Nigeria Lost $5.7bn to Shoddy Concessions, Public-private Projects, Says House

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By Udora Orizu

The House of Representatives on Tuesday, disclosed that the country has lost over $5.7 billion to unfavourable and non-transparent public-private projects (PPP) and property concession deals in the last few years.

The lower chamber also revealed that the government is losing over $90 million to the build, operate and transfer deal between aviation agencies and private investors.

The lawmakers made the disclosure at an inaugural meeting of the Ad hoc Committee to Investigate the Governing Lease of Federal Government-Owned Assets, chaired by Hon. Daniel Asuquo.

Speaking at the meeting, Asuquo said it has been discovered overtime that the realisation of the federal government’s objective may become a tall order if appropriate checks and balances are not put in place by way of oversight.

He made reference to the Murtala Muhammed Domestic Airport Terminal 2
(MMAZ), situated in Lagos and its
ancillary facilities, which were developed under a BOT agreement, saying that the federal government is losing over
$90.5 million annually due to the shoddy agreements between the Federal Airports Authority of Nigeria (FAAN) and its concessionaire at both local and international wings of the airport.

According to him, ”Also in the Aviation Sector, in March 2021, the Secretary General of the Association of Nigerian Aviation Professionals (ANAP) lamented in a document addressed to the Minister of Aviation, the blatant refusal of concessionaires to honour their agreements on land lease shop rentages, concessions and on BOT arrangements. Some of the agreements with the concessionaires made up of traders, vendors and tenants at the airports have elapsed for more than five years without renewal.

”A similar situation obtains in the maritime sector, where the Nigerian Government has made concession of 26 ports in Nigeria to private companies. The tenures of the NPA concession agreements range from 15 to 25 years and the estimated revenue to
government from the concessions is estimated at over $6.54 billion over the period. On the average, the Nigerian economy has lost over $5.7 billion from unfavourable and non-transparent federal government concession and lease agreements since its
inception.”