- FEC Approves N35.94bn Road Contracts in Six States
The Federal Executive Council has approved road contracts worth N35.944bn in six states of the federation, the Federal Ministry of Power, Works and Housing announced on Sunday.
It was learnt that the latest award brought to a total of 16 roads which the council had approved in recent times, as the FMPWH stated that this was part of the Federal Government’s commitment to developing the nation’s road network in Nigeria’s six geopolitical zones.
About three weeks ago, the council approved the award of N169.74bn contracts for the construction and rehabilitation of 10 roads across the country.
The ministry stated that the beneficiary states in the latest approvals during the last FEC meeting include Kebbi, Zamfara states, where a N3.813bn contract was approved for the rehabilitation of BirninYauri-Rijau, Magajiya to Daki-Takwas Road; Akwa Ibom State, where a N1.1bn contract was approved for the construction of Atan Ikot Okoro Road with a bridge at Essien Udim Local Government Area; and Ebonyi State, where a N3.071bn contract was approved for the reconstruction of Oso-Owutu Road.
For Benue State, a contract of N27.3bn was approved for the rehabilitation of Makurdi-Naka-Adoka Road Phase 1.
The other approval was for Kano State where an augmentation sum of N676.2m was approved for the completion of the construction of Wudil-Utai-Achika-Darki-Jegaware Road, whose contract was first approved in 2012 by FEC at an initial sum of N4.4bn.
The approvals, which were a sequel to two memoranda submitted to the council by the Minister of Power, Works and Housing, Babatunde Fashola, showed that the Makurdi-Naka-Adoka Road Phase 1 in Benue State would be rehabilitated by Messrs Gilmor Engineering Nigeria Limited in 42 months.
The Kebbi/Zamfara road will be handled by Messrs H&M Nigeria Limited in 12 months; that of Akwa Ibom State is to be constructed by Messrs Raycon and Company Nigeria Limited in 28 months, while that of Ebonyi is awarded to Messrs Sabtech Towers Nigeria Limited with a completion date of 18 months.
According to the second memorandum, the completion of work on Sudil-Utai-Acika-Darki-Jegaware Road in Kano State, the contract for which was first approved by FEC on November 14, 2012, for N4, 393,730,153.20, involved the rehabilitation of approximately 23 kilometres single carriageway road and construction of a bridge with a completion period of 24 months by by Messrs Birak Engineering and Company Limited.
But completion was, however, stalled due to limited budgetary allocations in the preceding fiscal years leading to the current approval of additional N676, 177,886.40.
This brings the total cost to N5,067,908,050.30, while an additional six months had been added to its initial completion period of 24 months after all due processes were complied with.
The ministry stated that while the rehabilitation of the 122km long Makurdi-Naka-Adoka Phase 1 Road in Benue State involved site clearing and earthworks, provision of culverts and drains, among others, the rehabilitation of the 13km Birnin-Rijau, Magajiya to Daki-Takwas Road in Kebbi/Zamfara involved the construction of a bridge and the provision of culverts and drains, among others.
It said the Atan Ikot Okoro Road involved the construction of a bridge and a 4.5km approach road, among others, while the 9km Oso-Owutu Road in Ebonyi State involved site clearing and earthworks and construction of culverts and drains, among others.
In terms of creating job opportunities, the FMPWH said the rehabilitation of Makurdi-Naka-Adoka Phase 1 Road in Benue State would generate between 150 to 200 direct jobs with 90 per cent of Nigerians as direct members of staff.
It stated that the rehabilitation of BirninYauri-Rijau, Magajiya to Daki-Takwas Road in Kebbi/Zamfara states would generate between 50 and 100 direct jobs with Nigerians taking all the jobs, adding that the Road in Akwa Ibom State would create 50 jobs for Nigerians alone, while the reconstruction of Oso-Owutu in Ebonyi State would generate between 50 to 120 direct jobs for over 90 per cent Nigerians.
On why he asked for approvals for the roads, Fashola stated that it was in order to achieve the Federal Government’s objective of improving transportation infrastructure.
Nigeria’s Non-oil Revenue Now N1.15 Trillion – Minister of Finance
Mrs. Zainab Ahmed, the Minister of Finance, Budget and National Planning, has said that Nigeria’s non-oil revenue is now N1.15 trillion, representing 15.7 percent above the country’s target. This, she claimed, was a result of the federal government’s efforts at diversifying the nation’s economy.
Mrs. Ahmed disclosed this at the Institute of Directors (IoD) 2021 Annual Directors Conference which was held on Wednesday in Abuja.
According to the News Agency of Nigeria (NAN) the event with the theme: “Creating the Future: Deepening the Corporate Governance Practice through Multi-Sectoral and Multi-Generational Collaborations,” was meant to discuss economic development.
Mrs Ahmed added that the recent development was in line with President’s commitment to further diversifying the Nigerian economy which is heavily dependent on oil. She observed that Nigeria was showing resilience in recovery from recession from coronavirus (COVID-19) pandemic which intensely affected global economies.
The minister said the federal government alongside the private sector had implemented a wide range of monetary measures to stimulate economic recovery, growth and development, job creation and improved standards of living.
She also explained that the government was doing everything to improve and diversify Nigeria’s revenue generation.
“Nigeria was quickly able to exit recession and is on her way to path of sustainable growth and we are intensifying efforts to grow and diversify our revenue sources to grow revenue from the current 8 per cent.”
“Our non-oil revenues have grown to N1.15 trillion, representing 15.7 per cent above set target. We are working on the 2021 finance bill and it’s nearing completion. Also, the recent approval of the medium-term national development plan is an important milestone of Buhari’s commitment to delivering sustainable growth and we require strong support and monitoring during implementation,” she said.
Mrs Ahmed reinforced the government’s decision to do something about infrastructure and reduce the cost of production for businesses in the country.
Intra-Regional Trade Potential a Key Focus in New Report
A new focus report, produced by Oxford Business Group (OBG) in partnership with the African Economic Zones Organisation (AEZO), shines a spotlight on the continent’s rapidly developing industrial sector, which is poised to become a key driver of broader economic growth as regional integration increases.
Titled ”Economic Zones in Africa – Focus Report”, the report was launched at the AEZO’s 6th Annual Meeting II, which took place on November 25 at the African Continental Free Trade Area (AfCFTA) Secretariat office in Ghana, with participants also able to attend remotely. The meeting was held under the banner “Connecting African Special Economic Zones (SEZs) to Global Value Chains at the era of the AfCFTA” and explored a range of topical issues relating to SEZs, from their potential to boost trade to the impact of Covid-19 on the continent’s supply chains.
The focus report examines the wealth of benefits that the AfCFTA is expected to deliver to both Africa’s economic zones and the businesses located in them, which range from greater market access to a reduction in trade barriers and lower production costs.
The disruption that the pandemic brought to supply chains and the opportunities emerging from the health crisis for businesses to become part of nascent regional value chains across a more closely connected continent are a key focus.
The report also charts the digital transformation taking place in many of Africa’s economic zones, as businesses make the move away from traditional segments to high-tech processes and digital services, adding value to their offerings in the process.
In addition, it provides in-depth analysis of the drive evident among many SEZs to put environmental, social and governance principles and sustainable business practices at the heart of their strategies, at a time when ethical investment and alignment with the UN Sustainable Development Goals are high on the global agenda.
The report includes in-depth case studies and viewpoints by representatives from key industry players namely: Tanger Med; Polaris Parks; Lagos Free Zones; Ghana Free Zones Authority; Misurata Free Zone; and Sebore Farms.
It also includes a contribution from Ahmed Bennis, Secretary General, AEZO, in which he highlights the role that SEZs are playing in the continent’s industrial transformation and the importance of supporting their development.
“Economic zones can play a game-changing role in Africa’s diversification and inclusion by providing end-to-end solutions and services that support industrial upgrades and increase countries’ attractiveness for investment,” he said. “With the implementation of AfCFTA and the post-Covid-19 recovery that the world is beginning to experience, we believe that real investment opportunities exist in Africa at this moment, which can translate into job creation and social and economic development. Africa has resources that need to be developed and economic zones can play a key role in this.”
Bernardo Bruzzone, OBG’s Regional Editor for Africa, added that while African economic zones had experienced production problems during the pandemic due to global supply chain disruptions, ongoing remedial action, including new infrastructure and human capital development, would help provide resilience against future external shocks.
“Africa’s real GDP growth is forecast to reach 3.4% in 2021, with an increase in intra-regional trade and improved connectivity among the facilitators of economic recovery,” Bruzzone said. “Looking ahead, we see economic zones as having a key role to play in helping the AfCFTA achieve its potential through the development of new strategies that will lead to a more diverse, higher-value range of exports.”
The study forms part of a series of tailored reports that OBG is currently producing with its partners, alongside other highly relevant, go-to research tools, including a range of country-specific Growth and Recovery Outlook articles and interviews.
Lagos Budget N1.4 Trillion for 2022, Budget Surpasses Five Other Southwest States Combined
Lagos state government has proposed N1.388 trillion budget for the year 2022. The proposed budget was presented to the House of Assembly on Wednesday.
While presenting the proposed budget, Governor Babajide Sanwo-Olu said the State would be spending N325 billion on vital infrastructure projects in key sectors to energise and expand the growth of the State’s economy.
The key areas of growth identified by the Governor include Works and Infrastructure, Waterfront Infrastructure Development, Agriculture, Transportation, Energy and Mineral Resources, Tourism, Entertainment and Creative Industry, Commerce and Industry, Wealth Creation and Employment.
The proposed budget, christened “Budget of Consolidation”, will be the last full-year fiscal plan of the State before the next general election.
About N823.4 billion, representing 59 per cent of the 2022 budget, is earmarked for capital expenditure. Recurrent expenditure, representing 41 per cent, is N565 billion, which includes personnel cost, overhead and debt services.
Of the total proposed expenditure, N1.135 trillion would accrue from Internally Generated Revenues (IGRs) and federal transfers, while deficit financing of N253 billion would be sourced from external and domestic loans, and bonds projected to be within the State’s fiscal sustainability parameters.
The State would be earmarking an aggregate of N137.64 billion, representing 9.92 per cent of the 2022 budget, for the funding of green investment in Environment, Social Protection, Housing and Community Amenities.
“This financial proposal is presented with a sense of duty and absolute commitment to the transformation of Lagos to a preferred global destination for residence, commerce, and investment. The budget projects to see a continuing but gradual recovery to growth in economic activity as the global economy cautiously recovers from the impact of the Coronavirus pandemic,” the governor said while presenting the budget to the house.
Meanwhile, the 1.388 trillion budgeted for 2022 is higher than the budget of the five other southwest states combined. For 2022, Ekiti State’s budget is 100.7 billion, Osun 129.7 billion, Ondo 191billion, Oyo 294 billion. Ogun’s budget for 2022 is not yet finalised, but going by their 2021 budget of 339 billion, the combined budget of the five South-West states then amount to 1.053 trillion. With this, Lagos state budget is higher than the five states budget with a difference of 335 billion.
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