FG to concession four airports for 30 years

Chinazor Megbolu

The Federal Government is seeking to concession four airports in the country for a period of 20-30 years.

The Ministry of Aviation said this in a Frequently Asked Questions (FAQ) document released during the week, saying the four airports are; Murtala Muhammed Airport (MMA), Lagos; the Nnamdi Azikiwe International Airport, Abuja; Malam Aminu Kano Airport, Kano State and Port Harcourt International Airport, Rivers State.

“Infrastructure concessions of this nature come with a significant financial obligation which any responsible concessionaire will no doubt be keen to recoup.

“To this end, we envisage a minimum of 20 to 30 years for the programme, which may be extended depending on performance and Nigeria’s best interests.

“That said, the duration is not set in stone and will be subject to negotiation and then final approval by the federal executive council,” the FAQ document said.

The ministry also pointed out the planned concession would not affect the repayment of the $500 million loan taken from the China Exim Bank for the airports’ terminals.

According to the ministry; “China Civil Engineering and Construction Corporation (CCECC) was contracted to deliver a number of infrastructure projects throughout Nigeria in 2013.

“The Passenger Terminal development works are a small part of this, and the federal government has every intention to service its obligation”.

The document further maintained that the government was starting with the most strategic assets because successful delivery of the concession agreement would give stakeholders the confidence to consider other possibilities in the aviation industry.

Recall that in 2016, the federal government had muted the idea of concessioning the Lagos, Abuja, Port Harcourt and Kano airports in a bid to increase their capacity and efficiency.

The concessioning project is a public-private partnership (PPP) where a government-owned asset is being operated and managed by a private investor for a period of time on terms contained in a contract.