Nigeria Approves N1.9trn NNPC Expenditure to Reconstruct 44 Roads

Nigeria’s Federal Executive Council (FEC) rose from its first meeting in year 2023 on Wednesday and approved the proposal by the Ministry of Works and Housing for the Nigerian National Petroleum Corporation Limited (NNPC) and its subsidiaries to invest the sum of N1.9 trillion for the reconstruction of 44 selected federal roads across the country.

The Council chaired by the Vice President, Yemi- Osinbajo, who stood in for President Muhammadu Buhari who was away to Nouakchott, Mauritania to attend an African Peace Conference also okayed the sum of  N1.35 billion for the procurement of 31 vehicles for the use of the Ministry of Environment.

Speaking on the N1.9 trillion approved to be expended on 44 federal roads by the NNPC Ltd, the media assistant  to the Vice President, Laolu Akande, told newsmen at  post-FEC media  briefing that the memo was presented by the Minister of Works and Housing, Babatunde Fashola.
According to him, the expenditures was in furtherance of the the Federal Government, Road Infrastructure Development and Refurbishment Investment Tax Credit Policy, phase two by the NNPC Ltd and its subsidiaries.
“So the council approved the proposal by the Ministry of Works and Housing for the reconstruction of 44 proposed federal roads with a total length of 4,554 kilometers in the total sum of N1.9 trillion,” he said.
He added that the Ministry also got approval for concessionaires for nine road corridors under the pilot phase of the Value Added Concession of the highways development and management initiative following the issuance of the requisite full business case compliance certificates by the Infrastructure Concession Regulatory Commission (ICRC) for a period of 25 years.
 The roads corridors approved for the first phase were the Benin-Asaba corridor. Abuja-Lokoja-Onitsha-Owerri-Aba-Shagamu-to Benin, Abuja-Keffi-Akwanga-Lafia-Makurdi, Kano-Maiduguri that is the Kano Shauri, Enugu-Port Harcourt, Lagos-Ota-Abeokuta, and Lagos-Badagry-Seme.
 He added that the minister also got council’s approval for the augmentation of contract for the rehabilitation of the Oshogbo-Ilesha Road in favour of  Messers Orizon construction company in the sum of N1.2 billion, thereby revising the subsisting contract sum from N3 billion to N4 billion, representing an increase of 33% of the original sum.

In the words of Akande: “The Minister for Works and Housing also presented a couple of memos. The council approved the recommendation to invest in the reconstruction of selected federal roads on the federal government, road infrastructure development and refurbishment investment tax credit policy, phase two by the Nigerian National Petroleum Corporation and its subsidiaries.

“So the council approved the proposal by the Ministry of Works and Housing for the reconstruction of 44 proposed federal roads with a total length of 4,554 kilometers in the total sum of N1.9 trillion.

“In other memo, the Minister for Works and Housing also got approval of the Council for concessionaires for nine road corridors under the pilot phase of the value added concession of the highways development and management initiative. Following the issuance of the requisite full business case compliance certificates by the infrastructure concession regulatory commission for a period of 25 years for each road corridor as follows:

“The roads that will be under this first phase are the Benin-Asaba corridor. Abuja-Lokoja-Onitsha-Owerri-Aba-Shagamu-to Benin, Abuja-Keffi-Akwanga-Lafia-Makurdi, Kano-Maiduguri that is the Kano Shauri, Enugu-Port Harcourt, Lagos-Ota-Abeokuta, and Lagos-Badagry-Seme.

“Finally, the Minister for works in housing also got council’s approval for the augmentation of contract for the rehabilitation of the Oshogbo-Ilesha Road . phase one, Ilesha-Oshogbo in Osun State  in favor of Messers Orizon construction company in the sum of N1.2 billion, thereby revising the subsisting contract sum from N3 billion to N4 billion, representing an increase of 33% of the original sum”.

Also briefing, Minister of Environment, Muhammed  Abdullahi, told newsmen that the Council approved the sum of N1,354,016,250 for the procurement of 31 project vehicles.

He explained that the vehicles of various brands would be deployed for the monitoring of power and remediation projects in some polluted areas in Ogoniland, Rivers state.
His words: “So in view of this development, and because of the desire to ensure effective supervision of these projects, particularly the five water schemes and the 16 upcoming water schemes and the propose shoreline remediation, and also the proposed centres of excellences to be built within Ogoni land. And in view of the fact that we are going to inspect on a regular basis, experts from outside the country, there’s a need to provide project vehicles so that they can effectively inspect, supervise and monitor the remediation exercise.

“So, FEC today approved the sum of N1,354,016,250 only in favor of Messers Mujav automobile Nigeria limited to provide 31 number of vehicles for the project. These include one 18-seater Toyota Hiece bus, one 30-seater Toyota coaster bus, they’re all supposed to be 2022 models. Then 11 Toyota Hilux double cabin four will drive also to 2022 model, diesel engine. Then 15 numbers Toyota Hilux double cabin four wheel  drives, diesel and petrol engine also 2022 models. Then one Toyota Landcruiser twin turbo 2022 model and lastly two unit of Land Cruiser V6 Prada for the projects.

“Only 31 vehicles were approved for the hydrocarbon pollution remediation project to ensure effective supervision of the project particularly delimitation sites. This is what we presented and was approved by FEC”.

On his part, Minister of Police Affairs, Maigari Dingyadi, told newsmen that the Council approved the draft bill for an Act to establish Nigeria Police Force College Training School and Institution to serve as centers for professional training of officers, Nigerian Police Force and other related matters. 

“It has also directed the Attorney General the Federal Minister of Justice, to transmit the draft bill to National Assembly for enactment into law,” he said.
The passage of the bill, the Minister stressed, was to give legal backing and financial autonomy to these institutions and to mobilize the much needed technical and financial support from within and outside the country for the modernization of police training facilities towards improving the quality of officers that were produced for deployment, in furtherance of federal government’s agenda on police reforms for effective policing in the country.

Deji Elumoye

Follow us on: