The Nigerian government has successfully concessioned the Nnamdi Azikiwe International Airport Abuja (NAIA) and Mallam Aminu Kano International Airport Kano (MAKIA) to a consortium that has Nigerian billionaire Kola Karim as a major shareholder.
Special Assistant on Public Affairs to Nigeria’s Aviation Minister James Odaudu said the concessions came after approval from the Federal Executive Council, FEC.
The Corporacion American Airport Consortium emerged as the preferred bidder, which comprises the Corporation American Airports, Mota Engil Africa, and Mota Engil Nigeria.
Mota Engil Nigeria is a joint venture between Mota-Engil, a public-listed Portuguese contractor, and Shoreline Group, an energy and infrastructure conglomerate owned by Karim.
The Corporacion American Airport Consortium will make upfront payments of $7 million for NAIA and $1.5 million for MAKIA. During the concession period, total projected nominal revenues accruable from the combined concession of NAIA and MAKIA exceed $4 billion, of which over 70 percent will be payable to the Federal Airports Authority of Nigeria, FAAN.
The partnership arrangement will be effective for 20 years for NAIA and 30 years for MAKIA. The statement read:
“Following a thorough and comprehensive evaluation process that commenced with the Request for Qualification (RFQ) advertised in local and international media on 16th August 2021, and subsequent rigorous evaluation of technical and financial bids, coupled with due diligence visits conducted from 27th – 29th December 2022 and 9th – 10th January 2023, the Corporacion American Airport Consortium has emerged as the preferred bidder.
“The consortium, composed of The Corporation American Airports, Mota Engil Africa, and Mota Engil Nigeria, is globally recognized for its superior technical expertise in the design, construction, management, and operation of infrastructure. The Corporation American Airports, a New York Stock Exchange (NYSE) listed airport operator, has a presence across three continents, managing 53 airports in six countries and serving approximately 82.4 million passengers in 2019.
“The concession of NAIA and MAKIA will considerably enhance the operational efficiency and profitability of these airports, repositioning them to operate optimally and competitively. During the concession period, total projected nominal revenues accruable from the combined Concession of NAIA and MAKIA exceed $4 billion United States Dollars. Over 70% of these projected revenues will be payable to the Federal Airports Authority of Nigeria (FAAN), thereby generating additional revenue sources for the Federal Government.”
In 2018 Shoreline Group, a Nigerian energy and industrial conglomerate founded by Karim, partnered with Mota-Engil, a publicly listed Portuguese contractor, to establish Mota Engil Nigeria. Mota Engil partnered with Shoreline Group to leverage the latter’s clout in Nigerian business and political circles to access target large-ticket infrastructure construction projects in Nigeria. Mota-Engil holds 51 percent of Mota-Engil Nigeria, while Shoreline owns 49%. Mota-Engil is active in civil construction, public works, port operations, waste, water, and logistics. The company has a present market cap of more than $700 million.
Karim, 54, is one of Nigeria’s wealthiest men. He owns Shoreline Group, which has interests in power, energy, infrastructure, engineering, agriculture, and telecom.
However, the crown jewel in the group, Shoreline Natural Resources, is Nigeria’s third-largest indigenous oil producer, producing an estimated 40,000 barrels of oil per day. Shoreline Natural Resources is a joint venture between Shoreline (55 percent) and Heritage Oil (45 percent).
Karim is also an avid polo player and is the patron of the STL Shoreline polo team in Nigeria.
With over a decade of experience creating impactful narratives about Africa, Mfonobong Nsehe is one of the most recognized journalism and communications professionals on the continent. He is the editor-in-chief of Billionaires.Africa. A former Forbes Magazine contributor covering African wealth and entrepreneurship, Mfonobong conceptualized, initiated, and managed for a decade the Forbes annual ranking of Africa’s richest people. He was also the pioneer managing editor of Ventures Africa and built it into one of the continent’s most influential business news companies.