Federal Government takes over complex over N6b debt

The Federal Government has taken over the Lagos International Trade Fair Complex (LITFC) over alleged breach of agreement by the concessionaire, Aulic Nigeria Limited.

The take over was made known by the Executive Director/CEO, LITFC Management Board, Mrs. Lucy Ajayi during a press briefing.

Ajayi disclosed that Aulic Nigeria Limited breached the agreement by not remitting lease fees to the tune of over N6 billion to the Federal Government since it took charge of the complex in 2007.

Ajayi also noted that the contract, which was to be for 30 years, with the concessionaire paying N40 billion to government in contract sum in incremental form, was revoked in August 23, 2017.

She said trouble started when the concessionaire refused to pay anything in the last three years, which would have been in the region of N3 billion as accumulated debt.

The CEO also narrated how the concessionaire reneged in all the agreements on developing the facility and bringing it up to international standard.

ALSO READ: Buhari appoints Chief Executives for 23 federal agencies

Regretting the sad state of the purpose built complex, Ajayi said tenants at LITC have been in bondage for nine years, as they have been deprived of the benefits of the contractual obligation from the concessionaire.

play

Mrs Lucy Ajayi and Sir Jude Ringo Okeke

 (Pulse)

On her mission an mandate, the LITFC CEO said President Muhammadu Buhari, in line with the government policy of ease of doing business, has instructed her to turn the facility round to support the various businesses going on in the complex.

Welcoming the emergence of the new CEO, the Chairman, LITC Stakeholders Forum & Association of Progressive Traders, Dr. Jude Ringo Okeke, welcomed the government’s intervention.

Okeke said he regretted that the complex and its tenants have been stagnant for over 10 years as a result of Aulic Nigeria Limited’s failure to perform.

Okeke said the traders have lost countless customers as a result of the poor infrastructure provision though they are a gateway to the sub African region and the South Eastern part of the country.

He asked the new management to speed infrastructure development to engender growth and commerce, noting that they have invested huge sums of money over the years.

The Federal Government through the National Council on Privatisation (NCP) had signed and agreement with Aulic Nigeria Limited as the concessionaire in 2007 for 30 years.