Lead promoter: FG’s delay in issuing revalidation letter hindering development of Escravos seaport

Mercury Maritime Concession Company (MMCC) says the federal government’s delay in issuing a revalidation letter is hindering the development of the Escravos seaport industrial complex (ESIC) project in Delta.

On June 12, 2024, the MMCC said Nigeria was on the verge of losing $27.29 billion investment in the ESIC project in Delta and seven other states by the end of that month.

The company said the offer may be lost due to the prolonged delay of final approval for the project’s take-off from the federal government and Delta state, noting that 

Speaking at a media parley in Lagos on Tuesday, Andrew Okoja, chairman of the MMCC, stressed the transformative potential of the project to Nigeria’s economy.

He said the delay in issuing the revalidation letter has hindered progress, preventing financiers from committing funds to the $27.9 billion deep seaport project.

“It will be recalled that in June 2024 MMCC had a Media Parley where this same issue of revalidation letter from FG featured. The erstwhile Hon. Minister, Federal Ministry of Industry, Trade and Investments (FMIT & I) could not deliver before she was redeployed four (4) months later,” Okoja said.

“ESIC project would have registered 20% performance by now since then, but for the challenges encountered by its Project Team; challenges arising from the non-issuance of the Revalidation Letter by the Federal Government (FG) to enable the Financier commit their funds to commence the development of the project.”

Okoja said the Delta state government had issued its revalidation letter since June 2024.

‘REVALIDATION LETTER WILL BOOST FINANCIERS’ CONFIDENCE’

The chairman said the project’s financiers, including EDIB International of Hong Kong and Impact Global, are ready to commit $27.29 billion but are insisting on the federal government’s revalidation letter as a guarantee.

“So, this is where we are. The financier would have continued that (sic) they wanted greater security for this project, that is why they wanted the validation letter,” he added.

“On the Chinese side, we have the EDIB International of Hong Kong. They are financing a large part of this project. We have the Impact Global. Impact Global is a Swiss group. They are financing part of this.

“These two financiers are credible financiers and are prepared to connect. What is holding them is the revalidation letter. We just want the security to be able to proceed.

“We have gotten all the government approval that is required for this project in Lagos right from 2020 when we started this. What is left is the revalidation that we expect. This revalidation letter we are expecting is more like a guarantee and is also said to give confidence to the financiers.”

Okoja called on the ministry of marine and blue economy and the ministry of industry, trade, and investment to expedite the process — stressing that the delay is stalling economic progress.

Okoja expressed gratitude to President Bola Tinubu for directing the National Inland Waterways Authority (NIWA) to engage with MMCC as it has led to initial progress.

He also thanked Sheriff Oborevwori, Delta state governor, for granting access to 1,000 hectares of land for the project.