Nigeria’s Maritime Industry Needs More Private Sector Financing-BPE Boss

4 years ago
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BPE boss calls for increased PPP in maritime sector
Alex Okoh, the Director General of Bureau of Public Enterprises,has advocated the need
for increased private sector involvement in financing critical infrastructural development in the maritime sector to pave way  for the industry to become a major revenue earner for the Federal Government.
He gave the advice at  a webinar on public private partnership as alternative financing model in the maritime sector organised by the Nigeria-South Africa Chamber of Commerce and sponsored by SIFAX Group.
He said  the success of the port concession was as a justification for more private sectors funding, adding  that the Federal Government’s revenue from the sector more than doubled ten years post-concession.
According to him,  competing needs for government’s lean resources has also made public private partnership (PPP) a welcome option.
He said the Federal Government has simplified the PPP process, which now allows for private sector players to scout for projects that can be financed through the model.
He said, “The Bureau of Public Enterprises has been entrusted with a significant part of the PPP responsibilities in Nigeria through the Federal Government’s circular of September 2020. What this means in effect is that players in the country’s maritime and other key sectors of the economy can identify and suggest projects to the government through the BPE or relevant MDAs.
“Once these projects are examined, approval will be given to the relevant parties to undertake an appraisal, feasibility study or outline of the business case, which will be scrutinised by the government. Thereafter, a tender will be published. The benefit of this is that the originator of the project will be allowed to provide a matching offer with that of the highest bidder and if the party is able to match this offer, they will be declared the preferred bidder.”
He urged the private sector to  identify the gap in transport infrastructures in the nation’s maritime sector and work towards providing solutions to these gaps.
He noted that such investments in and around Nigeria’s ports will help reduce the high shipping charges and local transport to warehouse costs which will in turn make the nation’s ports more competitive and business friendly in comparison to other African countries.
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