The Federal Government may lose investments worth N183.3bn due to a failed contractual agreement of 25 concessioned public facilities and infrastructure granted to private investors.
This new development is coming amid a recent decline in revenue generation which has resulted in more borrowing and industry rehabilitation agenda of the trade and investment minister, Doris Anite.
These assets listed as projects under Custody (Post-Contract) and sourced from the webpage of the Infrastructure Concession Regulatory Commission showed that the concession includes projects in sectors ranging from transportation to ports, health, marine, security, aviation, and hydropower plants.
However, only five out of 16 projects had stipulated amounts to be invested while 11 others were listed without investment figures.
The PUNCH reports that these projects received approval from the Federal Executive Council but did not materialise due to several pending issues such as changes in foreign exchange rates, government policies, interest rates and insecurity amongst others.
An analysis of the document showed that some assets listed far back in 2003 are still in dispute, chasing off interested investors.
Some of the stalled projects include the implementation of Nigeria’s harmonised ECOWAS passport and automated system awarded in 2003 at the cost of N14.7bn and currently in dispute. Similarly, the concession for tracking cargoes, ships, and surveillance supervised by the Nigerian Maritime Administration and Safety Agency (N37.22bn) awarded in 2012 is suspended as the involved parties prefer out-of-court settlement of the contract dispute.
Also, the concession for the development of engineering infrastructure for arterial roads stormwater drainage, and telecom duct at Katampe district (N61.2bn) awarded for a five-year tenure between 2010 to 2015 is stalled and both parties negotiating contract restructuring.
In addition, the concession agreement in respect of the police specialised services automation project awarded in 2021 is on hold while a concession for the design, finance, build, and transfer of the Debt Management Office(N41.5bn), an agency saddled to manage the country’s debt as an asset for growth is currently on hold as the concessionaire could not be traced. This agency still occupies a rented office shared with the Nigeria Deposit Insurance Corporation.
Other projects listed without investment figures include the development of a conference centre four-star hotel at Muritala Muhammed Airport, Lagos, a concession contract for a container freight station of Inland depot (Borno State) due to insecurity, provision of primary, secondary, and tertiary health care at the Garki Hospital, Abuja expired without implementation.
The PUNCH reports that the ICRC was established to drive the Public-Private Partnership policy of the government and bolster public infrastructure, premised on the fact that the government alone cannot meet all the infrastructure needs of the people.
The agency fulfilling its mandate has generated alternative source of revenue worth N9trn for the next 55 years and N182bn projected income in 2023.
Despite the recent success recorded by the commission in concessions of public assets, the moribund investments indicate a need to prioritise the implementation of laws regulating assets franchise and enforce fines or penalties.
A national policy document on private-public partnerships obtained by our correspondent, however, revealed that there are no penalties or fines on failed franchises. It only emphasised the contractor’s capacity to deliver.
The policy read partly, “Authorities responsible for privately operated infrastructure must have the capacity to manage the commercial processes involved and to partner on an equal basis with their private sector counterparts.
“Strategies for private sector participation in infrastructure will be disseminated and objectives shared throughout all levels of government and relevant parts of the public administration. Training will be provided to transfer relevant skills and understanding to those involved in projects, including decision makers.”
This is further aided by a no-limit timeline to achieve the implementation stage. For instance, the recently inaugurated Lekki Deep Seaport was initially awarded on April 21, 2011, meaning it was delayed for 13 years before fruition.
SOURCE: PUNCHNG
