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Chinese developer owns 52.5% shares at commissioned Lekki Deep Seaport
More details of the share structure of the Lekki Deep Sea Port declared open in Lagos Tuesday by President Muhammadu Buhari has emerged, showing that while 52.5% is owned by the Chinese developer, the Chinese Harbour Engineering Construction company, Tolaram owns 22.5% while Federal Government has 5% equity leaving remaining 20% for the host, Lagos State Government.
Otherwise, Tolaram Group and the China Harbour Engineering Company jointly own the new deep sea port at Lekki. 75% of the ownership rights are with them, while the Nigerian Ports Authority (NPA) and the Lagos government hold the other 25% rights.
Investigations show that Tolaram Group is not an indigenous company, but a holding company headquartered in Singapore with diversified business interests in consumer goods, fintech, infrastructure and industrials. It has a presence across Asia, Africa, Europe and South America. Subsidiaries of Tolaram Group in Nigeria include Dufil Prima Foods, Multi-pro Enterprise Limited, Lucky Fibres (Nigeria) Limited, Th Investeeringute As.
Lekki Port LFTZ Enterprise Limited was awarded the concession for 45 years by Nigerian Ports Authority on a Build, Own, Operate and Transfer (BOOT) basis. Under this agreement, LPLEL is required to develop, finance, build, operate and, at the end of the concession term, transfer the port to NPA. LPLEL will earn revenues through operations of the port.
Now completed, Lekki Port will have a total of 3 container berths, 1 dry bulk berth and 3 liquid berths.
The shareholding structure of the Port is as follows:
International Consortium led by Lekki Port Investment Holding Inc.
CHINA HARBOUR ENGINEERING CONSTRUCTION COMPANY LTD. (CHECC) 52.50
TOLARAM GROUP 22.50
Lagos State Government 20.00
Nigerian Ports Authority 05.00
STRUCTURE AND RESPONSIBILITY
On 21 April 2011, LPLEL entered into a Concession Agreement with NPA for the rights to build and operate a deep-sea port in Ibeju Lekki, Nigeria. This Concession is granted under the Nigerian Ports Authority Act 2004. The Concession and the Nigerian Ports Authority Act 2004, form the legal and regulatory basis for the construction and operation of Lekki Port.
As LPLEL has ultimate responsibility under the Concession Agreement, it will manage the interfaces between NPA, the Lekki Port operations manager and the three industry specialist terminal operators.