Economy

Lagos-Ibadan Road: Contractor to Increase Work Pace

Published

5 years ago

January 19, 2019

Lagos-Ibadan Road: Contractor to Increase Work Pace

The contractors handling the reconstruction of the Lagos-Ibadan Expressway will make good use of the dry season by increasing the pace of construction work on the road, the Federal Controller of Works, Lagos, Mr Adedamola Kuti, has said.

Kuti told our correspondent on Friday that the contractor returned to site on January 7 and commenced construction at about January 10.

“We need to make effective use of this dry season, which is why we resumed early, we will try as much as possible to push for speed,” he said.

Kuti stated that the barricaded construction zones at Asese, Mowe and other parts of the road, which were opened to motorists in December, had been closed.

The contractor, Julius Berger, had in 2018 stated that the completion date of the project, which was supposed to be in 2017, had been shifted to 2021, following the incorporation of underpasses, flyovers and toll plazas, among other additions.

Kuti had also said the construction cost for the section one of the Lagos-Ibadan Expressway, stretching from Lagos to Sagamu Interchange, had risen to N134bn due to the additional works expected to be carried out on Section One of the road, which were not in the original plan.

He explained that the initial cost was N70bn but that the project was delayed due to lack of adequate funding.

He, however, stated that what was experienced in the past due to funding would not happen again as the Federal Government had set aside funds for the road which he said it considered a priority.

Kuti noted that with the funds in place, there would be no form of delay on the Lagos-Ibadan Expressway project, outside weather.

The rehabilitation of the road was in November 2012 taken away from Bi-Courtney and given to Julius Berger Nigeria Plc and Reynolds Construction Company Limited.

At the inauguration of the project in July 2014, former President, Goodluck Jonathan, had said work on the 127. 6 -kilometre road would cost N167bn and would be completed in 48 months.

He said Julius Berger would handle Section 1 of the road, stretching about 43.6 kilometres from the old tollgate in Lagos to Sagamu Interchange while RCC would work on the second section, about 84 kilometres from Sagamu to Ibadan.

The project was, however, abandoned on several occasions due to lack of funding.

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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

1 day 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.