Connect with us

Economy

FEC Approves N35.94bn Road Contracts in Six States

Published

on

lekki
  • 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.

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.

Continue Reading
Comments

Economy

World Bank Commits Over $15 Billion to Support Nigeria’s Economic Reforms

Published

on

world bank - Investors King

The World Bank has pledged over $15 billion in technical advisory and financial support to help the country achieve sustainable economic prosperity.

This commitment, announced in a feature article titled “Turning The Corner: Nigeria’s Ongoing Path of Economic Reforms,” underscores the international lender’s confidence in Nigeria’s recent bold reforms aimed at stabilizing and growing its economy.

The World Bank’s support will be channeled into key sectors such as reliable power and clean energy, girls’ education and women’s economic empowerment, climate adaptation and resilience, water and sanitation, and governance reforms.

The bank lauded Nigeria’s government for its courageous steps in implementing much-needed reforms, highlighting the unification of multiple official exchange rates, which has led to a market-determined official rate, and the phasing out of the costly gasoline subsidy.

“These reforms are crucial for Nigeria’s long-term economic health,” the World Bank stated. “The supply of foreign exchange has improved, benefiting businesses and consumers, while the gap between official and parallel market exchange rates has narrowed, enhancing transparency and curbing corrupt practices.”

The removal of the gasoline subsidy, which had cost the country over 8.6 trillion naira (US$22.2 billion) from 2019 to 2022, was particularly noted for its potential to redirect fiscal resources toward more impactful public investments.

The World Bank pointed out that the subsidy primarily benefited wealthier consumers and fostered black market activities, rather than aiding the poor.

The bank’s article emphasized that Nigeria is at a turning point, with macro-fiscal reforms expected to channel more resources into sectors critical for improving citizens’ lives.

The World Bank’s support is designed to sustain these reforms and expand social protection for the poor and vulnerable, aiming to put the economy back on a sustainable growth path.

In addition to this substantial support, the World Bank recently approved a $2.25 billion loan to Nigeria at a one percent interest rate to finance further fiscal reforms.

This includes $1.5 billion for the Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing, and $750 million for the NG Accelerating Resource Mobilization Reforms Programme-for-Results (ARMOR).

“The future can be bright, and Nigeria can rise and serve as an example for the region on how macro-fiscal and governance reforms, along with continued investments in public goods, can accelerate growth and improve the lives of its citizens,” the World Bank concluded.

With this robust backing from the World Bank, Nigeria is well-positioned to tackle its economic challenges and embark on a path to sustained prosperity and development.

Continue Reading

Economy

Nigeria’s Food Inflation Hits 40.66% Year-on-Year in May 2024

Published

on

Nigeria's Inflation Rate - Investors King

Nigeria’s food inflation rate surged to 40.66% on a year-on-year basis in May 2024, a significant increase from 24.82% recorded in May 2023.

The latest figures from the National Bureau of Statistics (NBS) highlight the rising cost of essential food items, exacerbating the economic challenges faced by many Nigerians.

The NBS report attributes the steep rise in food inflation to substantial price increases in several staple items.

Notably, the prices of Semovita, Oatflake, Yam flour, Garri, and Beans saw considerable hikes.

In addition, the cost of Irish Potatoes, Yams, Water Yam, Palm Oil, and Vegetable Oil also climbed significantly. Within the protein category, Stockfish, Mudfish, Crayfish, Beef, Chicken, Pork, and Bush Meat experienced notable price jumps.

The month-on-month food inflation rate in May 2024 was 2.28%, reflecting a slight decrease of 0.22 percentage points from the 2.50% recorded in April 2024.

This month-to-month decline was due to a slower rate of price increases for Palm Oil, Groundnut Oil, Yam, Irish Potatoes, Cassava Tuber, Wine, Bournvita, Milo, and Nescafe.

Despite the minor monthly decrease, the average annual food inflation rate for the twelve months ending May 2024 was 34.06%.

This marks a significant rise of 10.41 percentage points from the average annual rate of 23.65% recorded in May 2023.

The sharp rise in food inflation is raising concerns among economic analysts and policymakers, as it significantly impacts the cost of living for Nigerians.

The rising food prices are straining household budgets and contributing to an overall inflation rate that threatens economic stability.

In response to the inflationary pressures, the Nigerian government and relevant stakeholders are being urged to implement effective measures to stabilize food prices and address the underlying causes of inflation.

Efforts to boost agricultural productivity, improve supply chains, and tackle market inefficiencies are seen as critical to mitigating the inflationary trend.

The NBS report underscores the urgent need for comprehensive strategies to manage inflation and ensure food security for the population.

Continue Reading

Economy

Nigeria’s Inflation Rate Climbs to 33.95% in May, NBS Reports

Published

on

consumers

The National Bureau of Statistics (NBS) has revealed that Nigeria’s headline inflation rate rose to 33.95% in May 2024, a slight increase from the 33.69% recorded in April.

This 0.26 percentage point rise underscores the ongoing economic challenges the country faces as it continues to grapple with rising prices and economic instability.

The report highlights that on a year-on-year basis, the headline inflation rate increased by 11.54 percentage points compared to May 2023, when the rate was 22.41%. This significant annual increase indicates a persistent upward trend in the cost of living for Nigerians over the past year.

However, the month-on-month analysis presents a mixed picture. The headline inflation rate for May 2024 was 2.14%, slightly lower than the 2.29% recorded in April 2024. This 0.15 percentage point decrease suggests a marginal slowdown in the rate at which prices are rising month by month.

Urban vs. Rural Inflation Rates

The NBS report also provides detailed insights into urban and rural inflation dynamics. In urban areas, the inflation rate in May 2024 stood at 36.34% on a year-on-year basis, a substantial 12.61 percentage points higher than the 23.74% recorded in May 2023.

On a month-on-month basis, urban inflation was 2.35%, down by 0.32 percentage points from April 2024’s rate of 2.67%.

Conversely, the rural inflation rate for May 2024 was 31.82% year-on-year, which is 10.63 percentage points higher than the 21.19% recorded in May 2023.

Month-on-month, rural inflation slightly increased to 1.94% from 1.92% in April 2024, indicating a steady rise in prices in rural regions.

Implications and Responses

The continuous rise in inflation, particularly in urban areas, poses significant challenges for the Nigerian economy.

The increase in prices for essential goods and services such as food, transportation, and housing is putting immense pressure on household budgets and the overall standard of living.

Economic analysts suggest that the persistent inflationary pressures are driven by several factors, including supply chain disruptions, increased production costs, and fluctuating exchange rates. The impact of these factors is felt more acutely in urban areas, where the cost of living is inherently higher.

In response to these inflationary trends, policymakers are under pressure to implement measures that can stabilize prices and ease the financial burden on citizens.

Strategies such as tightening monetary policy, increasing food production, and improving supply chain efficiency are being considered to curb the rising inflation.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending