By Babatunde Ayedoju
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It was with joy unspeakable and inexpressible that the good people of Ondo State received on Wednesday the Federal Government approval of the establishment of a deep sea port in the sunshine state.
The Federal Executive Council, presided over by President Muhammadu Buhari, gave the approval for the operating licence for the Port at the FEC meeting held at the State House in Abuja.
The Memo for the approval had been presented by the Federal Ministry of Transportation through the Minister of Transportation, Muazu Jaji Sambo, following years of efforts by the Ondo state Government to establish a deep sea port, first at Olokola, which failed to materialise since 2004.
The efforts were renewed by Governor Oluwarotimi Akeredolu upon his assumption of office as Governor in 2017 and became intensified upon the appointment of an indigene of the state, Prince Ademola Adegoroye, as Minister of State in the Federal Ministry of Transportation in July 2022, just about 10 months ago.
Akeredolu had submitted the proposal for the establishment of the Port to the Federal Government, with series of due diligence undertaken by both the State and the federal governments.
Like the popular adages have it, Rome was not built in a day, and the journey of a thousand miles begin with a step, in 2020, the State Governor, Oluwarotimi Akeredolu, received the Outline Business Case (OBC), which is one of the critical requirements preceding port declaration, and showcasing the project as a multipurpose deep seaport.
At the occasion in Akure, Akeredolu had expressed satisfaction with the level of cooperation for his administration to establish Port Ondo, saying that the confidence of the consulting firm on the viability of the was a pointer to its eventual success.
The Governor had said the avalanche of resources the state is blessed with, especially within its riverine communities coupled with the fact that it has the longest coastline in Nigeria, would make the proposed port the hub for the West Africa sub-region.
Head of the consulting firm, OIM-FBS Consortium, Ekong Etim, said at the occasion: “We are happy that our report confirms that the Governor’s vision is viable. Its viability has been carefully assessed technically, legally, financially, and economically.”
Etim said the OBC had been submitted to the Nigerian Ports Authority (NPA), for onward processing through the Federal Ministry of Transportation, and would subsequently receive the attention of Infrastructure Concession Regulatory Commission (ICRC), for the issuance of Certificate of Compliance, adding that at the Procurement stage, which was the final, prospective investors would be invited to form a consortium to finance the deep seaport project.
Former Special Adviser to the Governor/Chief Executive Officer, Ondo State Development and Investment Promotion Agency (ONDIPA), Boye Oyewumi, while describing the project as an investment magnet, he gave assurance that given the location, it would enjoy the interest of international investors.
“The construction of the port is off the state’s balance sheet. That means it will not be funded from the coffers of the state. Private investors would develop the port. When you have the magnet, metals are attracted to it. Investors, without even having a road show before we got to this stage, have been coming to us that they want to invest in the port.
“Two years ago, Dubai Port signed an MoU with us that they wanted to build the port. They did that based on the port’s feasibility, which is different from the OBC. We also have a lot of Chinese, South African, and French companies which have shown interest,” he said.
Towards the end of Governor Akeredolu’s first term in office, when there were insinuations from the opposition parties that the port project was a propaganda by the APC to secure another term in office, Governor Akeredolu restated his commitment to pursue the cause to a logical conclusion.
Speaking at a retreat in Owo for political office holders and accounting officers February last year, the governor had said: “We found out that we have the deepest draft in Ondo State. Our port, we will go ahead. Nothing will stop it; it is a matter of time. It is a port, not only for Nigeria but also for the West Africa because of its deepest draft.
“How do we finance it? I traveled; I spoke to Dubai Port. I spoke to China Harbour. Dubai Port has even written that they are interested. Our dream for this port in Ondo State is to serve as a conduit for our goods, agricultural produce and very soon, our bitumen.
“It is the goal of this administration to ensure that the potential of Ondo State is maximised and that all necessary infrastructure required to make this a reality is put in place to achieve this.”
In September, Mr Governor was at the office of the Minister for Transportation, Muazu Sambo, with a team of consultants to acquaint the Transport Ministry with the state’s vision of developing a deep seaport in Ilaje, Ondo, in accordance with the Federal Government’s module of Public Private Partnership, a proposed $1.3 billion multipurpose deep seaport project expected to create job opportunities for 20,000 people in the Ilaje coastal communities of the state.
After listening to the consultants to the State Government, Sambo had assured that the Federal Government would not hesitate to make the Ondo port declaration, pursuant to Section 30 of the Ports Act.
He added that this would be done after all the prerequisites established by the extant laws were met, saying, “We want to see this port come to life before the end of this administration; having another deep seaport will do a lot of good to the blue economy policy of the Federal Government.”
To show that progress was being made over the matter, in January this year, the Federal Government, through the Ministry of Transportation, inaugurated a project steering committee for the proposed Ondo Deep Sea and the Benin River Ports.
The inauguration was performed by the Permanent Secretary of the Ministry of Transportation, Dr Magdalene Ajani.
Speaking at the inauguration, Ajani said the terms of reference for the committee were to provide guidance and direction on the projects and also facilitate necessary permits, clearance and approvals for the projects.
She further noted that it would also be the responsibility of the committee to prepare the transaction for the Minister of Transportation, Mu’azu Sambo, to obtain Federal Executive Council’s approval.
“Members of the steering committee include the Managing Director of the Nigerian Ports Authority; representatives of the Federal Ministries of Finance and Justice; National Inland Waterways; Nigerian Shippers’ Council; Infrastructure Concession Regulatory Commission; among others,” she said.
Reacting to the positive development, Professor Simon Ehiabhi from the Department of History and International Studies, Adekunle Ajasin University, Akungba-Akoko, opined that the sea port would boost the economy of the state because of the heavy economic activities associated with such maritime ventures.
His words: “There will be an increase in Internally Generated Revenue (IGR), real estate will appreciate as it is in Lagos State and more industries will also spring up around the location of the port.
Ehiabhi went ahead to suggest that the Ondo State Government should develop a master developmental plan and build a port city with modern facilities.
While congratulating the government and good people of Ondo State, Dr Bayo Fasunwon from the Department of Political Science, Adekunle Ajasin University, Akungba-Akoko, opined that the Ondo sea port would help to decongest the port in Lagos, while giving opportunity to repair the Lagos port and make it more functional.
Fasunwon said that the Ondo port would provide more linkage and patronage for merchants from the South East, South-South and North, while boosting import and export trades in the State.
While stating that the port would provide better opportunities for Bitumen exploitation and exportation, even as it will also boost revenue generation, the seasoned political economist warned that many communities around the location of the port may lose properties, because “there is no development without displacement.”
Therefore, he suggested that the Ondo State Government should pass laws guiding the operations of the port as well as her operators; develop the land transportation system to prevent congestion and traffic; develop her water transportation system to aid the ports; set up her water transport mechanised industries; and include water transport and allied courses in the educational curriculum of the state.
Fasunwon added that the Akeredolu-led administration should start immediately the operation of the licence; send out teams to understudy port operations within and outside the country; set up industrial estates around the port area; create room for storage, container assembly plants and cranes; and deliberately train Ondo youths for employment at the port.
Dr Edamisan Ikuemonisan from the Department of Agricultural Economics, Adekunle Ajasin University, Akungba-Akoko, described the approval of the State Sea Port as a dream come true.
While stating that the sea port would improve trade and commerce, create job opportunities, boost the economy and attract foreign investors, he said, “The approval of the Ondo sea port also demonstrates that the federal government is committed to the development of infrastructure in all parts of the country, especially in areas with untapped potential for economic growth.”
Ikuemonisan opined that the sea port would be a major gateway for the export of agricultural produce, solid minerals and other products from the state and neighboring states. He said it would also make the importation of goods easier and more cost-effective in the state.
“Furthermore, the Ondo Seaport will boost tourism in the state and its environs, as it will attract foreign tourists who are interested in exploring the beautiful scenery and rich culture of the area.
“Overall, the approval of the Ondo Seaport is a step in the right direction. It is a clear indication that the government is committed to boosting the economy, creating jobs, and improving the lives of its citizens,” he added.
