A Chinese-funded deep-water port has been inaugurated in Nigeria

Nigeria’s President Muhammadu Buhari has inaugurated a $1.5 billion Chinese-funded deep-water port in the commercial center of Lagos. The authorities hope that this port will contribute to the economic growth of the country.

Lagos Governor Babajide Sanwo-Olu said the Lekki deep water port is one of the largest in West Africa, expected to create hundreds of thousands of jobs and reduce cargo congestion costing billions of dollars in annual revenue.

The port’s container terminal can handle at least 2.5 million standard 20-foot containers per year. It will operate as a joint venture between the Nigerian government, Lagos State, Singapore-based Tolaram Group and the state-owned China Harbor Engineering Company. However, two foreign companies have a large 75% stake in the project.

Nigeria is the largest economy in Africa, but its development is lagging behind due to lack of infrastructure. and poor management of existing ones. The country has six major seaports, with over 80% of Nigeria’s imports going through just two ports in Lagos, where congestion has caused cargo to be diverted to other West African countries.

Officials say the new deep-water port east of Lagos will help divert traffic from congested ports and boost revenue. The expected economic benefit is more than 360 billion dollars.

Ships docked for Lagos governor” It could be up to four times larger than the ships currently docked at Tin Can and Apapa ports. The other two ports of Lagos.

on his side, Chinese Ambassador to Nigeria, Cui Jianchun, said the gate would not only be an engine of economic development for Lagos but for the entire country.

“It is the engine of the economy not only for the governor of Lagos but also for the Federal Republic of Nigeria” Cui Jianchun said. “This is participation in investment. This is not a loan; this is not a loan – this is an investment. »

Bilateral trade

China represents a quarter of Nigeria’s purchases abroad, with the Middle Kingdom maintaining its position as the West African country’s leading trading partner.

The volume of trade between Nigeria and China has reached $26 billion in 2022Allen Zhang, the head of the commercial office of the Chinese Embassy in Nigeria, said on Thursday (January 19).

“The trade relationship between Nigeria and China is a win-win relationship. Last year, the trade turnover between the two countries reached 26 billion dollars.he was quoted as saying by The Punch.

“This is three times the trade volume between China and Ghana. This volume is also four times more than the trade between China and Kenya, and six times more than the trade between China and Cameroon.”he added.

In 2020, China separated Nigeria from the United States and concluded cooperation agreements. LNigeria’s exports to China continue to consist mainly of raw materials, including crude oil. Its imports from this Asian giant consist mainly of finished products: machinery, textiles and clothing, transport equipment, electrical and electronic components, etc.

In addition, agro-food company Zeenab Foods plans to collaborate with the Export Promotion Council (NEPC).Send 20 containers of ginger and sesame worth $1.5 million to China by March 2023According to Babajide Falake, representative of NEPC CEO.

The transaction is part of the opening of the Nigerian Export Trading House to China, which should enable the private company to tap into market opportunities in China, the world’s largest importer of sesame and a leader in global ginger production.

Featured Image: Port of Djibouti

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