The Plateau State Government has put into action its commitment to the reconstruction of the Jos Main Market by signing a pact with Roughton International London (UK) Limited in collaboration with Cynergy Associates Consortium.

The State Commissioner of Commerce and Industry, Hon. Ezekiel Daju, has signed the Memorandum of Understanding on behalf of the Plateau State Government, while the Country Director of Roughton International, Engr. Joseph Ikechukwu, signed on behalf of  Roughton International and Cynergy Associates Consortium.

The Jos Main Market, which was burnt down in 2001, has had little or no government presence since the inferno.
Daju said the Jos Main Market remains a critical project to the development of the state and urged the Roughton Company to use the project and attract investors to invest in the state.

According to the Commissioner, the MoU is for the first phase of the redevelopment and enhancement, which will cost N230 million.

The project will be completed in 12 months.

The Chairman of the Project Implementation Unit, Nde Ezekiel Gomos, hailed Governor Simon Lalong for his determination to rebuild the famous market that had made Jos a hub for traders from across Nigeria and West African.

The PIU, comprising the Ministry of Commerce and Industry, Jos Main Market Authorities and the Plateau Investment and Property Company, said there was a transparent bidding process through which Roughton international emerged and promised government’s total commitment in the rebuilding process.

Ikechukwu assured the State Government that the company will carry out the exercise with diligence and meet up the target of 12 months as stipulated in the MoU.

The Chairman of the Trader Associations in Plateau State, Alhaji Najib Abubakar, expressed pleasure at the efforts to rebuild the market, saying that traders from all over Nigeria and even countries like Ghana used to travel all the way to Jos for business in the market.

ViewPointNigeria Analysis

Given the very important nature of this project and the very large capital expenditure involved, ViewPointNigeria undertook due diligence on the company that PLSG has entered the MoU with (i.e., Roughton International UK), to see whether they have a proven track record of delivering large capital projects etc.

Our investigations reveal an Afro/Asia-centric company that has worked across a variety of industry sectors – particularly via PPP, PFI and UN development initiatives. The company is currently being led by Dr. Bernard Obika and based in the Hampshire county of the UK.

A quick financial audit of their statement of accounts demonstrates that in 2014, the company declared gross turnover of £14,461,000 and operating profits of £600,000. In 2013, their turnover was £13,133,000 with operating profits of £51,000.

Even though the value of phase I of the MoU is pegged at N230 million, analysis by ViewPointNigeria suggests that the construction of the market will need approx. N15 – N20 billion to complete in total. ViewPointNigeria analysts however consider that the phased development approach (i.e., phase 1, 2, 3….) adopted  by PLSG is the best approach, given the very large capital outlay and risks involved.

However, what remains unclear from the information released by PLSG, is what phase 1 of the development comprises. Does this have to do with the site preparation, planning and foundation laying? Does this involve erecting structures? How many phases of work is envisaged in total? And what is the time frame for completing all phases? What are the terms of the partnership with Roughton International UK? How much stake will they have in the project?

That aside, the N230 million airmarked for phase 1 project translates to approx. £800,000 (at £1 = N300 exchange rate), as such Roughton International UK, should comfortably be able to finance the project from its balance sheet given its 2014 turnover of £14 million.  So ViewPointNigeria considers this choice of technical partner a good one. However, with subsequent phases of the project which may be larger in quantum, it remains unclear how the company will finance them.

• To know more about Roughton International UK, see: http://www.roughton.com/
• To know more about Dr. Bernard Obika, Managing Director of Roughton International UK, see https://www.linkedin.com/in/bernard-obika-b8732218

Screenshots of the statement of accounts of Roughton International UK are attached below: If you wish to view the full pdf of this document, go to the document section of the Movement for the Protection of Plateau Heritage (MOPPLAH) on facebook to obtain a copy.

Statement of Accounts for Roughton International UK

 by Dr. Chinan Mclean

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Jos Main Market re-construction: PLSG selects technical partner and signs MoU