By Hauwa Ali and Nneka Nwogwugwu
The Federal Executive Council (FEC) of Nigeria has granted approval for the development of port projects in Lagos, Ondo, and Delta states, with a total investment of $4.713 billion.
President Muhammadu Buhari presided over the council meeting on Wednesday, where he greenlit the expansion of the Ondo Multi-Purpose Port in Ilaje, Snake Island in Lagos, and Burutu in Delta State.
Minister of State for Transportation, Prince Ademola Adegoroye, in an interview, revealed that these projects will be carried out through a Public Private Partnership (PPP) arrangement, with no financial burden on the federal government.
The Ilaje port project, costing $1,480,465,253, will be concessioned for 50 years, generating an estimated $50 billion for the concessionaire and $2.6 billion for the federal government.
Similarly, the Burutu port development, valued at $1,285,005,818, will be concessioned for 40 years, yielding approximately $125 billion for the concessionaire and $9 billion for the federal government.
The Snake Island Port expansion will require $974,185,203 and be concessioned for 45 years, resulting in the concessionaire earning $18 billion and the federal government receiving $5.23 billion in revenue.
“Today, the Federal Ministry of Transportation presented three memos to the Federal Executive Council for approval. These memos concern the expansion and development of Snake Island Seaport in Lagos State, the expansion and development of the Burutu Seaport project in Delta State, and the Ondo Multipurpose Port in Ilaje, Ondo State. I am pleased to announce that the Federal Executive Council has graciously approved these three memos at no cost to the Nigerian government.” Adegoroye stated.
Related Posts
He further expressed that the port projects would contribute to the growth of Nigeria’s maritime sector, leading to job creation and facilitating both domestic and international trade.
The Snake Island Port, with a projected investment of $974,185,203.66, is expected to generate $18 billion in revenue over the 45-year concession period, with the federal government and the Infrastructure Concession Regulatory Commission (ICRC) receiving $5.23 billion and $94.9 million, respectively.
The Burutu port, with a concession period of 40 years, is projected to generate a revenue of $125 billion for the concessionaire, $9 billion for the federal government, and $627 million for the ICRC. The investors’ capital for the Burutu port project amounts to $1,285,005,818.40.
Lastly, the Ondo Port, with a concession period of 50 years, has a total investment capital of $1,480,465,253, fully financed by private investors. It is expected to generate revenues of $59 billion for the private investors, $2.63 billion for the federal government, and $295 million for the ICRC.
FEC also approved the concessioning of the NnamdiAzikiwe International Airport, Abuja and the MallamAminu Kano International airport in Kano.
Minister of Aviation, Hadi Sirika, who also briefed newsmen after the meeting said the Abuja airport will be concessioned for 20 years while that of Kano will be concessioned for 30 years.
He further said the council also approved the ministry’s change of name from Federal Ministry of Aviation to Ministry of Aviation and Aerospace of Nigeria.
Sirika said Council also approved the draft National Civil Aviation policy which he said is geared towards the strengthening of the civil aviation.
