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HomeAfricaAFC leads construction of 124b naira port project in Nigeria

AFC leads construction of 124b naira port project in Nigeria

The Africa Finance Corporation (AFC) will lead two other firms to construct sub-Saharan Africa’s first deep sea container port at Olokola, a town located between Ondo and Ogun states in the country’s South-west, the local BusinessDay Newspaper reported Monday  December 31st (118 naira=US$1).

The Memorandum of Understanding (MOU) for the 124 billion naira project was signed in Hong Kong by the Consortium – including Dangote group and Western Metal Product Company (WEPCO) – the Olokola Export Free Trade Zone Company (OKFTZC) and the Ondo/Ogun governments.

“This is a landmark infrastructure project in Africa and critical to the economic development of the region.

At current all time world freight prices and given Africa’s limited shipping capacity, the Olokola Deep sea container port will deliver efficiency for Africa, providing first time access to 50 tonnage ocean container line,” Austine Omotoruwa, the AFC Chief Executive Officer, said at the signing.

On completion, the project will dramatically transform Africa’s shipping and port capacity.

Under the MOU, the AFC led consortium will mantain a 78% shareholding, with Africa Infrastructural Ltd, a wholly owned AFC subsidiary, carrying out the role of sole project developer.

AFC, the new private sector-led regional investment bank which began operation in April, is also the project’s sole Financial Adviser.

“The (port will be the) very first in sub-Saharan Africa to drive the economic development of our joint Atlantic coastal states of Ogun and Ondo and make Olokola Africa’s economic gateway to the World,” said Ogun State Governor Gbenga Daniel.

Also, as part of the MOU, host Ogun and Ondo States and the local community will hold 22% shareholding in the project.

This is to ensure that the host community has a vested interest and share from the project’s success.

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