N538bn ports revenue shows private sector can generate more for govt
The Nigerian government is in dire need of money, and while it remains uncomfortable with letting the private sector run its business interests, evidence points to the need to let go.
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Allowing private capital to stimulate the economy as seen in recent developments from concessioned ports can generate more money for the government than it can do on its own.
Last week, the Bureau of Public Enterprise (BPE) said that private sector fiscal contribution to the port and the Federal Government increased to over N538 billion within 11 years of port concession from 2006 to 2017.
These were monies collected from commencement fees, lease fees, throughput fees, tax payments by the concessionaires as well as revenue put into infrastructure development, and investment on equipment.
A breakdown of the revenue shows that the Federal Government collected N5.68 billion as commencement fees, N196.48 billion as lease fees, N61.45 billion as throughput fees, N67.77 billion as tax payment while the private entities investment in infrastructure and equipment stood at N66.6 billion and N139.9 billion, respectively.
Jonathan Nicol, president of the Shippers Association of Lagos State, reiterated the need for the private sector to take the lead in various sectors of the economy.
He called on the government to take advantage of private sector financing in building infrastructure, especially at this time when the financial capability of the government is dwindling due to unstable prices of crude oil, Nigeria’s mainstay.
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