaju

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