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FG Slashes Lagos-Ibadan Expressway Budget to N50bn

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Fashola

The Federal Government has cut its budget for the Lagos-Ibadan Expressway from N66bn to N50bn in the 2016 Appropriation Bill, representing a drop of 24 per cent.

Currently undergoing reconstruction, the two contractors handling the project, Julius Berger Plc and Reynolds Construction Company (Nigeria) Limited, are being owed several billions of naira for the job executed.

They have vacated the road following the unpaid debts and a recent court injunction obtained by Bi-Courtney Highway Services Limited, setting aside a concession agreement granted Motorway Assets Limited to finance the project and manage it.

Not more than N50bn has been raised by the government for the N167bn road project, which is expected to be completed next year.

In the initial budget for 2016 presented to the National Assembly by President Muhammad Buhari, N66bn was voted for the highway among other road projects.

But in the reviewed copy obtained on Friday, the appropriation for the Lagos-Ibadan Expressway had come down to N50bn.

Although no reasons were officially offered for the slash, it was learnt that this was to ensure judicious distribution of funds that would be available for the year in view of the dwindling revenue from the oil.

A total of N244.123bn has been earmarked for the construction and provision of road facilities across the country in the reviewed 2016 Appropriation Bill.

This also showed some adjustments when compared with what was contained in the former proposal earlier sighted by one of our correspondents.

For instance, an analysis of appropriations for the Federal Ministry of Works, Power and Housing showed a series of adjustments in the section that captured construction, provision and repair of roads across the country.

The latest report showed that N244.123bn was budgeted for the construction and provision of roads while the government earmarked N277.95m for the rehabilitation and repairs of other items aside from roads.

From the latest bill, it was clear that the government raised the appropriation for road construction/provision by N45.73bn when compared with the N198.39bn initially appropriated for the construction/provision and rehabilitation/repairs of roads in the first bill earlier presented by the President.

Under the construction/provision section in the latest bill for the Ministry of Power, Works and Housing, the highest allocation was appropriated for the construction and provision of roads.

Out of a total of N326.886bn appropriated for the construction and provision of fixed assets in the ministry, the road sector alone received N244.123bn, representing 74.68 per cent of the total.

The remaining N82.763bn or 25.32 per cent was shared among other sectors such as housing and electricity.

Indeed, the construction/provision of housing got N49.53bn; the construction/provision of electricity received N25.1bn, while the vote for the construction/provision of office buildings was put at N6.16bn.

Others are the construction/provision of infrastructure, N1.1bn; water facilities, N686.95m; rehabilitation/repairs of public schools, N42m; and rehabilitation of office buildings, N171.25m, amongst others.

Senior government officials at the works ministry told one of our correspondents that the Minister of Works, Power and Housing, Babatunde Fashola, would soon give directives on the commencement of work on selected federal roads.

According to them, the minister is presently working out ways to settle some of the debts owed contractors in order to encouraged them to move to the project sites.

An official, who spoke on condition of anonymity, said, “Work will commence on our roads soon. The minister has been on tour for some weeks now, and he is trying to see how the government can settle some of the debts owed contractors so that they can return to project sites when called upon.

“So, on whether the government is ready to fulfil its pledge concerning road construction, I can assure you that very soon many contractors will resume work on these roads.”

While unveiling the Federal Government’s blueprint on infrastructural development in December last year, Fashola had stated that the present administration would give priority attention to the completion of major highways.

Fashola had said, “Our short-term strategy will be to start with roads that have made some progress and can be quickly completed to facilitate connectivity. We will prioritise within this strategy by choosing first the roads that connect states together, and from that grouping, we will start with those that bear the heaviest traffic.”

Punch

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Government

Knocks, Kudos For Judiciary Over Stoppage of Allocations to Rivers State as Fubara Boasts of Coping Without FG’s Funds

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Siminalayi Fubara

A mixture of condemnation and praises has trailed a judgement of a Federal High Court that stopped the release of state allocations to the Rivers State Government.

Investors King had reported that Justice Joyce Abdulmalik of a Federal High Court in Abuja, on Wednesday, ordered the stoppage of the release of monthly federal allocations to Rivers State.

Justice Abdulmalik predicated her action on the grounds that the state government was in violation of the Constitution as regarding the state expenditures.

According to the judge, the current budget being operated by the state was not passed by a lawful arm of the Rivers State House of Assembly, therefore, Fubara is not entitled to allocations from the government at the centre.

Meanwhile, some stakeholders in the country have knocked the judiciary over the decision, calling on the Chief Justice of Nigeria, Justice Kudirat Kekere-Ekun to rein in on judges’ actions over the political crisis ravaging Rivers.

For former Vice President Atiku Abubakar, the judiciary should be cautioned against setting the South-South State on fire.

In a statement by his media adviser, Paul Ibe, the former Vice President, said it was appalling that some elements loyal to the Federal Government were pulling the strings from behind.

Atiku wondered why Justice Joyce Abdulmalik issued the order when it was public knowledge that Rivers State had already challenged the Court of Appeal’s judgement on the legality of Rivers State’s 2024 budget.

He, however, called on Justice Kekere-Ekun to ensure that those found wanting are disciplined in order to restore the fading glory of the nation’s judiciary.

In the same vein, Chief Emeka Kalu, National Coordinator of the Peoples Democratic Party (PDP) Coalition observed that the ongoing crisis plaguing Rivers State must be handled with caution to save it from unnecessarily being flamed in uncontrollable state of lawlessness.

Kalu in the statement said the judiciary is expected to maintain its integrity and protect her independence by working to avoid being politically purchased to harm democratic processes and the ethics of law.

According to him, the recent judgement by the Abuja Federal High Court division directing the RMAFC to stop releasing statutory monthly allocation to the State government was done out of bias and politically motivated plans to disrupt Fubara ‘s administration.

The group affirmed that it remains the height of injustice for a political party under the guise of personal interest to continue raising the dust of anarchy against the will of the people and the judiciary is expected to redeem and revitalize the failed system instead of allowing herself to be used to ruin the polity.

On the contrary, the National Democratic and Change Coalition has hailed the court for the judgment banning further release of allocations to Rivers and called on Governor Fubara to refund all monies spent without appropriation to the state coffers.

The coalition, while expressing satisfaction with the ruling, said the people of Rivers State have been vindicated and the long-awaited justice has been served on the governor.

Reacting via a press release by John Uloko, president of the coalition hailed Justice Joyce Abdulmalik for the judgment, saying that since January 2024, Rivers State had received and spent allocations based on an “illegitimate” budget, thereby describing it as a “constitutional aberration”.

The group, made up of lawyers, agreed with the court that Governor Siminalayi Fubara’s presentation of the 2024 budget before a four-member Rivers House of Assembly was an affront to the constitutional provision.

It added that the ruling is a victory for democracy and will teach rogue governors the bitter lesson that the Constitution of the Federal Republic must be respected and the sanctity of the nation’s democratic institutions upheld irrespective of their political desperation.

Nonetheless, the embattled Governor Fubara, on Wednesday said the restriction placed on the state allocations is “the least” of his problems.

Governor Fubara stated this during a special thanksgiving service organised by the state government to celebrate his administration’s resilience amid escalating political crises, which began with the arson attack on the State House of Assembly complex exactly one year ago.

Governor Fubara assured that despite the court order, his administration would continue payments to contractors and ensure workers’ salaries are disbursed from today (Thursday).

He also confirmed that allocations for the 23 Council Chairmen would be credited, as the Joint Accounts Allocation Committee procedures have been completed.

The governor encouraged his supporters to remain resilient, assuring them that all challenges are surmountable.

Reflecting on his administration’s success, Governor Fubara noted that despite predictions that his government would not last even a week, he has successfully led for over a year.

He said his administration has also conducted local government elections against all odds and maintained a full cabinet despite attempts to undermine his leadership through resignations.

Highlighting his administration’s progress, he mentioned ongoing project executions across the state, countering critics who claimed he would be unable to deliver.

He also cited recent reports that position Rivers State as one of the leaders in financial accountability and transparency.

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Government

Court Bars FG From Giving Monthly Allocation To Rivers Government

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Siminalayi Fubara

The Federal High Court in Abuja has restrained the Federal Government of Nigeria from giving monthly constitutional allocation to Rivers State Government.

Specifically, the court presided over by Justice Joyce Abdulmalik stopped the Central Bank of Nigeria (CBN), the Accountant General of the Federation, Zenith Bank and Access Bank from further allowing Fubara to access money from the Consolidated Revenue and Federation Account.

Justice Abdulmalik stated while delivering the order on Wednesday that further release of monthly financial allocations to the Rivers State government is unconstitutional and an aberration.

The court maintained that the previous collection and disbursement of monthly allocations since January this year by Governor Siminalayi Fubara is a constitutional somersault and aberration that must not be allowed to continue.

The judge anchored his decision on the manner in which Governor Fubara presented the 2024 budget, stressing that the presentation of the fiscal document before a 4-member Rivers House of Assembly was an affront to the Constitutional provision.

He said that Fubara action in implementing unlawful budget smacked gross violations of the 1999 Constitution he swore to protect.

Abdulmalik then stopped the CBN, the Accountant General of the Federation, Zenith Bank and Access Bank from further allowing Fubara to access money from the Consolidated Revenue and Federation Account.

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Government

Senate Postpones Screening Of Ministerial Nominees, Gives Reasons

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Senate President Akpabio

Nigerian Senate has shifted the scheduled screening for ministerial nominees, initially set for today.

The postponement of the exercise to Wednesday is to enable the nominees provide all needed documents as well as allow for sufficient time to complete their documentation and pre-screening processes.

The announcement was contained in a statement signed on Tuesday by the Special Adviser to the President on Senate Matters, Senator Basheer Lado.

According to Lado, the screening will hold on Wednesday, at 12:00 pm.

Lado, while explaining the reason for the postponement said the scheduled screening of ministerial nominees was shifted by the Senate, adding that it is to allow all nominees to conclude all aspects of documentation and pre-screening exercises.

He said the Office of the Special Adviser to the President on Senate Matters thanked the public for their understanding and cooperation.

Recall that the Special Adviser to the President had on Monday disclosed in a statement that the screening will hold today.

President Tinubu had written the Senate, seeking the screening and subsequent confirmation of appointments of seven ministerial nominees announced in Abuja last Wednesday.

Tinubu’s request was contained in a letter addressed to the President of the Senate, Senator Godswill Akpabio, and read last Thursday during plenary.

According to the letter, the ministerial nominees were Dr Nentawe Yilwatda, Minister of Humanitarian Affairs and Poverty Reduction; Muhammadu Maigari Dingyadi, Minister of Labour and Employment; and Bianca Odinaka Odumegu-Ojukwu, Minister of State, Foreign Affairs.

Others were Dr Jumoke Oduwole, Minister of Industry, Trade and Development; Idi Muktar Maiha, Minister of Livestock Development; Rt Hon Yusuf Abdullahi Ata, Minister of State, Housing; and Dr Suwaiba Said Ahmad, Minister of State, Education.

President Tinubu in the letter had sought expeditious consideration of his request by the Senate.

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