The Nigerian Correctional Service (NCoS)’s shoe and garment factory in Aba, Abia State and the Janguza Tannery Factory, Kano, Kano State are set to kick off after the Infrastructure Concession Regulatory Commission (ICRC) handed the service a certificate of compliance.
At the presentation of Full Business Case (FBC) Compliance Certificate to the Controller General of NCoS, Ja’afaru Ahmed, at the NCoS headquarters on Wednesday, the ICRC’s Director General, Chidi Izuwah said the factories will yield at least N5.089 billion investments.
He said the two factories will save the huge FOREX for importation of uniforms and shoes when they become functional. Izuwah said; “ The project will bring an immediate investment of N5.089 billion made up of 80% debt and 20% equity with “Zero” financial co diet of authoritative news.
“ _This would lead to the creation of 1,290 direct jobs, multiples of indirect jobs locally and savings on foreign exchange demand to procure uniforms abroad amongst other significant benefits to the country.”_
He also said the proposed PPP arrangement between NSC and Erojim Investments Limited (a local company) and its technical partner, Poly Technologies Inc., Beijing, China, is aimed at establishing a world-class factory, using the most modern technology and quality inputs to produce high quality shoe, garments and leather products to meet the demand of NCoS and other Ministries, Departments and Agencies (MDAs) whose personnel wear uniforms and make use of other accessories.
Engr. Izuwah listed more benefits of the factories to include:
“ _The shoe, garment and tannery factories are the best remedy for unemployment because they are labour intensive and create jobs for the masses.” Nigerian Correctional Service begins drugs production for inmates Need for Executive Order to decongest correctional centres According to him; “Nigeria’s large population, strategic geographical location, ECOWAS membership, and government’s incentives for the shoe and garment industries, makes this investment compelling.”_
The NCoS Controller General said the two factories are to be built under a public-private partnership under a build, operate and transfer (BOT) arrangement.
“ _The private investors will run the facilities for 20 years before handing them over to the service. “They [Erojim] will have to train our men within that period. “For now, the profit will be shared 70/30 in favour of Erojim,” he disclosed._
However, the contract agreement is to be approved by the Federal Executive Council (FEC) before it can become active.