Public assets put on concession by the Federal Government are expected to generate N9.1tn revenue every year over the next 55 years. The generated revenue will be shared between the government and private investors based on a contractual agreement. This implies that the new administration of President Bola Tinubu-led administration may receive N36.4tn in its first four-year tenure…..CONTINUE READING...CONTINUE READING
An analysis of reports sourced from the Infrastructure Concession Regulatory Commission showed that the concession includes projects in sectors ranging from transportation to ports, energy, dams and hydropower plants.
It also noted the concessions had to do with infrastructure and special projects, which were franchised between 2021 and 2023 to private investors under the administration of former President Muhammadu Buhari.
Some of the franchised assets include the establishment of a Planetarium and Museum at the National Space Research and Development Agency, expected to generate N30bn for the Federal Government and the private sector investors.
Also, the Federal Executive Council recently approved the concession of the Nnamdi Azikiwe International Cargo Airport, Abuja; the Mallam Aminu Kano International Airport, Kano; as well as the Expatriate Employment Levy, expected to generate $1.76bn, $596m, and $13.4bn, respectively.
The FEC also approved for concession the establishment of an Aviation Leasing Company and the development of an Electronic Civil Registration and Vital Statistics System, a platform that would effectively keep electronic records of births and deaths registrations.
Other projects for concession are Secure E-ticketing Solutions for the Lagos Ibadan Rail Service and the Warri-Itakpe Rail Service as well as the Device Management System, a project designed by the Nigerian Communications Commission.
This new development is coming amid a recent decline in revenue generation which has resulted in more borrowing.
Some of the projects are at the implementation stage while a few others are at different stages of procurement.
To arrive at the yearly figure, the total amount of revenue for each project was divided by the number of years concessioned.
A breakdown revealed that the government would earn N1.35tn annually from the N6.27tn in five years for two concessioned projects, while N905.7bn would be paid into the government coffers per year for N9.05tn revenue generated in 10 years from 11 projects.
Four projects under 15 years of concession would generate N133bn with N8.87bn remitted yearly, while N40.73bn would be paid annually for the 20 years of two franchised assets at a total of N814.73bn.
The government would also earn N461.75bn per year from 25 years project concession worth N11.54tn. 30 years of two concessioned projects would create revenue of N9.2bn per year from a total of N274.62bn.
Also, a yearly payment of N1.44tn would be paid into the treasury from 40 years of one franchised asset worth N57.84tn. For 45 years of three concessioned assets, N4.3tn would be paid annually from a total of N193.17tn generated during the period under review.
50 years of two concessioned projects would generate revenue of N544.33bn annually from a total of N27.21tn, while N478.23m would be paid per year from total revenue of N26.3bn from two projects in 55 years.
In total, the Federal Government is expected to make N9.1tn annually from each category of projects to be concessioned.
The ICRC was established to drive Public-Private Partnership policy of government and bolster public infrastructure, premised on the fact that government alone cannot meet all the infrastructure needs of the people…..CONTINUE READING
