The Cross River State Government has officially terminated its concession agreement with CIBA Construction Company Limited over the management of the Obudu Cattle Ranch, citing multiple breaches of contract. The move aims to restore the historic ranch to its former glory and boost tourism in the region.

Background of the Concession Deal

The Obudu Mountain Resort, formerly known as Obudu Cattle Ranch, was concessioned to CIBA Construction Company in 2017 under former Governor Ben Ayade. The agreement, which was expected to last 25 years, tasked CIBA with renovating, maintaining, and managing the ranch under a public-private partnership. However, eight years into the deal, the state government decided to revoke the agreement due to CIBA’s failure to meet key contractual obligations.

Reasons for Contract Termination

According to a letter signed by the Attorney General and Commissioner for Justice, Ededem Ani, the government cited material breaches under Sections 5.0, 6.0, and 14.0(b) of the contract. CIBA was expected to upgrade the resort’s infrastructure, particularly the hotel and other essential amenities, but failed to make the necessary investments.

The decision to cancel the deal follows concerns that the resort’s condition continued to decline rather than improve. Despite multiple opportunities to address the issues, CIBA did not fulfill its obligations, leading the government to reclaim control of the facility.

A New Vision for Obudu Ranch

In response, Governor Bassey Otu has directed Sunday Michael, the Special Adviser and CEO of Obudu Ranch Resort, to lead efforts to restore and transform the resort. The government is focused on turning Obudu into a world-class tourism hub, attracting both domestic and international visitors.

Local business owners and stakeholders have welcomed the decision, expressing optimism that the revitalization project will boost tourism, create jobs, and strengthen the local economy.

Cross River’s Wider Economic Strategy

Beyond the Obudu Ranch revamp, the Cross River Government is actively pursuing economic development initiatives. Recently, the state signed a long-term concession deal with Jampur Group, an Indian conglomerate, to manage assets such as a state-owned garment factory and fertilizer plant. This 20-year partnership is expected to enhance industrialization and drive economic growth.

Looking Ahead

The cancellation of the CIBA concession marks a significant step toward restoring Obudu Ranch as one of Nigeria’s top tourist destinations. With renewed government commitment and strategic investments, the future looks bright for the historic ranch and the local communities relying on its success.