Esther Oritse
Lagos — The delay in issuing a revalidation letter for the proposed $27.2 billion Escravos Seaport Industrial Complex (ESIC), promoted by Mercury Maritime Concession Company (MMCC), is now threatening to derail the project’s launch.
Speaking to journalists in Lagos, Rear Admiral Andrew Okoja (rtd), Chairman of Mercury Maritime Concession Company, promoters of the project, explained that while an approval letter for the project has been issued, the project’s financiers require a revalidation of the approval to secure their investment.
Okoja further revealed that around $15 million has already been spent on preliminary studies and securing approvals from relevant government bodies. However, he emphasized that had the revalidation letter been issued on time, the project would have been 20% underway by now.
He also pointed out that due to the depreciation of the Naira, the cost of the project is expected to exceed the initial $27.2 billion estimate, adding that the financiers are awaiting the revalidation letter to proceed.
“The project will realistically cost more than the initially projected $27.2 billion, and the revalidation letter has been pending for over a year,” Okoja said. “The financiers need the revalidation letter to ensure greater security for their investment. While Delta State has already issued its own revalidation letter, the Federal Government’s delay is holding up progress.”
Okoja further explained that the ESIC project will span seven states—Delta, Edo, Kogi, Bayelsa, Anambra, Benue, and Niger—all of which stand to benefit once the port is completed and operational.
“The ESIC project, which began its studies in 2018, was conceived in response to the congestion at Lagos ports. Its primary aim is to boost Nigeria’s economic development, especially for the participating seven states,” he stated.
“A functional and viable seaport is a key driver of national and regional economic growth. It is this understanding that led MMCC to propose the development of the ESIC in Escravos, Delta State, to create wealth and improve the livelihoods of Nigerians.”
Okoja emphasized that the project would have been 20% complete by now had it not been for the ongoing challenges, particularly the delay in the revalidation letter from the Federal Government, which has prevented financiers from committing their funds.
“It’s worth noting that the Delta State Government issued its revalidation letter in June 2024. We are hopeful that after this meeting, a positive resolution will be reached, enabling the issuance of the necessary revalidation letter to move the project forward.”
