The concessioning of three ports by the Federal Executive Council (FEC) in Nigeria is expected to attract $3.7bn in private sector investment, according to the Infrastructure Concession Regulatory Commission (ICRC). Michael Ohiani, Director-General of the ICRC revealed that the approvals, which include the renovation of the Burutu Port and the establishment of a deep sea port in Delta state under public-private partnership (PPP), would bring the total number of concession projects given approval by the FEC in 2023 to 30.
The Burutu Port in Delta State has been approved for a concession period of 40 years and will be executed in three phases costing $1.28bn by Akewa Colmar Terminals Limited, allowing for the export of agricultural produce. Meanwhile, the Ondo Multi-Purpose Deep Seaport at Erunna/Ogboti will be executed in two phases, the first costing $1.14bn while the second carries a cost of $317m. The port will have an industrial city with a free-trade zone status to boost commercial and industrial activities, enhance the state’s competitiveness and create employment opportunities.
Other approved projects include the development of Ondo Port, the Snake Island Terminal in Lagos, and the commencement of the park and pay initiative in some parts of the Federal Capital Territory (FCT). The Nnamdi Azikiwe International Cargo Airport, Abuja and the Malam Aminu Kano International Airport, Kano were also approved for concession, alongside the Expatriate Employment Levy.
According to Ohiani, the Snake Island Terminal is a multipurpose port facility that will expand port infrastructure and offer quality job opportunities for Nigerians while reducing cargo diversion to neighbouring countries. The comprehensive redevelopment of the Police Quarters in Ikeja, Lagos, seeks to replace dilapidated physical structures at the current site, with FEC approving the project at a cost of N7.4bn and a lease of 50 years, generating expected revenue of N16.7bn.
