Nigeria is hoping to realize $5.2 billion in revenue generation from the expansion of the Snake Island Port, being operated by Nigerdock.
The company provides services to the offshore oil and gas sector the facility is under a 45-year concession, and has been estimated to generate over $5.2 billion in revenue for the Government over the period. Specifically, the company focuses on ship repair and marine services.
This reality is coming after the company received approval from the Federal Government to expand the Snake Island Port, a project estimated to cost over a billion dollars.
The Federal Executive Council (FEC) under the administration of the immediate-past President, Muhammadu Buhari, gave the go-ahead for the Public Private Partnership (PPP) Project at its meeting held on May 17, 2023, in Abuja.
Nigerdock, in a statement, stated 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.
Sequel to its privatisation, it was acquired in 2003 by Jagal, a diversified Nigerian conglomerate led by the late Anwar Jarmakani and his two sons, Manssour and Maher Jarmakani.
After acquiring Nigerdock, Jagal embarked on an ambitious expansion programme, investing heavily in new infrastructure, equipment and facilities, rapidly expanding the company’s workforce, increasing productivity, and improving efficiency.
As a result of the investments, Nigerdock was able to significantly improve its capabilities and expand its service offerings. The company became a leading service provider to the offshore oil and gas sectors providing EPC fabrication, marine services and supply base logistics.
It played a central role in the growth of Nigeria’s local content capacity and the development of the country’s energy assets.
Under the core investment of Jagal, Nigerdock acquired a series of approvals over the last 20 years. The company was awarded Free Zone and Port Development Status by the Presidency in 2005 for its 252 hectares of land at Snake Island, Lagos, which led to the establishment of the Snake Island Integrated Free Trade Zone.
In 2017, approval was granted by the Nigerian Ports Authority (NPA) and the Nigeria Customs
Service (NCS) for direct shipping, underscored by the company’s scale-up efforts to expand its Free Zone and Port Terminal operations, serving as a hub for strategic logistics and manufacturing businesses to set up.
This was followed by the registration of the company by the Nigerian Maritime Administration and Safety Agency (NIMASA) as a Terminal Operator. Furthermore, Presidential and Customs approval was granted to Nigerdock and Snake Island Integrated Free Zone to operate as a wharf within Apapa and Tin Can Ports in Lagos.
Approval was equally granted by the NPA for the commencement of cargo handling operations.
The FEC’s approval would see Snake Island Port commence immediately as an expansion to Nigerdock’s terminal operations, while the company’s shipyard, Free Zone, and related services will remain core parts of the business.
“This marks a significant milestone in Nigerdock’s history and a positive development for the maritime and logistics industry, as the company is positioned to attract a wider multi-sector clientele, whose operations will add significant value to the country’s economy,” the company stated.