Private Money vs. Public Funds: Who Moves Faster on Nigerian Ports?

Aliko Dangote, Africa’s richest man and CEO of the Dangote Group, has kick‑started plans to construct Nigeria’s biggest and deepest seaport at Olokola in Ogun State. 

The move comes as part of his strategy to streamline exports and bolster the logistics behind his rapidly expanding fertiliser and oil‑refining operations.

Late in June, Dangote submitted formal applications to federal authorities, signalling the start of what he describes as “the biggest, deepest port in southwestern Nigeria.” Located about 100 kilometres by road from his Lagos refinery and petrochemical complex, the new port will handle bulk exports, such as urea, fertiliser, and soon liquefied natural gas, and receive the heavy equipment needed for ongoing plant expansions.

Currently, Dangote relies on a privately built jetty on his refinery site to export fertiliser and import machinery. The planned deep‑water port at Olokola will integrate seamlessly with this existing infrastructure, offering deeper berths and larger handling capacity.

Once operational, it will directly compete with major facilities in Lagos, including the Chinese-backed Lekki Deep Sea Port, which opened in 2023.

By bringing port operations closer to his production sites, Dangote aims to reduce shipping costs, decrease turnaround times for vessels, and gain greater control over his supply chain. Officials expect construction to begin later this year, pending final regulatory approvals and environmental clearances. 

If completed on schedule, Olokola will mark a new chapter in Nigeria’s maritime industry and cement Dangote’s role as a leading force in the nation’s industrialisation drive.

Dangote’s Olokola Port: Fast‑Tracked by Private Capital

In July 2025, Africa’s richest man, Aliko Dangote, filed paperwork to build what he calls “the biggest, deepest port in Nigeria” at Olokola, Ogun State, less than 100 km from his Lagos refinery and fertiliser plants.

By leveraging his own balance sheet, Dangote sidestepped lengthy public procurement cycles. His group applied for permits in late June and expects construction to start soon, aiming to streamline exports of urea, fertiliser and liquefied natural gas directly from his industrial hubs.

Calabar Seaport: Plans Stalled by Public Funding Gaps

By contrast, the federal government’s flagship Calabar deep-sea port has been languishing in planning limbo for years.

Despite a 2025 budget of ₦38.3 billion for the Ministry of Marine and Blue Economy, zero was allocated for Calabar’s rehabilitation or new construction, a stark reminder of funding shortfalls (The Guardian Nigeria).

The Nigerian Ports Authority has even sought a $1 billion loan to revive Calabar, alongside other neglected ports, yet bureaucratic delays and shifting political priorities continue to stall work.

Why Private Money Moves Faster

1. Control and Flexibility: Private developers like Dangote can deploy capital quickly and adjust plans without multiple layers of government approval.
   
2. Aligned Incentives: A billionaire industrialist has a direct commercial stake in building his port, whereas public agencies must juggle competing projects and limited budgets.
   
3. Streamlined Procurement: Self‑funded projects bypass tender processes and parliamentary budget approvals, significantly cutting lead times.

Lessons for Nigeria’s Port Strategy

Public–Private Partnerships (PPPs): Blending private capital with government support, public projects like Calabar seaport, ensuring steady funding and shared oversight.

Ring‑fenced Budgets: Allocating dedicated funds for strategic ports, protected from routine budget cuts, would help move stalled projects forward.

Transparency and Accountability: Publishing clear timelines and funding commitments can pressure agencies to adhere to schedules and avoid mid‑year reallocations.