The Minister of Marine and Blue Economy, Gboyega Oyetola, Thursday assured that government will not sit and watch the nation’s seaports collapse with the political will demonstrated by President Bola Tinubu to develop the maritime sector.
The minister who appeared before the House of Representatives Committee on Privatisation Talso disclosed that the government requires about $1.1 billion reinvestment in the nation’s seaports before renewing concession agreements.
Represented by permanent secretary in the ministry, Oloruntola Micheal, the minister said the present agreement between the government and concessionaires was unacceptable as it falls below the required standard.
“Under the mordenisation programme of the port, the ministry is envisioning a major reinvestment in the port system for it to meet the expected service delivery that is commensurate with the image of Nigeria and the level of international business that Nigeria is with.
“The current situation at the port does not meet the required standard. The investment quantum that is expected to be invested in the port will require a major rethink of the concessioning of the ports. As a result of that, the ministry, in concert with the agency, the NPA in particular has begun a process of reinvestment package for the port. It means that the ministry must factor into whatever relevant concessions that have to be made into that larger vision or else, we my progress further in error and put that reinvestment plan at risk.
“It must be put on record that what you have as a proposal which has been stalled is yet to be given approval by government and has been considered by the ministry to fall below the expected threshold both in terms of revenue and in terms of investment. The ministry is expectant that it will be able to conclude investment plan and bring on board necessary modalities for the consideration of these concessions,” he stated.
Also speaking, managing director of the NPA, Mohammed Bello Koko, said the proposal for renewal of the concession agreement for the ports was submitted to the Federal Executive Council in February 2023.
