Nigeria concessions Badagry seaport at $2.6bn

Nigeria has recently approved a concession arrangement for the Badagry Deep Sea port at a whopping $2.6 billion with a 45-year moratorium, projecting revenues to reach an impressive $53.6 billion. The move is aimed at addressing the congestion issues faced by the current seaports in the country, particularly the one in Lagos. Sam Chidoka, the CEO of Kairos Capital, shared his insights on this significant development in an exclusive interview with CNBC Africa. Chidoka expressed his support for the concession, highlighting the importance of private sector involvement in running infrastructure efficiently. He emphasized the need for the government to focus on investing in critical infrastructure and leave the operational aspect to concessionaires. Chidoka also applauded the decision to hand back the port to the Nigerian government after the concession period, noting that this approach aligns with best practices in the sector. Reflecting on past experiences with concession agreements in Nigeria, Chidoka underscored the importance of robust contract terms that address termination scenarios and non-performance issues. He cited instances where concessions had to be revoked due to shortcomings on the part of the concessionaires, urging thorough due diligence by investors entering into such agreements. In light of the foreign investor interest in the Badagry deep seaport concession, Chidoka raised concerns about the efficiency of the Nigerian judicial system. He pointed out the lengthy delay in obtaining judgments and recommended the inclusion of Nigerian jurisdiction in contracts to ensure transparency and accountability. Chidoka stressed the critical need for policy consistency and judicial efficacy to build investor confidence and facilitate the smooth execution of concession arrangements. Looking ahead, the Nigerian government aims to position the country as a maritime hub for the West and Central African region. Chidoka supported this vision but cautioned that execution would be key to success. He highlighted the need to decentralize the port system, streamline regulatory processes, and enhance operational efficiency to attract more shipping traffic to Nigerian ports. Drawing comparisons with neighboring countries like Togo and Benin Republic, Chidoka emphasized the imperative of political and policy will to drive port transformation. He called for sustained efforts to improve infrastructure, address congestion issues, and create an enabling environment for maritime activities. While acknowledging the progress made with infrastructural developments like the Dangote refinery, Chidoka emphasized the importance of continuity in policies beyond political transitions to realize Nigeria's potential as a maritime powerhouse in West Africa.