Economy
Why Poor State of Roads Persists Nationwide -Fashola

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
CBN Takes Steps to Strengthen Banking Sector, Issues Routine Transitional Guidance

The Central Bank of Nigeria (CBN), has introduced time-bound measures for some banks still completing their transition from the temporary regulatory support provided in response to the economic impact of the COVID-19 pandemic.
According to a statement issued by Mrs Hakama Sidi-Ali, , CBN’s Acting Director, Corporate Communications Department , this is part of its ongoing efforts to strengthen the banking system.
Sidi-Ali said that the step was part of the CBN’s broader, sequenced strategy to implement the
recapitalisation programme announced in 2023.
She said that the programme, designed to align
with Nigeria’s long-term growth ambitions, had already led to significant capital inflows and balance sheet strengthening across the sector.
“Most banks have either completed or are on track to meet the new capital requirements well before the final implementation deadline of March 31, 2026.
“The measures apply only to a limited number of banks. These include temporary restrictions on capital distributions, such as dividends and bonuses to support retention of internally generated funds and bolster capital adequacy.
“All affected banks have been formally notified and remain under close supervisory engagement ” she said.
She said that to support a smooth transition, the CBN had allowed limited, time-bound flexibility
within the capital framework, consistent with international regulatory norms.
“Nigeria generally maintains Risk-Based Capital requirements that are significantly more stringent than the global Basel III minimums.
“These adjustments reflect a well-established supervisory process consistent with global norms. Regulators in the U.S., Europe, and other major markets have implemented similar transitional measures as part of post-crisis reform efforts.
“The CBN remains fully committed to continuous engagement with stakeholders throughout this period via the Bankers’ Committee, the Body of Bank CEOs, and other industry forums,” she said.
She said that the goal to ensure a transparent, Nigeria’s banking sector remained fundamentally strong.
According to her, these measures are neither
unusual nor cause for concern.
She said that they were a continuation of the orderly and deliberate implementation of reforms already underway.
She said that the CBN would continue to take all
necessary actions to safeguard the sector’s stability and ensure a robust, resilient financial ecosystem that supports sustainable economic growth. (NAN)
Economy
Cybercrime: First Bank Invests N15bn to Protect Systems From hackers in 5 months –CEO

First Bank HoldCo Plc says it has spent more than N15 billion to protect its systems against criminals between January and June.
Olusegun Alebiosu, the Chief Executive Officer (CEO), First Bank HoldCo Plc, said this in an interview in Abuja on Wednesday.
Alebiosu, who spoke on the sideline of a two-day National Seminar on Banking and Allied Matters for Judges, said the Bank had spent three N3 billion in June to protect its systems.
He said the bank had the best cyber security framework in the country, hence the investment.
The CEO who was speaking on the increasing number of attacks by cybercriminals, especially on banks’ systems, assured First Bank customers of the safety of their monies.
Alebiosu frowned at the rate at which some citizens were involved in cybercrimes, saying the country must move fast to curb their excesses.
”No customer would lose their money in First Bank unjustly.
”If their money is missing in First Bank, First Bank will pay back.
”Before I joined First Bank, I have an account with First Bank.
”One of the reasons why I had an account with First Bank was, I said to myself, if my money is missing, it is the only bank I know I will collect my money without any excuses, ” he said.
Reacting to some customers’ complaints on the delay by the bank to handle cases of fraudulent transactions, Alebiosu said the bank must conduct investigations involving different stakeholders.
The CEO said the delay was caused by the collaboration between the stakeholders involving security agencies and banks where the money was transferred to determine the realities about the cases.
He urged customers to tread carefully in handling and releasing their financial information.
”Customers themselves, most times, also compromise their own security details; I have seen a lot of people that give their cards to somebody to help them withdraw money from their ATM.
”They compromise their password so, when something happens and you say, my money disappeared, you forget the day you gave your card to someone else and they can use that to transfer your money.
”Some people compromise even their own ID on the system carelessly, some give their Bank Verification Number (BVN) and they use it against them.
”Now, why does it take time for the bank to react, everything you give to the bank, the bank has to investigate it.
”The money might have gone to other banks so, you start tracking from other banks but
Sometimes customers are impatient,” he said.
On frauds allegedly perpetrated by staff, he said the bank had internal employee fraud software, that monitors activities of employees on the system.
According to him, if you know how many of our staff we sack on a monthly basis, you won’t believe me.
”So if there are triggers, people will be involved. It is for us to run faster than them, and see how we can help to stop these kinds of things in our system but wherever we see it, we deal with it decisively, ” Alebiosu said.
He said that various stakeholders including the banks, law enforcement agencies and the judiciary had a role to play in curbing cybercrimes. (NAN)
Economy
GTCO Begins Deduction of USSD Fee From Airtime Balance

Guaranty Trust Holding Company (GTCO), says it will begin the deduction of Unstructured Supplementary Service Data (USSD fee from the airtime balance of its customers from June 18.
The bank in a message to its customers on Wednesday, said the N6.98 fee would no longer be deducted from customers’ bank account balance.
”Dear Customer, please be informed that effective June, 18, the N6.
98 USSD fee will be deducted from your airtime balance, no longer from your bank account”.The Nigerian Communications Commission (NCC) had directed deposit money banks (DMBs) to stop deducting charges for USSD transactions directly from customers’ accounts. (NAN)