On Wednesday, the Federal Government of Nigeria gave its approval for a Private-Public Partnership that will allocate the sum of $2.59 billion for the development of the Badagry Deep Seaport project.
This information was shared with the State House Correspondents by the Minister of Transportation, Mu’azu Sambo, shortly after the Federal Executive Council meeting that was held in the Council Chambers of the Presidential Villa in Abuja and was presided over by the President, Major General Muhammadu Buhari (retd.).
Sambo elaborated by stating that the port will be run by the private sector following a Build-Own-Operate-Transfer delivery method for forty-five years, after which time it will be transferred back to the government.
He pointed out that the project will result in an income of $53.6 billion and the creation of around 250,000 employees, in addition to transforming Nigeria into a marine hub in West Africa.
The minister stated that he presented a memo to the council concerning the development of the Badagry Deep Seaport under the public-private partnership arrangement, where the private sector will inject money for the development of the port and at the end of the concessionary period, the port reverts to the Federal Government of Nigeria through the Nigerian Ports Authority.
The public-private partnership arrangement entails that the private sector will inject money into the development of the port, and at the end of the concessionary period, the port reverts to the Federal Government of Nigeria through the Nigerian Ports Authority.
The project cost as contained and accepted in the council stood at $2.59 billion. This figure was based on the final business case which was approved by the Infrastructure Concession Regulatory Commission following the legislation that is now in place.
It must be developed in a phased manner throughout four stages, with milestones, and a concessionary period of forty-five years. As previously mentioned, reversion belongs to the Federal Government of Nigeria.
The government’s ambition is to make Nigeria the maritime hub of the West and Central Africa sub-region, and this will help them go closer to achieving that goal.
Throughout the concession period, this project is expected to bring in total revenue of more than $53.6 billion. It will also attract foreign direct investments to the country, which will help in improving Nigeria’s economy in general and the well-being of Nigerians. Additionally, it will help create approximately a quarter million jobs.