Aliko Dangote, chairman of the Dangote Group and one of Africa’s wealthiest individuals, has taken a bold step in efforts to transform Nigeria’s maritime infrastructure by submitting paperwork for the construction of what he calls the “biggest, deepest seaport in Nigeria.” In late June of this year, a proposal was submitted to Ogun State authorities.
Set against the backdrop of the Olokola Free Trade Zone located in Western Nigeria, the proposed site lies some 100 kilometres from Dangote’s existing oil refinery and cement factories, serving as a strategic spot for logistic operations.
The completion of the deep sea port, facing the Atlantic, is envisioned to facilitate exports of liquified natural gas(LNG) as well as streamline supply chains for Dangote’s cement and oil refinery businesses. The Dangote group’s current reliance on a private jetty for fertilizer exports, which also serves heavy equipment needs, highlights the growing need for a full capacity maritime solution.
The revived interest in Olokola is not new. Initial plans to build Dangote’s refinery and fertilizer projects in the zone were abandoned due to friction with previous governments. But the return of Ogun’s current governor, Prince Dapo Abiodun, could be a contributing factor to the renewed investor confidence, smoothing the way for future infrastructural plans.
Deep sea ports are an important asset in the maritime industry as they are capable of handling larger ships, equalling higher efficiency and preferability for transhipment activities. Countries with deeper sea ports boost their economy and maritime popularity. This move by Dangote will project to an increase in overall GDP and serve as a competition to the Lekki Deep Sea Port, the first of its kind in Nigeria.
Dangote himself has revealed that the port is not just important for his group’s logistics. In an interview with Bloomberg, he remarked that “it is not only that we want to do everything by ourselves, but I think doing this will encourage other entrepreneurs to come into it.”
Should this project proceed, it will position Dangote’s port as a direct competitor to Nigeria’s existing deep-sea infrastructure, in particular, the Lekki Deep Sea Port. This 16.5 meter draft and full automation is a Chinese backed facility which began its operation in April, 2023. The Lekki Deep Sea Port is also recognised as a gamechanger in Nigerian shipping, enabling faster cargo handling and improved regional trade capacity. Now, Dangote’s fully Nigerian-owned port promises a different narrative, with a focus on domestic ownership and possible self-reliance.
The economic implications of Dangote’s project are numerous. The proposed port exposes Nigeria’s need for better road and rail connectors, a gap which if unaddressed will continue to limit the effectiveness of even the deepest ports. Beyond enabling fertilizer and LNG exports, the port could also be a factor for Ogun’s industrial growth, enhance GPP contributions and boost trade volumes across West Africa.
Featured image: Photo by Stepan Konev on Unsplash
