Delay in Government Approvals Puts $27 Billion Escravos Port Project in Jeopardy

The much publicized foreign investment into the Nigerian economy may take a downturn as the country is on the precipice of failing to mobilize the sum of USD $27.29 billion funding commitment for the Escravos Seaport Industrial Complex (ESIC) project in Delta State and the seven beneficiary States to the completion by June 2024.

This is as a result of the time the Federal and the Delta State government have taken to give a conclusive nod for the take-off of the project.

Mercury Maritime Concession Company (MMCC)’s chairman, Rear Admiral Andrew Okoja (RTD), said that the investors who are the proponents of the ESIC project are willing to invest funds towards the initiation of the project.

Okoja also stated that the delay in the government’s approving on the necessary may lead to a slow growth of job opportunities as was desired for the citizens of Nigeria.

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EDIB International of Hong Kong, had, at the beginning of the year, shown its interest to invest USD $27.29 billion to develop the ESIC project whose deep seaport will be located in Escravos(Gbaramatu Island/Omadino)Warri, South West, Local Government Area of Delta State; a development to be affected through Joint Venture Partnership (JVP) with a Nigerian firm Mercury Maritime Concession Company Limited (MMCC).

In its first commitment letter dated 19/01/2024 communicated to MMCC through the defending Chief Kwame Springer, the Chairman of the financing company EDIB International Ltd and their consultancy Blue Dot Wealth Ltd, the EDIB International group’s global risk assessment with details of their condition for the successful funding demanded a guarantee from the Federal Government to manage the over expansive free trade zone in the country.

As it will be recalled, Escravos Seaport Industrial Complex (ESIC) project started in 2019, with the intention to transform 31, 000 hectares of Delta State land into a Deep Seaport, Crude oil refinery, Gas Complex, Independent Power Plant (IPP), Airport, Nature Park, etc.

According to Okoja: “ESIC will transform Delta State economy and those of ESIC beneficiary states from a rural-driven economy with sprinklings of urban development to a metropolis-driven economy of international dimension. The ESIC project is a Non-Solicited Public-Private Partnership (PPP) driven project regulated by Infrastructure Concession Regulatory Commission (ICRC) Laws of the Federal Government of Nigeria.

“It is modelled after the Lekki Deep Seaport/Free Trade Zone (FTZ) to serve the marine/economic interest of the Niger Delta, Eastern and some Northern States of the Country specifically to solve the perennial port congestion problems in Nigeria.“

He highlighted that the ESIC project serves as a complimentary initiative to the ongoing Lagos-Calabar coastal road in the country.

Further, he noted that the ESIC project has a 50-year concession that will revert to the Federal Government (FG) after expiration, and that the Delta State Government has agreed to lease 31,000 hectares of land for the project. However, funding for the project is being held up due to unmet demands by EDIB International, leading to concerns that the funds may be diverted to other African states if Nigeria is not ready to proceed with the project.

“Due to the concern about the absence of response from FG and DTSG to EDIB International demands whose fulfilment is precedent to the release of funding to develop the ESIC project, the Chairman of EDIB Int’L visited the Hon. Minister, FMIT&I and functionaries of DTSG to have discussion with them on ESIC project funding on 15th May 2024. Among the subjects discussed were the ESIC project funds diversion to other African states if Nigeria was not ready yet to commence the ESIC project. “