Governor Concessions State-owned Garment Factory, Others to Indian Business Group
- Jampur Group - is the beneficiary of a newly signed concession deal affecting several state-owned businesses
- The group will now be responsible for the management of the Cross River State garment factory for the specified number of decades
- Two other businesses owned by the state government were also concessioned to the Jampur Group
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Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The Cross River State Government has signed a concession deal handing over several state-owned businesses, including a garment factory, to an Indian company – the Jampur Group.
Under this deal, the concessionaire has been granted management rights over the state-owned fertiliser plant, garment factory, and sack/bag factory.
This move, according to the state governor, Bassey Otu, will create more economic opportunities for residents of the state and also increase job opportunities.
Source: Getty Images
The 20-year concession agreement means that Jampur Group will hold and manage the said businesses under terms specified in the contract until 2045.
The handover ceremony occurred over the weekend at the Ayade Industrial Park Calabar.
Governor handover state-owned businesses to Indian business Group
Speaking at the ceremony, Governor Bassey Otu, who was represented by the state Commissioner for Wealth Creation and Employment, Patrick Egbede, observed that it is in line with the bigger plan of generating employment for youths in the state.
The Governor noted that the concession terms have been structured under a Public-Private Partnership (PPP) arrangement to keep the factories operational and profitable over the next two decades that the deal lasts.
He disclosed that the decision to go with Jampur Group was based on the company’s track record of excellence globally and in Nigeria, and Otu expressed optimism that the partnership would yield the best results for the state.
Also speaking at the event, Dr. Mathias Angioha, the state Commission for Industry, said that this concession deal aligns with the standard practice in developed nations, LEADERSHIP news reports.
He said that industries are often handed over to private hands to manage them and get better and effective results out in the interest of the government and citizens.
Angioha noted that the state governor has an industrialization agenda that will improve public services and boost revenue for the state while reducing its financial burdens.
Source: Getty Images
The Jampur Group representative, Mr. Muhammed Akmal, promised that there would be no reasons to regret the partnership.
He stated that Jampur Group would uphold its track record of excellence and competence as it commences operations.
Recall that there have been several concessions in Nigeria, including the recent concession of the Kashimbila Integrated Cargo and Agro-Allied Airport in Taraba state.
Aviation unions have also recently complained about being left out of ongoing airport concessions conversations.
Aviation unions give FG deadline over concession deals
In related news, Airport workers in Nigeria may soon embark on strike if the federal government does not respond to their demands.
The workers' unions have released their demands over the ongoing airport concessions and other issues.
The aviation workers also want the federal government to implement the reviewed conditions of service.
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Source: Legit.ng
