FG Approves Concession of Cargo Airport, Targets N4trn Earnings Under public-private partnership

• The Nigerian government has approved the concession of the Cargo and Agro-allied airport in Taraba state
• This arrangement will last three decades, with projected earnings of up to N4.1 trillion across multiple sectors
• The project will be run in a public-private partnership, under the regulatory guidance of the ICRC

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

The federal government has approved a public-private partnership (PPP) for the Kashimbila Integrated Cargo and Agro-Allied Airport in Taraba state.

This concession arrangement will give a private partner exclusive rights to manage the airport and make agreed remittances to the government.

According to the statement from the Director-General of the Infrastructure Concession Regulatory Commission (ICRC), Jobson Ewalefoh, the government is targeting N4.1 trillion in revenues from multiple streams covered in the arrangement.

The statement reads;

“The Kashimbila project includes the concession of over 3,000 hectares of farmland for irrigation farming, the upgrade of the airport for agro-cargo services, and the development of an aerotropolis and Free Trade Zone with business parks, logistics hubs, and residential areas.

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Concession to last 30 years

This concession agreement will be structured under the regulation of the ICRC and last for 30 years.

Ewalefoh noted that Taraba state is an agricultural location, and the presence of the cargo airport will enhance access to the market for the farmers, and improve agricultural logistics.

The first part of this project will involve an upgrade to the existing airstrip, to bring it up to the standard of a fully functional Cargo and Agro-allied airport to be used for the export of agricultural goods.

The concession also covers 3000 hectares to be used for irrigation farming, and this will enable all-year farming, thus improving food security. It includes fish farming and livestock farming, increasing Nigeria’s potential to export agricultural products and livestock, the CABLE reports.

FG's concession will create jobs

Mr. Ewalefoh added in his statement that this arrangement will create thousands of direct and indirect job opportunities, stimulate the local economy, and attract choice investments into the agricultural sector.

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It also opens the state up to potential markets in other parts of the country and across the globe.

FG focused on revenue generation

Recall that the government is also targeting N5 billion annual revenue from the World Orisa Congress, which is projected to attract up to one million tourists to Nigeria.

According to the National Institute for Cultural Orientation (NICO), the congress could also attract investments into Nigeria’s hospitality and tourism sector.

As the government seeks to address its dwindling revenues, the Nigeria Extractive Industries Transparency Initiative (NEITI) has also identified uncollected monies with oil and gas operators, amounting to about $6.1 billion.

FIRS targets N25 trillion revenue

In related news, the federal government has set an ambitious revenue target of N25.2 trillion for its tax administrative body - the Federal Inland Revenue Service (FIRS).

FIRS over-delivered in 2024, surpassing its N19 trillion target by 11 per cent to deliver N21 trillion revenue from taxes.

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FIRS has also shown itself ready for the task ahead, as the executive chairman Zacch Adedeji has unveiled the strategy to achieve these numbers in 2025.

Source: Legit.ng