Headlines
How Amaechi delayed renewal of expired concession agreements of terminal operators

The House Committee on Privatisation and Commercialisation has summoned the Minister of Transportation, Rotimi Amaechi over the delay in the renewal of concession agreements of some of the terminal operators whose concession agreements have expired. The terminals are ENL Consortium, Apapa Port, Terminal C & D with a renewal bid of $143m, Port & Cargo Handling Services, Tin Can Terminal C with a renewal bid of $120m, Josephdam Port Services, Tin Can Terminal A with a renewal bid of $100m and Associated Maritime Services, Warri New Port, with renewal bid of $2.4m. The committee members, who expected Amaechi to explain the cause of the delay at its sitting on Tuesday,5th, April, 2022, are agitated that the delay might cause the Federal Government to lose investments worth up to $400m. The committee, chaired by Ibrahim Makama, disclosed that The Federal Ministry of Transportation, in a letter dated March 3, 2022, informed the committee that an inter-ministerial committee set up by the Minister, Rotimi Amaechi, had completed its assignment and submitted its report. The Nigerian Ports Authority(NPA) in its memo to the committee, said five of the leases expired in April, May, and November, 2021, respectively, and prior to the expirations and in line with the provisions of the terms of the Agreement Article (2.2), parties indicated their interest and it had completed the processes and forwarded same to the minister for approval on June 10, 2020. The NPA further declared that the minister had approved the request for renewal on December 17, 2020, but directed that the renewal process should be driven by an inter-ministerial committee, which has equally concluded its assignment and submitted its report to Amaechi but the supplemental agreements for the renewal had yet to be executed. The committee, therefore, expressed concerns over the delay in granting the requests for renewal by the minister despite taking the necessary procedural steps.
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