The Federal Government has approved the development of Snake Island Port in Lagos by Nigerdock, a leading service provider to the offshore oil and gas sector.
The project, which will be executed through a Public-Private Partnership (PPP) arrangement, will attract about $1 billion in private investment and enhance the operations of the Nigerian maritime and shipping industry.
The approval was granted on May 17 by the Federal Executive Council (FEC), which has overseen the implementation of major infrastructure projects across the country. The approval allows for an expanded operational scope and a new 45-year concession agreement for Snake Island Port with the Federal Government.
The Snake Island Port is an 85-hectare, multipurpose port facility comprising three terminals located within Snake Island Integrated Free Zone. The port will provide cargo handling, ship repair, marine services and logistics solutions to the maritime sector.
Nigerdock was originally awarded Free Zone and Port Development Status by the Presidency in 2005, leading to the establishment of Snake Island Integrated Free Zone (SIIFZ) in the same year. The Nigerian Ports Authority (NPA) and Nigeria Customs Service also approved direct shipping for the facility in 2017, with the NPA green-lighting cargo handling operations in 2021.
The Chairman/CEO of Nigerdock, Maher Jarmakani, said the PPP project, which has been in the works for some years, will see Snake Island Port immediately commence operations as an expansion to Nigerdock’s existing operations, while the shipyard and Free Zone remain core parts of the business.
He said: “This Public Private Partnership with the government will also facilitate job creation and develop critical infrastructure vital for the nation’s growth. In addition to its operations in ship repair, logistics, and free zone solutions, Nigerdock had already been in terminal operations following approval from the Nigerian Ports Authority (NPA) and Nigeria Customs Service (NCS)”.
He added that it was estimated that the total investment by the private sector for the development of Snake Island Port would be about $1 billion initially, with a further $850 million re-invested over the project’s lifetime. Under a 45-year concession, the project was also estimated to generate over $5.2 billion revenue to the Federal Government over the period.
