Lagos Govt To Take 24% Equity In TBS

Lagos State government is set to take up 24 per cent equity in Tafawa Balewa Square (TBS).
The state government would contribute 24 per cent of the required investment in exchange for the same amount of shares in concession.

The Lagos State government is set to take up 24 per cent of the Tafawa Balewa Square (TBS) and Lagos International Trade Fair Complex.

This was made known by the governor of the state, Mr Babajide Sanwo-Olu, at the virtual Investors’ Forum on Tuesday.

EKO HOT BLOG gathered that under the arrangement, the Lagos State government would contribute 24 per cent of the required investment in exchange for the same amount of shares in concession Special Purpose Vehicle (SPV) in partnership with the concessionaire.

The Director-General of the Bureau of Public Enterprises (BPE) Mr Alex Okoh, disclosed that the concession would be for a period of 30 years, renewable by the federal government for another 30 year period.

It would be recalled that the Federal Government had earlier in February announced the move to concession the Tafawa Balewa Square, Lagos International Trade Fair Complex, and the Calabar and Kano Special Economic Zones.

The plan was disclosed by the Head of Public Communications at the Bureau of Public Enterprises (BPE), Amina Othman, who announced the bureau will hold an International Investors’ webinar on the four concession opportunities.

A concession is a form of Public-Private Partnership (PPP) where a government-owned asset is being operated and maintained by a private investor for a period of time on terms contained in a concession agreement.