Lagos ICT Park to gulp N40b over naira Devaluation, others

Lagos ICT Park to gulp N40b over naira Devaluation, others – Inflation, currency devaluation and other have pushed the project cost of Katangowa ICT Business Park, Lagos to over N40billion from N34.5billion it was three years ago, Bridgeways Global Projects Limited, its developers, said yesterday.

It’s Chief Executive Officer, Jimmy Oyemenam, who spoke on the sidelines of the flag-off of the project and awareness programme at Ikeja, said the initial project cost was N17 billion, adding that current economic realities have pushed up the project cost.

He said: “Currently, the project stands beyond N40billion. As at three years ago, it was valued at N34.5 billion; and between that time and now, the cost of building materials have gone up by about 40per cent; the naira has lost value to the dollar and the bulk of the finishing items, if not all the finishing items, will be imported. So, we are faced with a project cost which started at about N17billion then, now sitting well beyond N40 billion. This project is about 13 to 15 years old. It started during the administration of Asiwaju Bola Ahmed Tinubu. Between that time and now, it’s been progression that that will have to respond to market forces.”

The cost notwithstanding, Oyemenam said the project which is in two phases, has started earnestly on phase one while people have started using the market.

He said: “We have commenced work. With new instruction from Mr Governor, we have to construct about 3000 temporary stores for the displaced traders on the ground. Those traders are now operating out of the temporary market. As at September last year, we moved to the phase one construction and work has started on the phase one which will see to the relocation of the Computer Village upon completion. There’s work going on the main phase and you will see that the traders are trading temporarily in well built structures which they never had before.

“We have two years construction window for the first phase. What we have with the state government is a 36 year concession which mandates us to build, finance, operate and transfer after 36 years. There’s a two-year moratorium for construction and there have been some additional assignment of this concession agreement and that is the 3000 stores which we have developed. That was not part of the concession agreement which has eaten into the time and also eaten into the cost of the project.”

He said the state governor, Babjide Sanwo-Olu has provided subsidy to help the people, adding that it was obviously not something one was expecting but the governor stood to fill in the gap and offered to assist the traders.

He said the main trust of the project will become crystal clear in Phase 2. According to him, the project is about software development, technology development and training, equipping and empowering the youthful population.

He said: “It’s not going to be a dumping ground for the western nation or the Asians where we just buy from them and we have nothing to offer. There are very brilliant and talented men and women among our youth population that really lack the opportunity to be able to express themselves.  Phase 2 of the project will provide every single infrastructure required for the youths to be able to excel and to develop. We will also expose them to the investment community, that way, you are bringing those with the financial resources to invest on innovations. So it’s an advance home grown technology.”

Also speaking on the occasion, the President, Coalition of Computer Village Associations, Timi David, said all the traders are in accord with the programme.

“We are excited about the flag of Katangowa ICT Park. It is a dream come true for us to have a conducive environment for business, free of harassment, intimidation, and influences of all kinds of people. We believe we deserve an international market like a Silicon Valley. We will have no problem with power supply, and there is no extortion anymore by anyone.

“More than that, this ICT Business Park will give us the opportunity to own own shops,” he said, adding that there has been challenges which has been overcome.