The Minister of Marine and Blue Economy, Mr Gboyega Oyetola, has state that the Federal Government requires about $1.1 billion reinvestment in the nation’s ports to renew the concession agreement.
Oyetola made this statement during his appearance before the House of Representatives Committee on Privatisation, which is investigating port concessions in Abuja.
He mentioned that the current delay in the concession of the ports is to enable the government to finalize its reinvestment plan and to renovate the ports to the necessary standards.
He said that the government would not seat back and watch the ports to completely collapsed.
- “Under the mordenisation programme of the Port, the Ministry is envisioning a major reinvestment in the port system to meet expected service delivery.
- “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 concession of the ports.
- “As a result of that, the Ministry, in concert with the agency, the NPA in particular has begun a process of reinvestment package for the port,” Oyetola said.
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On his part, Mohammed Koko, the Managing Director of the Nigeria Ports Authority (NPA), mentioned that the proposal to renew the concession agreement for the ports was presented to the Federal Executive Council in February 2023.
He explained that the FEC put the renewal on hold demanding additional information, adding that one of the issues raised by 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 involved completely in this concessions arrangement and till date, monitoring has been taking place and some of the status report as per performance will be provided for record purpose.”
Rep. Ibrahim Chidari, Chairman, House Committee on Privatisation and Commercialisation, said the Ministry must put measures in place to ensure that the government does not have to lose any revenue.
- “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.
- “We don’t want them to continue to operate illegally because there must be no vacuum,” he added.