The Federal Government has proposed the concession of four airports for a duration of 20-30 years.The ministry of aviation stated in a Frequently Asked Questions (FAQ) statement posted on Wednesday that the airports will be managed by a private investor for the designated duration.
A concession is a type of public-private partnership (PPP) in which a private investor operates and maintains a government-owned asset for a specified amount of time under the conditions of a contract.
According to the ministry, the concession of the airports entails a substantial financial commitment that will benefit the country.
The airports are Murtala Muhammed Airport International (MMA) in Lagos, Nnamdi Azikiwe International Airport in Abuja, Malam Aminu Kano Airport in Kano, and Port Harcourt International Airport in Rivers state, according to the ministry.
It also stated that the government was beginning with the most strategic assets since a successful concession agreement would give stakeholders the confidence to pursue alternative aviation options.
It said: “Infrastructure concessions of this nature come with a significant financial obligation which any responsible concessionaire will no doubt be keen to recoup.
“To this end we envisage a minimum of 20) to 30 years for the programme, which may be extended depending on performance and Nigeria’s best interests.
“That said, the duration is not set in stone and will be subject to negotiation and then final approval by the Federal Executive Council.”
The anticipated concession, according to the government, will not influence the repayment of the $500 million loan from the China Exim Bank for the airport terminals.
“China Civil Engineering and Construction Corporation (CCECC) was contracted to deliver a number of infrastructure projects throughout Nigeria in 2013. The Passenger Terminal development works are a small part of this, and the federal government has every intention to service its obligation,” it said.
It also stated that the government was beginning with the most strategic assets since a successful concession agreement would givestakeholders the confidence to pursue alternative aviation options.