Nigeria’s Federal Executive Council has given approval for the construction of a multipurpose port in Ilaje, Ondo State.
The Minister of State for Transportation, Ademola Adegoroye, revealed this while briefing State House Correspondents at the end of Wednesday’s meeting of the council presided over by President Muhammadu Buhari.
He added that the council also gave approvals for the expansion of Snake Island Seaport in Lagos and Burutu Port in Delta State.
According to the Minister, the three projects will be carried out by private investors at no cost to the Nigerian government.
He said: “Today the Federal Ministry of Transportation presented before the Federal Executive Council, under the chairmanship of Mr. President and the memos are for one, the approval for the expansion and development of Snake Island Seaport in Lagos State, through public private partnership arrangement (PPP).
“The second is for the expansion and developments of the Burutu Seaport project also through public private partnership. Burutu is in Delta State.
“The last but not the least, and probably the most important, the Ondo Multipurpose Port in Ilaje, Ondo State and I’m pleased to announce to you, gentlemen of the press, that the Federal Executive Council today considered the memos that we presented, looked at them thoroughly, checked if the processes and procedures have been complied with and graciously approved the three memos, at no cost to the government of the Federal Republic of Nigeria.”
Adegoroye explained that the Snake Island Port would be concessioned for a period of 45 years while that of Burutu would be concessioned for 40 years and the one in Ondo State would be concessioned for 50 years.
He said the three ports will also rake in millions of dollars as revenue for the Nigerian government and the Infrastructure Concession Regulatory Commission.
“For Snake Island Port, the total investment by the private investors will be $974,185,203.66 and we expect that the investors will get $18 billion over the period of 45 years concession period. The federal government will have $5.23 billion and the ICRC will get $94.9 million.
“For Burutu, the concession period is 40 years unlike the Snake Island, which is 45 years. The total projected and revenue to the concessionaire, federal government and the ICRC; the concessionaire is expected to have a revenue of $125 billion. The federal government is expected to get revenue of $9 billion, for spending nothing, and the ICRC is expected to rake in revenue of $627 million as well. The total investment (capital) by the investors is $1,285,005,818.40.
“For Ondo Port, the total investment capital of $1,480,465,253, to be fully financed by the private investors. The concession period is 50 years and the expected revenue; $59 billion will go to the private investors, $2.63 billion will go to the federal government and the ICRC will expectedly rake in a sum of $295 million,” the Minister revealed.
PIAK
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