Home [ MAIN ] COVER FG Approves PPP For Badagry Deep Seaport, To Make $53.6bn

FG Approves PPP For Badagry Deep Seaport, To Make $53.6bn

N341.94bn Import Duty Waivers Granted In Three Years

The Federal Executive Council (FEC) authorized the Badagry Deep Seaport development on a built-own-operate transfer Public Private Partnership (PPP) basis Wednesday.

Mu’azu Jaji Sambo, the Minister of Transportation, revealed this during a press conference at the end of the FEC. He explained that the private sector would invest in the port’s development and that at the end of the concessionary period, the port would revert to the federal government via the Nigerian Ports Authority (NPA), with the government expecting to generate $53.6 billion in revenue over the 45-year concession period.

“The project cost as contained and approved in council based on the final business case as approved by the Infrastructure Concession Regulatory Commission (ICRC) in line with extant laws stood at $2.59 billion.

“It has to be developed in four phases with milestones and the concessional period of 45 years.

“Reversion is, like I said, to the Federal Government of Nigeria. This is to further the government’s goal of making Nigeria the maritime hub of the West and Central Africa sub-region.

“This project, it may interest you to know, will also generate total revenue of over $53.6 billion over the concession period. It will create about one quarter million jobs and also attract foreign direct investments to the country and help in improving Nigeria’s economy in general and the wellbeing of Nigerians,” he said.

Also, the federal government has reacted to public outcry over Nigeria’s support of the Niger Republic through the purchase of security vehicles, saying its procurement of 10 security vehicles for the neighbouring country for N1.145 billion was in the overall interest of Nigeria.

There had been criticisms over the federal government’s generosity to the neighbouring country as some have questioned why such money should be given to the Niger Republic when public universities in Nigeria remained closed for over five months over the inability of the government to meet up with the demands of staff.

President Muhammadu Buhari approved the release of the fund on the 22nd of February, 2022, while the contract to supply the 10 units of Toyota Land Cruisers were awarded to IFO Kaura Motors Nig. Limited.

Commenting on the issue, Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, argued that even though Nigerians have the right to question the gesture, Buhari, who approved the purchase also has the right to make his assessment of the situation and act accordingly.

Also answering reporters’ questions after the FEC meeting presided over by the president at the State House, Abuja, the minister said Nigeria has a policy of assisting its neighbours to strengthen its capacity to deal with insecurity.

“Let me just say that over time, Nigeria has had to support its neighbours especially, the immediate neighbours to enhance their capacity to secure their countries as it relates to us. This is not the first time that Nigeria had assisted the Niger Republic, Cameroon or Chad.

“The president assesses what is required based on the request of their presidents. Such requests are approved and interventions are provided. It is to enhance their capacity to protect their countries, as it relates to security and also to Nigeria.

“Nigerians have the right to ask questions, but also the President has the responsibility to assess what is in the best interest of the country and I cannot question the decision myself. I have said that this is not the first time and that Nigeria as a country, has provided intervention to our neighbours. It is in the best interest of Nigeria to do so,” she said.

On the memo presented by her ministry at the council meeting, Ahmed said, “Today (Wednesday), the Federal Ministry of Finance, Budget and National Planning presented a policy memo to Council and the memo is on the National Monitoring and Evaluation policy for the country.

“The policy defines a framework for the institutionalisation of the practice of monitoring and evaluation (M&E) to promote good governance, learning and accountability for results that will contribute to improve the socio-economic development of the country and enhance the wellbeing of citizens.”

Also, Minister of the Federal Capital Territory (FCT), Mohammed Bello, said Council approved the procurement of utility vehicles and accessories worth N2.68 billion for use by security agencies in Abuja as recent breaches of security continue to heighten anxiety in the federal capital, adding that the procurement includes 60 Ford Ranger four-wheelers equipped with relevant gadgets, to be supplied by Coscharis motors, for N1.83 billion within two months.

The second part of the contract was for E&S Tech Limited to supply various gadgets and accessories to support security agencies in the FCT, at a cost of N847.13million.

The minister also said although the approval of the purchases was a regular gesture from the government, it coincided with the aftermath of recent unprecedented security challenges in Abuja, including a major prison break and attack on presidential guards by terrorists.

“Today at the Federal Executive Council, I presented a memo for the procurement of utility vehicles, security gadgets and associated accessories to support the security agencies operating within the Federal Capital Territory.

“These items are 60 utility vehicles to be supplied by Coscharis Motors Limited, including communication equipment installed in the vehicles at the sum of N1,835,108,613.95 with a delivery period of two months.

“In addition to that, Council also approved supply of various security gadgets and accessories to support security agencies in the FCT and the company providing these items is Messrs E&S Technical Limited at the total sum of N847,139,764.57, making the total of these two procurements the sum of N2,682,248,378.52.”

Mohammed also disclosed that the Secretary to the Government of the Federation, Boss Mustapha, presented a memo to procure operational vehicles for the Independent Corrupt Practices and other related offences Commission (ICPC).

According to him, the ICPC requested to procure 25 operational vehicles; 13 Toyota Hilux 2.7 litres and a Peugeot 3008 SUV for a total sum of N810,534,380.72.

He explained, “The need for the procurement is based on the fact that the ICPC has increased its activities and this has been occasioned by improved management, expansion of the scope of operations, through the establishment of more state offices across the country, increase in personnel, among others.

“As you know, the ICPC, today, has also taken over supervision of consistency in projects. The memo request was approved and is to Messrs. Kaura Motors Limited.”

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