FG Seeks $1.1 Billion Investment for Ports Concession Renewal

The Federal Government of Nigeria has announced its need for a $1.1 billion reinvestment in the nation’s ports to renew the concession agreement with port operators.

The Minister of Marine and Blue Economy, Gboyega Oyetola, stated that the current agreement falls below the required standard and that the government is envisioning a major reinvestment in the port system to meet the expected service delivery.

During a House of Representatives Committee on Privatisation investigation into the ports concession in Abuja, Oyetola, represented by the Permanent Secretary in the Ministry, Oloruntola Micheal, emphasized that the government would not sit back and watch the ports deteriorate.

He added that the current situation at the ports does not meet the required standard, and a major rethink of the concession is necessary.

The Managing Director of the Nigeria Ports Authority (NPA), Mohammed Koko, revealed that the proposal for renewal of the concession agreement for the ports was submitted to the Federal Executive Council (FEC) in February 2024.

However, the FEC put the renewal on hold, demanding additional information, particularly regarding investment in existing infrastructure at the ports.

Acting Director-General of the Bureau for Public Enterprise (BPE), Ignatius Ayewoh, suggested that the government’s reinvestment plan should halt the renewal process of the concession exercise.

He stressed that the government must ensure it does not lose any revenue and that the terminal operators should not be allowed to continue operating illegally after the expiration of their agreement in 2021.

The Chairman of the House Committee on Privatisation and Commercialisation, Rep. Ibrahim Chidari, emphasized that the Ministry must take necessary measures to prevent any revenue loss and ensure that there is no vacuum in the operation of the ports.

The Nigerian government is focused on modernizing its ports to meet the expected level of international business and to reflect the nation’s image.

The government’s decision to seek a $1.1 billion investment for ports concession renewal highlights its commitment to improving the country’s infrastructure and boosting its economy.