The Federal Executive Council has approved N35.4 billion for the building of power stations at Calabar and Kano offices of the Nigerian Export Processing Zones Authority in processing zones.
Minister of Industry Trade and Investment, Niyi Adebayo revealed this to Journalists at the end of this week’s cabinet meeting chaired by President Muhammadu Buhari.
He said: “My Ministry presented a memo for the award of contract for building power stations on behalf of Nigerian Export Processing Zones Authority in processing zones in Calabar and Kano. The authority received proposals from various companies and after all the evaluations were done, they awarded the contract to one of the companies in the sum of N35,411,119,169.47.
“The terms are that the company will finance 75%, which is in the sum of N26,558,339,337.10, while the Export Processing Zones Authority will pay 25%, which translates to N8,852,779,792.37.
“For the 75% of the contractor’s portion, Council approved a pay-back period of ten years. The plant will be completed after 11 months and it would be operated by the contractor for five years and during that five years, they will build local capacity so that after five years, the local capacity that had been built will take over the running of the plant.”
Adebayo said government’s intention of the upgrade of the two zones is to create zones with world-class standards.
“The Ministry of Industry, Trade and Investment is desirous of making Nigeria a manufacturing hub, especially now that we have signed on to the African Continental Free Trade Area Agreement.
“So, by putting 24-hour power in the two processing zones, it will make it more attractive to foreign investors to come and set up their manufacturing concerns here in Nigeria,” he said.
While also speaking, Minister of Mines and Steel Development, Olamilekan Adegbite the council approved the concessioning of the Aluminium Smelting Company of Nigeria, that is in Ikot-Abasi, in Akwa Ibom State.
He said: “Essentially, we sought Council’s approval for the Aluminium Smelting Company of Nigeria, that is in Ikot-Abasi.
“The BPE has concessioned that company and the company sought to be categorised as a power producer and as a strategic company, which Council approved so that we can start the production of aluminium in Nigeria.”
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