COVER
FEC AppovesN15.1bn for Aviation Projects
By Mathew Dadiya, Abuja
The Federal Executive Council (FEC), approved a whopping N15.1 billion for projects in the Ministry of Aviation, and roads construction in the Ministry of Works and Housing in some parts of the country.
This was disclosed to State House correspondents by the Minister of Aviation Senator Hadi Sirika and his counterpart in the Ministry of Information and Culture, Lai Mohammed after the weekly Federal Executive Council (FEC) meeting presided over by the Vice President, Yemi Osinbajo at the Presidential Villa yesterday in Abuja.
Sirika said the sum of N10,081,177,338.31 billion was approved in the memorandum for the three items we presented for projects in the aviation sector.
One of which is the rehabilitation and reconstruction of the Hadejia airstrip at the total sum of N7,482,071,196.56 billion awarded to Messrs CCECC for a period of 18 months, he said.
The minister also explained that “there is the construction or Control Tower and Technical Building in Enugu awarded to Mssrs Mascot Associates Limited at the cost of N1,973,606,141.75 billion, and the third contract is for procurement of utility vehicles, to Mssrs Kaura Motors at the sum of N625,500,000 million; bringing the total cost of the contracts to N10 billion”.
The Federal Executive Council (FEC) has approved an additional N1.6 billion being augmentation sum for Manyam-Ushongo-Lessel-Kartyo-Oju-Agila road project in Benue State.
Minister of Information and Culture, Lai Mohammed, disclosed this to State House correspondents after the FEC meeting presided over by the Vice President, Yemi Osinbajo, yesterday at the Presidential Villa, Abuja.
Mohammed said that the initial cost of the project was N1.35 billion which was reviewed to N2.9 billion.
“The Minister of Works and Housing presented one of the memos which was an approval for the revised estimated total cost of contract of rehabilitation for the construction of Manyam-Ushongo-Lessel-Kartyo-Oju-Agila in Benue State.
“The contract for this road was actually awarded first in 2012; due to whatever reason, it is still not completed; and of course, if the contract was awarded in 2012, 10 years later, you expect the contractor to ask for augmentation. And that’s what happened today, it was approved.
“The original contract was N1.35 billion is now being augmented with an additional N1.6 billion; so the sum total is N2.9 billion,” he said.
He said that the second memo that was approved for the ministry had to do with the Mabuchi headquarters of the Ministry of Works and Housing.
According to him, the ministry headquarters does not depend or rely on the national grid for its power because it relies on solar grid.
“And the memo today was to seek approval for the estimated total cost of the contract for the design and installation of solar power plus micro grid system and energy litrofitting of the ministry.
“Sometimes in March 2019, a contract was awarded for the provision of a solar power that would power the entire ministry; it was awarded at the cost then for about N2.7 billion.
“Now, they are seeking for an augmentation of N309 million to bring the total cost to N3 billion.
“The reason for the augmentation is that in the process of executing the project certain works which were not anticipated before were to be taken into consideration.
“And in addition, this augmentation also includes a maintenance contract of the installation.”
Mohammed said it was pertinent to note that the Federal Government was diversifying its sources of energy.
“And this is clean energy and the minister threw an invitation to any ministry that wants to go solar that they will provide the advice for them,” he said.
COVER
Federation Account Garners N7trn Revenue in Six Months – RMAFC
By Tony Obiechina, Abuja
Revenue Mobilization Allocation and Fiscal Commission (RMAFC) yesterday disclosed that a total sum of N7.31 trillion accrued to the Federation Account between July and Dec. 2023.This was captured in the monthly report to the Federation Account Allocation Committee (FAAC) by the Central Bank of Nigeria (CBN) under the caption “CBN Federation Account Component Statement”.
This amount is higher than the sum of N5. 244 trillion realised in the first half of year 2023, according to a statement signed by the RMAFC Chairman, Mr. Mohammed Bello Shehu and made available to the media in Abuja.The chairman disclosed that out of the total gross revenue inflows into the Federation Account, the sum of N1,692 trillion was transferred to the Exchange Gain Differential Account, thus leaving a balance of N5.475 billion for distribution.He added that from the amount stated above, the sum of N3.26 trillion was deducted as approved statutory deductions by the OAGF, leaving a net balance of N2.2 trillion for distribution to the three tiers of government within the period under review.The chairman explained that out of the N3.267 trillion statutory deduction indicated above, N2.251 trillion was transferred to the Non-Oil Excess Account as savings, thus leaving a net statutory deduction of N1.016 trillion with further augmentations for sharing among the three tiers of government received from some “reserve accounts.”The statement added that within the period under review, the net sum of N4 trillion was shared with the three tiers of government, an amount higher than the total sum of N3.06 trillion.In terms of percentages, the chairman stressed that “the statutory deduction in the second half of the year constituted 44.12 percent of the total gross inflow into the Federation Account in the six-month period, which was higher than the first half deductions of 42.31 percent (inclusive of transfer to the Non-Oil Excess Account).”On remittances by Revenue Generating Agencies (RGAs), the RMAFC chairman disclosed that out of the total gross revenue inflows into the Federation Account, the Nigerian National Petroleum Company Limited (NNPCL) remitted N874 64 billion in the second half of the year as against the zero-remittance made in the first half of the year.Similarly, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) remitted the sum of N1.56 trillion while the Federal Inland Revenue Service (FIRS) remitted N3.65 trillionCOVER
PDP NEC Meeting Ends with Damagum as Acting Chairman
By Johnson Eyiangho, Abuja
Peoples Democratic Party (PDP) 98th National Executive Committee (NEC) meeting yesterday ended without a word on the much talked-about replacement of the party’s Acting National Chairman, Amb. Iliya Damagum, an indication that he will continue to function in that position.
In an interview with newsmen after the meeting, the PDP spokesman, Hon. Debo Ologunagba said for now, the party is focusing on issues of reconciliation and its stability, adding that the issue of the Acting National Chairmanship had been “deferred to the next NEC meeting, which is tentatively scheduled for August 15, 2024″. Also speaking, the Governor of Bauchi State and Chairman of the PDP Governors’ Forum, Bala Mohammed said the party is united as there was no dissension and rancour.In his words, “It was planned that the party would have an implosion. PDP is more than that. We have gone beyond all that. This party is united, guided by experience and constitutionality.”There were a lot of permutations and mischievous thinking outside there. But we looked at all the issues and we worked along our guidelines and constitution.“There is no problem or dissension and problem among members,” Mohammed said.The well attended NEC meeting was held amid tight security as police and personnel of the Department of State Services (DSS) condoned off roads leading to the PDP Secretariat, Abuja and diverted vehicular traffic.It will be recalled that the PDP National Working Committee (NWC) had passed a vote of confidence on Damagum during its meeting on Tuesday.A communique issued at the end of the three hours meeting commended all the organs of the party for their collective resilience, steadfastness and commitment towards the unity, stability and sustenance the party despite daunting challenges.The communique commended the efforts of the NWC in its effort towards rebranding the party and urged all party members to continue to work together for the success of the PDP for the benefit of Nigerians and sustenance of democracy in our country.The document which was read by the PDP National Publicity Secretary, Ologunagba, however, expressed concern over what it described as the ill-implemented policies of the APC administration, leading to worsening insecurity, harrowing economic hardship, soaring unemployment rate, high cost of food and other necessities of life with pervading misery and despondency across the country.”NEC expresses serious apprehension over the spate of acts of terrorism and violence including the escalated cases of mindless killings, mass abduction of innocent Nigerians and marauding of communities in various parts of the country.”NEC condemns the insensitivity, nonchalance, incompetence and arrogance in failure of the APC administration which continues to conduct itself in a manner that shows that it has no iota of interest or commitment towards the wellbeing of Nigerians.”NEC also condemns the creeping totalitarianism and tendencies towards a One-Party State which is inimical to the peace, stability and corporate existence of our nation as well as the development of Democracy and good governance in the country,” it said.The communique demanded that President Bola Tinubu should urgently convene a special National Security Council meeting to proffer a holistic solution and measures to curb the disturbing insecurity with its attendant negative consequences on the nation.It also called on the president to “immediately rejig his Economic Team to bring in persons of proven integrity and competence without bias and vested interest to assist in repositioning the economy.”NEC further demands that the Federal Government should review all policies and programmes which are stifling the economy with suffocating effect on the lives of citizens; including the increase in price of fuel without cushioning measures, hike in electricity tariff, increased taxation and implementation of adverse fiscal policies,” the communique added.Present at the meeting were FCT Minister Nyesom Wike, former Vice President Atiku Abubakar and many other past and presently elected members of the PDP.
COVER
CBN Reduces Banks’ Lending Rate to 50 Percent
By Tony Obiechina, Abuja
Central Bank of Nigeria (CBN) yesterday announced a review of the loan-to-deposit ratio (LDR) for banks from 65 percent to 50 percent to align with the current monetary tightening.
LDR is used to assess a bank’s liquidity by comparing its total loans to its total deposits.
An increase in the loan-to-deposit ratio allows banks to expand their credits to businesses and individuals, however, a decline in LDR reduces their ability to loan customers from depositors’ funds.
CBN disclosed the increase in a circular titled “Re: Regulatory Measures to Improve Lending to the Sector of the Nigerian Economy”, signed by Adetona Adedeji, CBN Acting Director, Banking Supervision Department.
“Following a shift in the b ank’s policy stance towards a more contractionary approach, it is imperative to review the loan-to-deposit ratio (LDR) policy to align with the current monetary tightening by the CBN,” the apex bank said.
“Accordingly, the CBN has decided to reduce the LDR by 15 percentage points to 50%, in a similar proportion to the increase in the CRR rate for banks.
“All DMBs are required to maintain this level and are further advised that average daily figures shall continue to be applied to assess compliance.”At the last monetary policy committee (MPC) meeting on March 26, the CBN retained the CRR at 45 percent and the liquidity rate at 30 percent.