HOPE of the Sam Mbakwe Airport, Owerri, getting a facelift received a major boost yesterday, with the Federal Executive Council (FEC) approving a down payment of N592 million for the supply and installation of airfield lighting at the airport.
Rising from its weekly meeting in Abuja, the council also gave approval for Investment and Credit Holding Limited (ICHL) to acquire 54 per cent equity share of the moribund Urban Development Bank of Nigeria, following an earlier deal struck between the firm and a committee set up by the federal government.
Briefing State House correspondents at the end of the meeting, Minister of State for Aviation, Chief Femi Fani-Kayode, said the down payment was approved for the Owerri Airport to make it more operational at night given its centrality in the South East geo-political zone and proximity to the Port Harcourt International Airport.
It would be recalled that Daily Champion, recently in a special feature highlighted the need for the airport, built through communal efforts by the people of old Imo State to be upgraded.
And minister of Transportation, Chief Cornelius Adebayo shortly after the report, assured that the airport would be upgraded to meet recommended standard.
Chief Adebayo, who spoke when Imo State Governor Achike Udenwa paid him a courtesy visit assured that the Sam Mbakwe Airport, which had earlier been upgraded by the Federal Government to a Cargo International Airport would be accorded priority by the government.
On the UDBN deal, Minister of Finance, Mrs. Nenadi Usman who briefed journalists alongside Chief Fani-Kayode, disclosed that the new deal was approved by the council, following an agreement reached by the three tiers of government and the Nigeria Labour Congress (NLC) for private sector participation.
The UDBN was established by an Act in 1994 with equity shareholding of N800 million paid up by the Federal Government (20 per cent), the 36 States Government (40 per cent), the 774 Local Government Areas (20 per cent), and the Nigeria Labour Congress (NLC) 10 per cent.
The balance of 10 per cent allocated to the Organised Private Sector (OPS) was rejected due to the poor performance by the bank, that presently has a net value of less than N216 million even as it now has a debt liability of N700 million which it borrowed from the Federal Government as a running cost in the recent past.
Mrs Usman said that the company, owned by some Nigerians and Americans, emerged successful following its outing during the bidding process that was conducted by a committee constituted by the Federal Government to search for private investors; saying that the committee considered the only bidder as “fair”
She stated that as a result of the new deal the company has acquired 54 per cent share capital of the bank at the total cost of N400 million which include the payment of 55 kobo for every one naira of the N700 million liability, as buy back, totalling N395 million to be converted into shares at 51 kobo per share; and another N80 million representing the remaining but abandoned 10 per cent share of the N800 million worth of the ailing bank.
The minister however noted though the deal has been concluded, government has directed that the investment interest shown by the bank�s branch of the Senior Staff of Banks and Financial Institutions Association in the bank should be looked into and inbuilt into the already signed deal.
Other contracts approved by council are the feasibility studies and design of the Kasir billa Dam in Taraba State at the cost of N146 million; and another N120 million, as an advance payment for the supply of light ammunition for the Nigerian Army, to be completed in Six Months.