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Tag: concession

  • Where has concession led the ports?

    Where has concession led the ports?

    In 2006, the Federal Government concessioned the ports to improve their performance and efficiency. Have things changed since then? To stakeholders, the Nigerian Ports Authority (NPA) management has stopped paying lip service to its vision of making the ports Africa’s hub. Maritime Correspondent OLUWAKEMI DAUDA reports.

    Before their 2006 concession, the ports were inefficient, resulting in long turnaround time for ships and increased container dwell time.

    In today’s global commerce, seaports play important roles. They are major gateways for international trade and instrument for measuring nations’economic health.

    A top Nigerian Ports Authority (NPA) official said: “The ports have considerable influence on the volume and conditions of trade as well as the capacity for economic development of nations still developing.

    “In our country, greater percentage of international trade is routed through the sea, and given our huge population, it is believed that our economy accounts for over 70 per cent of all seaborne trade in the West African sub-region. Hence, the country’s ports are increasingly challenged to meet the pressure mounted from movement of ships and cargo in and out of the ports.

    “The Federal Government embarked on the concession of the ports basically to solve the protracted problems of inefficiency, corruption, mismanagement and huge debts that characterised the ports, then.

    “The rationale behind the concession includes the $34 million indebtedness of the NPA, the redundancy of 24 out of 83 managers as well as its poor management structure. Emphatically, concession of the ports refers to lease of port terminals and re-organisation of stevedoring companies. About 110 applications were received in December 2003 and out of 94 pre-qualified concessionaires, only 20 were granted to operate seaport terminals for 10 to 25 years.”

     

    Why ports were concessioned

     

    The Federal Government took the decision to concession the ports to address the problems of inefficiency, corruption, mismanagement, and huge debts.

    The rationale behind the concession included the $34 million indebtedness of the NPA, the alleged redundancy of 24 out of 83 top managers of the agency, as well as its poor management structure.  Apart from that, the following factors were also responsible for the concession:

    • Turnaround time for ships was too long and usually calculated in weeks, sometimes months, depending on the cargo being loaded or discharged;
    • Cargo-handling plants and equipment owned by the NPA were few and mostly unserviceable, leading to shipping companies hiring these machines from private sector sources after having paid NPA;
    • Dwell time for goods in ports was prolonged due to poor port management and that led to port congestion;
    • Corruption soared high among labour contractors and various service providers at the port;
    • Nigerian seaports were rated as some of the costliest in the world, as a result of the compounded problems;
    • Many port premises and quay aprons had fallen to disuse and failed road sections inside the ports made movement of goods within port grounds cumbersome and very slow;
    • Following the seaport congestion, complaints of untraceable or missing cargoes were being regularly lodged against the NPA, all to no avail and
    • Security inside Nigerian seaports was compromised by the activities of miscreants as theft and pilferage became the order of the day.

    In December 2003, NPA sources said about 110 applications were received and out of 94 pre-qualified concessionaires, only 20 were granted approval to operate the terminals for between 10 to 25 years.

    NPA, stakeholders said, is spearheading a new cause of making Nigeria the hub of international trade in West Africa. Experts also said this is a bold step in the right direction, as Nigeria is home to Africa’s biggest oil market and situated strategically in the Gulf of Guinea.

    To keep to its promise of boosting efficiency, the management of the NPA acquired about six 60-tonne  buller- pull tug boats with state-of-the-art, computerised engines, to meet the increasing demands of critical stakeholders, within the Lagos Pilotage District.

    Its Managing Director, Mallam Habib Abdullahi acquired the tug boats, one of them christened UROMI  had twin fire fighting pumps, with a reach of above 300 meters and the flow is over 600 cubic meters per hour of water and foam, making it the strongest equipment in its category in the country.

     

    Revenue profile

     

    What has changed at the ports since their concession in 2006? A lot, says a senior official of the Federal Ministry of Finance.

    The NPA management, the official said, has been running the ports efficiently.

    The NPA, the official said, generated $140 million in 2005 before the concession and over $450 million from the Lagos Ports in 2014.

    The official told The Nation that the government has been earning more income since the concession.

    The government, he said, concessioned the ports to generate more revenue and allow for greater flexibility, efficiency and better services to importers and other port users by resolving some of the major challenges confronting ports operations.

    The turnaround time in 2005, at the Lagos Port Complex and Tin-Can Port, he said, was 10.0; while vessel waiting time was 3.0.

    In 2014, the official pointed out that the turnaround and vessel waiting time had reduced to 4.0 and 1.3.

    Gains of concession

     

    The cost of port services is competitive, turnaround time has improved, percentage of berth occupancy rate improved and infrastructure have improved significantly. Also, the security around the seaports has improved.

    The official, however, lamented the poor access roads to the Lagos ports, urging President Muhammadu Buhari and the Minister of Transport to address the perennial gridlock in Apapa.

    A senior official of the NPA, who also craved anonymity told The Nation, that the  management was working to ensure that the ports become “the leader in Africa, to deliver efficient port service in a safe, secure and customer-friendly environment. Our core value includes efficiency, safety, security, customer friendly and new innovations.”

    Nigerians, according to him, have forgotten that before the concession, the “turnaround time for ship was too long and usually calculated in weeks, sometimes months, depending on the cargo being loaded or discharged. Cargo-handling plants and equipment owned by the NPA were few and mostly unserviceable, leading to shipping companies hiring these machines from private sector sources after having paid for it’’.

    Dwell time for goods in ports, he said, was prolonged due to poor port management. “There was congestion in the port; corruption was high among contractors and various service providers at the port; the ports were rated as one of the costliest seaports in the world, as a result of the compounded problems.

    “Many port premises and quay aprons had fallen to disuse and failed road sections inside the ports made movement of goods within port grounds cumbersome and very slow. As a result of the congestion, complaints of untraceable or missing cargoes were being regularly leveled against the NPA,” he said, adding that the security inside the ports was said to have been compromised by the activities of camp-boys, wharf-rats and other miscreants operating inside the ports.

    The Association of Nigerian Licensed Customs Agents (ANLCA) President, Prince Olayiwola Shittu, said with the huge equipment at the ports and the introduction of standard in the type of vehicles that can enter the ports, “the NPA has brought efficiency to the ports. The management of the NPA led by Mallam Habib Abdullahi is leaving no stone unturned since assuming office.

     

    Simplifying trade process

     

    One way the management of the NPA is easing the importation and exportation processes for business environment is the strategic adoption and institution of electronic transactions.

    The authority has introduced an online payment platform called the Electronic Ship Entry Notice better known as “e-SEN” for shipping lines and agents to ease business transactions and help reduce ship dwell time.

    At the launch of the e-SEN, Abdullahi said the online payment platform has cut off unnecessary delay associated with ship arrivals and their dwell time at the ports, as well as ensure a quicker cargo clearance system.

    He noted that the digitalisation of the financial aspects of the operations of the authority had brought about a 15.4 per cent increase in cargo throughput.

    “Before e-SEN, it was done manually, filled with challenges associated with delay in verification of data and a lot of inconveniences leading to loss of man-hour in business,” Abdullahi said.

    Shipping companies in Nigeria have also described the e-SEN as a major step by the  management of the NPA in checking corrupt tendencies at the seaports.

    The electronic devise replaces the obsolete manual system which is said to be corruption-laden.

    “With this innovation, you save a lot of money and time, while eliminating corruption at the same time,” said Mr Val Usifor, chairman of the Shipping Association of Nigeria, who also described the digital move by NPA as “a quantum leap” in the  management’s efforts to increase efficiency in service delivery and fight corruption in the ports’ system.

    Experts also said the e-SEN has led to the biggest vessel that ever called at any West African port, Maersk Line’s WAFMAX vessel, arrive the Onne Port with a tonnage of 4,500 20ft equivalent units (TEUs) container.

    “This is going to make transportation of goods more economically viable. Before now, there were 2,500 containers on one ship, but there will be 4,500 TEUs,’ Managing Director, Maersk Line Nigeria Limited and head of the company’s Central and West Africa Cluster, Mr Jan Thorhauge, said after the berthing of WAFMAX at Onne.

    “It will now be much more cost efficient. In practice, it would mean that Nigerian export products would become more competitive. China is a very big sourcing area for Nigeria as almost 50 per cent of all containerised imports into Nigeria come from China. So, this is a direct link between China and Nigeria. It goes first to Lagos and then to Onne,” Thorhauge said.

  • A cross called concession

    Two major concession agreements and the disagreements about them highlight the major factors that militate against the success of Public-Private Partnership (PPP) in the country.

    Ironically, the political factor facilitates and frustrates. The news that an Arbitration Tribunal reached a decision in favour of Resort International Limited, concessionaire of the Federal Secretariat Complex in Ikoyi, Lagos, shows that arbitration can tame arbitrariness. The relevant Development Lease Agreement (DLA), dated October 10, 2006, granted Resort International Ltd a 99 years’ lease to redevelop the disused Federal Secretarial Complex into 480 luxury apartments.

    Redevelopment work was disrupted by the Lagos State Government in September 2007 on the grounds that the land belonged to it and the area of Ikoyi where the secretariat is located was not meant for residential purposes based on its Ikoyi Model City Plan. This is what happens when a concession is not conceded by an interested party; it is understandable.

    The dispute, Resort International Ltd claimed at Arbitration, created a situation in which it suffered damages totalling N88 billion as a result of the breach of a clause of the DLA by the Federal Government. Fundamentally, the company argued, the Federal Government, as a condition of the DLA, was expected to facilitate a ‘No-Objection Approval’ from the Lagos State Government, given that it had ‘good title’ to the Complex and full power and legal authority to enter into the agreement. The objection of the Lagos State Government, therefore, meant that the Federal Government had failed to fulfill an essential aspect of the concession agreement.

    The Federal Government’s defence proved to be no defence and was regarded as such. It asserted that the undertaking to ‘facilitate’ a ‘No-Objection Approval’ was no more than an obligation to produce documents in support of the company’s application to the Lagos State Government. It also claimed ‘frustration’ of contract as a result of the subsequent promulgation of the Lagos State Model City Development Authority Law.

    Interestingly, the Tribunal ruled in favour of Resort International Ltd and declared that the Federal Government had failed in its obligations to the company under the DLA entered into by both parties.

    The Tribunal importantly observed: “…were it not for the default of the Respondent in facilitating the ‘No-Objection Approval’ and resolving the challenge to its title by the Lagos State Government, the contract between the parties would not have been frustrated…”

    This is the heart of the matter.  Political differences were at the centre of the conflict of interests that arrested the progress of the redevelopment project. At the time of the disruption, the then Federal Government and the then Lagos State Government were controlled by antagonistically different political parties and political forces. It remains to be seen how the matter will develop now that the two levels of government are controlled by one and the same party.

    The Tribunal awarded damages. A report said: “The totality of the awards means that as at January 2016, the Federal Government owed Resort International Limited the sum of N54 billion which continues to accumulate interest at 17.26 per cent per annum. The Tribunal also confirmed Resort International Limited’s title to the Federal Secretariat property.”

    It is useful to consider the backdrop. Resort International Ltd came into the picture following the movement of the seat of the Federal Government from Lagos to the Federal Capital Territory, Abuja, which necessitated the disposal of many of its assets. According to the Chairman, Bi-Courtney Group, Dr. Wale Babalakin, whose company won the concessional rights to the expansive secretariat complex, his company bid for the Federal Secretariat, Ikoyi, and won on September 28, 2006, after which the concession agreement was signed.

    Babalakin was a fitting speaker on the problematisation of public-private partnership in the country at last year’s Nigerian Economic Summit in Abuja, where he shed some light on  his company’s experiences regarding the Murtala Mohammed Airport Domestic Terminal II, Federal Secretariat, Ikoyi, and Lagos-Ibadan Expressway.

    It is noteworthy that his group is still controversially enmeshed in another major concession agreement concerning the Lagos-Ibadan Expressway.  Babalakin said the Development Lease Agreement in respect of the Federal Secretariat, Ikoyi, had anticipated the possibility of interference by the Lagos State Government, noting that a clause required the Federal Government to facilitate the obtaining of a ‘No Objection Approval’ from the Lagos State Government to change the use of the premises from offices to residential apartments. According to him, demonstration flats had been prepared, with 50 percent of the flats already sold and payments received.

    Significantly, Babalakin listed the drawbacks to public-private partnership in Nigeria: the attitude of the government, lack of respect for sanctity of contracts and the rule of law, lack of investor security, corruption and malice. It goes without saying that any concessionaire faced with these troubles will have nightmares.

    Arguing for public-private partnership, the Bi-Courtney chief said such arrangement would enable the government to harness expertise and efficiencies associated with the private sector in the delivery of certain facilities and services traditionally reserved for the public sector. He listed the advantages: “This will bring about basic amenities that are normally government’s responsibility, thereby allowing the government to concentrate on vital areas; reduce government burden of seeking and providing capital investment; serve as source of revenue generation for government; and help to reduce corruption and bureaucracy in the procurement of social infrastructure in government agencies.”

    Babalakin continued: “Nigeria’s budget has been totally inadequate to fund the responsibilities of government, and the country has considerable infrastructure deficit due to age, increase in population and dwindling revenue base due to the fall in global oil price…I am reliably informed that our recurrent expenditure exceeds our total earnings. Elementary knowledge of economics tells us that this trend will invariably lead to disaster…Huge debt profiles of state governments have been accentuated by government participation in projects best left for the private sector. Bureaucracy in the public service hinders rapid development.”

    Indeed, there may be arguments to counter the views of this champion of public-private partnership who carries his cross with such conviction that deserves contemplation, but there is no argument against the documented success of the PPP model in the development of sectors such as energy, mining, transportation and telecommunications in other countries. The PPP approach, which the concession concept represents, cannot be reasonably discounted in a modern economy, especially considering reported examples in Western Europe and U.S.A. where private investors are involved in infrastructure development based on concession agreements.

    As long as the disagreement remains, the Federal Secretariat, Ikoyi, will remain an ugly testament to the forced failure of public-private partnership.

  • Tambuwal seeks concession of dams to govts

    Tambuwal seeks concession of dams to govts

    Sokoto State Governor Aminu Waziri Tambuwal yesterday sought the concession of dams to state governments interested in managing them.

    He said such dams with prospects and value would be better used for the benefit of the citizenry if concessioned to states.

    The governor urged the Federal Government to concession the dams under its care to the states interested in managing them, saying they would put such dams to better use.

    He spoke at the inspection of irrigation at the Goronyo Dam in Sokoto.

    Tambuwal noted that it would be viable if states managed dams, since they benefited from their resources.

    He said: “Almost all the citizens who use dams for irrigation and other purposes are under the care of the state governments. So it will be economically wise if the Federal Government can concession the dams and allow us to manage them.”

    The governor, who addressed farmers and fishermen in Goronyo on the significance of water resources, said: “The dam is a great asset to Sokoto State. It boosts farming and adds value to people’s lives.”

  • Govt extends port concession agreements

    The Federal Government has extended its agreements with some of the terminal operators due to their satisfactory performance and their improved level of investments, The Nation has learnt.

    One of the affected concessionaires, it was gathered, is at Tin-Can Island Port, Apapa, Lagos.

    The Managing Director, Nigerian Ports Authority (NPA) Mallam Habib Abdullahi confirmed the extension granted some of the terminal operators.

    Abdulalahi, who spoke while receiving the Director-General,  Infrastructure Concession and Regulatory Commission (ICRC), Aminu Diko in his office, last week did not name the beneficiary firms

    He, however, praised the Commission for being alive to its responsibility, saying  he would give it the opportunity to get first-hand information on the challenges of port concession and listen to observations from concessionaires.

    While assuring the ICRC of cooperation, he directed the Monitoring and Compliance Division of NPA to  submit a copy of its quarterly reports to the ICRC.

    Abdullahi announced that a Public-Private-Partnership department would be established in NPA to cater for investors’ interests at the seaports.

  • Court stops Lagos-Ibadan Expressway concession

    Court stops Lagos-Ibadan Expressway concession

    A Federal High Court in Lagos has set aside a fresh Concession Agreement on the Lagos-Ibadan Expressway reconstruction project.

    While delivering his ruling in a suit filed by Bi-Courtney Highway Services Limited against the Attorney-General of the Federation, the Federal Ministry of Works, the Infrastructure Concession Regulatory Commission (ICRC), the Infrastructure Bank Plc and Motorway Assets Limited (MAL) on Friday, the court granted a mandatory injunction on the fresh concession agreement signed on January 16.

    Among the prayers sought by Bi-Courtney in Suit No. FHC/L/CS/727/2015 was an Order of Mandatory Injunction setting aside the Concession Agreement granted MAL, over the Lagos-Ibadan Expressway in the form of a Finance, Operate and Transfer arrangement involving the Federal Authorities. The Court held that the grant of the Concession to MAL in the circumstances of the case was a flagrant disregard of the established principles of law.

    Just before delivering the ruling, the defendants sought to prevent the court by filing an application. The court refused and granted “an order of mandatory injunction… setting aside the Concession Agreement dated 16th January 2015 between the 1st, 2nd and the 5th Defendants/Respondents, which purports to grant a concession over the Lagos-Ibadan Expressway in the form of a Finance, Operate and Transfer arrangement to the 5th Defendant.”

     

  • ‘No new concession on Lagos-Ibadan Expressway’

    No new concession has been granted on the reconstruction of the Lagos-Ibadan Express-way, the Infrastructure Concession Regulatory Commission (ICRC), has said.

    In a statement, the Head, Communications, ICRC, Ms. Deborah Okafor, said: “ There has been no new concession  granted  as  required  by law and the National Policy on Public Private Partnership on Lagos Ibadan expressway,” adding that reports that Government  has  granted  a  new  ‘secret concession’ on the expressway  through  “a  back  door  arrangement,” are false.

    She  said after the termination of the concession granted to Bi-Courtney  Highway  Services  Limited,  the Federal Government decided to reconstruct  the  Lagos-Ibadan  expressway  as  a  traditional  procurement through  Engineering,  Procurement  and  Construction (EPC), adding however that the  govern-ment could not wholly  finance the project and had secured private financing from a consortium of banks to ensure the speedy completion of the road.

    According to her government  is  bound  to  repay  the financing arrangement (such as interest  payments, loan repayment, fees, charges and associated returns on equity  investment)  either  through  the  annual  budgetary system, or from revenues  accruable  to Government if the operations and maintenance of the road is granted as a concession to a private party.

  • No new concession on Lagos-Ibadan Expressway, says ICRC

    No new concession has been granted on the reconstruction of the Lagos-Ibadan Express-way, the Infrastructure Concession Regulatory Commission (ICRC), has said.

    In a statement, the Head, Communications, ICRC, Ms. Deborah Okafor, said to the “best of its knowledge, there has been no new concession  granted  as  required  by law and the National Policy on Public Private Partnership on Lagos Ibadan expressway,” saying news reports that Government  has  granted  a  new  ‘secret concession’ on the expressway  through  “a  back  door  arrangement,” are false.

    She  said after the termination of the concession granted to Bi-Courtney  Highway  Services  Limited,  the Federal Government decided to reconstruct  the  Lagos-Ibadan  expressway  as  a  traditional  procurement through  Engineering,  Procurement  and  Construction (EPC), adding however that the  government could not wholly  finance the project and had secured private financing from a consortium of banks to ensure the speedy completion of the road.

    According to her government  is  bound  to  repay  the financing arrangement (such as interest  payments, loan repayment, fees, charges and associated returns on equity  investment)  either  through  the  annual  budgetary system or from revenues  accruable  to Government if the operations and maintenance of the road is granted as a concession to a private party.

    If  and  when  the  Federal Government decides to grant concession over the operations  and  maintenance  aspect  of  the  project,  the  ICRC,  as the regulatory  agency,  will  ensure  that the project passes through a normal competitive  process  as  provided  for under the Infrastructure Concession Regulatory Commission (Establishment, Etc) Act, 2005 Act, (the Act) and the National PPP Policy on Public Private Partnership.

    The ICRC wishes to state further that: a) Any  PPP structuring over the Lagos-Ibadan Expressway can only take place  after the ongoing reconstruction is completed and handed over to the Federal Government.

    The  Federal  Ministry  of Works would then commence the process of procurement  of  a  competent  project  proponent  to  handle  the Tolling,

    Operations  and  Maintenance  of  the  road  in compliance with the Act and Policy,  which  requires that such a process must be done competitively and transparently.

    Any new concession over the road must, in due course, be certified by ICRC to have complied with the Act and Policy.

  • NECA gets concession on consumption tax

    NECA gets concession on consumption tax

    The Nigeria Employers’ Consultative Association (NECA) has secured concession from the Lagos State government on uncollected occupancy and consumption taxes/rates for companies in the hospitality business including restaurants and fast food businesses.

    Its Director General, Mr. Olusegun  Oshinowo the waiver of taxes not collected by them at the inception of the Hotel Occupancy and Restaurant Consumption Law 2009 will now in the spirit of fairness  be made for  the account of those who did not collect taxes, but made payments to government in fulfilment of the law.

    He said: “It is therefore a big relief, and a thing of joy to all and sundry when the Lagos State Governor, Mr. Babatunde Raji Fashola,  announced the resolutions at the 4th edition of the Lagos Corporate Assembly. The outcome of this unrelenting peaceful follow up by NECA is an eloquent testimony of good governance that has been the hallmark of the government of Mr. Fashola, which the private sector very much appreciate.”

    According to Oshinowo, the association has already communicated the relief to hoteliers that are its members.

    He said: “NECA is a platform for private sector employers to interact with the government, labour communities and other relevant institutions in and outside Nigeria for the purpose of promoting harmonious business environment that engenders productivity and prosperity for the country.”

    Following the enactment of the Hotel Occupancy and Restaurant Consumption Law 2009, the Hotels and Personal Services Employers’ Association (HOPESEA), an affiliate of NECA, had filed a case on behalf of its members at the Federal High Court to seek clarifications on the appropriateness of the tax.

    While the legal battle subsists, the hoteliers had refused to comply with the law. The ruling of the Court in the case Attorney General of the Federation vs. Attorney General of Lagos State, the Lagos State Board of Internal Revenue Service had come after the hoteliers to collect all outstanding payment arising from the law, a situation that had led to a disagreement between the parties, which eventually led to the intervention of NECA.

  • Anglicans get tuition concession at church-owned varsity

    The Church of Nigeria (Anglican Communion) says its members with wards at the proposed Anglican University, Abuja will enjoy a discount of 50% on fees at the institution.

    Speaking at the 2nd Session of the Second Synod of the Kubwa Diocese at St. Paul’s Anglican Church, Nyanya, Abuja, the Diocesan Bishop,the Right Reverend Duke Akamisoko, said this is a reward for Church members who toiled and contributed towards the establishment of the university.

    Besides,candidates from the Anglican family who meet the minimum entry requirement of five credit including English Language and Mathematics will be offered admission into the university without writing the Unified Tertiary Matriculation Examinations (UTME) or Post UTME.

    Akamisoko expressed worry over the growing number of Anglican Church members who find it difficult gaining admission into existing universities regardless of their qualifications.

    .The church requires N5billion for the establishment of the university.

    Akamisoko also said that five professors of the Anglican faith have indicated interest in teaching at the proposed university.

    His words: “Every Anglican in this country once you have five credits in WASC you will gain admission .

    “There is a special fee for Anglicans. Your children must benefit from it . Anglicans to pay half school fees. No Anglican will not gain admission except they are not qualified.”

    President Goodluck Jonathan, he said, has already approved the allocation of 100 hectares of land for the university’s permanent site in Abuja.

    He said: “NUC said before now they were giving approval to universities for less than 100 hectares.

    “Up till now they have refused to go to their permanent sites. But we have been gracefully given 100 hectares by the president.

    “We are going to pay the President a thank you visit with a team. Before 2015, the church should be on ground. The committee is to raise N5billion for university.”

    The church ,on the occasion, honoured President Jonathan with its National Education Merit Award.

    Also honoured were former Head of the Interim National Government, Chief Ernest Shonenkan; Second Republic Vice President, Dr. Alex Ekwueme, former Anglican Primate, Dr. Peter Akinola; and Executive Secretary, National Universities Commission, Prof. Bishop Okogie.

  • Concession fallout: National Theatre eyes N13b allocation

    Concession fallout: National Theatre eyes N13b allocation

    More facts emerged yesterday on the economic viability of the Federal Government’s proposed concession of the landed areas of the National Theatre complex, Iganmu, Lagos.

    The General Manager and Chief Executive Officer of National Theatre, Mr. Kabir Yusuf said the theatre would get about N13 billion budgetary allocation for the refurbishment of facilities in the complex, as proceeds from concession.

    He said top on the list of facilities to be renovated is the 5,000-seat capacity main bowl, which is the biggest on the continent.

    Yusuf spoke in Lagos when he conducted some members of the Senate Committee on Culture, Tourism and National Orientation round the complex on Monday.

    He said the concession would be on public-private-partnership (PPP) arrangement to last for 30 years. The project will be executed under the Design, Build, Finance, Operate and Transfer (DBFOT), option.

    The Chairman, Senate Committee on Culture, Tourism and National Orientation, Hassan Barata, led two other members of the committee, Femi Ojudu and Abubakar Tutaza, on an oversight visit to agencies and parastatals in the ministry.

    Barata said the development of the landed areas would involve the construction of a leisure park, a recreation centre, a shopping mall, a three-storey car park and a five-star hotel.

    The senator explained that contrary to rumours, the National Theatre and its landed areas would not be sold.

    “The National Theatre will remain a Federal Government asset and will not be sold. So also are the landed areas which will only be concessioned for 30 years,” he said.