The Federal Executive Council (FEC) of Nigeria has granted approval for the development of new port projects in three states, namely Delta, Ondo, and Lagos. The total sum of $4,713,841,477 has been allocated for these projects, as confirmed by the Minister of State for Transportation, Prince Ademola Adegoroye. The announcement was made after the FEC meeting, which was presided over by President Muhammadu Buhari at the Presidential Villa in Abuja.
The three ports that will be developed are the Ondo Multi-Purpose Port in Ilaje, Snake Island in Lagos State, and Burutu in Delta. These projects will be executed through Public-Private Partnership (PPP) arrangements, with no cost to the Federal Government. Private firms will finance the projects, and they will be operated for periods ranging from 40 to 50 years.
According to the Minister, the Ondo port will cost private developers $1,480,465,253 and will be concessioned for a period of 50 years. The expected accruals to the concessionaire and the Federal Government over this period are projected to be $50 billion and $2.6 billion, respectively. Similarly, the Burutu port will cost $1,285,005,818 and will be concessioned for 40 years, with the concessionaire and the Federal Government expected to gain $125 billion and $9 billion, respectively. The Snake Island Port, estimated at $974,185,203, will be concessioned for 45 years, and the concessionaire and the Federal Government will receive $18 billion and $5.23 billion, respectively, in accruals within this duration.
In addition to the port projects, the FEC also approved other infrastructure initiatives. N140 million was allocated for the procurement of 33 KV circuit breakers and 120 surge arrestors for systems used by the Transition Company of Nigeria. This procurement aims to improve electricity services in the country, specifically in transmission. The council also approved N1.5 billion for the construction of the Dukanbo Shonga 132 KV double circuit transmission line in Kwara State, which has been non-functional for several years.
In an update on the second Niger Bridge, the Minister of Information and Culture, Alhaji Lai Mohammed, stated that the construction of the bridge has been completed and it is ready for inauguration before May 29. The contractor responsible for the project will hand it over to the federal government on May 20.
The development of new port projects and the enhancement of infrastructure are crucial for Nigeria’s economic growth and regional connectivity. These initiatives reflect the government’s commitment to advancing the country’s transportation and energy sectors, with a focus on public-private partnerships to drive sustainable development.