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‘N126.2b Lost to Abandoned Fed Govt Properties‘

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  • ‘N126.2b Lost to Abandoned Fed Govt Properties‘

The Federal Government has been urged to either concession or sell all its buildings across the country currently not being put to use. The sale or concession should be to private investors in order to forestall further deterioration as a result of continued abandonment.

A Professor of Building Management, Prof. Olumide Afolarin Adenuga, made this call recently during his inaugural lecture which held at the J.F Ade Ajayi Memorial Hall, University of Lagos, Akoka, Yaba, Lagos. He disclosed that since 2006 to date, N126.2 billion has been lost in revenue to the Federal Government properties in Lagos State alone, because the government refused to either sell or concession the assets.

Adenuga listed such wasting assets in the state to include: the National Stadium, Surulere; the Federal Secretariat Complex, Ikoyi; The Nigerian External Telecommunications (NET) building, Marina; the Defence House (formerly Independence Building), and the former NAVY Headquarters building in Marina. Others include: the National Arts Theatre, Iganmu, former National Assembly Complex, Tafawa Balewa Square, and the Supreme Court building among others.

“All these buildings are in deplorable states of structural and decorative repairs because we do not have any maintenance culture, a fact which manifests in the general apathy for maintenance coupled with ignorance on the part of occupiers of the benefits of planed preventive maintenance and care of buildings,” he said.

According to Adenuga, between 2004 to date, the cumulative potential economic loss from the National Stadium alone, is about N52.6 billion, while the Federal Secretariat, which has been overgrown with weeds could have yielded over N72 billion, if it had been converted to luxury residential apartments as proposed by Resort International Limited (RIL) since 2006. Also the 32-storey NET building with about 720 square metres of lettable space, could have attracted over N1.6 billion in rent annually if well maintained and optimally utilised.

He said apart from the loss of the huge revenue which could have been ploughed back into provision of social amenities for Nigerians, the 480 units of luxury residential apartments being proposed by RIL could have contributed to reducing the shortfall in the nation’s housing stock.

“Because of their present deplorable state, these once iconic structures have become a nuisance not only to the city of Lagos and her residents, but is also a source of economic loss arising from abandonment and gross under-utilisation,” he added.

Adenuga lamented that the nation has been hemorrhaging as a result of the neglect of the buildings, warning that the huge economic benefits of these iconic structures would continue to elude the nation if the government continue to ignore the need to restore them to beneficial use for Nigerians.

The university don explained that maintenance was responsible for increased lifespan of structures such as the Egyptian pyramids, the Papal States in the Vatican City, The White House in the United States and other monuments, most of which have been kept in same serviceable condition as they were at the time of their construction.

For him, it is regrettable that many of the nation’s iconic assets, which were pleasant to look at when they were newly built, have been allowed to degenerate due to lack of maintenance and planned repairs that could have reversed the trend and turned them into positive economic assets.

“It is a glaring fact that our buildings are in very poor and deplorable conditions of structures and decorative disrepair, abandoned and reduced more or less to refuse dumps and natural homes for rodents and vermin in spite of billions of naira spent to build and commission them,” he lamented.

To reverse the trend of improper maintenance of public or private properties, Adenuga recommended a formulation and formalisation of regular minimum repair programme, regular and effective inspection of all the fabrics of the buildings, including the surroundings, as well as the comfort of the occupants to detect signs of disrepair, prompt attention to repair needs of buildings in order to keep the buildings in acceptable standards.

The Don also canvassed planned preventive maintenance, which according to him, are best accommodated at the design and construction stages of building development, even as he urged occupiers of buildings to report, as soon as noticed, defects for prompt maintenance even as he charged them to use the property in such a way as to keep them in good tenantable conditions.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Electricity Consumers Get 611,231 Meters Under MAP Scheme

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power project

Electricity Consumers Get 611,231 Meters Under MAP Scheme

A total of 611,231 meters have been deployed as at January 31, 2021 under the Meter Asset Provider initiative since its full operation despite the COVID-19 pandemic and other extraneous factors, the Nigerian Electricity Regulatory Commission has said.

NERC disclosed this in a consultation paper on the review of the MAP Regulations.

The proposed review of the MAP scheme is coming nearly four months after the Federal Government launched a new initiative called National Mass Metering Programme aimed at distributing six million meters to consumers free of charge.

“The existence of a huge metering gap and the need to ensure successful implementation of the MYTO 2020 Service-Based Tariff resulted in the approval of the NMMP, a policy of the Federal Government anchored on the provision of long-term low interest financing to the Discos,” NERC said.

The commission had in March 2018 approved the MAP Regulations with the aim of fast-tracking the closure of the metering gap in the sector through the engagement of third-party investors (called meter asset providers) for the financing, procurement, supply, installation and maintenance of meters.

It set a target of providing meters to all customers within three years, and directed the Discos and the approved MAPs to commence the rollout of meters not later than May 1, 2019.

But in February 2020, NERC said several constraints, including changes in fiscal policy and the limited availability of long-term funding, had led to limited success in meter rollout.

NERC, in the consultation paper, highlighted three proposed options for metering implementation going forward.

The first option is to allow the implementation of both the NMMP and MAP metering frameworks to run concurrently; the second is to continue with the current MAP framework with meters procured under the NMMP supplied only through MAPs (by being off-takers from the local manufacturers/assemblers).

The third option is to wind down the MAP framework and allow the Discos to procure meters directly from local manufacturers/assemblers (or as procured by the World Bank), and enter into new contracts for the installation and maintenance of such meters.

“Customers who choose not to wait to receive meters based on the deployment schedule of the NMMP shall continue to have the option of making upfront payments for meters which will be installed within a maximum period of 10 working days,” NERC said.

The regulator said such customers would be refunded by the Discos through energy credits, adding that there would be no option for meter acquisition through the payment of a monthly meter service charge.

“Where meters have already been deployed under the meter service charge option, Discos shall make one-off repayment to affected customers and associated MAPs. Such meters shall be recognised in the rate base of the Discos,” it added.

NERC urged stakeholders to provide comments, objections, and representations on the proposed amendments within 21 days of the publication of the consultation paper.

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Economy

Nigeria’s Economy Moving in Right Direction but Slow – Amina Mohammed

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Nigeria’s Economy Moving in Right Direction but Slow – Amina Mohammed

Nigeria is moving in the right direction economically but its movement is not fast, the United Nations stated on Thursday.

Deputy Secretary-General of the United Nations, Amina Mohammed, said this during a meeting at the headquarters of the Federal Ministry of Industry, Trade and Investment in Abuja.

She said the challenges in Nigeria were huge, its population large but described the country’s economy as great with lots of opportunities.

The UN scribe stated that after traveling by train and through various roads in the Northern parts of Nigeria, she discovered that the roads were motorable, although there were ongoing repairs on some of them.

Mohammed said, “This is a country that is diverse in nature, ethnicity, religious backgrounds and opportunities. But these are its strengths, not weaknesses.

“And I think the narrative for Nigeria has to change to one that is very much the reality.”

Speaking on her trips across parts of Nigeria, she said, “What I saw along the way is really a country that is growing, that is moving in the right direction economically. Is it fast enough? No. Is it in the right direction? Yes it is.

“And the challenges still remain with security, our social cohesion and social contract between government and the people. But I know that people are working on these issues.”

She said the UN recognised the reforms in Nigeria and other nations, adding that the common global agenda was the Sustainable Development Goals.

Mohammad commended Nigeria’s quick response to the COVID-19 pandemic, as she expressed hope that the arrival of vaccines would be the beginning of the end of COVID-19.

On his part, the Minister of Industry, Trade and Investment, Adeniyi Adebayo, told his guest that the Federal Government was working hard to make Nigeria the entrepreneurial hub of Africa.

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Economy

N10.7tn Spent on Fuel Subsidy in 10 Years – MOMAN

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petrol Oil

N10.7tn Spent on Fuel Subsidy in 10 Years – MOMAN

Nigeria spent a total of N10.7tn on fuel subsidy in the last 10 years, the Chairman, Major Oil Marketers Association of Nigeria, Mr Adetunji Oyebanji, has said.

Oyebanji, who was the guest speaker at the 18th Aret Adams Lecture on Thursday, said N750bn was spent on subsidy in 2019.

He highlighted the need for a transition to a market-driven environment through policy-backed legislative and commercial frameworks, enabling the sustainability of the downstream petroleum sector.

“Total deregulation is more than just the removal of price subsidies; it is aimed at improving business operations, increasing the investments in the oil and gas sector value chain, resulting in the growth in the nation’s downstream petroleum sector as a whole,” he said.

The managing director of 11 Plc (formerly Mobil Oil Nigeria Plc) said steps had been taken, “but larger and faster leaps are now required.”

According to him, deregulation requires the creation of a competitive market environment, and will guarantee the supply of products at commercial and market prices.

“It requires unrestricted and profitable investments in infrastructure, earning reasonable returns to investors. It requires a strong regulator to enable transparency and fair competition among players, and not to regulate prices,” Oyebanji said.

He noted that MOMAN had recently called for a national debate by stakeholders to share pragmatic and realistic initiatives to ease the impact of the subsidy removal on society – especially on the most vulnerable.

He said, “A shift from crude oil production to crude oil full value realisation through deliberate investment in domestic refining and refined products distribution, creates the opportunity to transform the dynamics of the downstream sector from one of ‘net importer’ to one of ‘net exporter’, spurring the growth of the Nigerian economy.

“Effective reforms and regulations are key drivers for the growth within the refining sector. Non-functional refineries cost Nigeria over $13bn in 2019. If the NNPC refineries were operating at optimal capacity, Nigeria would have imported only 40 per cent of what it consumed in 2019.”

Full deregulation of the downstream sector remains the most glaring boost to potential investors in this space, according to Oyebanji.

He said, “As crude oil prices will fluctuate depending on the prevailing exchange rates, it will be astute to trade in naira to avoid inevitable price swings.

“There needs to be a balance between ensuring the sustainable growth of the crude oil value chain (upstream through downstream) and providing value for the Nigerian consumer and the Nigerian economy.”

He said the philosophy should be for the government to put the legislative and commercial framework in place and let the market develop by itself.

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