The Federal Government has ignored the Nigerian decision granted by the National Assembly and instead permits the concession of the major airport in the country
According to FG, since the decision is given the green light by the Federal Executive Council (FEC), it need no reversal from Nigerians.
Recall that the Buhari led Administration put all major International Airport in Abuja, Port Harcourt, and Kano up for concession.
The Federal government had announced in a statement that the concession of the airports came after the approval of the Federal Executive Council.
In May of this year, the Federal Government, through James Odaudu, Special Assistant on Public Affairs to the immediate past Minister of Aviation, made a significant announcement regarding the successful concession of two major airports in Nigeria.
The Nnamdi Azikiwe International Airport in Abuja and the Mallaaam Aminu Kano International Airport in Kano have both undergone the concession process. Adding that It is a strategic step taken by the government to unlock the full potential of Nigeria’s aviation sector and boost economic growth and connectivity in the region.
The House of Representatives expressed its discontent with the airport concession policy and took action last Wednesday by passing a resolution to suspend the concession of the airports. The House argued that the exercise was conducted without following due process, leading to concerns about the legitimacy of the decision.
To further investigate the matter, the House mandated its Committee on Aviation to conduct a thorough probe into the airport concession.
The committee will be tasked with examining the entire process and determining whether there were any irregularities or violations of established procedures.
As part of its regular duties, the House is scheduled to inaugurate its various committees by Thursday.
The investigation by the Committee on Aviation is expected to shed light on the concerns raised and provide clarity on the situation surrounding the airport concession.
The House of Representatives resolution was a sequel to a motion by Kama Nkemakonam, titled “Need to Investigate the Concession of Airports in Nigeria,” during plenary.
Nkemakonam raised concerns that the most viable airports in Nigeria were handed over to foreign firms by the Federal Executive Council, deviating from due process, public accountability, and established laws.
In response, GOVIMA sourced more inquiries through PUNCH, on Sunday, Manji Yarling, the Head of Media and Publicity at the Infrastructure Concession Regulatory Commission, disclosed that the concession process for two airports is nearing completion. This comes despite the House of Representatives’ call for the suspension of the airport concession.
Providing an update on the current stage of the airports’ concession exercise, she stated that while the Abuja and Kano airport concession projects were approaching commercial closure, that of Lagos airport had been stalled.
On February 6, 2023, the Federal High Court sitting in Lagos issued an order to halt the planned concession of the Murtala Muhammed International Airport, Lagos, and its cargo terminals.
The court order came in response to a suit filed by Sifax Group of Companies Limited, which raised concerns and challenged the bidding process for the concession.
The court’s decision suspends the concession process until the suit is heard and determined.
Regarding the Port Harcourt airport, the commission’s spokesperson stated that as of now, there is no investor identified for the facility.
Yarling said, “The Abuja and Kano International Airport concession projects have been approved by FEC.
The Project Delivery Team and the preferred bidders are finalising the draft agreements. Going by the PPP process, once this is finished, there would be a commercial close.
“The initial plan was to concession four airports – Lagos, Abuja, Kano, and Port Harcourt. Whereas Abuja and Kano International Airports got FEC approval, the concession of Lagos was stalled after the issuance of the ICRC Outline Business Case Compliance Certificate, due to a court case by one of the bidders during the procurement process.
“The Port Harcourt Airport was also advertised, but no investor bid was received. The process of procurement will be re-initiated.”
In the same vein, When questioned about whether the preferred bidders for the Abuja and Kano airports should proceed with their plans despite the House of Representatives’ statements, the ICRC official responded,
“This clarification needs to be given by the Reps.” In other words, the official suggested that the House of Representatives provide the necessary clarification on the matter to determine the course of action for the preferred bidders.
On whether the ICRC would review or reverse the decision on the preferred bidders for the airports, Yarling said, “The ICRC is an agency of government.
On why the Federal Government had yet to hand over the airports to the preferred bidders, the ICRC official replied, “The concession of the Abuja and Kano International Airports was approved by the Federal Executive Council on May 17, 2023.
“Going by the PPP (public-private partnership) process, there should be a commercial close which is contract signing between the preferred bidder and the MDA (Ministry, Department, and Agency) ‘Grantor’, after which the project can fully commence.”
Oluseyi Odutayo, the Head of Press and Public Affairs of Federal Ministry of Aviation while reacting to the claims of the House of Representatives about the concession plan said that the FMA followed the stipulated process.
“At the ministry, we are doing the right thing and we believe that there is no secret about the matter. It is left to the government to decide. The ICRC is the regulatory body and they will be able to tell the world and the ministry if we followed due process, which I know we did.
“So the decision will be taken by the government. The ministry will not take any decision or state any opinion on that for now. That is our take on that matter.”Preferred bidders”
In October of last year, the former Minister of Aviation, Hadi Sirika, announced that the preferred bidder for the Nnamdi Azikiwe International Airport, Abuja, was the Corporation America Airports Consortium. Additionally, the Minister revealed that ENL Consortium had been chosen as the reserve bidder for the Abuja airport. These selections were made as part of the airport concession process.
According to Hadi Sirika, TAV/NAHCO Project Planet Limited was announced as the preferred bidder for the Murtala Muhammed International Airport, Lagos, while Sifax/Changi Consortium was selected as the reserve bidder for the same airport.
In addition, Corporation America Airports Consortium emerged as the preferred bidder for Mallam Aminu Kano International Airport, Kano, and there was no reserve bidder for this airport.
However, the Port-Harcourt International Airport did not meet the Request for Proposal (RFP) deadline and was presumably excluded from the concession process.
On whether the ministry would suspend the concession of the airports, as resolved by the lawmakers, a senior official at the FMA stated, on Sunday, that the ministry had no power to suspend what was approved by the Federal Executive Council.
The official further contended that the House of Representatives lacks the authority to suspend the exercise.
They emphasized that any individual who feels aggrieved by the decision to permit the concession of the major airport should seek legal recourse by approaching the court to address their concerns.
“They (lawmakers), can advise the executive but they cannot suspend it. Also, the ministry cannot suspend what was approved by FEC, which is the highest decision-making body of the executive arm of government.”
