Lagos to take up 24% stake in TBS, trade Fair concessions
Lagos State government said on Tuesday that it will take up 24 percent stake in the proposed concession firms for the Tafawa Balewa Square (TBS) and Lagos International Trade Fair Complex (LITFC).
Disclosing this at the virtual Investors’ Forum, Governor Babajide Sanwo-Olu said under the arrangement, the Lagos State government would contribute 24 percent of the required investment in exchange for the same amount of shares in the concession Special Purpose Vehicle (SPVs) in partnership with the concessionaires.
According to the Director-General (DG) of the Bureau of Public Enterprises (BPE),. Alex Okoh, the concession of the two federal government assets would be for a period of 30 years, renewable by the federal government for another 30 year period.
The federal government, he said decided to showcase the two enterprises because the earlier concession arrangements did not meet expected outcomes.
“The purpose of this Investors’ Forum is to showcase two government enterprises which require private sector investment, as well as, innovative management capacity to unlock their full potentials which hitherto had been sub-optimally utilized.
“Both of these enterprises had previously been concessioned but the government had to act decisively to terminate the concessions in view of the fact that the former concessionaire acted contrary to the expectations guiding the development of those iconic and legacy facilities in Nigeria.
“The fact that these two enterprises are being showcased again today for private sector investment speaks to government implicit confidence in the ability of the private sector to regenerate and reinvigorate these national assets and make them, not just viable, but to again stand as monuments of national pride,” Okoh said.
He said government expectation in undertaking the concession of the Lagos Trade Fair Complex was to catalyse business in the West African sub-region through strategic trade exhibitions that project the vast potentials of the industrial axis of Lagos and Ogun States.
“Similarly, it is government’s expectation that the TBS must move beyond the disjointed cluster of business premises to world-class integrated events and business facilities comparable to its counterparts globally,” the BPE chief stated.
Okoh disclosed that the challenges that militated against the earlier concession transactions had been largely addressed, adding, “the commitment of all stakeholders, including Lagos States government, to the success of these transactions more than anything, give us comfort that these enterprises are bankable and should be a tremendous attraction to both local and foreign investors.”
The investors to be given the facilities must be those with very strong financial strength with deep experience in estate development and operations, the BPE boss stated.
He noted that the government expected an “integrated super concessionaire who can take on various aspects of the concession area.