The $1.5 billion Lekki Deep Seaport in Nigeria, which commenced commercial operations in April 2023, is reportedly facing challenges amid the nation’s economic downturn. The ongoing Naira devaluation, foreign exchange (FX) scarcity, and high exchange rates have contributed to a lull in business activities at the nation’s seaports, including the newly established Lekki Deep Seaport.
Statistics provided by Bolaji Abimbola, the media consultant to the port, indicate that the seaport has witnessed limited activity during the past six months. In this period, from April to September 2023, the Lekki Port received a total of 36 vessels. These vessels transported a combined 18,198 twenty-foot equivalent units (TEUs) during this timeframe.
Notably, 18 out of the 36 vessels brought in transshipment containers, with the cargo destined for other West African neighboring countries, aligning with the Nigerian Ports Authority’s goal to establish Lekki Port as a regional hub.
A source close to the port emphasized the challenges faced by the country’s economic hardship, which has led to reduced import volumes, impacting Lekki Port. The high exchange rate of the Naira to the U.S. dollar and escalating inflation have eroded the purchasing power of importers and consumers in Nigeria, affecting business operations.
During a visit to the Lekki area and the Lekki Port, it was observed that limited truck movement was taking place due to a strike by the Lekki Port chapter of the Maritime Workers Union of Nigeria. The strike was initiated in response to the terminal operator, Lekki Freeport Terminal, not fulfilling the collective bargaining agreement and child education allowance for workers, similar to other ports in Nigeria.
It was also noted that trucks were not parking indiscriminately on the road near Dangote Refinery, reflecting a high level of efficiency and orderliness in truck movement in the Lekki area.
Kehinde Olubi-Neye, the chief commercial officer of Lekki Freeport Terminal, mentioned the port’s use of a vehicle booking system linked to an automated gate, where truck drivers must book appointments in advance. This system operates similarly to an electronic call-up and streamlines truck access to the port and container pick-up.
Laurence Smith, the chief operating officer of Lekki Port, highlighted the 150-capacity truck park, which aims to eliminate traffic congestion associated with existing ports and prevent truck parking on access roads.
Lekki Port is also exploring the use of barges for container transportation via the waterway to further facilitate the movement of cargo in and out of the port.
Despite the initial challenges, port authorities remain optimistic about the future and are actively working to promote Lekki Port as an efficient and viable option for import and export operations.
