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Private sector to invest $3.7bn in ports’ concession

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Abuja, May 19, 2023: The Infrastructure Concession Regulatory Commission (ICRC), has said the concession of three ports by the Federal Executive Council (FEC) would attract an investment 3.7 billion dollars from the private sector.

The Director-General, ICRC, Micheal Ohiani said this in a statement signed by Mr Ifeanyi Nwoko, Acting Head, Media and Publicity, ICRC, in Abuja on Friday.

Ohiani said FEC approved the renovation of the Burutu Port and the establishment of a Deep Sea Port in Delta state under Public Private Partnership (PPP).

He said others included the development of Ondo Port and the development of the Snake Island Terminal in Lagos.

Ohiani said FEC also approved the commencement of the Park and Pay initiative in some parts of the Federal Capital Territory (FCT) and the rehabilitation of Police Quarters in Ikeja, Lagos.

He said FEC also approved the concession of the Nnamdi Azikiwe International Cargo Airport, Abuja; the Malam Aminu Kano International Airport, Kano as well as the Expatriate Employment Levy.

Ohiani said the approvals were given following the issuance of Full Business Case (FBC) Certificates of compliance by ICRC.

According to him, the approvals demonstrate the commitment of the Federal Government to infrastructure development in Nigeria.

The director-general said the eight approved concessions were the highest approval given by FEC in a single sitting.

Ohiani said that the latest approvals brought the total number of concession projects that have gotten the consent of the FEC in 2023 to 30.

According to the director-general, the Burutu Port in Delta State was approved for a concession period of 40 years and at a total cost of 1.28 billion dollars.

He said it would be executed in three phases by the concessionaire, Akewa Colmar Terminals Limited.

“The project is intended to boost the utilisation of the inland waterways.

“This will be done by ensuring that the evacuation of solid minerals and agricultural produce is undertaken at economic costs on inland waterways to the proposed Burutu Deep Sea port for export”, he said

Ohiani said the establishment of the port would transform Delta State by boosting commercial and industrial activities; enhance the state’s competitiveness; and create employment opportunities.

“The project is expected to generate 125 billion dollars in 40 years”, he said.

He said the Ondo Multi-Purpose Deep Seaport at Erunna/Ogboti is to be executed in two phases.

“The first phase is at the cost of 1.14 billion dollars while the second phase will cost 317 million dollars”, he said.

Ohiani said FEC approved China Railway Eryuan Engineering Group Co., Ltd as the concessionaire.

“The port which will have an Industrial City with a Free Trade Zone status, will boost commercial and industrial activities, enhance the state’s competitiveness, and create employment opportunities”, he said.

He said the total expected revenue is 59.03 billion dollars within a concession period of 50 years.

Ohiani said the Snake Island Terminal was a multipurpose port facility located within the Snake Island Integrated Free Zone (SIIFZ) and operating within the limits of Apapa and Tin Can Ports.

He said the project was approved at 974.19 million dollars for a 45-year term, with Messrs Nigerdock and SIIFZ as the concessionaire.

Ohiani said the approval would bring about the expansion of port infrastructure, improve revenue to the government through surging cargo volumes and reduce the burden on roads.

“It will also provide quality job opportunities for Nigerians and reduce cargo diversion to neighbouring countries. Total revenue to the government is 5.23 billion dollars”

He said the on-street park and pay services had received approval to be deployed in some parts of the FCT, with multiple operators/concessionaires to handle different zones.

“Zone A (Wuse II and Utako) has NAJEC Limited as the concessionaire. The N475 million concession is for a 10-year period with expected revenue put at N11.875 billion.

“Zone B (Maitama and Garki 1) has Messrs Automaten Technik Bauman Nig. Ltd (ATB) as the concessionaire. It is a N433.3 million concession for a 10-year term and an expected revenue of N15.05 billion”, he said.

Ohiani said the Expatriate Employment Levy (EEL)project seeks to boost the revenue generation of the country through the imposition of levies on companies that employ expatriates.

“It aims to discourage employers from hiring expatriates for jobs that could easily be done by Nigerians. The project will employ a robust ICT System for the collection of EEL”, he said.

He said the project was approved at 95 million dollars with Messrs Air Wave Ltd as concessionaire and estimated revenue of 13.4 billion dollars.

Ohiani said the Nnamdi Azikiwe International Cargo Airport Abuja (NAIA) concession would be executed at 86 million dollars, operated for a 20-year concession.

He said the project would be executed by Corporation America Mota Engil Consortium, at 86.427 million dollars with total expected revenue put at 1.76 billion dollars.

Ohiani said the concession for Kano International Airport was approved for 17.48 million dollars, to be executed by Corporation America Mota Engil Consortium for a 30-year term and projected revenue of 596 million dollars.

For the Comprehensive Redevelopment of the Police Quarters, Ikeja, Lagos, he said the project seeks to replace the existing dilapidated physical structures at the current site.

“FEC’s approval for this project was for a cost of N7.4 billion, a lease of 50 years, and an expected revenue of N16.7 billion”, he said. 

iCRC

Projects concession to raise N180bn revenue – ICRC

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The Infrastructure Concession Regulatory Commission (ICRC), has said that the approval of the concessioning of its two projects by the Federal Executive Council (FEC) would attract N180 billion revenue to Nigeria.

A statement issued in Abuja on Sunday by Ifeanyi Nwoko, Acting Head, Media and Publicity, ICRC), said the projects included the Cassava Bio-mass and Bio-ethanol Value Chain and National Fire Detection And Alarm System (NAFDAS).

Nwoko said the concessioning was to create wealth, reduce poverty, improve food security and nutrition, provide jobs and renewable energy, and reduce carbon footprint.

“While the NAFDAS project will generate a total of N75 billion in the 15-year concession period, the cassava bio-ethanol value chain will generate a total revenue of N105 billion within the five-year concession period.

“The cassava bio-ethanol value chain, which will be done on a pilot phase, aims to build a Bio-technology Industrial Park on a 20-hectare plot across 20 universities, academia and research and development institutes.

“In the pilot phase, 5,000 special hybrid cassava (TME 419) stems will be planted per hectare, (totalling) 100,000 stems for the 20 hectares,” he said.

In addition, he said the project would supply organic fertiliser, boosters, conditioners, pre and post-emergent herbicides, pesticides, insecticides, fungicides, and knapsack sprayers.

“The project also seeks to double cassava production from the current 62 million tons to an output of no fewer than 120 million tons.

“With improved tropical agro-ecology, bio-technology, intense mechanisation, and effective partnership resource mobilisation, Nigeria can double output to 120 million metric tons in five years,” he said.

Nwoko said the key goal of the cassava-bioethanol pilot project was to demonstrate the efficacy of a private sector-led approach in promoting investment in renewable biomass and creating wealth.

“Also in providing jobs, reducing poverty, improving food security and nutrition, providing renewable energy and reducing carbon footprint,” he said.

Nwoko said the project was proposed to be financed with a grant from the Federal Government and Concessionaire investment totalling N11.9 billion.

The ICRC spokesman said the revenue stream presented by the project includes sales of cassava stem, cassava flour, garri, starch, and Bio-ethanol.

“Total revenue for the five-year concession period is N105,610,000,000,” he said.

He said that the NAFDAS project would provide fire mitigation hardwares, softwares, and equipments that would be linked to a cloud network.

Nwoko said the project would be supervised by the Federal Fire Service through a private entity.

“Through the use of this technology, call, and response time in fire incidents will be automated thus drastically reducing avoidable incidents,” he said.

Nwoko said more lives and properties would be saved, and generally ensure efficient fire prevention, detection and management.

“This means that smoke alarms and other fire detection hardware will be linked to a server which will alert the system when the user is in distress without them having to call for help,” he said.

He said the project would begin in seven states on pilot basis, before rolling it out to all states across the country.

Nwoko said the total cost of the project was N3.5 billion, while the government targets to generate N75 billion within 15 years of the concession.

“Share of revenue to the government was projected as 40 per cent of subscription revenue totaling N17,262,850,871, an average of N1,150,856,724 over the 15 years proposed concession period.”

He added that the revenue stream included margin on installations and annual subscription fee from users.

Nwoko said both projects would be executed under the regulatory guidance of ICRC with the revenue shared between government and the concessionaire at a ratio decided in the concession agreement.

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Nigeria to earn N5bn annually from concession

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The Director-General, the Bureau of Public Enterprises (BPE), Mr Alex Okoh, says the Federal Government will earn five billion naira annually from the planned concession of its two free trade zones located in Calabar and Kano.
Okoh disclosed in an opening remark at the investors webinar organised by the BPE, in collaboration with the Nigerian Exchange Group and the Nigerian Investment Promotion Commission on Tuesday.
He said the planned concession of the two of the Federal Government free trade zones located in Calabar and Kano was expected to generate annual savings of about five billion naira for the federal treasury.
The BPE boss added that the planned concession would increase export earnings from the two special economic zones to about three billion dollars over a period of five to seven years.
He said that the bureau this year had listed over 36 projects and transactions in its table across diverse sectors of the economy including the power sector.
Okoh explained that these transactions and projects would see the sale and consession of power generation assests that would add about 3,300 megawatts to the national grid.
“The importance of power as an enabler for economy and industrial activities across all sectors of the economy continues to attract strong focus and attention of the Federal Government.
“In the health sector, the reforms being undertaken by the bureau will involve the implementation of initiatives which will radically transform health care delivery across Nigeria.
“This will improve availability, accessibility, affordability and quality of health care services with the ultimate objective of having a physically and an emotionally healthy population.
“The impact of this is to unlock significant resources for the government to invest in other critical infrastructure as well as other key sectors of the economy creating job opportunities in the process,” he said.
He also reiterated government’s readiness to improve its PPP engagement framework in order to generate the confidence required to attract private sector capital into the nation’s infrastructure space.
Okoh said the webinar was organised to highlight the huge investment opportunities being offered by the government reforms and privatisation programme as captuerd in the bureau’s 2021 work plan.
Also speaking, the Minister of Finance, Budget and National Planning, Dr Zainab Ahmed, said Nigeria remains an economic hub in the African continent that is quite attractive due to its population.
“It is indeed an investor’s delight despite our numerous challenges which the government is confronting, Nigeria remains a premium investment destination for both local and foreign investors in the African continent.
“As we all know, there is direct correlation between risk and reward, the higher the risk, the higher the associated reward.
“The commitment of this administration under the leadership of his excellence Buhari was to have and to ensure that there is a decent and living standards for Nigerians to stimulate economic growth and to lift 100 million Nigerians out of poverty over the next 10 years,” Ahmed said.

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Plan to concession Kano Free Trade Zone worries investors

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The federal government’s plan to include Kano Free Trade Zone as one of the firms to be concession to raise revenue to finance 2021 budget deficit has piqued local investors and manufacturers.

The stakeholders are worried over the possibility of losing an avalanche of opportunities and economic benefits investors presently derive in the free zone, when the liability is finally ceded to private owners.

The Kano and Calabar zones under the management of Nigeria Export Processing Zones Authority (NEPZA) have been placed under a concession plan by the National Council on Privatization.

The plan was approved in June 2018 under a special economic zones plan where a new concession arrangement strategy unfolded for the two zones. Under the new arrangement, five out of nine firms that subscribed for the management of Kano and Calabar Free Trade zones were shortlisted.

Dissatisfied with the development, Marshal Foods managing director Umar Marshal lamented that investors in the zone are curious to know the position of the government on the concession plan.

Marshal, who spoke at a meeting with the Minister of Industry, Trade, and Investment, Adeniyi Adebayo in Kano raised concern about the economic loss investors incurred on energy due to lack of availability of independent power supply in the zone.

Marshal worried that incessant interruption of power from the distribution company was detrimental to the survival of their investment in the zone.

On his part, the managing director, Hajara Ihsan Limited, Aminu Uba Miko, equally sought for the Federal government special financial intervention through the Central Bank to grow local content and business development in Kano.

The solar energy and technology investor stressed that private investors operating in the zone have the potential to solve economic challenges in the country if afforded the support and encouragement to operate in the zone.

Reacting, the minister allayed fears in the minds of the investors and disclosed that the Federal government has not concluded the concession plan of the Kano Free Trade Zone.

Adebayo insisted that the government was mindful of the compelling interest and economic viability of local investors and noted that under no circumstances would the government allow an investor to suffer any untold liability

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