The Federal Government, through the Nigerian Ports Authority (NPA), has transferred the Tincan Island Water System facilities to Sandust Tincan Water Project Limited under a 16-year concession agreement valued at N11 billion.
The NPA announced that the concessionaire would spend the rest of this year rebuilding and rehabilitating the facility, with the agreement officially commencing on September 1, 2025.
During the handover ceremony at the Tincan Island Port Complex, NPA Managing Director Dr. Abubakar Dantsoho, represented by Assistant General Manager Mukhtar Isah, explained that the concession was necessary as many water treatment plants at the ports have been dormant for decades.
Dantsoho emphasized that leaving these facilities idle would result in significant revenue losses for the NPA and the government. He noted that vessels visiting Nigerian waters frequently require fresh water to replenish their supplies, often resorting to external sources that may not meet their needs.
“The NPA has leveraged the national public-private partnership policy to structure this concession as a management contract. This arrangement allows an operator to manage and maintain the plant efficiently,” Dantsoho stated.
The NPA boss mentioned that the concession process was approved by the Infrastructure Concession Regulatory Commission and the Federal Executive Council, paving the way for the 16-year agreement.
“Both the concessionaire and the government have obligations under this agreement.
“The concessionaire has met its conditions, leading us to set this date as the effective start of the concession,” he added.
Under the agreement, the concessionaire is responsible for transforming, rehabilitating, and maintaining the water treatment plant, bringing in additional equipment, and producing water for sale to vessels—earning income in dollars for the government.
The NPA is tasked with creating a conducive environment for the concessionaire, ensuring that government policies are favorable not only at Tincan but also at Apapa Port.
“When the concession is fully operational, we expect a significant increase in vessel traffic, with some ships coming solely for water, resulting in substantial revenue for the government,” Dantsoho said.
Sandust Tincan Water Project Limited’s Managing Director and CEO, Mrs. Angela Attah, confirmed that the 16-year concession is valued at N11 billion, with plans to produce 100 cubic meters of water per hour.
“The project, which costs about N11 billion, will be funded through equity and other financial arrangements. We are in advanced discussions with IFC, Stanbic Infrastructure Fund, and other financial bodies, though we haven’t finalized any agreements yet,” Attah explained.
Attah acknowledged the challenges faced by the NPA in meeting its obligation to supply water to visiting vessels and port users, noting that the plant had been inactive for over 18 years.
She expressed confidence that the partnership would enable the NPA to fulfill its obligation to provide clean water.
“The existence of independent black market suppliers highlights the unmet demand for water due to the NPA’s inability to meet its obligations.
“However, the market will shift once we begin supplying fresh, treated water, reducing the need for these black market suppliers,” Attah noted.
While recognizing the role that black market suppliers have played, Attah emphasized the importance of dialogue and collaboration with them, suggesting that they could source water from the newly rehabilitated facility.
“We won’t disrupt the black market suppliers immediately; instead, we will engage with them to explore potential partnerships,” she concluded.
