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Why Poor State of Roads Persists Nationwide -Fashola

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By Mathew Dadiya, Abuja

The Mjnister of Works and Housing, Babatunde Fashola has attributed the inability of Federal Government to address dilapidated roads across the country to none release of budgetary funds by the ministry of finance.

 

Fashola explained that most contracts failed due to under budgeting and poor funding.

Speaking to State House correspondents after the Federal Executive Council (FEC) meeting chaired by President Muhammadu Buhari on Wednesday, he lamented that no dime has been released to his Ministry from the 2019 budget.

He lamented that his ministry hardly accessed adequate funding to perform its statutory mandate hence the littering of uncompleted and abandoned projects across the country.

The mjnister’s explanation came amidst claims by the National Assembly, that about 20,000 abandoned projects litter the country.

Debunking the allegation Fashola recalled that when the Buhari administration came into power in 2015, it concentrated on completing all abandoned projects rather than initiating new ones so as not to forestall development, adding that only N18billion was allocated for works in 2015 budget.

He said that the decision has seen the government making efforts to complete ongoing road contracts left behind by its predecessors despite budgetary constraints.

Fashola said while the public misconstrued the challenges, the progress that has been made seems delayed because some of the projects including newly initiated ones suffered set back due to lack of community support, over-blotted compensation sums submitted by the public and lean budgetary provisions which, most times were not even accessible.

He said that despite these constraints, government never felt deterred, it has been reviewing cost of on-ongoing and abandoned projects to make them viable for completion.

“Today, two of the approvals were to revise the estimates of cost to enable contractors continue work.

“Council approved N519 million revision of contract of Oba – Nnewi – Okigwe Road to cater for change in cost of materials since the project was awarded in 2009. The contract sum revised from N3.7billion to N4.3 billion.

“The second contract that had a revision of estimated cost, is the 67 kilometers Alace-Ugep road in Cross River state, Council approved a revision from N9.16 billion to 11.22 billion, the revised cost is N2.052 billion.

“Council approved the change of contractor for the Chachangi bridge linking Takum and Wukari in Taraba State and re-awarded it at the cost of N2.132 billion.

“Katsina-Ala bridge was also approved at the cost of N3.576 billion, which include total bridge repairs, changing of expansion joints, changing of bearings and rehabilitation of the 3.2 kilometers access road at Ugbema junction in Benue State,” the Minister explained.

The minister further disclosed that despite the increased budgetary provision for the ministry of works from N18 billion in 2015 to about N300bn in 2016, 2017, 2018 and 2019, ”we still can’t find the money to implement the projects, we need community support as well.”

He also lamented that the ministry wasc faced with a challenge of over N10 billion compensation for the second Niger bridge.

”There is a very clear distinction doing a project that is uncompleted and a project that is abandoned. They mean two different things. If you ask me you say there is a report about 20000 abandoned projects, my ministry doesn’t have 20000 projects.

”One of the things we have done including what we have done today finding out why projects have not been completed in some cases the rates have become obsolete so the price of cement has changed, the exchange rate has changed, inflation has gone into the quantities in which it was awarded before we came. So we are trying to resuscitate some of those projects because we know that the contractors will not go back to work if the pricing is not right, that is one thing we are doing. 

”It is the government policy to ensure that we complete as many projects as possible. Unlike in the past, this government has focused on completing projects. 

”In addition to that, we have increased the budget size so the budget size for all of the Nigerian roads in 2015 was N18 billion. So those are accumulations that we now have to manage and overcome was as a result of under budgeting and under funding. 

”Now there is a distinction, we have increased the budget to roughly about N300 billion but we still can’t fund the N300 billion. 

”So when we get the approval that is the one half of the story, the other half of the story is that we don’t get all of the cash. So your investigation must include how much is being released against how much is being approved in the budget 

”There is yet another problem, the local communities, we are having problems there too. We have problem I think in Sapele-Ewu road, youths, community, compensation issues. Immediately we mobilize to site, people build all sorts of things within the right of way and file all sorts of claims for compensation. 

”When you look at how much you have to pay for compensation and how much you have to spend on the roads you begin to do your maths very carefully. So we need community support as well. 

”People who want infrastructure must also reasonably be willing to sacrifice. The amount we are facing now in claims in compensation for Second Niger Bridge is already in excess of N10 billion, just for compensation for land and all of that. 

”Now you hear the Minister of Finance, you hear everybody saying we need to raise money to fund infrastructure; there is a gap between our infrastructure needs, our commitments to respond and our income. So we have to fund a deficit. 

On one hand there is another side of the debate that is saying the country is borrowing too much so these are the challenges.”

Economy

Investors Gain N183bn on NGX

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The Nigerian Exchange Ltd. (NGX) continued its bullish trend on Wednesday, gaining N183 billion.

Accordingly, the market capitalisation, which opened at N59.532 trillion, gained N184 billion or 0.31 per cent to close at N59.715 trillion.

The All-Share Index also added 0.31 per cent or 303 points, to settle at 98,509.

68, against 98,206.
97 recorded on Tuesday.

Consequently, the Year-To-Date (YTD) return increased to 31.

74 per cent.

Gains in Aradel Holdings, Zenith Bank, United Bank For Africa(UBA), Oando Plc, Nigerian Breweries among other advanced equities drove the market performance up.

Market breadth closed positive with 34 gainers and 17 losers.

On the gainers’ chart, Africa Prudential, Conoil and RT Briscoe led by 10 per cent each to close at N14.30, N352 and N2.42 per share, respectively.

Golden Guinea Breweries followed by 9.95 per cent to close at N7.18, while NEM Insurance rose by 9.74 per cent to close at N10.70 per share.

On the other hand, Julius Berger led the losers’ chart by 10 per cent to close at N155.25, Secure Electronic Technology Plc trailed by 9.52 per cent to close at 57k per share.

Multiverse lost 7.63 per cent to close at N5.45, Haldane McCall dropped 6.07 per cent to close at N4.95 and Honeywell Flour shed 5.62 per cent to close at N4.70 per share.

Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 49.44 per cent.

A total of 320.10 million shares valued at N6.48 billion were exchanged in 7,943 deals, compared with 939.41 million shares valued at N12.81billion traded in 9,098 deals posted in the previous session.

Meanwhile, ETranzact led the  activity chart in volume with 70.27 million shares, while Aradel led in value of deals worth N1.22 billion.(NAN)

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Economy

Yuan Weakens to 7.1870 Against Dollar

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The central parity rate of the Chinese currency renminbi, or the Yuan, weakened 22 pips to 7.1870 against the dollar on Monday.This is according to the China Foreign Exchange Trade System.In China’s spot foreign exchange market, the Yuan is allowed to rise or fall by two per cent from the central parity rate each trading day.

The central parity rate of the Yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.
(Xinhua/NAN)

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Economy

Bring Kaduna Refinery Back into Operation, Youth Group Urges NNPCL

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Arewa Youths Initiative for Energy Reforms (AYIFER), has urged  Nigeria National Petroleum Corporation Limited (NNPCL)  to do everything possible to bring Kaduna Refinery back into operation.

National Coordinator of the group, Mr Bashir Al’Amin, stated this in a statement issued on Friday in Abuja.

Al’Amin specifically called on the Chief Executive Officer of NNPCL, Mallam Mele Kyari, to do all within his powers to rejuvenate the refinery and bring it up to global standard.

He said that having delivered the Port Harcourt refinery, coupled with the establishment of Dangote Refinery in Lagos, attention should be shifted to Kaduna refinery for easy spread of petroleum products.

“We are calling on Malam Mele Kyari to expedite action on Kaduna refinery so we can be at par with other regions in the country.

“We equally beg the NNPCL to do professional work in rehabilitating the old refinery and deliver a standard and functional petrochemical refinery and not a blending plant.

“Kyari should resist any temptation that could make him do something that can jeopardise his good image,” he said.

Al’Amin said that since the extinction of groundnut pyramid and textiles in Kano State as well as PAN in Kaduna State and with the Kaduna refinery getting moribund, a lot of youths had lost their jobs.

According to him, all their hopes in the north are tied to the legacy refinery, expressing the hope that God would use Kyari to deliver it well and on time.

He said that the group was solidly behind NNPCL in prayer and would be ready to celebrate the company if its expectations were met. (NAN)

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