﻿Why Is Nigeria Constructing Lekki International Airport
It is generally believed that an airport is crucial to generating the first impression
of a city and country. The African market is particularly fascinating in the sense that
aviation traffic is predicted to quadruple in the next 20 years. While their skies are
by no means among the busiest in the world, most African countries have experienced a
surge in demand for air travel over the first two decades of the 21st century.
Africa comprises approximately 15 per cent of the world population but only two per cent of
the global air traffic. For many major airlines, strong profit and sustained passenger growth
make Africa an attractive market. And now, with traffic likely to treble in the coming years,
Africa will not only draw more stakeholders, airlines, investors and
financiers but also the whole corporate world. Interestingly, Africa is a market similar to the
size of China yet it’s a high-growth market fuelled by a fast-growing middle class.
There is a big percentage of individuals who are willing to travel and the airlines have
acknowledged that. While the concept of low-cost airlines is relatively new to the African market,
we’re seeing a lot of action in this sector. Having understood that the African populace
prefers air travel but at low costs, more and more low-cost airlines have started operations,
and this sector is likely to increase. Unlike the so-called mature markets where finance for
airport infrastructure upgrades is accessible, the African market faces two bottlenecks: financing to
develop airport infrastructure and liberalisation of the air transport sector in Africa, which
is still strongly protected. Once the market is liberalised, one might expect a spike in growth.
Planes need a primarily flat—place to land. People need a location to congregate before
hopping on that next aircraft. Compared to Europe, the airports in Africa are ancient and need
thorough refurbishment. In Europe, a refreshment is more typically an upgrade of technology while
dealing in Africa implies generally looking at the airport from scratch with a greenfield airport or
updating and modernising an existing airport. The challenge in Africa is still the lack of money.
If this is improved and AFRICA also trends towards private-public cooperation in airport development,
then Africa will have a significant market because all these airports would demand the
latest state-of-the-art equipment. They will rebuild the full airfield lighting systems,
and tower systems, and will opt for current technologies like the docking systems.
And with all these developments we predict a large rise in the market. The only concern
is market volatility projects are postponed or terminated, very often because of the political
environment with elections, new presidents, new individuals, and new plans. Greater stability
in terms of political and economic growth can go a long way in promoting the market growth.
With Nigeria's thriving economy, expanding middle class, and homegrown major airlines such as
Arik Air, Bellview Airlines, and Aero Contractors, there is a greater demand for air travel,
but the country's airports are struggling to keep up. For ages, the country has had only
one international airport, which it shares with another West African country (Niger), but it has
reached its capacity of 2 million passengers per year. However, this is about to change.
The Nigerian government is currently building a brand new international airport in Lekki
to meet the country's growing demand for air travel and reduce its reliance on Lagos airport.
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Lekki International Airport is going to be the first airport in Lekki,
which is located on Lagos Island, sited to be adjacent to Alaro city. The airport will be a
code F compliant airport compliant because it will be designed to accommodate the Airbus A380.
An airport terminal building, air traffic control facilities, airfield ground illumination,
aircraft ground services, and navigation air and ground services are all included in the
first phase of the airport's development, which is estimated to cost well over 400 million dollars.
Since ideas were initially presented in 2011, it had a four-year completion timeframe,
but early sponsors declined to participate. The Lagos State Government had chosen Stanbic IBTC
Bank to act as a financial adviser for the first phase of the proposed Lekki-Epe International
Airport project, which was estimated to cost $450 million and cost N71.64 billion. The first phase
of construction at the airport, which is situated 10 kilometres away from the Lekki Free Trade Zone,
consists of the construction of an airport terminal building in addition to air traffic
control facilities, airfield ground lighting, and aircraft ground services for navigation and air
travel. The Lagos Airport Development Committee had earlier invited proposals for the development
of phase I in the context of a concession agreement that would allow the concessionaire
to design, build, finance, operate and maintain the airport for a period of up to 25 years.
The Chief Executive Officer of Stanbic IBTC Bank, Sola David-Borha, made the
following statement at the time: "The project reinforces the bank's long-standing partnership
with the Lagos State Government in the area of infrastructure development,
which is informed by the knowledge that infrastructure is the foundation on which
socio-economic development is built." The Lagos state government is still searching for investors
and has invited bid tenders, to which a total of 33 companies, both Nigerian and international,
have responded. When the Dangote refinery, Alarocity, and the other multiple billion dollar
industries in the other free trade zones are completed, along with the commercialization that
will result from the expansion of the road from to, we have every reason to believe that the Lekki
Epe International Airport would not only be an attractive investment but an absolute necessity!
Lekki is a Lagos district with almost no natural resources.
Why would anyone construct an airport there? Understanding what makes a good airport location
leads to the answer. Building an airport entails more than just constructing runways and terminals.
Many factors influence whether an area is suitable or unsuitable for the location of an airport,
including noise pollution, access to services, and the availability of land for future expansion.
A new airport will also help to relieve congestion at Lagos International Airport (LOS), which is
already operating at capacity. Lekki International Airport is being built outside of Lagos as part
of a larger redevelopment project that includes a shopping mall, residential areas, hotels, offices,
restaurants, and other commercial properties. The project as a whole is expected to generate
thousands of jobs and have a positive economic impact on the area. The new airport is just one of
many infrastructure projects being undertaken by the Nigerian government to meet the needs of its
rapidly growing population. Nigeria is the most populous country in Africa, with a population of
over 180 million people, and is expected to become the third most populous country in the world by
2050. As the country grows, it is obvious that its infrastructure will need to expand as well. With
the completion of this project, the country will be better prepared to deal with the rising demand
for air travel. Let us look more closely at why Nigeria is building Lekki International Airport.
The Lagos State Government initiated the new international airport project in Ibeju-Lekki
in response to the large number of people streaming into and out of Lagos,
as well as the strain on the city's sole existing airport.
The new international airport development project at the Lekki-Epe axis is currently
underway in Epe, Nigeria, east of Lagos. It is located next to Alaro City, which is conveniently
located on the Lekki-Epe Expressway, giving it easy access to Lagos and the rest of Nigeria.
Economic development is critical to our economic growth because it creates high-wage jobs and
improves people's quality of life. The Lagos state government has planned another major
means of creating, attracting, and retaining jobs in the new Ibeju-Lekki development axis,
thereby making lives easier. While the role of economic developers is frequently overlooked,
it is an important component of a healthy economy and society to create and maintain major
development for a region. As a result, the goal of constructing an international airport in Lekki-Epe
was established to spur development, relieve congestion at Murtala Muhammed
International Airport in Ikeja, and serve the rapidly growing area of Lagos state.
The master plan is complete, and the airport site on 3500 acres has been secured.
The airport is designed to handle five million passengers per year,
with additional capacity for growth in the future. The first phase of the Lekki Airport
project is expected to cost 71.64 billion rupees (US$ 450 million), with the airport located 10
kilometres from the Lekki Free Trade Zone (LFTZ) and scheduled to open in 2012. It will be built to
accommodate the Airbus A380, the world's largest passenger airliner, and will be a Code F compliant
airport. The Lagos State Government appointed Stanbic IBTC Bank as financial adviser for the
airport project, which is scheduled to open in 2012. The airport had still not opened by 2019,
owing to funding difficulties. The new airport will relieve congestion at the ageing Murtala
Muhammed International Airport while also serving the rapidly expanding industrial Lekki district,
the Lekki Deep Seaport, Dangote's 650,000bpd
refinery, the Lekki Free Zone, and other locations which are major hubs in the axis.
The Lekki Free Zone which was established in 2006 is a modern free zone that follows international
best practices. The zone's 16,500 hectares are separated into four quadrants and administered by
a variety of operators, taking advantage of Lagos State's status as West Africa's main distribution
hub. The Lekki Free Zone is situated in Lagos State's southeast portion, with the Atlantic Ocean
to the south and the Lekki Lagoon to the north. It is 50 kilometres from Victoria Island, Lagos,
and is bordered by five kilometres of coastline. Alaro City is located in the Lekki Free Zone's
North West Quadrant in Lagos, Nigeria. The city is conveniently located on the Lekki-Epe
Expressway, providing easy access to Lagos and the rest of Nigeria. To the south of the city,
the largest deep-sea port in West Africa is now under construction. Dangote Refinery
is the continent's largest oil refinery being constructed by Alhaji Aliko Dangote, Africa's
richest man. It also includes a fertilizer factory, a petrochemical plant, and a sub-sea gas
pipeline project, which is valued at $17 billion. Lekki Sea Port, the largest deep-water port in
West Africa is also being built, allowing exports to West Africa and beyond. Local and international
investors are flocking to the Zone. All these projects will support commercial growth and
encourage even more property development in Ibeju Lekki. In addition, the Refinery and Petrochemical
Park is expected to meet all Nigeria’s needs for refined products with a surplus for exports.
The Lagos State Government has stated that it is actively collaborating with the Federal Airport
Authority of Lagos on the development of the Lekki-Epe International Airport
to enhance activity in the zone and provide alternative air transport services in the state.
The State Government has successfully received the Federal Ministry of Aviation site approval
for the airport, and the master plan for the 3,500 hectares of land set aside for the project has
been finished. Mr. Akinyemi Olajuwon, the State Head of Investment, Private Public Partnership,
PPP, made this remark on the sidelines of the Miami-Dade County Business Development Mission
Business Meeting organised by FAAN in Lagos. Remember that the Lagos State government
established a technical committee to study the Lekki Comprehensive Master Plan
(2021-2041), which is one of the state's four major economic corridors.
However, when commenting on the development, Olajuwon stated that
the cargo airport is still on the ground level since a feasibility study is being conducted.
"We are actively collaborating with the FAAN, which controls aviation development,
to guarantee that we complete this project as soon as possible."
Because the cargo airport is under the scope of the federal government's exclusive list,
we require FAAN to guide us through the procedure. The concurrent list includes the state government.
That is the current situation. "We've reached a point where FAAN is being carried along. We
require significant alliances since the state government cannot do it alone. At
the end of the day, it'll be a PPP project." The Lekki-Epe International Airport is expected
to handle roughly five million passengers per year, with a modular terminal that may be expanded
in the future. The preliminary construction on the airport project has begun with the clearing
of 150 hectares (runway), 4.5 kilometres of the access road, and 9 kilometres of perimeter road.
The Lands Bureau has finished the crop enumeration process on the designated airport site,
allowing compensation payments to impacted land owners and farmers to proceed.
"The proposed airport will be developed and controlled by private investors,
following the present administration's strategy on public-private partnerships."
A team of local and internationally acclaimed consultants,
including Stanbic IBTC (Financial Advisers), Arup PTY (Technical Consultants), Norton Rose
(Off-shore Legal Consultants), and Banwo and Ighodalo (Local Legal Consultants), has been
engaged to handle the process of selecting private investors to develop and manage the airport.
Aside from its primary function, the new airport will improve residential and commercial
infrastructure. Ibeju-Lekki is on track to become a commercial destination, thanks to the rapid
expansion of infrastructure and developments such as retail outlets (ShopRite is currently
constructing an outlet in Ibeju-Lekki), malls, and hotels (similar to the Oriental hotel), schools,
entertainment zones, and restaurants. This level of development ensures a high standard of living
as well as access to high-end services and amenities. LekkiVale Estate provides first-rate
amenities such as a community centre, swimming pools, a sports arena, a gym, and green zones.
Ibeju-Lekki has already received significant projects, such as the Free Trade Zone,
bringing it one step closer to becoming Africa's next commercial hub. The new
international airport in Lekki-Epe will benefit both residents and the state government of Lagos.
Also, as an improvement to the state's economy. Other advantages include Opportunities for
investment because this massive development will provide numerous opportunities for secure
and long-term investment. However, before you start signing checks, you should understand
the importance of land titles and pricing. The majority of the land surrounding the airport
lacks a C of O land title. There are either excisions in progress or gazettes in the majority
of the titles. This explains the differences in gross price between real estate firms. Before
paying for any block of land in Ibeju-Lekki, make sure it has a legal C of O title.
Although your agent may tell you that a Gazette or excision in a procedure is a "done deal"
and that you don't need to worry, if you understand how the Nigerian system works,
you'll understand that there is no guarantee until you have proper documentation.
Living near an airport has its perks and cons. On the plus side, plane travel will
be incredibly convenient and you’ll be able to save substantial time. On the flipside,
noise, pollution and health dangers could be very serious problems, depending on the closeness to
the airport, how busy it is the flight paths and even the type of aircraft utilised. LekkiVale
estate at Ibeju-Lekki gives you a one-time offer to join the rise of the new class of millionaires,
billionaires and Landlords in Lagos. Properties on an airport's outskirts
can appreciate by up to 40% in the first few years after the airport's completion,
and the rate rises to around 80% once the airport's operations are fully operational.
Once landed property is strategically placed near an airport to reap all of the benefits while
remaining far enough away to avoid the drawbacks of living too close to an airport, such as noise
pollution and potential health consequences. The additional benefit of convenience raises
housing costs. As a result, investors in the area will benefit greatly from this.
However, the most recent development has faced numerous challenges in the past.
For example, consider the month of May 2015. The Lekki-Epe International Airport development
is reportedly stalled due to local landowner opposition to the land acquisition process,
as well as delays in investors committing to airport financing. Former Lagos State
Commissioner for Commerce and Industry Sola Oworu acknowledged that the state government is
"looking for investors" and that construction will resume once new funding is secured.
The state administration is also returning to 98 local villages some of the lands it has purchased
for a planned perimeter road. Meanwhile, the project has been steadily progressing.
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