Connect with us

Hi, what are you looking for?

Seva Magazine

BUSINESS & ECONOMY

FG proposes concession of Lagos, Abuja airports for 30 years

The federal government is seeking to concession four airports for a period of 20-30 years.

The ministry of aviation announced this in a frequently asked questions (FAQ) document released on Wednesday.

The airports are Murtala Muhammed Airport (MMA), Lagos; the Nnamdi Azikiwe International Airport, Abuja; Malam Aminu Kano Airport, Kano and Port Harcourt International Airport, Rivers state.

A concession is a form of public-private partnership (PPP) where a government-owned asset is being operated and maintained by a private investor for a period of time on terms contained in a contract.

 

“Infrastructure concessions of this nature come with a significant financial obligation which any responsible concessionaire will no doubt be keen to recoup,” the document read.

“To this end, we envisage a minimum of 20) to 30 years for the programme, which may be extended depending on performance and Nigeria’s best interests.

“That said, the duration is not set in stone and will be subject to negotiation and then final approval by the federal executive council.”

The aviation ministry explained that the planned concession would not affect the repayment of the $500 million loans taken from the China Exim Bank for the airports’ terminals.

“China Civil Engineering and Construction Corporation (CCECC) was contracted to deliver a number of infrastructure projects throughout Nigeria in 2013. The Passenger Terminal development works are a small part of this, and the federal government has every intention to service its obligation,” it said.

It also said that the government was starting with the most strategic assets because successful delivery of the concession agreement would give stakeholders the confidence to consider other possibilities in the aviation sector.

In 2016, the federal government had indicated an interest in concessioning the Lagos, Abuja, Port Harcourt, and Kano airports to increase their capacity and efficiency.

Vice-President Yemi Osinbajo, in 2017, had announced the federal executive council’s approval of the concession of Lagos and Abuja airports.

 

SOURCE; https://www.thecable.ng/fg-proposes-concession-of-lagos-abuja-airports-for-30-years

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

BUSINESS & ECONOMY

An exclusive sit-down with Seyi Adekunle of Vodi Group.

ENTERTAINMENT

The ‘Open Mic’ event by Tiki Cultures, which is an initiative of Adenike Isi Adeeko a.k.a Dadashnami, has been running for over two years...

TECHNOLOGY

The world’s most popular global audio streaming subscription service is now available in Nigeria, Ghana, Kenya, Tanzania, and Uganda as of 23 February. It...

Copyright © 2020 SEVA Magazine. Designed and Developed by Donkey Technologies.