Reps decry loss of $3.54bn from concessioned assets since 2005

The House of Representatives on Tuesday expressed grave concern over the estimated sum of $3.54 billion projected revenue losses recorded from various concessioned public assets since 2005, including the $90.5 million reportedly lost annually due to the shoddy agreements between the Federal Airports Authority of Nigeria (FAAN) and its concessionaire at both the local and international wings of the Murtala Muhammad Airport, Lagos State.

Chairman, Ad-hoc Committee investigating lease of Federal Government-owned assets, Hon. Daniel Asuquo who expressed the concern at the opening of a two-day investigative hearing frowned at the status of the 26 ports concessioned in the maritime sector to private companies.

“The tenures of the NPA concession agreements range from 15 to 25 years and the estimated revenue to the government from the concessions is estimated at over $6.54 billion over the period.

“However, JV companies have allegedly only realized an estimated sum of $3 billion since 2005 out of the total sum.

“All these concession and lease agreements were made to ensure infrastructure development and promote economic growth but this intention has been hampered by shady and unfavorable concession/lease arrangements in spite of the existence of different applicable legislations such as infrastructure concession,” he noted.

While assuring all stakeholders that the ongoing investigation was not a witch-hunt to any firm or consortium, he argued that the exercise provides an opportunity to put the nation on the path of sustainable growth, development and economic recovery for posterity.

“We cannot continue to borrow money to fund our budget when the Federal Government has the ability to earn hundreds of billions of naira from its leases and concessions. We have a solemn duty to help our country shore up its finances, and we shall leave no stone unturned in achieving this,” he said.

He said the essence of the hearing was to conduct an in-depth investigation into all leases and concessions of federal government-owned assets with a view to plugging leakages and enhancing government revenue generation for budget implementation.

“We are all aware of the nation’s dwindling revenue from oil which over the years has compelled the federal government of Nigeria to contemplate selling off some of its assets as well as lease or concession others to enable it to raise funds for budget implementation.

“This is a laudable policy, however, we are worried that the lease and concession of federal government assets may be compromised where there is no oversight. We are therefore convinced that there is an urgent need to review all lease and concession contracts on federal government assets, with a view to expunging all sales provisions and enacting new ones in line with the current state of affairs to be determined by market forces,” he said.

In his keynote address, the Speaker, Hon Femi Gbajabiamila, who was represented by the Majority Leader, Hon Ado Doguwa, said the reality of the Nigerian economy demands that innovations must be embraced in the design, funding and implementation of critical public infrastructure.

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