…Okays N114bn for Outer Marina shoreline protection
Production costs raising cement prices, not concrete roads — FG
…Begins distribution Of 42000MT grains in Northwest
From Juliana Taiwo-Obalonye, Abuja
The Federal Executive Council (FEC), presided over by President Bola Tinubu approved the sum of N759 billion for the Obajana-Benin Road and the Isheri-Ogun Road.
Minister of Works, Dave Umahi, who briefed alongside his colleagues explained that the council approved additional N757 billion as augmentation for the dualisation of the 489km Obajana-Benin Road, N2.23 billion for the Isheri-Ogun Road and N114 billion for Outer Marina shoreline protection.
He explained, “Today we’ve got augmentation approved for Obajana in Lokoja to Benin Road, a total of 244km and 489km dualized. Recall that in 2012, this project was awarded to four contractors: CGC, Mothercat, Dantata & Sawoe and RCC at a total cost of N122 billion, and that was for light rehabilitation.
“Around 2018, the past administration reviewed the project and dualised it and that’s why you have a total of 489km and then now got ‘No Objection’ from BPP. When I came on board in August, we were supposed to present the no-objection to FEC in line with due process and we decided to review the project, one, to determine whether the dualisation was desirable in view of the economic challenges and two, to see the texture of the soil and what to do.
“So we had to restore the project now, but we didn’t increase the cost. We got approval for argumentation from N122 billion to N897 billion. The contractors were off-site because they would not be working and they would not be paid based on the new basic rate. So we got them back to the site and Today we got approval.”
Umahi said the Council also approved N2.23 billion for the Federal Roads Maintenance Agency for the rehabilitation of the road from Isheri North to Ogun state.
“Now, under FERMA, we got approval for the construction of Isheri north, Lagos route, which is to connect Ogun state. This is an alternative route to Lagos – Shagamu Road and we’re going to toll this Lagos-Shagamu when completed. But by law, you only toll a federal road when you have an alternative.
“This approval of about N2.23 billion to connect Isheri North to Ogun state. It is a breakthrough that has freed the Lagos-Shagamu for tolling,” he revealed.
Explaining the Council’s approval for the N114 billion Outer Marina shoreline protection, Umahi said, “The shore protection was done over 50 years back with sheet piles and we had to take the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on a tour with Julius Berger through the entire shoreline of 3.92km.
“We took the tour with Julius Berger, CCECC, CBC and BuildWell, and demanded for them to inspect and then give us their proposal. Only BuildWell and CCECC brought their proposals.
“Whereas CCECC was quoting on 3.2km at N134 billion, BuildWell was quoting on 3.9km at N114 billion. We sent the two to BPP and BPP found merit in BuildWell because of cost and, of course latest technology in doing shore protection using interlocking concrete, which will not be subject to rusting. So we got approval for Build Well in the sum up N114 billion.”
The minister speaking on the shoreline protection project, said it was necessary given its proximity to the recently inaugurated Red Line and other existing structures in the area. He added that his ministry sought to leverage the low-water levels of the dry season to drive piles down the shore.
Umahi on Wednesday explained that contrary to the beliefs, the rising cost of production was responsible for the recent cement price hike, and not its concrete road policy.
He added that his insistence on concrete roads will not phase out traditional asphalt roads as it was only an alternative for sites with high water tables and poor conditions.
“This assertion is highly misplaced because the policy has not even taken off,” said the Minister of Works, Dave Umahi, when he briefed State House Correspondents after Wednesday’s Federal Executive Council meeting at the Aso Rock Villa, Abuja.
He was reacting to warnings by the Cement Producers Association of Nigeria that the FG’s plan to introduce concrete roads will raise the price of cement from N5,600 to N9,000 per bag.
On Wednesday, the House of Representatives had invited top manufacturers, Aliko Dangote Rabiu Abdulsamad, among others for discussions on the high cost of the product.
The House’s resolution was a sequel to the adoption of a motion titled “Arbitrary increase in the price of cement by manufacturers of cement in Nigeria,” moved by a member representing Karu/Keffi/Kokona Federal Constituency, Nasarawa State, Mr Gaza Gbefwi, and his counterpart representing Shomolu Federal Constituency, Lagos State, Ademorin Kuye, during plenary on Wednesday.
Fielding questions on the issue, Umahi cited recently released documents showing that Dangote Cement Plc, BUA Cement Plc and Lafarge Africa Plc spent N598.14 billion on power during the full year ended December 31, 2023.
He explained, “I just got a document this morning where three companies producing cement, Dangote, BUA and Lafarge, said in 2023, the total cost of their gas rose by over 42 per cent. So, if the cost of their gas rose by 42 per cent and then the import duty exchange rate has also gone up, it is expected that the cost of cement would go up.”
“But Mr. President has discussed with them and I think there are a couple of incentives being made available to them which should reduce the cost of cement. In Sokoto, where I visited recently, the BUA Executive Director said that the ex-factory was N6000. And that was down from 8000. We are getting there because Mr. President has directed them to reduce the price and they have to comply and I think Mr President has also offered them some incentives to them.
“So it’s not because we are going from asphalt to concrete. And we are not totally leaving the asphalt. It is just an alternative, especially where we have a very high water table and then a very poor sight condition.”
The Minister of Agriculture and Food Security, Abubakar Kyari, on his part said the Federal Government has commenced the distribution of the 42,000 metric tonnes of grains in the seven focal points of State capitals of the Northwestern States.
The minister who refused to divulge details for security reasons, said his ministry was
currently working with the office of the National Security Adviser, Nuhu Ribadu and other National Security outfits to address the risk involved in vandalisation of food warehouses across the country.
He said, “We are distributing to State capitals in the first instance as you all are aware the risk involved in the vandalisation of foodstuff so we are working with the office of the National Security Adviser and other national security agencies
“Distribution has commenced however I will not want to comment on the security aspect of the distribution
“I can assure you that we have started distributing in the northwestern states, and we are distributing out of seven points.
Minister of Communications, Innovation and Digital Economy, Bosun Tijani, said he briefed council on what his ministry has been up to, one of which is the conversation with the Minister of Defense to see how government can use enhanced satellite capabilities to help security agencies to be able to do their work better.
He said President Tinubu has given the go ahead for his to source funds for that to invest in 120 kilometers of fiber optic cable to be able to cover the entire country.
He said: “Nigeria is projected to invest in 120 kilometers of fiber optic cable to be able to cover the entire country. At the moment we’re at about 35,000 kilometres. We’ve got the numbers working with the best companies in this space. That will cost us less than a billion to complete the deployment of fiber optic. And the President has given the go ahead for us to source funds for that.
“So we are in the process of setting up a $2 million fund, I said it costs less than $1 billion. But the reason why we’re setting up a $2 million fund is to use the balance to drive down the cost of connectivity in the country.
“We want to ensure that all schools are connected, all hospitals in the country are connected, and also all government facilities as well. So with we’re in the process of setting up this fund, we received significant interest from the African Development Bank who are looking to put about $200 million into this. We are in extensive a deep conversation with the World Bank on this as well.
“The model we’re taking which a special purpose vehicle is to actually also crowded investment from the private sector to be able to deploy the fiber optic network that we want to deploy in the country.”
He said he also briefed council on plans to launched a project to provide reliable internet connectivity to 774 local government areas (LGAs) in Nigeria.
He said the project aligns with his ministry’s strategic blueprint and is a significant step in achieving President Tinubu’s mandate to deliver efficient public service to Nigerians at the LG level.
He said a number of secretariats in Kogi state have been connected while that of Imo and Zamfara will be connected this week.
The Minister of Industry, Trade and Investment, Doris Uzoka-Ante, also briefed council on the activities of her ministry including international engagements among others.