Don't Miss

FG, Lagos State, Tolaram Group fight over Lekki Deep Sea Port

By BusinessNews Staff on August 9, 2014

The three main promoters of the multibillion naira Lekki deep seaport are at each other’s throat over the ownership and operations of the project.
This has led to a twist in the much-touted 2017 commencement of operations at multibillion naira project located off the ultra-modern Lekki Epe Expressway, Lagos.

The key investors, namely the Federal Government, Lagos State Government and a private investor, Singapore-based Tolaram group, were said to be at loggerheads over major decisions that will facilitate the smooth take off of the deep seaport.

Already, the fight over the soul of the multibillion naira seaport has put the fate of the project in jeopardy as key decisions on its take off could not be taken.

Though none of the promoters of were willing to speak publicly on the cause of the rift, THISDAY checks revealed that it was not unconnected with the execution of the project and its operations on completion.
It was gathered that the three prime investors in the deep seaports are not on the same page in the way and manner the project should be executed and operated.

Already, the disagreement has robbed off negatively on the scheduled date for the formal unveiling of the deep seaport.

Besides the row on the actual cost of the $1.5 billion deep seaport project, the prime movers of the project are yet to agree real value of their equities in facility.

While the three prime investors are expected to own equities of 20 per cent, 18.5 per cent and 61 per cent respectively, there fears in certain quarters that mutual suspicion of one another has dogged every further step for the deep seaport.

It was learnt that while the Lagos state government is not uncomfortable with the Federal Government represented by the Nigeria Ports Authourity (NPA), the Tolaram Group and the Federal Government are also not pleased with the over the 18.5 percent equity allocated to Lagos State Government.

According to impeccable sources, it is this mutual suspicion that is responsible for the non-signing of the final documents by the three key investors.

On the other hand, both the Federal Government and Tolaram are insisting that even though the Lagos State equity is covered by the land that it has donated, the actual value of the land is in dispute. The other partners are questioning the real value of the land even as they have called for professionals to re-evaluate it.

THISDAY also gathered that the genesis of the mutual suspicion started from the alteration in the initial 60:20:20 equity ratio in favour of Tolaram, NPA and Lagos respectively. The alteration led to the new 61.5:20: 18.5 ratio for Tolaram, NPA and Lagos respectively.

THISDAY had reported that early this year, NPA told the Senate Committee on Marine Transport that “Some amount was appropriated in the 2013 budget, but before NPA can commit funds, we have to be sure of the availability of their own fund and the verification of claims that they have injected $60 million and they have a balance of $152 million on ground”.

[This Day]

headline