30/10/2014
LEKKI-EPE: THE MAKING OF AN INVESTMENT HAVEN
With a proposed $9 billion Dangote Refinery and Petrochemical Company, the Lekki-Epe International Airport, the Lekki Deep Seaport, and other mega infrastructure to be built in the Lekki Free Trade Zone (LFTZ), this axis of Lagos State is an emerging investment haven. Asst. Editor Chikodi Okereocha looks at how the riverine community is positioning itself to take advantage of these opportunities.
Their joy knows no bound. Despite the prevailing economic hardship, it is easy to extract a smile from an indigene or resident of Epe, an ancient riverine community in the outskirts of Lagos. They have reasons to be happy. The fortunes of Epe people, whose occupation is fishing, may soon soar as local and foreign investors perceive the community as irresistible.
Many multi-billion dollar projects have either taken off or are in the process of doing so within Epe, just as about 700, 000 residents of the community are positioning themselves to take advantage of the fast-rate business and industrial development.
Some of the mega projects that have raised the adrenalin of the residents because of their job potential include the proposed $9 billion Dangote Refinery and Petrochemical Company, the proposed Lekki-Epe International Airport, the Lekki Deep Seaport in Akodo, Ibeju-Lekki Local Council of the state, and the Lekki Free Trade Zone (LFTZ), in Ibeju Lekki, which is about 15 minutes from Epe.
Within the LFTZ, infrastructure, such as hotels, golf courses, resorts and business areas for local and international brands are expected to spring up. These are complemented by an aggressive development of the various tourism potential in the axis, as well as investments in real estate and road construction. The area boosts of excellent road networks, which together underscore the position of Epe as Nigeria’s emerging business and investment hub.
Already, the development of the Lekki Deep Seaport has begun. The shareholders’ agreement has been executed while preliminary works have started at the site for the Phase 1 of the project expected to cost $1.5 billion. This was after Tolaram group, a Singaporean firm and parent company of Lekki Port Lagos Free Trade Zone, LFTZ, Enterprise, completed its environmental impact assessment study of the project in line with the World Bank guidelines. When completed, the port would reduce the pressure on the Apapa and Tin-Can Island ports and also support business activities at the LFTZ.
The Lekki Port, spread across 90 hectares of land, is a Private Public Partnership, PPP, with the Nigerian Port Authority (NPA), Lagos State Government and other non-government bodies, is expected to contribute over N32.2 trillion to the government treasury when completed by 2016. More than 10, 000 jobs are projected to be created directly and indirectly during the construction period while more than 169,000 jobs would be generated directly and indirectly when it becomes fully operational.
Managing Director of Lekki Port, Haresh Aswani, is optimistic that when completed, the port will spur economic development around the Lekki sub-region and the whole of Lagos State through rapid industrialisation. He disclosed that to ensure smooth and efficient operations, the company engaged the services of global consultants in the mould of The Louis Berger group, a United States-based project management consultant; a coastal and maritime engineering firm; and TBA Netherlands, a maritime terminals and software consultant, among other firms.
“Lekki Port has been conceptualised on the basis of a significant gap in projected demand and capacity needed to be met in conveying goods to and from Nigeria. The demand is attractively high and the available capacity will not be sufficient to meet this demand. The economic viability of the port is founded on this unmet demand,” Aswani explained, adding that while Tolaram group holds about 45 per cent, the Federal Government through NPA and Lagos State government has about 20 per cent each.
Because the LFTZ was envisioned as an investment haven, its promoters thought it wise to built an ultra-modern international airport in the area to complement activities at the zone and also provide alternative air transport services in the state. The Lekki-Epe International Airport is designed to handle about five million passengers annually with provision for a modular terminal for future expansion. Preliminary works on the airport project have commenced with the clearing of 150 hectares (runway), 4.5km of the access road and 9km of perimeter road.
The Nation learnt that the Lands Bureau has since completed the crop enumeration on the designated site for the airport. This was to facilitate the payment of compensation to affected land owners and farmers. The proposed airport, like other projects, would be built and managed by private investors in line with the present administration’s policy on PPP.
At the inauguration of the LFTZ, Lagos State Governor Babatunde Fashola declared: “The LFTZ is beginning to take shape. The master plan is being realised; investors are trooping in. Tank farms and major refineries are springing up to service the demands of the country and make room for export. The refineries create a major selling point and release of the opportunities that lie ahead in this zone, create opportunities for the local people and the potentials for Lagos and the Nigerian economy.”
The Dangote Refinery and Petrochemical Company for which Aliko Dangote, billionaire businessman and president, Dangote Industries Limited (DIL) is committing $9 billion, no doubt represents that unique selling point and release of the investment opportunities in the Lekki/Epe Corridor. DIL has since signed a loan agreement valued at $3.3 billion with a consortium of 12 local and international banks to establish the biggest petroleum refinery and petrochemical/fertiliser plant.
The credit facility, jointly packaged by Standard Chartered Bank as the global coordinator, and Guaranty Trust Bank (GTBank), as the local coordinator, represents the first tranche of financing for the project by the banks. Other participating banks are Access Bank, Zenith Bank, Ecobank Nigeria, Fidelity Bank, First Bank Nigeria, Standard Bank of South Africa, United Bank for Africa, UBA, FirstRand Bank, First City Monument Bank, and Diamond Bank. Dangote will contribute $3 billion to the total cost of the project estimated to be $9 billion. The plant has a completion date of 2016.
Expectedly, the choice of the Lekki/Epe corridor for these gigantic projects is sweet music in the ears of indigenes and residents of Epe because of the obvious multiplier effects on the economy and livelihood of the locals. “A lot of investments have been coming in. We have thousands of our sons and daughters who are graduates without jobs. If they (investors) employ 25, 000 and take 8, 000 as engineers, its a very big opportunity for us here. And for having a gigantic project like refinery in this axis all of us know what it means, it will create a lot of jobs for our people,” an excited Oba kamarudeen Ishola Animashaun, the Oloja of Epe Land, said.
The paramount ruler of Epeland was full of appreciation to the Lagos State Government. “We thank Governor Fashola for making sure that the Dangote Refinery is not in Ogun State but in Lagos State. We appreciate all his efforts in that direction. We also give thanks to Bola Ahmed Tinubu who created the LFTZ. They have done the preliminary road for the airport project. They are putting additional buildings to the General Hospital, Epe. We know that when all these projects take off we will be better for it,” he said, adding, “We welcome these developments; we are not joking with them.” And to underscore the excitement of residents of the community over the upsurge of investments in the area, they organised a facility tour of development projects within the Epe axis on Sunday, March 2.
The tour also underscores the fact that indigenes and residents of Epe are determined to position themselves to take advantage of the rapidly changing investment and industrial landscape. The traditional ruler epitomises this new thinking along the line of ensuring that the bountiful opportunities thrown up by what looks like a ‘scramble for Epe axis’ by investors does not pass the town by.
Consequently, Oba Animashaun, an engineer, and former equipment supplier to Westminster Dredging, has since relocated his business to his Epe kingdom to take advantage of the investment boom in the area. Today, he supplies dredging pipes, irons, welding equipments, excavators, bulldozers, pay loaders, rollers and some other equipment used for road construction.
As part of the positioning, the host community has also assured the investors and would-be investors of their full cooperation by way of making their lands available and guaranteeing maximum peace and security. Oba Animashaun however, said that investors allocated land “should try to make sure they utilise those lands they are buying now to build big hotels, factories and residential houses to accommodate the increasing number of people trouping into the area on account of the fast-paced developments. There is no enough houses in Epe.” While conceding that “there is no way you will have thousands of people without seeing some bad elements,” he said the leadership of the community has strengthened its awareness campaign aimed at ensuring that various groups in the community understand the need to key into the new era.
Throwing more light on the awareness drive, the monarch said: We have the youth leaders, the women wing; we call them group by group and educate them, talk with them, look into their problems, have a very good interaction with them. So, we have a very good relationship with both the youths, the women and the elders from time to time to know where they need assistance. We do a lot of empowerment programmes for our youths so when these developments will start they can get something to do. We always talk with them from time to time.” These, he said, are done after extensive meetings and consultations with the community’s numerous chiefs and the Baales. The Lagos State Government also appointed some Obas again to seat down with members of the community to see areas where the people need assistance.
Apart from positioning themselves to take advantage of the numerous business and investment opportunities, the Epe people are also strengthening their culture, part of which is the aggressive marketing of the age-long Eebi Epe Festival. So far, only MTN has been given the festival support. Chief Aniola Tobun, Kemolu of Epe Land and Secretary, Eebi Festival Committee, however, told The Nation that the community has commissioned some promoters to ensure that the festival attracts the necessary sponsorship and support from other corporate organisations across the country to bring the festival to the status of other major festivals in the country. He however, carves the assistance and support of the media to propagate the festival, which seeks to promote the culture of Epe people.
As the Epe people are basking in the euphoria of the upsurge of investment in their domain because of the expected positive spin-offs, poor electricity supply remains a challenge. “Our problem here is electricity,” Oba Animashaun said, adding that he spends about N16, 000 daily on diesel to run the palace.
