How port concession will bring $3.7bn investments to Nigeria – ICRC

Bisola David
Bisola David
How port concession will bring $3.7bn investments to Nigeria - ICRC

The Ondo Multi-Purpose Port in Ilaje, Snake Island in Lagos State, and Burutu in Delta will attract $3.7 billion in private sector investments, according to the Nigerian Infrastructure Concession Regulatory Commission.

Nairametrics reported that the ICRC Director-General, Michael Ohiani, revealed this in a statement issued in Abuja.

On Monday, the Federal Executive Council authorized the port concession, which comprises the building of a deep-water port in Delta State through a public-private partnership and the Burutu Port.

According to the Infrastructure Concession Regulatory Commission, the Federal Executive Council’s plan to concession the three ports will bring in an investment of $3.7 billion from the private sector.

Ohiani said that the FEC had approved the Public Private Partnership projects for the expansion of Ondo Port and the Snake Island Terminal in Lagos, as well as the repair of the Burutu Port and the construction of a deep sea port in Delta State.

The FEC also authorized the start of the Park and Pay initiative in some areas of the Federal Capital Territory, the renovation of police quarters in Ikeja, Lagos, and the concession of the Malam Aminu Kano International Airport in Kano, and the Nnamdi Azikiwe International Cargo Airport, Abuja.

“With the most recent approvals, 30 concession projects will have received FEC certification in 2023 as a whole. The Burutu Port in Delta State will be developed by the concessionaire, Akewa Colmar Terminals Limited, over the course of three phases for a total cost of $1.28 billion and a 40-year concession tenure.

“The project is meant to increase the use of inland waterways. To do this, it would be made sure that agricultural products and solid minerals are transported economically via inland rivers to the envisaged Burutu Deep Seaport for export, he said.

The head of the ICRC further stated that the port’s construction would change Delta State by strengthening the state’s competitiveness, promoting business and industrial activity, and also generating job opportunities.

“In 40 years, the project is predicted to earn 125 billion dollars. There will be two phases to the construction of the Ondo Multi-Purpose Deep Seaport in Erunna/Ogboti. 1.14 billion dollars will be spent on the first phase, and 317 million on the second.

“China Railway Eryuan Engineering Group Co., Ltd. was allowed by FEC to serve as the concessionaire. According to him, the port will increase commercial and industrial activity, promote the state’s competitiveness, and generate employment possibilities. It will also have the status of an industrial city and a free trade zone.

The Snake Island Terminal was a multipurpose port facility situated within the Snake Island Integrated Free Zone and operating within the boundaries of Apapa and Tin Can Ports. The total estimated revenue is 59.03 billion dollars over a concession duration of 50 years.

With Messrs. Nigerdock and SIIFZ serving as the concessionaires, the project was approved for 974,19 million dollars over a 45-year period. It would result in the expansion of port facilities and increase government revenue through soaring cargo volumes, and reduce the burden on roads.

“It will also decrease cargo diversion to neighboring nations and give Nigerians access to high-quality employment opportunities. The government generated is $5.23 billion in total revenue.

The Ondo Multi-Purpose Port in Ilaje, Snake Island in Lagos State, and Burutu in Delta are the ports that will be constructed.

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