The Federal Executive Council (FEC) has approved a whopping four billion dollars ($4.713) for the development of port projects in Lagos, Ondo and Burutu Port in Delta states.
The council meeting, presided by President Muhammadu Buhari, gave the go-ahead for the development of Ondo Multi-Purpose Port in Ilaje, Snake Island in Lagos, and Burutu in Delta State.
The projects would be executed through Public Private Partnership (PPP) arrangement at no cost to the federal government.
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Minister of State for Transportation, Ademola Adegoroye, told newsmen after the meeting that the Ilaje port would cost the private developers the sum of $1,480,465,253 and would be concessioned for a period of 50 years. The accruals to the concessionaire and the federal government were expected to be fifty billion dollars ($50b) and over two billion dollars ($2.6b) respectively.
According to Adegoroye, the Burutu port would cost $1,285,005,818 and would be concessioned for 40 years.
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The federal government and the concessionaire were expected to receive about nine billion dollars ($9b) and one hundred and twenty five billion dollars ($125b) respectively within the concession period.
The Snake Island Port, on the other hand, would cost $974,185,203 and would be concessioned for 45 years. The federal government and the concessionaire were expected to receive over five billion dollars ($5.23b) and eighteen billion dollars ($18b) respectively within the concession period.
He said:
“Today the Federal Ministry of Transportation presented before the Federal Executive Council, under the chairmanship of Mr. President, and the memos are for, one, the approval for the expansion and development of Snake Island Seaport in Lagos State, through public/private partnership arrangement.
“The second is for the expansion and developments of the Burutu Seaport project. Burutu is in Delta State. Burutu Port project, again, through public/private partnership.
“The last but not the least, and probably the most important, the Ondo Multipurpose Port in Ilaje, Ondo State and I’m pleased to announce to you, gentlemen of the press, that the Federal Executive Council today considered the memos that we presented, looked at them thoroughly, checked if the processes and procedures have been complied with and graciously approved the three memos, at no cost to the government of the Federal Republic of Nigeria.
“Let me start with the Snake Island Port. For Snake Island Port, the total investment by the private investors will be $974,185,203.66 and we expect that the investors will get $18 billion over the period of 45 years concession period. The federal government will have $5.23 billion and the ICRC will get $94.9 million.
“For Burutu, the concession period is 40 years unlike the Snake Island, which is 45 years. The total projected and revenue to the concessionaire, federal government and the ICRC; the concessionaire is expected to have a revenue of $125 billion. The federal government is expected to get revenue of $9$9 billion, for spending nothing, and the ICRC is expected to rake in a revenue of $627 million as well. The total investment (capital) by the investors is $1,285,005,818.40.”
Adegoroye stressed that said the total investment capital about $1,480,465,253 for the
Ondo Port would be fully financed by the private investors.
He said:
“Concession period is 50 years and the expected revenue; $59 billion will go to the private investors, $2.63 billion will go to the federal government and the ICRC will expectedly rake in a sum of $295 million.”
FEC further approved the concessioning of two international airports in Nigeria—the Nnamdi Azikiwe International Airport in Abuja would be concessioned for a period of 20 years, while the Mallam Aminu Kano International Airport in Kano would be concessioned for 30 years.
The move, it said, was aimed at improving the operations and efficiency of the airports, and ultimately enhancing the overall travel experience for passengers.
Minister of Aviation, Hadi Sirika, who briefed newsmen after the meeting, also announced that the ministry’s name has been changed to the Ministry of Aviation and Aerospace of Nigeria.
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It was gathered that the rename was in line with the government’s vision to position Nigeria as a major player in the global aerospace industry.
Furthermore, the council approved the draft National Civil Aviation policy, which was aimed at strengthening civil aviation in the country.
The policy would provide a framework for the development of the aviation industry, and will ensure that Nigeria meets international standards in the sector.
On his part, Minister of State for Power, Jerry Agba, said FEC approved two memoranda for the ministry, the first one being an approval for the award of contract for the procurement of 25 numbers of 33 KV circuit breakers and 120 numbers of surge arrestors for systems used for Transmission Company of Nigeria (TCN).
The contract value is in the neighbourhood of N140 million as augmentation for that project.
Agba said:
“The contract has been awarded before, they are on-going, but we asked for approval for revaluation due to price escalation and additional works. We’re building new sub-stations in one of the places.”
Council also approved the variation due to price escalation on the construction of the Dukanbo Shonga 132 KV double circuit transmission line, he said.
The minister said:
“Shonga is in Kwara State and that line has been down for several years. So with this procurement, we should be able to revamp the station and you know it’s an agro-based area that’s the area which services the Bacita farm.
“The Shonga Farms Limited and the whole of that area has been in darkness for a long time. With this procurement, we hope that in two months, we should have full power supply to those areas and restore farming and processing activities in that area. The cost is N1.5 billion.”
On the administration’s investment and achievements with the Rural Electrification Agency (REA), the Minister described it as a priority agency, which has stamped its footprints in virtually all communities across the country.
He said:
“I want to assure you that in all the six geopolitical zones of this country, we have had two projects each in any of the states, there’s no community in any of the geopolitical zones that we don’t have rural solar light intervention. We’ve had solar panels, we’ve had mini-grids and all of that in all the zones and for me, that agency is a star agency; it is a high performing agency. I’m not talking about individuals, I’m talking about the agency itself.”
Minister of Information and Culture, Lai Mohammed, who briefed on behalf of his counterpart in Works and Housing and Police Affairs, disclosed that the contractor handling the Second Niger Bridge will deliver it on May 20.
Mohammed, who stood in for the Minister of Works and Housing, Babatunde Fashola, said that the Second Niger Bridge will be inaugurated soon.
He said:
“The Second Niger Bridge is ready for commissioning. The contractor will hand it over on 20th of this month, it will be commissioned soon after.”
FEC approved the over of thirty six billion naira (N36.2 b) for the construction of Federal Secretariats in five states.
According to the Minister of Information and Culture, Alhaji Lai Mohammed, the sum of over seven billion naira (N7.564b) was approved for Abia, over seven billion naira( N7.418b) for Ebonyi, and over seven billion naira (N7.707b) for Kebbi, over six billion naira (N6.204b) for Kogi and over seven billion naira( N7.3b) for Taraba States.
The move was expected to boost economic activities in these states and provide job opportunities for the citizens.
In addition, the Minister of Police Affairs presented a memorandum to the FEC, which was approved. The sum of fifteen billion naira (N15b) was approved for the renovation of Police Barracks located in Ikeja, Lagos.
The above was to improve the living conditions of police officers and their families, which would ultimately lead to better performance and increased security in the state.
Furthermore, the approval of the Ondo Deep Sea Port by the federal government has been described as a cheering development by the Ondo State Governor, Mr Oluwarotimi Akeredolu.
The governor expressed his gratitude to President Buhari and other members of the FEC for their support.
According to him, the actualisation of the port project was very important to his administration and would create job opportunities for the people of Ondo State.
The statement read:
“The Port Ondo is one of the most important projects of this administration. We are determined and committed to actualising this project that will set our state on the path of economic prosperity. Our dream for this port of Ondo is to serve as a conduit for our goods, agricultural produce, and very soon, our bitumen.
“It is the goal of this administration to ensure that the potential of Ondo State is maximised and that all necessary infrastructure required to make this a reality is put in place to achieve this.
“We thank the minister of Transportation, Hon. Mu’azu Jaji Sambo, for his interventions and commitment. Our state is very grateful for this yeoman service. History will be kind to him.
“We equally noted with candour, the role of the Minister of State for Transportation, our own, Prince Ademola Adegoroye. Your impactful struggles and efforts have started yielding enduring fruit of development. Indeed, you have proven to be a true representative of your people. Your doggedness is admirable.”
Akeredolu also appreciated everyone who contributed to the process of getting the approval.
He said:
“It is just a phase. We expect that this development will renew our vigour and drive our passion to deliver the Port Ondo project.
“Like we say, we are planting a tree, under which shade we may not rest. Nevertheless, it is a worthy cause for the generation yet unborn. We are committed to any effort that targets the good of the next generation.”
