NEWS
Umahi Advocates 30% Ministry’s Budget be Set Aside as Emergency Roads Fund
By Eze Okechukwu, Abuja
The Minister of Works, Engr. David Umahi on Monday requested that 30% of the budget of the Ministry be set aside as an emergency fund for addressing unforeseen emergencies on the country’s roads nationwide.
The minister, who made this request during a budget defence session before the National Assembly Joint Committee on Works noted that the emergency fund, if approved, would be used to address unforeseen emergencies that regularly occur on the road network especially during the rainy season.
Umahi also requested for an increase of the Ministry’s present budgetary allocation of N 657,228,251,596 to about N1.5 trillion, to complete at least ten selected critical roads and bridges in each of the six geo-political zones of the country.
He sought further for urgent review of all certified debts to contractors and if possible, convert the same to Promissory Notes to contractors so that we can get properly focused in using any fund appropriated to us to pursue the Ministry’s set objectives.
Umahi noted that following the worsening inflation in the country, many contractors were presently out of sites because they had exhausted their contract VoPs and needed the project unit’s rates to be reviewed.
He therefore suggested that all VoPs and augmentations of all the projects be reviewed and those owed be converted to promissory notes, while unit rates regime would take effect on contractors in line with the current realities of the construction industry.
Also, the Minister recommended to the joint National Assembly Committee, that more eligible companies should be encouraged to key into the Road Tax Credit Scheme, to increase the number of private sector interventions, explaining that this would mean front-loading their tax liabilities to solve the nation’s present challenges.
He equally suggested the raising of bonds from the capital market, to finance road development in the country just as he urged the government to create an enabling environment by fixing the roads so that the deployment of the Highway Development and Management Initiative (HDMI) could be effective.
Umahi called on the lawmakers to look into the issue of appropriations for projects, so that it would be such that no projects when started should last for more than four years.
His words: “From the fore-going, I would like to recommend as follows: The provision of an Emergency Fund of about 30% of the Budget Provision to cater for unforeseen emergencies that regularly occur on the road network especially during the rainy seasons;
“An increase of the Ministry’s present budgetary allocation to about N1.5tr to complete at least 10 selected critical roads and bridges in each of the six geo-political zones of the country;
“Urgent review of all certified debts to contractors and if possible, convert same to Promissory Notes to contractors so that we can get properly focused in using any fund appropriated to us to pursue the Ministry’s set objectives;
“Inflation- Many contractors are presently out of sites because they have exhausted their contract VoPs and needed the project unit’s rates to be reviewed. It will be good that all VoPs and augmentations of all the projects are reviewed and those that are owed be converted to Promissory Notes, while the unit rates regime will take effect on contractors in line with the current realities of the construction industry.
“More eligible companies should be encouraged to key into the Road Tax Credit Scheme to increase the number of private sector interventions. This means front-loading their tax liabilities to solve our present challenges;
“Raising of Bonds from the Capital Market to finance road development in the country;
Creation of an enabling environment by fixing the roads so that the deployment of the Highway Development and Management Initiative (HDMI) can be effective; and
That appropriations for projects be such that no projects when started should last for more than four years.”
On the controversy about the use of asphalt and concrete in road construction, the Minister of Works said: “It would be my great pleasure to clarify the misunderstanding of the Ministry’s new policy direction regarding the use of rigid pavement on her projects.
“I have to state categorically that no contractor is prevented from executing the scope of works originally signed with the client once certain conditions are observed, which are provision of a 15-year shelf-life Insurance Guarantee for the works and a maximum of 5% of Variation of Price (VoP) in the Contract.
“The Ministry’s new policy is to prevent excessive augmentation of contracts considering the scarcity of forex and weakening of the Naira against the Dollar which makes the cost of bitumen (which is fully imported) increase in geometric progression against the arithmetic progression rise in cement prices in concrete road pavements. In these times of rising inflation and scarce resources, the country needs to look inwards to conserve foreign exchange.”
Meanwhile, the Chairman of the Senator Committee on Agriculture and Co-chairman of the joint Committee, Senator Mpigi Barinada, raised the alarm that there are so many abandoned road projects across the country, which the contractors had collected reasonable somes of money.
He said: “The contractor handling the rehabilitation of Aba-Owerri Road, through NNPC Depot expressway, Abia State; he has been mobilised. As we speak, he has not done any job. We don’t have to mention his name here. He has collected the sum of N76 million.
“The rehabilitation of Argungu Road in Kebbi State; it is being handled by the Setracco. He has collected over N400 million but he is not on site. The rehabilitation of another road in Ogun State; the contractor has collected over N25 million but he is not on site. The construction of Asaba-Agbo Road; the contractor has collected the sum of N50 million but with zero performance.”
Senator Barinada, after drawing the attention of the Minister of Works to numerous road projects across the country, which the contractors abandoned after collecting huge sums of money, urged the Umahi to look into the issues and ensure that the contractors were compelled to return to site.
NEWS
Yuletide: Bode George Urges Tinubu to Reduce Petrol Price
Chief Bode George, a former Deputy National Chairman of the Peoples Democratic Party (PDP), has urged President Bola Tinubu to reduce the price of petrol to N300 per litre ,to make things easy for Nigerians during the festive season.
George, the Atona Oodua of Yorubaland, made this plea at an interactive session with newsmen on Wednesday in Lagos.
The price of Premium Motor Spirit, popularly known as petrol, is currently above N1,000 per litre.
According to the elder statesman,Nigerians are going through hardship, the President should give an order to reduce fuel price, specifying time frame the people will enjoy such window of relief.
He said that the federal government as well as well- meaning individuals and businesses could bear the cost of such price slash , to bring happiness to all Nigerians.
The PDP leader, who noted that December and January are special months , said that such gesture could start from the middle of December and run through January.
“I have been thinking, as a Nigerian, what can we do because the anger and the hunger are almost equal on the streets of Nigeria.
“What am I suggesting is that Mr President should sit down with his managers and give an order that from the middle of December to the end of January, the cost of petrol will be N300 per litre.
“The government can absorb the losses in the interest of the suffering people.
“If they (government) want others to contribute, let us know how much that is going to cost and ask people to donate, to bear the cost.
“We will be sending a lot of messages of happiness across the tribes and homes.
“Everybody in Nigeria will be happy because it will positively impact on this period of the year. It is a challenge and he (Tinubu) can do it.
“We need this in this December and January to put smiles on the faces of Nigerians, ” George, a PDP Board of Trustees (BOT) life member, said.
Advising the President to take further measures to bring relief to the people, he said that the gesture would crash prices of essential commodities and services for the benefit of all .
He said that government’s efforts should be concentrated on reducing high inflation rate, unemployment, poverty and youth restlessness in order to create a better future for Nigerians
Speaking on the recent presidential election in Ghana, George noted that Nigeria’s electoral system needed reforms to guard against electoral frauds and manipulations.
According to him, the nation will continue to grope for development if the system fails to encourage best candidates to emerge.
Stating that election must reflect the wishes of the people and be devoid of religious and tribal sentiments, George said that Ghana election should be a wake up call for Nigeria.
“INEC performance must improve. The commission must make sure that the voice of the people is heard in elections.
“Electoral offenders should be made to face the music and sent to jail. We must be very firm about due process, credibility and transparency in elections,” he said.
Urging the President to revisit resolutions in the 2014 Constitutional Conference, George said that the current constitution was not federal in principle and practice.
“We should not deceive ourselves, the constitution is a problem. It is a military constitution, it is not democratic,” he said.
George called on the National Assembly to ensure devolution of powers and electoral reforms that would do away with manual collation of election results and mandate electronic transmission of election results from polling units.
George disagreed with political watchers saying no vacancy in presidency in 2027.
On the dwindling strength of the former ruling party, George, who noted that all organisations had its ups and downs, said that selfish interests and disregard for party rules remained PDP’s major challenge.
He said that PDP could bounce back and win presidential election if the leadership decided to elevate national interest above selfish interests and adhere to the party’s constitution.
“We will tell ourselves some serious old truth. We messed ourselves up. ” he said.
Stating, however, that the PDP was not dead, George said that lack of justice, equity, fairness and the inability to adhere to the party’s zoning and rotational principle cost the party victory in 2023.
Calling on the party’s founding fathers alive to wake up and rescue the party, George said that Nigerians were still waiting for the former ruling party to take over power and put things right. (NAN)
NEWS
Tinubu Set for Groundbreaking of Renewed Hope City in Lagos
President Bola Tinubu, is set to perform the groundbreaking of 2,000 housing units of the Renewed Hope City in Ibeju Lekki, Lagos, in the next few weeks.
Mr Ahmed Dangiwa, Minister of Housing and Urban Development, announced this during an official assessment visit, on Wednesday in Lagos
Dangiwa said Lagos would represent the South-west, while the president would do that of the North-West in Kano, before doing that of the four other regions.
“Arrangements is already on ground, we have gotten sites, and work has commenced for 2000 houses in the Renewed Hope City that we intend to build in Ibeju-Lekki,” he said.
Towards achieving the set goal, the minister said the visiting team also paid a courtesy visit to Gov.
Babajide Sanwo-Olu to discuss area of collaboration between the federal and state governments.He disclosed that the federal and Lagos state governments had agreed to set up a Tripartite committee and ensure all the issues of concerns between the parties were resolved amicably for the benefit of all.
Earlier, the Minister embarked on an assessment visit of deplorable Federal Government buildings and assets across Lagos state in a bid to commence rehabilitation on them in a few months.
Dangiwa said the rehabilitation was necessary as the deplorable buildings posed a challenge and security concerns to the Lagos state government. (NAN)
NEWS
Gov. Alia Presents N550.1bn as 2025 Budget Estimate to Benue Assembly
Gov. Hyacinth Alia on Wednesday presented the sum of N550.1bn as the 2025 appropriation bill to the Benue State House of Assembly for consideration and passage into law.
Alia told the lawmakers that out of the total budget size, N175.4 billion is for recurrent expenditure while the N374.
7 billion is for capital expenditure.The governor said that the total estimate represented a 47.
5 per cent increment over the 2024 revised and approved figure of N373 billion.He stated that the appropriation bill tagged “Budget of Human Capital Development, Food Security, and Digital Economy” was to consolidate the gains made in 2024.
Alia further explained that the proposed recurrent expenditure of N175.
4 billion was 13.55 per cent higher than the previous year.According to him, budgeted capital expenditure of N374.7 billion represents a 71.5 per cent increment on the 2024 revised capital expenditure.
“The budget breakdown indicated that the sum of N212.2 billion, representing 38.52 per cent is for administration; N196.6 billion, representing 35.68 per cent is for the economy; law and justice will take N26.6 billion, representing 4.84 per cent while social welfare will gulp N115.5 billion, representing 20.96 per cent.
“We have the vision. We have the will. And most importantly, we have the people ready to work alongside us to turn this vision into reality.
“Together, we will build a state where every citizen has the opportunity to succeed, where food is plentiful, and where the digital economy opens new frontiers of opportunity for all,” he said.
The governor said the intention of the government was to stay within the limits of its recurring revenue to build the state without accruing unnecessary debts for generations unborn.
He, however, said that since the 2025 budget was a deficit one, it proposed a borrowing plan of a conservative sum of N26bn, representing a modest 4.7 per cent of the proposed aggregate expenditure for 2025.
“This is lower than the state’s debt-to-GDP ratio of 8.2 per cent which is within the benchmark of the 25 per cent debt sustainability threshold.
“Despite these favourable debt ratios, I want to reiterate that borrowing will only be considered as a last resort and for regenerative investment purposes,” he added.
Alia stated that the problem of Internally Displaced Persons (IDPs) remained a challenge, adding that they have reasonably improved their living conditions.
He said the Bureau of International Cooperation and Development has elicited substantial grants from donors, totalling N85bn. (NAN)