PUBLIC ASSET CONCESSION REVENUE

The Federal Government has initiated a concession program for public assets, with the aim of generating an estimated annual revenue of N9.1tn over the next 55 years. The revenue generated from these concessions will be shared between the government and private investors as per the terms of their contractual agreement.

During the tenure of President Tinubu's administration, it is projected that a total of N36.4tn could be received from these concessions within the first four years. Reports obtained from the Infrastructure Concession Regulatory Commission indicate that the concessions encompass various sectors including transportation, ports, energy, dams, and hydropower plants. These infrastructure and special projects were franchised to private investors between 2021 and 2023 under the previous administration led by President Buhari.

Among the assets that have been franchised to private investors are the establishment of a Planetarium and Museum at the National Space Research and Development Agency, which is expected to generate N30bn for both the Federal Government and private sector investors. Additionally, the Federal Executive Council recently approved the concession of the Nnamdi Azikiwe International Cargo Airport in Abuja, the Mallam Aminu Kano International Airport in Kano, and the Expatriate Employment Levy, which are anticipated to generate $1.76bn, $596m, and $13.4bn, respectively.

Furthermore, the establishment of an Aviation Leasing Company and the development of an Electronic Civil Registration and Vital Statistics System were also approved for concession. The latter is a platform that will effectively maintain electronic records of births and deaths registrations. Other projects slated for concession include Secure E-ticketing Solutions for the Lagos-Ibadan Rail Service and the Warri-Itakpe Rail Service, as well as the Device Management System, a project designed by the Nigerian Communications Commission.

This recent development is occurring amidst a decline in revenue generation, which has necessitated increased borrowing by the government.