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FG Releases N122bn to Transform Midstream Gas Value Chain

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The Federal Government has released N122 billion to six gas infrastructure companies with the goal of transforming the midstream gas value chain across the country.

The Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo, said this at the Midstream Downstream Gas Infrastructure Fund (MDGIF)/Promoters Agreement Signing Ceremony, in Abuja on Monday.

The MDGIF entered into agreement with Gas Infrastructure Promoters, to improve Nigeria gas infrastructure.

Ekpo said that the fund was committed to the investors to ensure that Nigeria was driven by gas.

”This is a historic day for the Nigerian gas industry as we announce and finalise a partnership between public and private sectors with the goal of transforming the midstream gas value chain.

“This is a reflection of President Bola Tinubu’s efforts and enthusiasm to improve and foster business relationships between the public and private sectors.

“Today is a significant milestone as we formally enter into agreements with six business entities that have been screened to obtain government equity participation under the MDGIF,” he said.

Ekpo said the promoters were carefully chosen in compliance with the MDGIF Investment Policy Statement (MIPS) and the Petroleum Industry Act (PIA) 2021, deserve our congratulations.

“They have demonstrated their ability and commitment in supporting us to provide gas to end users,” he said.

The minister said that the MDGIF stood at the forefront of the strategy to modernise Nigeria’s gas infrastructure.

According to him, it has been designed as a catalyst for investment, aiming at bridging gaps in the gas value chain by ensuring the financing and delivery of critical projects.

“These initiatives will accelerate our journey towards energy security, industrial growth, and economic prosperity, in alignment with the goals of the decade of gas initiative.

“By bringing together government’s efforts and private sector expertise, the MDGIF is positioned to fuel growth in gas processing, transportation, storage, and distribution infrastructure.

“This collaboration is essential to achieving our target of transitioning from a crude oil-dependent economy to one driven by natural gas and its derivatives,” he said.

Ekpo said the selection process was rigorous and each of the companies was chosen for their track record of excellence, technical expertise and unwavering commitment to supporting Nigeria’s gas revolution.

“As we sign these agreements today, it is essential that we maintain a focus on delivering projects that are timely, transparent and transformational.

“The government is fully committed to supporting your efforts through policy frameworks that enable smooth execution, while ensuring that every milestone reached contributes to the broader vision of a prosperous Nigeria fueled by gas.

“I encourage each of you to continue working with the same dedication that brought you to this point.

“Together, we will chart a path toward building sustainable energy infrastructure that benefits our economy and society for generations to come, ” he said.

Amb. Nicolas Ella, Permanent Secretary of the ministry, urged the investors to be diligent and committed in the execution of the project.

Sen. Jaribe Jaribe, Senate Committee Chairman on Gas, said the senate would continue to provide support to ensure strong partnership in the implementation of the initiative.

Mr Oluwole Adama, Executive Director, MDGIF, said the project was spread across 20 Federal Universities to alleviate the cost of transportation for Nigerian students, lecturers, and administrative staff.

“It is hoped that more institutions will be included as soon as possible,” he said.

Mr Fola Akinnola, Managing Director, FEMADEC Energy, one of the beneficiaries on the project execution, said that he would ensure that the project was execute and delivered effectively and on good time.

The six companies include Asiko Energy Holdings Ltd. (AEHL), FEMADEC Energy Ltd., Ibile Oil and Gas Corporation (IOGC), Nsiko Oil and Gas Ltd., Rolling Energy Ltd and Topline Ltd. (NAN)

NEWS

FG Revokes Section of Abuja-Kaduna Road Contract Handled by Julius Berger

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The Federal Government has revoked a section of the Abuja-Kaduna highway contract being handled by Julius Berger over irregularities.

The Minister of Works, David Umahi, made this known during the inauguration of the rehabilitation of the Abuja-Kaduna-Zaria-Kano road on Thursday in Abuja.

Umahi said that the road contract was awarded to Julius Berger in 2018 under former President Muhammadu Buhari for N391 billion.

The minister said that the Kaduna-Zaria section has been completed and the Zaria-Kano section is almost completed, however, the Abuja-Kaduna section has witnessed slow completion rate in six years.

“We inherited about 240km in the section I and we extended another two kilometres towards Kogi state to repair the road because it is an eye saw.

“So we have additional 7.5km added to the original 750km, the cost that we gave to Julius Berger for this section is N349 billion or N2.03 billion per kilometer and it is on flexible pavement.

“The section one is 38km or 76 single carriageways when you multiply it by two.”

According to Umahi, the cost is N145 billion or N1.9 billion per kilometer adding that the section one and three are being done under tax credit.

He said that the road project needed to be divided into three sections because Julius Berger was demanding a total of 1.5 trillion for the entire road project to be completed in four years.

“However, we do not want that, president Bola Tinubu does not want that, so we predicted the option of balkanising the road into three, which we have done, and he approved it.

“When we did that by writing, Julius Berger accepted it with the rates but we did not know that they would play games by continuing to play delayed tactics.

“At that time, their own section was 710 billion, both what was done and the new thing to be done,so they started in the first section.”

He said that the Ministry of Finance promised to be paying N20 billion every month to get the job done, but Julius Berger asked for an increase which the ministry obliged from N710 to N740 billion.

Umahi said Julius Berger again wrote to the ministry last week asking for a raise from N740 to N903 billion to complete the project, a condition not favourable  to the government.

“We decided to go for about four billion naira per kilometer for an existing road we are rehabilitating on asphalt, so our position is that we are not increasing this contract for Julius Berger beyond N740 billion.

“This game must be over. I have invited them for a meeting tomorrow. We cannot do what they want. They have been pushing us around. In Bodo Boni, they got what they wanted.

“They have put the project into politics. So they are using it to demarcate our administration and we think enough should be enough,”he said

The Chairman, Senate Committee on Land Transport , Adamu Aliero, commended the President for taking the bold initiative in approving the revocation of the contract and re-awarding it to competent contractors.

Aliero said that the Abuja-Kaduna road has been a thorny issue as far back as 2021, 2022, 2023.

“The governors, the senators, front-line politicians have been complaining on the slow pace of this road. They have been talking about how many people have died because of the deplorable condition of the road.

“Let me say that there is no road in Northern Nigeria  that is as important as this road but Julius Berger kept bringing all kinds of excuses.

“This road is a vital link. It connects the northeast, northwest, southeast, south-south, and southwest, the road is very important, it  is a national asset.”

Aliero therefore, urged the contractors that have won the award to please speed up and complete the road to ease movement of goods and services to every part of Nigeria.

He also appealed to Julius Berger to restore the confidence Nigerians have in them by completing other section of the road contract they are handling that has not been revoked.(NAN)

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Foreign News

WHO Accuses Israel of Denying Medical Specialists’ Entry to Gaza

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The World Health Organisation (WHO) has accused Israel of barring medical specialists from entering Gaza to support clinics in the besieged enclave.

The WHO said since August, eight organisations and over 50 specialised personnel had been affected by Israel’s blockade.

The specialists were intended to provide crucial support for various medical services, as well as psychological support for healthcare workers at facilities including the European Gaza Hospital and the Nasser Hospital, the WHO said.

It was reported that among the organisations denied entry was the U.S.non-profit Palestinian American Medical Association, which supports Palestinians in need of medical care.

According to the WHO, this marks the first instance in which Israel has denied entire organisations the ability to participate in relief efforts for the Gaza Strip.

The WHO reported that in the past week, support teams conducted 25 per cent fewer operations than usual.

With only 17 out of 36 clinics and 43 medical practices remaining partially operational, the WHO emphasised the irreplaceable role of these external teams in providing essential medical services.

The WHO called for full access for emergency aid teams. (dpa/NAN)

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Foreign News

Germany must Ensure Ukraine War Does not Spread to NATO – Scholz

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It is Germany’s responsibility to make sure that a war between Russia and Ukraine does not become a war between Russia and NATO, German Chancellor Olaf Scholz.

He said this as he repeated his “nein” to sending long-range weapons to Kiev.

“I don’t consider this to be a proper delivery and that’s how it will stay,” Scholz said after a European Union summit in Brussels.

Scholz rejected key points in Ukrainian President Volodymyr Zelensky’s “victory plan” out of concerns of future escalation.

Zelensky presented his “victory plan” at the meeting and called on Scholz, again to send him Taurus cruise missiles.

The Ukrainian leader believes a deterrent missile arsenal could force Russia into peace negotiations.

Scholz also maintained his stance against a quick invitation for Ukraine to join NATO, as outlined in Zelensky’s plan.

The United States also opposes a fast-track NATO entry for Ukraine.

The chancellor referred to the resolutions of the most recent NATO summit in Washington, which offers Ukraine a general assurance that it could no longer be stopped on its way into the defence alliance.

He further said all allies must agree that NATO conditions are met for an invitation.

These include reforms in the areas of democracy, the economy and the security sector.

Scholz also used the occasion to take a swipe at his main opposition in the Bundestag or German parliament, Christian Democratic (CDU) leader Friedrich Merz.

He complained that Merz flip-flopped on Taurus deliveries, taking a no-delivery position before key elections in east Germany and changing his position after that. (dpa/NAN)

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