The House of Representatives Committee on Privatisation and Commercialisation has said the country may lose a whopping $400million investment in the nation’s seaports to the delay in the approval of the expired leases/concessions of private terminal operators.
To this end, the committee, summoned
the minister of transportation, Chibuike Rotimi Amaechi, to appear before it, on Tuesday, to explain the reasons for the delay in the approval of the expired leases/concessions.
The chairman of the committee, Hon. Ibrahim Makama who noted that the delay may rob the federal government of investments worth up to $400 millionsaiyd the companies affected are ENL Consortium –Apapa Port (Terminal C & D ( $143 million ); Port & Cargo Handling Services — Tin Can Terminal C ($120 million); Josephdam Port Services –Tin Can Terminal A ($100 million ) and Associated Maritime Services– Warri New Port ($2.4 million).
This followed its findings during oversight and interactive sessions with MDAs involved in the processes and the parties to the concession agreement i.e. NPA as lessor, BPE as confirming party and the individual Terminal Operators.
The ministry had in a letter dated 3rd March, 2022, informed the committee that the Inter-Ministerial Committee set up by the minister had concluded its assignment and submitted its report.
Meanwhile, the Nigerian Ports Authority NPA said, five of the leases expired in April, May and November 2021 respectively, and before expirations, in line with provisions of the terms of the Agreement Article (2.2) which states that “the parties may mutually agree to renew this Agreement for an additional period; provided that either party has notified the other party in writing of its desire to renew this Agreement not less than five or three years as the case may be to the final year anniversary of the effective date.”