By Dada Jackson
Minister of Works and Housing, Mr Babatunde Fashola, says the Federal Government will focus on the completion of ongoing road and bridge projects in the country rather than beginning new ones, in the implementation of the 2021 Budget.
He listed the road projects as Lagos-Ibadan, Abuja-Kaduna-Kano, 2nd Niger Bridge, Ilorin-Jebba, Jega-Tambuwal-Sokoto and Enugu-Port Harcourt, among others.
Fashola, in a statement made available to News Trends, spoke during the defense of his ministry’s proposals in the 2021 budget.
He listed roads whose completion would be prioritised during the budget year to include those categoriszed as A1-A9, adding that 18 of such road projects, which had reached appreciable level of completion had been identified across the country for completion within 12 to 15 months include those leading to the ports and major agricultural hubs across the six geopolitical zones of the country adding that the decision to prioritise those projects was in line with the mandate of President Muhammadu Buhari, whom, he recalled repeatedly emphasized the necessity to focus the Budget on completion of projects.
According to him, other categories of road and bridge projects on which the ministry will focus for completion during the budget year also include those that have attained 70 per cent completion, adding that subject to the availability of funds, such projects would be completed as early as possible.
He pointed out that some bridges which connect several geopolitical zones and Federal roads had not been maintained for several years before this administration.
Fashola added that some of the bridges required replacement of expansion joints and hand rails while others required major underwater repairs of exposed piles, pile caps and piers.
“Bridges like the Third Mainland Bridge, the Koton Karfe Bridge and the Makurdi Bridge are part of about 50 bridges being rehabilitated simultaneously among others,” he said.
He also said the ministry had its focus on the completion of the construction of Chanchangi Bridge along Takum-Wukari Road in Taraba State and Ikom Bridge along Calabar-Ikom Road.
Expressing the need for the support of the National Assembly in realizing the stated objectives, Fashola, who put the estimated cost of rehabilitating all the bridges at N80.984bn, however, pointed out that there was a need, in the course of each year, to address wash-outs and erosion envisaged with the subsiding discharge of flood waters nationwide.
“We are mindful of the limitation of resources but the frequency of these natural disasters caused by climate change and aging infrastructure must compel us to think of making provisions for emergencies”, he said, adding that the international best practice for such emergencies was between five and 10 per cent of the capital budget.
Fashola, who said the ministry had selected two roads and a bridge in each of the six geopolitical zones for enhanced funding during the budget year, also listed for adequate funding the Federal Government of Nigeria’s counterpart fund for projects financed by the China Exim bank.
On the ministry’s interventions on internal roads in federal tertiary institutions across the country, the minister, who said out of the 43 such projects 18 had been completed, explained that inadequate budgetary provisions had stalled the projects which, according to him, the ministry started since 2018/2019.
He stated that the 17.35 per cent cut in the 2020 budget made it impossible to pay contractors who were being owed N3.31bn while the money required to fix the remainder was given as N3.54bn.
Reiterating that the major challenge of the ministry in completing ongoing projects on time was inadequate budgetary provisions, the minister explained further that aside from the fact that the funds were inadequate, there was also the problem of timely release of funds to sustain annual cash flow requirement level adding that although funds from the Presidential Infrastructure Development Fund (PIDF) and SUKUK Bond had helped to bring some funding relief, the ministry’s exposure had continued to expand due to annual addition of new projects.
He said although the sum provided for highway projects in the 2021 budget was an improvement over the 2020 budget provision for the sector, it was still inadequate to address the funding challenges of highway projects pointing out that with about N1.2tn as the year 2021 projected cash flow requirement, funding for works planned to be executed on the projects in 2021 would have to be “efficiently optimised”.
Fashola said in order for his ministry to make significant impact on the improvement of the federal road network and boost the nation’s economy, there was an urgent need to enhance the release of funds for the projects under the Amended 2020 Budget to defray the outstanding payments; enhance budget ceiling for highway projects in the 2021 budget proposal to cover the execution of works during the year and leverage other alternative funding sources as well as make provision for emergencies to enable government to respond to damage and destruction caused by natural disasters, climate change and other unforeseen events.
The alternative funds, he explained, included the Presidential Infrastructure Development Fund (PIDF), which is being used to rehabilitate, reconstruct and expand the Lagos-Shagamu-Ibadan Dual Carriage way, Construction of Second Niger Bridge and rehabilitation of Abuja-Kaduna-Zaria-Kano Dual Carriageway.
They also include the Sukuk Bond being used to fund a total of 44 road and bridge projects, which are mainly dual carriageways on major arterial routes A1-A9 on the Federal road network using the 2020 Sovereign Sukuk Issuance and Tax Credit Scheme being used in the construction of Bodo-Bonny Bridge across Opobo Channel in Rivers State and the construction/rehabilitation of Lokoja-Obajana-Kabba-Ilorin Road Section II in Kwara and Kogi States, among others.
On the issue of delay in project completion raised by committee members during the interactive session, the minister said aside the twin challenges of inadequate funding and delayed releases, there was also the fact that some of the roads carry heavy traffic which had to be managed while construction, reconstruction or rehabilitation was going on.
Fashola said it was necessary to put some measures in place for the safety of both the workers and commuters.
The minister told the lawmakers, “When we talk about delay of projects, I would have loved you to have specifics of what is considered as delays. It is important to understand what happens at the construction site, especially on highways, where we are reconstructing and commuters still have traffic,” adding that ideally on a construction site traffic should be shut down.
He cited as examples the Third Mainland Bridge in Lagos with an average Daily Traffic (ADT) of 122,978 vehicles, the Koton Karfe Bridge with Average Daily Traffic of 11,942 vehicles and the Makurdi Bridge, adding that the Lagos-Sagamu-Ibadan carries the heaviest daily traffic in the country followed by the Abuja-Kaduna-Kano Road.
On why the Sukuk could not be expanded to fund other road projects as a means of overcoming the problem of inadequate funding, he explained that at every issuance, there was a specific amount which the government could withdraw, adding that no money would be left as reserve for Sukuk fund.
Protect the poor from galloping inflation, World Bank advises Nigerian govt, others
… lowers Nigeria’s economic growth forecast
The World Bank has called on the Federal Government of Nigeria and other governments in the Sub-Saharan African region to urgently implement measures to restore macro-economic stability and protect the poor from the high inflation and current slow economic growth.
The World Bank has also lowered its economic growth forecast for Nigeria in 2023 to 3.2 per cent from 3.3 per cent due to the slowdown in global growth, the war in Ukraine and declining demand from China for commodities produced in Africa.
It projected that the Sub-Saharan African region would record a lower economic growth of 3.3 per cent in 2022 as against the 4.1 per cent recorded in 2021.
The forecasts were contained in the October edition of the World Bank’s Africa’s Pulse, a biannual analysis of the near-term regional macroeconomic outlook, and economic growth in Sub-Saharan Africa (SSA).
Highlighting the growth factors for Nigeria’s economy, the World Bank said, “The Nigerian economy is projected to slow in 2023, down to 3.2 per cent (from 3.3 per cent) and persist at this level the following year. Growth will be supported mainly by the rebound in private consumption prompted mostly by accommodative monetary policy as inflationary pressures subside.
“Private consumption expenditure is forecast to decrease this year and grow next year. This performance will likely continue in 2024. On the production side, growth in 2023 will be supported by industry (with the growth of 5.1 per cent) with the mega-refinery project.”
On its growth forecast for the Sub-Saharan African region, the World Bank said: “Economic growth in Sub-Saharan Africa (SSA) is set to decelerate from 4.1% in 2021 to 3.3% in 2022, a downward revision of 0.3 percentage points since April’s Pulse forecast, mainly as a result of a slowdown in global growth, including flagging demand from China for commodities produced in Africa.
On the factors undermining economic growth in SSA, the World Bank said, “The war in Ukraine is exacerbating already high inflation and weighing on economic activity by depressing both business investments and household consumption. As of July 2022, 29 of 33 countries in SSA with available information had inflation rates over 5% while 17 countries had double-digit inflation.
“Elevated food prices are causing hardships with severe consequences in one of the world’s most food-insecure regions. Hunger has sharply increased in SSA in recent years driven by economic shocks, violence and conflict, and extreme weather. More than one in five people in Africa suffer from hunger and an estimated 140 million people faced acute food insecurity in 2022, up from 120 million people in 2021, according to the Global Report on Food Crises 2022 Mid-Year Update.
“The interconnected crises come at a time when the fiscal space required to mount effective government responses is all but gone. In many countries, public savings have been depleted by earlier programs to counter the economic fallout of the COVID-19 pandemic, though resource-rich countries in some cases have benefited from high commodity prices and managed to improve their balance sheet.”
“Debt is projected to stay elevated at 58.6% of GDP in 2022 in SSA. African governments spent 16.5% of their revenues servicing external debt in 2021, up from less than 5% in 2010. Eight out of 38 IDA-eligible countries in the region are in debt distress, and 14 are at high risk of joining them. At the same time, high commercial borrowing costs make it difficult for countries to borrow on national and international markets while tightening global financial conditions are weakening currencies and increasing African countries’ external borrowing costs.”
Stressing the need for governments to improve the efficiency of existing resources and to optimize taxes in response to the above challenges, the World Bank added that, “In the agriculture and food sector, for example, governments have the opportunity to protect human capital and climate-proof food production by re-orienting their public spending away from poorly targeted subsidies toward nutrition-sensitive social protection programmes, irrigation works, and research and development are known to have high returns.”
FG sues Mark Zuckerberg’s Meta over adverts, demands N30bn
The Advertising Regulatory Council of Nigeria (ARCON) has said it filed a lawsuit at the Federal High Court, Abuja against Meta Platforms Incorporated (owners of Facebook, Instagram and WhatsApp) and its agent AT3 Resources Limited.
The country’s apex advertising governing agency revealed on Tuesday that the advertisements on Facebook, Instagram and WhatsApp in the Nigerian markets are not vetted and approved by the federal government.
ARCON then asserted that such continued unscrutinised adverts and other publications emanating from Mark Zuckerberg’s Meta-owned social media platforms are illegal, unlawful and a violation of the extant advertising Law in Nigeria, thus seeking N30 billion for punitive damages.
It revealed this in a statement titled “ARCON sues Meta platforms incorporated, seeks N30b in sanction and penalties.”
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The statement read: “The Advertising Regulatory Council of Nigeria (ARCON) has instituted a suit against Meta Platforms Incorporated (owners of Facebook, Instagram and WhatsApp platforms) and its agent AT3 Resources Limited at the Federal High Court, Abuja Judicial Division.
“ARCON is seeking declaration among others that the continued publication and exposure of various advertisements directed at the Nigerian market through Facebook and Instagram platforms by Meta Platforms Incorporated without ensuring same is vetted and approved before exposure is illegal, unlawful and a violation of the extant advertising Law in Nigeria.
“ARCON stated that Meta Platforms Incorporated’s continued exposure of unvetted adverts has also led to a loss of revenue to the Federal Government.
“ARCON is seeking N30b in sanction for the violation of the advertising laws and for loss of revenue as a result of Meta Incorporated’s continued exposure of unapproved adverts on its platforms.
“ARCON reiterate that it would not permit unethical and irresponsible advertising on the Nigeria’s advertising space.
“ARCON further stated that it’s not regulating the online media space but rather advertisement, advertising and marketing communications on the online platforms in line with its establishment Act.”
NNPC declares over 100% profit in one year, with N674bn for 2021
The Nigerian National Petroleum Company (NNPC) Limited recorded a profit after tax (PAT) of N674 billion for the year ended 2021.
This is more than 100 per cent profit over the N287bn declared in the previous year (2020).
The Group Chief Executive Officer, NNPC Limited, Mele Kyari, disclosed this at a briefing on Tuesday.
He said, “Today, I’m happy to announce that the Board of NNPC has approved 2021 audited financial statements & NNPC has progressed to a new performance level, from N287bn profit in 2020 to N674bn profit after tax in 2021, climbing higher by 134.8% YoY profit growth.”
The 2021 financial year made it the fourth consecutive year that the NNPC will be opening its book for public scrutiny.
In 2018, when the NNPC first made account statement public, it reported a loss of N803.9bn.
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