Economy

FG Releases N100bn to Contractors for Ibadan-Ilorin Road, 24 Others

Published

6 years ago

October 6, 2017

FG Releases N100bn to Contractors for Ibadan-Ilorin Road, 24 Others

The Federal Government on Thursday completed the process required for the funding of the reconstruction and rehabilitation of 25 major economic roads in the six geopolitical zones of the country, using the N100bn sovereign sukuk.

According to the government, each geopolitical zone is to get an equal amount of N16.67bn for the rehabilitation of selected roads.

Last month, the Federal Government commenced the sale of the N100bn sovereign sukuk in the local market to fund road infrastructure.

The Debt Management Office had announced that the seven-year Islamic bond, which was structured as a lease, would yield 16.47 per cent rental rate, payable semi-annually.

The ministers of Power, Works and Housing, and Finance, Babtunde Fashola and Kemi Adeosun, as well as the Director-General, DMO, Patience Oniha, met with heads of about 10 construction companies in Abuja on Thursday, where Adeosun presented the N100bn cheque to Fashola for the projects.

The Finance minister stated that the sukuk was over-subscribed, as over N105bn was realised, adding that N100bn was pulled out for the purpose of road construction.

She said, “This is the first sukuk in Nigeria and it is an important development in our financial market, because it will deepen it. It was over-subscribed; we got N105.87bn and we are giving N100bn to the ministry of works. This money is going to be used for economic roads.”

The government outlined the number of roads to be rehabilitated in each of the zones to include five each in the North-Central and South-South; four each in the North-East, North-West and South-East; and three in the South-West.

Arab Contractor Nigeria Limited, CGC Nigeria, CCECC Nigeria Limited, Salini Nigeria Limited, Reynolds Construction Company Nigeria Limited and Setraco Nigeria Limited are some of the beneficiary contractors.

Others are Dantata and Sawoe Construction Company Nigeria Limited, Eksiogullari Nigeria Limited, Mothercat Limited and Gitto Constrizon Generali Limited.

Our correspondent gathered from officials of the Ministry of Power, Works and Housing that the Oyo-Ogbomoso section of the Ibadan-Ilorin Expressway, on which reconstruction work has stalled, was among the roads to benefit from the N16.67bn for the South-West.

The projects also include the Obajana-Okene road in Kogi State; Aba-Port Harcourt road in Rivers State; Ajebandele-Sagamu road that goes through Ondo and Ogun states; and the Kaduna Eastern by-pass in Kaduna State.

Fashola said when the rehabilitation work on the selected roads would be completed, the facilities would significantly improve road transportation and economic activities across the country, as they were of vital economic importance to Nigeria.

Addressing the contractors, he said, “First of all, I think the problems that you identified earlier when we met were mainly two, finance and weather. And I promised you that we would solve the finance problem and nature would take care of the weather problem.

“The Minister of Finance is here and you will hear from her, because already the finance problem has been solved.”

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Inflation and Forex Mismanagement Drive Petrol Truck Prices from N7M to N25M

Published

17 hours ago

December 8, 2023

Investors King

The Chairman of the Independent Petroleum Marketers Association of Nigeria in the Satellite Depot branch, Akin Akinrinade, has raised an alarm over the rising cost of petrol trucks in Nigeria.

According to Akinrinade, the cost of a petrol truck has surged from N7 million in May to an astonishing N25 million at present, attributed to inflation induced by poorly managed foreign exchange rates.

Akinrinade pointed out that the forex mismanagement has significantly impacted the landing cost of premium motor spirit (PMS), commonly known as petrol, consequently leading to a surge in pump prices.

The unstable business environment, coupled with the astronomical rise in expenses, has created challenges for marketers in the downstream oil sector.

Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), highlighted in October 2023 that foreign exchange challenges have hindered private companies from importing petroleum products.

As a result, the NNPCL has become the exclusive importer of petrol.

The decision to limit private entities from importing fuel comes after President Bola Tinubu’s initiatives aimed at deregulating the fuel market.

Initially, the plan was to allow private companies to import fuel starting June 2023, aligning with efforts to balance the market after removing petrol subsidies.

The ripple effects of the soaring petrol costs are already evident, with commercial transporters increasing fares, and private car owners seeking fuel-saving alternatives.

As Christmas approaches, the surge in demand for interstate travel is expected to further elevate costs, posing financial challenges for many Nigerians amidst stagnant income levels.

Economy

Nigeria’s Presidential CNG Initiative Allocates N100bn for CNG Buses and EV Adoption

Published

2 days ago

December 7, 2023

Investors King

The Presidential Compressed Natural Gas (CNG) Initiative has allocated N100 billion to expedite the deployment of CNG buses nationwide, according to a statement released on Wednesday.

The initiative, designed to catalyze an Auto-gas and Electric Vehicle (EV) revolution in mass transit and transportation, aims to enhance sustainability and cost-effectiveness.

The statement revealed that the fund would be instrumental in supporting the adoption of auto-gas and electric vehicles, signaling a commitment to a more sustainable and economical future in the transportation sector.

The Presidential CNG Initiative plans to leverage over 11,500 CNG and electric-fueled vehicles, along with the deployment of 55,000 conversion kits.

This strategic approach is intended to reduce transportation costs for Nigerians and mitigate the challenges posed by the rising cost of living.

Under the Renewed Hope Agenda, the Presidential CNG Initiative is dedicated to realizing the President’s vision, guided by its steering committee led by FIRS Chairman Zacch Adedeji.

The statement highlighted recent achievements, including strategic technical partnerships and the ongoing commissioning of CNG Conversion centers in key states such as Lagos, Abuja, Kaduna, Ogun, and Rivers.

Several more centers are slated for commissioning in the coming weeks, reflecting the initiative’s momentum and commitment to achieving its objectives.

Economy

Nigeria’s Power Transformation: 53 Projects Worth N122bn on Track for May 2024 Completion

Published

2 days ago

December 7, 2023

Investors King

The Central Bank of Nigeria (CBN), in collaboration with the Transmission Company of Nigeria (TCN) and power distribution companies, is set to complete 53 power projects by May next year.

Valued at N122 billion, these projects aim to add over 1,000 megawatts to TCN’s wheeling capacity.

During a recent tour of three ongoing projects in Lagos, TCN’s Programme Coordinator, Mathew Ajibade, assured that the projects were not abandoned, refuting speculations.

He confirmed that work is progressing smoothly and is expected to be completed by May 2024, as initially planned.

Assistant Director/Head of Infrastructure Finance Office at the CBN, Tumba Tijani, highlighted the CBN’s support for the power sector, revealing that the bank released a loan at a 9% interest rate in August last year for the projects.

The funding, part of the Nigeria Electricity Market Stabilisation Facility-3, amounts to N122,289,344 and aims to address transmission/distribution bottlenecks, enhance supply to end-users, and unlock unutilized generation capacity.

Tijani disclosed that N85.43 billion has been disbursed into the Advance Payment Guarantee account of the 53 contractors responsible for executing the projects.

The comprehensive project list includes the delivery of power transformers, re-conductoring existing transmission lines, upgrading existing substations, and constructing 33KV line bays.

The initiative reflects a concerted effort to enhance Nigeria’s power infrastructure and meet growing energy demands.