The Federal Executive Council has approved the Federal Radio Corporation of Nigeria, FRCN, to enter into a Public Private Partnership, PPP, agreement for the development of 6, out of its 9-hectares piece of land in Ikeja, Lagos.
Briefing newsmen on the approval, the Minister of Information and Culture, Alhaji Lai Mohammed, said previous attempts to secure such an arrangement failed.
“Since 2013, there has been these attempts for a Public Private Partnership arrangement to develop the fallow land, but did not succeed. We thank God that memo was approved by Council to enter into a PPP arrangement with Fish Valley Nigeria Limited, which would develop 6 hectares, out of the 9 hectares that we have in Ikeja“, the Minister said.
Alhaji Lai Mohammed explained that despite the problems that necessitate the failure to concretize the PPP arrangement in 2013, the developer had paid a signature bonus of N50 million, saying that there are a lot of other expenses that the company will cover.
“He will pay us N100 million on the signing of this agreement, and then another 10 million Naira had been paid to the FRCN for decommissioning some of their equipment, and every year, the company will pay the FRCN 46 million Naira”, he added.
According to the Minister, there will be a memorandum period of 4 years to allow the investor to complete construction, after which the agreed N46 million will be paid to FRCN annually, subject to a 5-year review.
Reporting by Abdullah Bello; Editing by Oluwaseyi Ajibade & Adeniyi Bakare