‘Landmark infrastructure conceived by Oando jetty to impact economy positively’
Nigeria has witnessed yet another milestone with the actualisation of another Public Private Partnership (PPP) initiative, with the launch of Lagos Midstream Jetty (LMJ).
The jetty, West Africa’s first privately-owned midstream jetty and reception facility was borne from a need to bridge the infrastructural gap in the downstream oil sector. The Jetty is fully operational, having berthed 10 vessels and discharged products totalling 255,000 metric tonnes of cargo, thus demonstrating its potential as a functionally efficient and safe facility.
Oando Plc conceived the idea of the Jetty in 2016, from the need to increase the delivery capacity and offloading efficiency of petroleum products into marketers’ storage facilities in Apapa, Lagos, before handing over to OVH Energy.
OVH Energy is a consortium of Oando PLC Nigeria’s leading oil and gas company, Vitol Group, the world’s largest trader of energy commodities and Helios Investment Partners, the premier Africa-focused private equity firm. OVH Energy has over 350 service stations and over 500 industrial customers across Nigeria.
Across Africa, the PPP models have become increasingly critical as both a funding and operational mechanism for social and economic infrastructures.
The World Bank established that a target of $93billion annually is required to meet the infrastructural needs of sub-Saharan Africa. This lack of infrastructure makes it difficult for African markets to grow sustainably.
Over the years, the huge infrastructure gap in Nigeria has diminished economic growth. According to the Director General, Infrastructure Concession Regulatory Commission (ICRC), Chidi Izuwa, about $100billion will be required over the next six years to bridge the infrastructural deficit gap; $60billion for the oil and gas sector; $20billion to revamp the power sector; $14billion for roads, while rail tracks will be between $8billion and $17billion.
Presently, the value of Nigeria’s infrastructure is about 35 per cent of Gross Domestic Product compared with 70 per cent in larger economies. This emphasizes the need for close collaboration between the public and private sectors in developing and executing solutions that will address the significant infrastructure dearth in Nigeria.
Speaking at the commissioning, the Chairman, OVH Energy, Wale Tinubu said: “The Lagos Midstream Jetty was conceived as an innovative industry solution to the perennial challenges marketers faced in the importation of petroleum products. Over the past 30 years, marketers have spent approximately NGN1.6trillion ($4.5billion) on lightering; with 90% of this spend flowing out of the country. Today, we have delivered a first class piece of engineering that meets global standards, is the first of its kind in sub-Saharan Africa and will be of invaluable benefit to the industry and nation at large. I must thank our regulators, bankers and contractors who believed in us from the start. It is a proud moment for Oando PLC, who conceived the idea and OVH who have taken up this mantle. From conception to realisation, the idea of the Lagos Midstream Jetty is now a reality and is indeed another infrastructural success for us, our nation and the continent.”
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