ICRC: How approved concessioned projects will boost Nigeria’s economy

From

Abubakar Yunusa, Abuja

The Infrastructure Concession Regulatory Commission (ICRC), says the approval for the concessioning of three ports and other projects by the federal executive council (FEC), would generate significant revenue for the country.

In a recent statement, Micheal Ohiani, director-general of ICRC, said the approved concessioning of three ports would attract an investment of $3.7 billion from the private sector.

He said FEC approved eight projects for concessioning following the issuance of the full business case (FBC) certificates of compliance by ICRC.

The approvals, according to Ohiani, demonstrate the commitment of the federal government to infrastructure development in Nigeria, as it marks the highest approval given by the council in a single sitting.

This brings the total number of concessioned projects that received the consent of the FEC in 2023 to 30, the directorgeneral noted.

Speaking on the concessioned ports, Ohiani said Burutu port in Delta was approved for 40 years at $1.28 billion and would be executed in three phases by Akewa Colmar Terminals Limited, the concessionaire.

“The project is intended to boost the utilisation of the inland waterways,” he said.

“This will be done by ensuring that the evacuation of solid minerals and agricultural produce, is undertaken at economic costs on inland waterways to the proposed Burutu deep seaport for export.

“The establishment of the port would transform Delta by boosting commercial and industrial activities, enhancing the state’s competitiveness, and creating employment opportunities.

“The project is expected to generate $125 billion in 40 years.”

The ICRC boss said Ondo’s multi-purpose deep seaport at Erunna/Ogboti will be executed in two phases by the approved concessionaire, the China Railway Eryuan Engineering Group Co. Limited.

“The first phase is at the cost of $1.14 billion while the second phase will cost $317 million,” Ohiani said.

“The port, which will have an industrial city with a free trade zone status, will boost commercial and industrial activities, enhance the state’s competitiveness, and create employment opportunities.”

Ohiani said the total expected revenue is $59.03 billion within a concession period of 50 years.

The commission’s boss also said the Snake Island terminal was a multipurpose port facility located within the Snake Island Integrated Free Zone (SIIFZ) and operating within the limits of Apapa and Tin Can Ports.

The project, he said, was approved at $974.19 million for a 45-year term, with Messrs Nigerdock and SIIFZ as the concessionaire.

He added that the approval would ensure the expansion of port infrastructure, improve revenue to the government through surging cargo volumes, and reduce the burden on roads.

“It will also provide quality job opportunities for Nigerians and reduce cargo diversion to neighbouring countries. Total revenue to the government is $5.23 billion,” he added.

Meanwhile, Ohiani said the on-street park and pay services had received approval to be deployed in some parts of the federal capital territory (FCT), with multiple operators/ concessionaires to handle different zones.

“Zone A (Wuse II and Utako) has NAJEC Limited as the concessionaire. The N475 million concession is for 10 years with expected revenue put at N11.875 billion,” he said.

“Zone B (Maitama and Garki 1) has Messrs. Automaten

FAAC: FG, states, LGAs shared N655bn in April

From Abubakar Yunusa

The federation account allocation committee (FAAC) says it shared N655.93 billion among the three tiers of government in April 2023.

Details of the disbursement were contained in a communiqué issued at the end of the committee’s meeting for May 2023 in Abuja on Thursday.

The figure shows a decrease of N58.69 billion compared to the N714.62 billion shared in March.

The committee said the N655.93 billion total distributable revenue is comprised of distributable statutory revenue of N364.65 billion, distributable valueadded tax (VAT) sum of N202.76 billion, and electronic money transfer levy (EMTL) of N14.51 billion.

According to the communique, the total amount also includes N50 billion augmentation from forex equalisation revenue, and N24 billion augmentation from nonmineral revenue.

FAAC said in April 2023, total deductions for the cost of collection was N28.10 billion, and total deductions for transfers and refunds was N120.28 billion.

From the total distributable revenue of N655.93 billion, the committee said the federal government received N248.80 billion, state governments got N218.30 billion, and the local government councils were given N160.60 billion.

A total sum of N28.21 billion was shared with oil-producing states as 13 percent derivation revenue.

FAAC also said the gross statutory revenue available for April was N497.46 billion.

This, it said, was lower than the sum of N638.67 billion received in the previous month by N141.21 billion.

The committee added that from the N364.65 billion distributable statutory revenue; N180.65 billion went to the federal government, and the state governments got N91.63