Business
Nigerian govt to generate $800m from airports’ concession
The Nnamdi Azikiwe International Airport in Abuja and the Mallam Aminu Kano International Airport in Kano have been concessioned by the federal government of Nigeria for periods of 20 and 30 years, respectively.
At the same time, the federal government hopes to receive $797.4 million (N368.8 billion) in taxes and concession fees from Corporación America Airports, who is the concessionaire.
The Minister of Aviation, Hadi Sirika, made this known while speaking with State House Correspondents, on Wednesday, after this week’s Federal Executive Council meeting presided over by President Muhammadu Buhari at the Aso Rock Villa.
“Put together it is about $800m. And this is equal to the amount of money that we borrowed to build those four airports,” he said.
The ministry’s decision, according to Sirika, was a step towards concessioning rather than privatising the nation’s assets.
READ ALSO:Nigerian govt approves N449.9m for 17 airports’ master plan
He explained, “It is a concession of the Nnamdi Azikiwe International Airport and Mallam Aminu Kano International Airport. The consortium that won the bid are MSSRS Corporación America Airports consortium and in the consortium, they have MSSRS Mota-Engil Africa and MSSRS Mota-Engil Nigeria and this is through a PPP and it’s for 20 years for Abuja and 30 years for Kano.”
On the amounts payable to the government as fees and taxes, he said “The concession fees or upfront fees is $7m for Abuja and $1.5m to be given for Kano. Fixed concession fee is $401.2m for Abuja and fixed fees for Kano is $21m.
“The variable costs concession fee is $154m for Abuja and $26.9m for Kano. Tax $111.2m for Abuja and $42.7m for Kano. The ICRC’s supervision fees is $16.4m for Abuja and $5.3m for Kano.
“So the total amount of money that is accruing to government is $700m for Abuja and then $97.4m for Kano. Put together, it is about $800m. This is equal to the amount of money that we borrowed to build those four airports.”
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: In Kwara, multimillion-naira milk processing plant is abandoned, converted to a chicken outlet
After the government spent millions of naira to establish a milk processing plant in Kwara State that would provided jobs...
SPECIAL REPORT: For Sokoto communities, promise of healthcare is akin to death sentence
In this story, ABDULRASHEED HAMMAD delves into the dire realities of Primary Health Care services in Sokoto State, shedding light...
ICYMI…SPECIAL REPORT: NNPCL hides behind PIA to frustrate disclosure, accountability
Nigeria’s major oil company, Nigerian National Petroleum Corporation Limited (NNPCL), in what appears to be a common practice of disregard...
INVESTIGATION: Multi-million naira Ekiti resort center remains uncompleted a decade after
The multimillion-naira project, expected to comprise recreational buildings, now consists of cassava farmland, a bush used for excretion, and a...
SPECIAL REPORT: Torturous experiences of students with disabilities in Oyo tertiary institutions
For students with disabilities in Oyo state-owned tertiary institutions, learning is a torturous and distressing experience, considering the building structures...