Why we’re still awarding multibillion naira contracts –Ministers
From Fred Itua and Juliana Taiwo-Obalonye, Abuja
President Muhammadu Buhari, yesterday, sent a letter to the Senate, seeking approval to take a f $800 million loan from the World Bank to cushion the effects of removal of fuel subsidy.
This is coming barely 19 days to the end of the his administration.
The loan request follows the Federal Government’s April announcement of an $800 million World Bank grant targeting 50 million vulnerable Nigerians or 10 million households, as part of its subsidy palliatives measures.
Minister of Finance, Budget and National Planning, Zainab Ahmed, said the disbursement of the grant was in light of the planned subsidy removal slated for June 2023.
Ahmed said engagements were ongoing with the newly established Presidential Transition Council (PTC) and the incoming administration to drive the palliative program, which includes the need for buses among various considerations.
The letter read: “It is with pleasure that I forward the above subject to you. Please note that the Federal Executive Council (FEC) approved an additional loan facility to the tune of $800million to be secured from the World Bank, for the National Social Safety Net Programme (NASSP) and the need to request for your consideration and approval to ensure early implementation (Copy of FEC Extract attached).
“The Senate, may wish to note that the program is intended to expand coverage of shock responsive Safety Net support among the poor and vulnerable Nigerians. This will assist them in coping with the costs of meeting basic needs.
“You may wish to note that, the Federal Government under the conditional cash transfer window of the programme will transfer the sum of N5,000 per month to 10.2 million poor and low-income household for a period of six months with a multiplier effect on about 60 million individuals. In order to guarantee the credibility of the process, digital transfers will be made directly to beneficiaries’ account and mobile wallets.”
Meanwhile, the Federal Executive Council (FEC) has explained why it was still approved contracts in the twilight of the administration.
The council which considered 37 items on the agenda, insisted that it continue to work until its last day as constitutionally required.
Briefing newsmen yesterday after FEC meeting presided over by Vice President, Yemi Osinbajo, Minister of Transportation, Mu’azu Sambo, said the administration would continue to discharge its duties till May 28.
He said: “Without any intentions of mischief, this government was elected to function from 2019 to precisely 29th of May 2023. Should we now stop functioning one month before the next appointment because we’re coming to the end of the tenure? This government must work. We expect the next government to also work until the very last day of their tenure.”
Throwing more light on why several contracts were approved, Minister of Water Resources, Sulaiman Adamu, explained that contracted processes takes time, saying even if the administration cannot finish what it started, government was a continuum.
He said it was the business of the incoming government to continue.
He said: “We’re still in office technically until the 28th of May. So, we still have to operate. And this is the instruction that we have from Mr. President.
“Since the elections were conducted, that government must continue to function regardless of elections and so on. And so we’re just doing our duty as we should serve in the country. We do not control the process, but when it’s completed and we’re still in office, we’re duty-bound to bring these memos to Council for Council to approve. Government is a continuum. There are still a lot of memos. I can assure you a lot of contracts will not see the light of day in the next one week or two. And for those, we don’t have any option but to let the process continue. And then for the next government to come and continue.”
Meanwhile, the Council has announced the introduction of three key policies aimed at driving economic growth and attracting domestic and international investors.
There are Nigeria Investment Policy (2023-2027), Nigeria Automotive Industry Development Plan (2023-2033), and Trade Policy of Nigeria (2023-2027).
Minister of Trade and Investment highlighted the significance of these policies in stimulating investment, strengthening the automotive sector, and enhancing trade, with the ultimate goal of bolstering the nation’s economy and increasing revenue.
Prior to the introduction of these policies, Nigeria lacked a comprehensive investment policy, leaving room for improvement in attracting investments.
“The newly introduced Nigeria Investment Policy (2023-2027) aims to address this gap by creating a favorable business environment and providing incentives to attract both domestic and international investors. This policy is expected to stimulate sustainable economic growth and diversification across various sectors, fostering job creation and technological advancement,” the minister said.