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The Cross River State Government has revoked the 25-year concession agreement with CIBA Construction Company Limited for the management of Obudu Cattle Ranch, citing the company’s failure to meet its contractual obligations.
The termination was conveyed in a letter signed by the state’s Attorney General and Commissioner for Justice, Ededem Ani, as reported by the News Agency of Nigeria (NAN) on Wednesday.
According to the letter, CIBA breached key provisions of the agreement, particularly Sections 5.0, 6.0, and 14.0(b), leading to the cancellation of the contract.
Ani stated that the company failed to fulfill its core development commitments, including much-needed investments in the renovation of the resort’s hotel and other critical infrastructure. Despite multiple breaches and opportunities to rectify them, CIBA remained noncompliant, prompting the state government to take immediate action.
”These violations include the failure to invest in the renovation of the resort’s hotel and other essential components.
“In spite of multiple breaches, CIBA continued to fall short, prompting the Cross River Government to terminate the agreement with immediate effect,” he said.
Following the revocation, Governor Bassey Otu directed the Special Adviser and Chief Executive Officer (CEO) of Obudu Ranch Resort, Sunday Michael, to collaborate with key stakeholders in implementing measures to restore the facility.
The terminated concession was a 25-year agreement signed in 2017 under former Governor Ben Ayade. Under the Public-Private Partnership (PPP) arrangement, CIBA was tasked with designing, financing, building, operating, and maintaining the ranch to drive its transformation.
However, the company’s failure to meet these obligations prompted the state government’s intervention.
What you should know
Obudu Cattle Ranch, also known as Obudu Mountain Resort, was originally developed in 1951 by Scottish rancher M. McCaughley. Nestled in the highlands of Cross River State, the ranch became a serene getaway known for its cool climate and breathtaking landscapes.
- The facility gained prominence during the tenure of former Governor Donald Duke (1999–2007), who revitalized it into a top-tier tourism destination. His administration upgraded the road network, built modern chalets, installed aerial tramways (cable cars), and enhanced overall infrastructure, making the resort one of Nigeria’s most sought-after vacation spots.
- However, subsequent administrations failed to sustain Duke’s tourism legacy, leading to a decline in patronage and the gradual deterioration of facilities. Poor maintenance and lack of investment further contributed to its decline.
With the revocation of CIBA’s concession, the state government aims to restore the ranch’s former glory and reposition it as a premier tourist attraction, drawing both local and international visitors.