Development of Cargo Airport / Dry Port

Nigeria is an import dependent economy for which over 75% of its imports come in through the ports in Lagos State. For most of the other states, in the northern region, majority of imports have to be trucked by road.

Eczellon conducted a feasibility study for the conversion of the airport in one of the states, and coupled with the establishment of a dry port, to alleviate the dependence of the region on the port facilities available in only the coastal states in the south. Eczellon thereafter presented a proposal to the state, for the development of the facility.

Challenges

The State, like other states in the country, had financing challenges, owing to a recent recession in the country and significant reduction in Federal Allocation on account of crashed oil prices. Furthermore, capacity to raise financing through debt capital market was reduced due to existing obligations and reduced state revenues – key regulatory requirements for debt issues by a state government.

Solution - Our Approach

Eczellon structured the transaction, for a Public-Private-Partnership (PPP) development. Eczellon organized a consortium of investors, international airport management companies, and anchor international airlines. It further engaged professionals for required technical inputs, to conduct relevant assessments, designs and development.

Result

Eczellon delivered to the State, and to the region, a major infrastructural development with minimal financial burden on the state government. The transaction structure however effectively mitigated the risks for private sector investment.

Upon full operations, the facility is expected to facilitate the creation of over 100,000 jobs within the region in about five years and boost the GDP of the state by over 46%.

We worked with Eczellon Capital in the establishment of an industrial city project in one of the Niger-Delta states in the country. Eczellon displayed their expertise and astute transaction abilities to ensure effective project execution.

Troy Mefferd
Chairman , Vanguard Project LLC
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