The federal government requires about 1.1 billion dollars in reinvestment in the nation’s ports to renew the concession agreement.
The Minister of Marine and Blue Economy, Mr Gboyega Oyetola, said this when he appeared before the House of Representatives Committee on Privatization, investigating ports concession in Abuja
He said at the moment, the concession of the ports was being delayed to allow the government to conclude its reinvestment plan and reconstruct the ports to meet the required standards.
He said that the government would not sit back and watch the ports completely collapse.
The minister, who was represented by the Permanent Secretary in the Ministry, Mr. Oloruntola Micheal, said the present agreement between the government and concessionaires was unacceptable.
He added that it fell below the required standard, saying, “Under the mordenization programme of the port, the Ministry is envisioning a major reinvestment in the port system to meet expected service delivery.
This, according to him, will be commensurate with the image of Nigeria and the level of international business that Nigeria has.
“The current situation at the port does not meet the required standard. The investment quantum that is expected to be invested in the port will require a major rethink of the port’s concession.
“As a result of that, the Ministry, in concert with the agency, the NPA in particular, has begun a process of reinvestment packages for the port.”
Also speaking, Mr. Mohammed Koko, Managing Director, Nigeria Ports Authority (NPA), said the proposal for renewal of the concession agreement for the ports was submitted to the Federal Executive Council in Feb. 2023.
He explained that the FEC put the renewal on hold, demanding additional information, adding that one of the issues raised by the FEC was investment as it relates to existing infrastructure at the ports.
Mr. Ignatius Ayewoh, acting Director-General, Bureau for Public Enterprise, said that the government reinvestment plan should stop the renewal process of the concession exercise.
He said, “I want to say that BPE was completely involved in this concession arrangement, and to date, monitoring has been taking place, and some of the status reports as per performance will be provided for record purposes.
Rep. Ibrahim Chidari, Chairman, House Committee on Privatization and Commercialization, said the Ministry must put measures in place to ensure that the government does not have to lose any revenue.
He said, “After the expiration of the agreement in 2021, the terminal operators were given a six-month extension twice, and after that, there had been no extension.
He said, “We don’t want them to continue to operate illegally because there must be no vacuum.”. (NAN)
