Rédaction Africa Links 24 with Ibrahim Ramalan
Published on 2024-03-15 08:31:31
The Federal Government of Nigeria is in need of approximately 1.1 billion dollars for reinvestment in the nation’s ports to facilitate the renewal of the concession agreement. This revelation was made by the Minister of Marine and Blue Economy, Gboyega Oyetola, during his appearance before the House of Representatives Committee on Privatization, which is investigating port concessions in Abuja.
According to Oyetola, the delay in the concession of the ports is to enable the government to finalize its reinvestment plan and revamp the ports to meet the required standards. He emphasized that the government is committed to preventing the collapse of the ports and ensuring that they align with international standards.
Representing the Minister, Permanent Secretary Mr. Oloruntola Micheal stated that the current agreement between the government and concessionaires is below the expected standard. He highlighted the need for significant reinvestment in the port system as part of the modernization program to enhance service delivery and elevate Nigeria’s reputation in international business.
The Ministry, in collaboration with the Nigerian Ports Authority (NPA), has initiated a reinvestment package for the ports to address the inadequacies and upgrade the facilities to meet the desired level of service delivery. Mohammed Koko, the Managing Director of NPA, mentioned that the proposal for renewing the concession agreement was submitted to the Federal Executive Council in February 2023. However, the FEC requested additional information, particularly on investments in existing port infrastructure.
Ignatius Ayewoh, the acting Director-General of the Bureau for Public Enterprise, stressed the importance of the government’s reinvestment plan in halting the concession renewal process. He confirmed BPE’s involvement in the concession arrangement and assured that monitoring of the concessionaires’ performance would continue.
Chairman of the House Committee on Privatization and Commercialization, Rep. Ibrahim Chidari, urged the Ministry to implement measures that would prevent revenue loss and ensure the orderly transition after the expiration of the concession agreements. He emphasized the need for legal compliance to avoid illegitimate operations by terminal operators.
In conclusion, the government’s commitment to reinvesting in the ports to meet international standards and improve service delivery is crucial for Nigeria’s economic development and global competitiveness. By addressing the shortcomings in the current concession agreement and prioritizing reinvestment, the government aims to transform the ports into world-class facilities that will drive economic growth and enhance trade relations.
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