In 2003, the Federal Government of Nigeria initiated the drive towards improving efficiency at out Ports, and the landlord model was adopted for all the Nigerian Ports. This gave rise to the concession of 25 Terminals to private Terminal Operators with lease agreement ranging from 10-25 years.
One of the concessions was a Build, Operate and Transfer (BOT) arrangement. Also in the process of reorganising the ports, the former eight (8) ports were reduced to six (6) major ports, with two (2) ports in Lagos and four (4)in the east namely; Lagos Port Complex, Tin Can-Island Port Complex, Calabar Port, Rivers Ports, Onne Ports Complex and Delta Ports Complex respectively.
In line with the reform programme, the transaction commenced with the advertisement for Expression of Interest on the 3rd of December, 2003, by the National Council on Privatization with the Bureau of Public Enterprise acting as the transaction agent. A total of 110 EOIs were harvested out of which only 94 were pre-qualified.
Pre-bid conferences, Data room and physical due diligence were also done and request for proposals sent out to bidders. Technical bids were submitted and evaluated; the financial offers were also opened to determine the successful bidders.
All the successful bidders negotiated their concession agreements with a Public Sector Team made up of Nigerian Ports Authority and the Bureau of Public Enterprise. Successfully negotiated agreements were signed. Transition programme initiated preparatory to handing over. Under this new arrangement, the Authority ceded to Private Sector some of her functions and responsibilities