Lagos to contribute 24 per cent investment in TBS

By John Ofikhenua, Abuja

The Lagos State Government has offered to contribute 24 per cent investment in Tafawa Balewa Square (TBS) and Lagos International Trade Fair Complex (LITFC).

This was made known in a webinar on the Investors’ Forum on the two assets.

The Transaction Adviser, Arif Mohiuddin, made the disclosure in his virtual technical presentation to the forum in Abuja.

He lamented that the TBS lost its past glory to lack of maintenance.

But the concession process of the square is now expected to commence in during the month of April this year.

The intention of the forum, according to him, is to hand it over to would – be investor this year.

He explained that the Federal Government is seeking strong financial strength for the asset, adding that it is also interested in significant experience in real estate project development and operation.

He said the bidder must have a demonstrable capacity to develop TBS to a world class event and entertainment center.

Commenting on Lagos State Government offer, he said “Lagos has agreed to contribute 24 per cent of the required investment in exchange for the same amount of shares in the concession SPV”

According to him, government is envisaging the TBS to be a world class event and entertainment center.

He added that it is expected to have a fully renovated and redeveloped parade ground with flexible formula 1 karting facilities.

Commenting on LITC, he disclosed that the concessioning of the asset is expected to be concluded by second quarter of 2021.

Director General, Bureau of Public Enterprises (BPE) Mr. Alex Okoh, noted that the point expressed by the transaction adviser “are not cast in stone”.

He noted both enterprises had been previously “concessioned but government has to act decisively to terminate the concessions in view of the fact that the former concessionaire acted contrary to the expectations guiding the development of those iconic and legacy facilities in Nigeria.

“The fact that these two enterprises are being showcased again today for private sector investment speaks to government’s implicit confidence in the ability of the private sector to regenerate and reinvigorate these national assets and make them, not just viable, but to again stand as monuments of national pride”.