ICRC: How approved concessioned projects will boost Nigeria’s economy

The Infrastructure Concession Regulatory Commission (ICRC), says the approval for the concessioning of three ports and other projects by the federal executive council (FEC), would generate significant revenue for the country.

In a recent statement, Micheal Ohiani, director-general of ICRC, said the approved concessioning of three ports would attract an investment of $3.7 billion from the private sector.

He said FEC approved eight projects for concessioning following the issuance of the full business case (FBC) certificates of compliance by ICRC.

The approvals, according to Ohiani, demonstrate the commitment of the federal government to infrastructure development in Nigeria, as it marks the highest approval given by the council in a single sitting.

This brings the total number of concessioned projects that received the consent of the FEC in 2023 to 30, the director-general noted.

MORE REVENUE GENERATION FROM PORTS 

Speaking on the concessioned ports, Ohiani said Burutu port in Delta was approved for 40 years at $1.28 billion and would be executed in three phases by Akewa Colmar Terminals Limited, the concessionaire.

“The project is intended to boost the utilisation of the inland waterways,” he said.

“This will be done by ensuring that the evacuation of solid minerals and agricultural produce, is undertaken at economic costs on inland waterways to the proposed Burutu deep seaport for export.

“The establishment of the port would transform Delta by boosting commercial and industrial activities, enhancing the state’s competitiveness, and creating employment opportunities.

“The project is expected to generate $125 billion in 40 years.”

The ICRC boss said Ondo’s multi-purpose deep seaport at Erunna/Ogboti will be executed in two phases by the approved concessionaire, the China Railway Eryuan Engineering Group Co. Limited.

“The first phase is at the cost of $1.14 billion while the second phase will cost $317 million,” Ohiani said.

“The port, which will have an industrial city with a free trade zone status, will boost commercial and industrial activities, enhance the state’s competitiveness, and create employment opportunities.”

Ohiani said the total expected revenue is $59.03 billion within a concession period of 50 years.

The commission’s boss also said the Snake Island terminal was a multipurpose port facility located within the Snake Island Integrated Free Zone (SIIFZ) and operating within the limits of Apapa and Tin Can Ports.

The project, he said, was approved at $974.19 million for a 45-year term, with Messrs Nigerdock and SIIFZ as the concessionaire.

He added that the approval would ensure the expansion of port infrastructure, improve revenue to the government through surging cargo volumes, and reduce the burden on roads.

“It will also provide quality job opportunities for Nigerians and reduce cargo diversion to neighbouring countries. Total revenue to the government is $5.23 billion,” he added.

AIRPORTS AND PARKS CONCESSIONING

Meanwhile, Ohiani said the on-street park and pay services had received approval to be deployed in some parts of the federal capital territory (FCT), with multiple operators/concessionaires to handle different zones.

“Zone A (Wuse II and Utako) has NAJEC Limited as the concessionaire. The N475 million concession is for 10 years with expected revenue put at N11.875 billion,” he said.

“Zone B (Maitama and Garki 1) has Messrs. Automaten Technik Bauman Nig. Ltd (ATB) as the concessionaire. It is a N433.3 million concession for a 10-year term and an expected revenue of N15.05 billion.”

The ICRC also said the expatriate employment levy (EEL) project seeks to boost the revenue generation of the country through the imposition of levies on companies that employ expatriates.

According to Ohiani, it aims to discourage employers from hiring expatriates for jobs that could easily be done by Nigerians.

“The project will employ a robust ICT system for the collection of EEL,” he said, noting that it was approved at $95 million with Messrs Air Wave Ltd as a concessionaire and estimated revenue of $13.4 billion.

For the comprehensive redevelopment of the police quarters in Ikeja, Lagos, Ohiani said the project seeks to replace the existing dilapidated physical structures at the current site.

“FEC’s approval for this project was for a cost of N7.4 billion, a lease of 50 years, and an expected revenue of N16.7 billion,” he said.

Last Thursday, Hadi Sirika, the minister of aviation, said the federal government would generate about $800 million from the concessioning of the Nnamdi Azikiwe International Airport (NAIA), Abuja, and the Mallam Aminu Kano International Airport, Kano.