The Maintenance Repair and Overhaul (MRO) center for the country’s aviation industry is expected to generate about $185 million.
According to a statement by the Infrastructure Concession Regulatory Commission (ICRC) approval for the establishment of the centre was given by the Federal Executive Council at its meeting on Wednesday.
ICRC said approval was also given for a concession period of 30 years and the projected income is to be generated within the period.
The center, according to the statement, would be first in West and Central Africa; would be a one-stop-shop for the overhaul, routine maintenance, and service of aircraft and would be done through a Public Private Partnership (PPP) with Messrs AJW Consortium as the concessionaire using the Build, Operate, and Transfer (BOT) PPP model.
ICRC added the approval was given following the issuance of a Full Business Case (FBC) Compliance Certificate by the ICRC to the Federal Ministry of Aviation and would be a first in West Africa.
The commission pointed out that MRO is part of the key elements in the aviation sector roadmap of the current administration of President Muhammadu Buhari, and is aimed at addressing the challenges of the sector, filling identified gaps and creating the needed environment active private sector participation in the development of the nation’s aviation sector.
It added that the establishment of a private sector-driven MRO center was critical for the diversification and repositioning of the aviation industry as it would provide a platform for aircraft repairs, overhaul, and maintenance and would also address the demand for aircraft maintenance in Nigeria, West, and Central Africa.
