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Lagos-Ibadan Expressway Resurfacing Outdated – Babalakin

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  • Lagos-Ibadan Expressway Resurfacing Outdated – Babalakin

The resurfacing of the Lagos-Ibadan Expressway by the Federal Government is completely outdated, inappropriate and a disservice to Nigeria, the Chairman, Bi-Courtney Highway Service, Wale Babalakin (SAN), has said.

He also stated that one of the contractors handling the project, Julius Berger Plc, would not build a road like that in Germany, the home country of the construction firm.

Babalakin, who spoke on the theme ‘Constraints of Implementing Infrastructure Projects through Public-Private Partnership’ at the 60th Anniversary/8th Fellowship Conferment Lecture and Ceremony of the Nigerian Society of Engineers in Abuja on Thursday night, stated that the delay in completing the project had caused untold hardships on Nigerians.

Recall that Bi-Courtney’s contract for the reconstruction of the same road was terminated abruptly six years ago by the Federal Government.

Babalakin said, “The road being constructed is completely inappropriate and outdated. The road being built today is a resurfacing of the 1977 road. It is a road that is inadequate to accommodate the geographical growth that has taken place on the road since 1977. This includes the emergence of towns like Ibafo, Isheri, Mowe and Redeemed Church camp.

“The current road cannot contribute meaningfully to the development of road infrastructure in Nigeria. Julius Berger Plc is constructing a road in Nigeria that it will and can never suggest or contemplate building in Germany. Our heaviest traffic road in Nigeria is being built without the necessary accompanying things that should be on a highway.”

According to him, the design of the road by the Federal Ministry of Works, Power and Housing is inadequate, considering the interruption to traffic on the expressway by the different towns along the expressway.

He said, “Our (Bi-Courtney) design provided for entry and exit to these towns without obstructing the flow of traffic on the expressway. We realised that simply resurfacing the road as being done now by the Ministry of Works is a serious disservice to Nigeria.

“Nigerians continue to suffer on that road till date. The reason given for the termination of the project, which is the need to complete it expeditiously, has not been realised six years after.”

Babalakin said he did not believe the big construction foreign firms had the capital required to develop Nigerian infrastructure.

“Most of the things they seek to do here, they can’t suggest them to their own homes. But if Nigerian engineers lead from the front, they will be able to insist on certain parameters,” he said.

He also said there had been so much waste of government resources, as the cost of delivering the road had skyrocketed.

Babalakin said, “The cost of the project has now ballooned. Bi-Courtney Highways had agreed to build the road with seven overhead bridges at a cost of N112bn. The cost of this project now is indeterminable. However, it cannot be less than N300bn. This is serious waste of government resources in a country that has very little resources.”

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

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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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