As FEC Approves N621.23bn For Road Projects

by Fred Nwaozor

Penultimate week, precisely on 27th October 2021, the Federal Executive Council (FEC) in its not unusual weekly meeting, approved N621.23 billion for reconstruction of 21 roads covering a total distance of 1,804.6 kilometres across the six geo-political zones in Nigeria. It’s noteworthy that the proposed projects are to be undertaken by the Nigerian National Petroleum Corporation (NNPC) through the deployment of its own tax liabilities. The development was graciously disclosed by the Minister of Works and Housing, Mr. Babatunde Fashola while briefing the State House correspondents at the end of the FEC meeting held in Abuja. According to the Minister, who stated that there would be no more financing problems regarding the execution of road projects across the federation, nine among the 21 roads are in North Central, particularly Niger state. The reason is that Niger State is a major storage centre for the NNPC. He said “NNPC is doing this to facilitate the total distribution of its products across the country.”

He further gave an assurance that in the South-West, the Lagos-Badagry Expressway, the Agabara Junction, Ibadan to Ilorin (Oyo-Ogbomoso section) would be fixed. Three other roads are reportedly located in the North-East, two in the North-West, and two others in the South-East. The Odukpani-Itu-Ikot/Ekpene road, the minister said, had now been fully covered to resolve the problem of financing. He stated that in the South-East and South-South, there are Aba--Ikot Ekpene in Abia and Akwa Ibom States. Then the Umuahia-Ikwuamo-Ikot Ekpene road and so on. Similarly, in the North-West, it is Gada Zaima-Zuru-Gamji road, and also Zaria-Funtau-Gusau-Sokoto road. In the North-East, it is Cham, Bali Serti and Gombe-Biu roads. It could be recalled that in July this year, the FEC approved the award of a contract to Dangote Industries for the construction of five roads totalling 274.9 kilometres at the cost of N309.9 billion, reportedly advanced by the company as tax credit. In any given clime across the global community, capital projects are invariably what well-meaning citizens clamour for whenever a call to usher in good governance is raised in the public sphere. This is so, because, it is only by establishment of such projects as good road network, creation of portable water, sound health and education systems, that the governed could feel the impact of the government.

This is the sole reason the ratio between the capital and recurrent expenditures of the annual budget of a particular nation for a certain fiscal year often tends to favour the former to the detriment of the latter. It suffices to enthuse that it has become unarguable that capital expenditures usually benefit virtually the entire occupants of the concerned clime compared to recurrent expenditures that’s targeted to favour only a few. In view of these facts, successive governments all over the world that truly mean well for the governed have overtime made frantic and genuine efforts to initiate capital projects that would stand the test of time. Those who actualize this quest invariably succeed in writing their names in bold and gold. In this part of the world, particularly Nigeria, issues pertaining to governance seem to be given a different attention and interpretation by the relevant authorities. We have hitherto observed a prevalent situation whereby a certain prospective government would rigorously embark on election campaigns with the mantra to treat capital projects as priority, but would abruptly sound differently the moment it assumed duty.

This uncalled nonchalant attitude of governments at all levels has continued unabated under our nose as if the people are a set of imbeciles. Sometimes when asked for clarification by the affected citizens, the enquiry would be regarded as unimportant by the failing government. Lest we forget; on Thursday, 10th January 2019, the Federal Government (FG) led by President Muhammadu Buhari approved the sum of N100 billion for the Federal Ministry of Works, out of the proceeds of the Sovereign Sukuk fund, to finance critical road infrastructure across the country. The fund was for the construction and rehabilitation of 28 key economic road networks as captured in the 2018 budget. The FG disclosed that the road projects were located in the six geo-political zones of the country with each zone having a total allocation of N16.67bn. This signifies that the capital projects were evenly distributed among the entire regions. Speaking at the presentation of symbolic cheque to the concerned ministry, the Minister of Finance, Mrs. Zainab Ahmed noted that “the funds will be released to the Federal Ministry of Power, Works and Housing based on the framework agreed with the Trustees in order to ensure transparency and accountability in the use of proceeds.”

She added that “the Sukuk funding option is part of the initiatives of the government to diversify government funding sources, while also deepening the Nigerian capital market, mobilizing more savings and promoting financial inclusion.” The roads to be funded “will ease commuting, spur economic activities across the country and further close our infrastructural gap.” In his response, the Minister of Power, Works and Housing (now Ministry of Works and Housing), Mr. Babatunde Fashola stated thus, “roads are coming, those are assets that would enable business that would enable transport, movement of goods and services and assets that will last 25, 30 to 40 years. This is a good investment to make. So, for those who asked why are we borrowing, we are borrowing to build at today’s prices assets that will last us for another 30 years.” He further said “it will be more expensive to build but more importantly, where is the money going. As soon as I collect this cheque, I am going to give it to the contractors. But even, they can’t keep it; they have to give it to their suppliers because they need aggregates, they need materials and labourers but they first need suppliers.” The Minister went further to assure that the Buhari-led administration “Is committed to follow the part of greatness, build the foundation for tomorrow by investing in infrastructure. It means that for example, we have to raise money and I am very happy to learn that over 1,876 investors are already doing business because Buhari government decides to build. That is how to build an economy.”

Two years down the line, the ‘28 key roads’ as mentioned in the said contract are still reportedly undergoing rehabilitation in spite of all the assurances tendered therein. One may then begin to wonder the kind of country called Nigeria we found ourselves. In view of this omen, which has unabated been a recurring decimal in the Nigerian polity, the governed may have lost their trust in any government in power, or its allies. This is the reason the NNPC must take into cognizance that initiating a certain project is quite different from completing it, hence must consider the key steps needed to be followed towards ensuring the proposed projects are duly executed as planned. The contracts are required to be awarded to corporate bodies of proven background and antecedents. Thus, no compromise should be reached for whatever reason. The contracts ought to be implemented in line with the country’s Public Procurement Act, thus a levelling playing ground is expected to be provided among the prospective construction firms. In this regard, the memo for the proposed contracts should be made public to enable any interested firm apply for the job and due process ought to be followed afterwards in awarding the project to the deserving entities. Also, the contracts are meant to be awarded to only indigenous firms towards boosting our local content. So, the Executive Order 5 implemented by President Buhari must be adhered to.

When eventually awarded, the benefitting residents or communities should be properly made to comprehend the profile of the firms handling the respective projects with a view to making them able to alert/contact the relevant agencies whenever they observe any prank or foul play. It suffices to say that the beneficiaries must be a stakeholder in the overall implementation of the projects. As regards adequate monitoring, viable mobile teams comprising reliable personnel ought to be constituted by the concerned authority. This would enable a regular supervision as the work progresses. In the same vein, the contractors must be mandated to complete the projects within a given time frame, else, should be made to face sanctions. We are meant to acknowledge that initiating a capital project by the government is invariably the wish of the governed, but ensuring their completion remains their greatest desire. Think about it!

On Buhari's Sack Of The Power Minister

Fred Nwaozor

In the not unusual way and procedure of holding a Federal Executive Council (FEC) meeting, it held on Wednesday, 1st September 2021, and was presided over by President Muhammadu Buhari. In the said meeting, something very remarkable and unusual happened, and such had never transpired in the history of FEC meetings under the reign of President Buhari. Therein, the number one citizen of the Nigerian State announced the outright sack of the Honourable Minister of Power in the person of Engr. Sale Mamman as well as his counterpart in the Agriculture and Rural Development Ministry, Mr. Mohammed Nanono. Consequently, the duo was immediately replaced with Engr. Abubakar Aliyu for Power and Dr. Mohammad Abubakar for Agric. It’s worthy of note that the new bosses were already members of the President’s cabinet, and were previously the Minister of State for Works & Housing, and Environment Minister, respectively. It suffices to say that they were redeployed.

The President, without mincing words, disclosed that the process of reshuffling his cabinet for effective impact shall be continuous, having stated that it was the “tradition of subjecting our projects and programmes implementation to independent and critical self-review through sector reporting during cabinet meetings and at retreats”. He further said the “significant review steps” had helped to identify and strengthen weak areas, close gaps, build cohesion and synergy in governance, manage the economy as well as improve the “delivery of public good to Nigerians”. Though no definite reason was given for the President’s action, speculations had it that the abrupt development might not be unconnected with performance of the duo as ministers. However, the following day during his interview on the Channels Television, the President’s Adviser on Media, Mr. Femi Adesina refuted the claim that the sack of the ministers was linked to poor performance. The media aide said although the President must have had concrete reasons for dropping the duo, there was no place it was stated that their performance was weak, hence asked people to desist from such ill-advised speculations. It’s worth noting that the prime interest and essence of this column has been and remains tech-driven issues, thus my attention to the sack of the country’s power minister, hence this topic. It’s on record that this was the first time the President would sack any serving minister in his government since assumption to office in 2015. This was the reason this very move came as a surprise and shock to his allies, and perhaps the onlookers.

Even when the position of some of the ministers – during the President’s first term – was shrouded in myriad of controversies, and most Nigerians called for their sack without much ado, the boss seemed adamant and apparently gave a deaf ear to the development. It could be recalled that the current cabinet was constituted by the President on 21st August 2019; needless to say that the sack of the ministers came exactly two years after their inauguration. The half-time of any leadership tenure is the most suitable period to x-ray the overall performance and operations of the administration and its appointees with a view to making amends where need be. This is to assert that such action of Mr. President was orderly and acceptable, if it was genuinely done or not politically motivated. But one might wonder why he refused to make such move during his first term, between 2015 and 2019 precisely, not even when several concerns were raised by teeming Nigerians in respect of under-performance, incompetence, misappropriation, corruption, and allied matters. One could recall, I personally told the President on this column and in other fora that there was a compelling need to split the then Power, Works and Housing Ministry headed by Mr. Babatunde Fashola, and a few other well-meaning analysts equally joined in the crusade, yet our collective request wasn’t granted.

I made it clear, as at then, that the power sector deserved to have a separate ministry to be manned by a well-experienced person as minister. The President waited till his second term to do the needful. What if he didn’t succeed in his second-term bid? Notwithstanding, ‘it’s better late than never’. Two years after eventually creating a separate ministry for the power sector, the minister is being presented with a sack letter, and consequently replaced with someone else who probably is believed to possess the required requisite to perform the long-awaited magic in the troubling and dwindling sector. The big question at this juncture, which necessitated this tech-driven topic, is: the actual remedy to the Nigeria’s power sector quagmire, does it lie in the ability of the minister or the extant policies surrounding the said sector? To candidly tender the apt and succinct answer to this enquiry, we may need to revisit the history and facts book. The country’s generation sub-sector comprises about 23 grid-connected generating plants. These plants are in operation round the country with a total installed capacity of 10,396MW, with available capacity of 6,056MW.

The thermal-based generation has an installed capacity of 8,457.6MW, with available capacity of 4,996MW. The hydro-based generation possesses a total installed capacity of barely 1,938.4MW, with available capacity of 1,060MW. It’s noteworthy that the thermal segment has been sold to the private sector, except the Sapele Power Plc – generating about 414MW – that is 51% sold. Similarly, the hydro segment is under long-term concession. In its effort to increase the level of power generation in the country, the Federal Government (FG) in 2004 under the leadership of Chief Olusegun Obasanjo, incorporated the Niger-Delta Power Holding Company (NDPHC) as a public sector funded emergency intervention scheme. The NDPHC was imbued with the mandate to manage the National Integrated Power Projects (NIPP), which essentially involved the construction of identified critical infrastructure in the generation, transmission, and distribution as well as the natural gas supply sub-sectors of the electric power value chain. In total, the NIPP power stations were targeted to add about 4,774MW of electricity to the national grid network. Some of these stations have been privatized while plans are underway to sell the remaining ones to interested investors towards increasing private-sector participation in the power sector, thereby improving the ongoing reform programme of the FG. In furtherance of the reform policy direction, the Nigerian Electricity Regulatory Commission (NERC) has in the past licensed many private Independent Power Producers (IPPs). Some of the IPPs are reportedly at various stages of project development.

This analysis implies that the generation sub-sector is currently operating under the Public-Private Partnership (PPP), with almost 97% participation of the private investors. But the transmission segment is completely managed by the FG, whilst the distribution sub-sector is being operated and managed by private investors. It’s imperative to acknowledge that, even if all these generating plants are in good form, or functioning as expected, their total installed capacity will still not generate the needed Megawatts (MW) of electricity across the federation. Recently, by implementing reforms, Nigeria targeted 40,000MW generating capacity by 2020. Going by the estimate, she needed to expend approximately $10bn per annum on the power sector, to achieve the motive. Taking a painstaking cognizance of the abridged survey or review, as presented above, we would understand that the country’s lingering power crisis ought to be blamed on the epileptic policies guiding the sector, not the ability of the minister as being perceived. The fact is that, even if the best brain and most active technocrat is in charge of the Power Ministry, the sector will continue to wail and bleed.

The FG needs to, as a matter of urgency, decentralize the transmission grid, thereby giving room for each region or zone to manage their respective grids. This measure would help to eliminate the unending burden occasioned by theft, criminality, and corruption being experienced by the national grid. Hence, the private sector ought to be allowed to invest in the power transmission. There’s need for a candid legislation in this regard. In the same vein, healthy policies should also be created to encourage generation of electricity from renewable energy sources such as solar. This wouldn’t need to be connected to the national grid, hence the various states can see to its operations and management on a daily basis. The policy should equally create enabling environment to enable our trained technologists or engineers manufacture the needed devices for the generation. More so, formidable policies must be formulated by the FG to discourage the endless rampant importation of conventional household/industrial power generating devices whose operations depend solely on fuel, diesel, or gas, as the case may be. The importers of the equipment won’t live to see a functional power sector in Nigeria, hence the need for a policy or legislation to tame their unwholesome activities in the country. The political will must be worn like clothe to actualize the people’s aim. Hence, we must therefore look inwards towards solving our collective problem, rather than being myopic or shying away from the truth. Think about it!

Checking The Nigeria’s Tech Value

by Fred Nwaozor

It’s worthwhile for one to, from time-to-time, re-examine his or her personality value towards making amends where need be. It equally helps to know the qualities or features to be sustained thereof. Such a step, as mentioned above, isn’t only wholesome for an individual, but also in the case of an entity. It’s, therefore, needless to state that every creature requires the scrutiny. Herein, as the topic implies, we are specifically concerned about the tech value of the acclaimed giant of Africa. In other words, we’re dissecting how far and well she has hitherto fared in tech-driven matters and activities. One might wonder if Nigeria really has technology, let alone its value. The truth is that, the country could currently boast of over ninety tech hubs across the federation, the highest on the African continent. In recent years, Nigeria has ostensibly become an incubator for some of the continent’s biggest start-ups, including online marketplace such as Jumia and Konga; and these digital outlets are unarguably driven by tech expertise. It’s noteworthy that Nigeria reportedly has the largest economy in Africa with a Gross Domestic Product (GDP) of about $448.12 billion compared to its closest rival, South Africa whose present GDP is about $320 billion. However, it’s worthy of note that the real wealth of any nation is calculated by its GDP per capita, and Nigeria ranks 140 out of 186 in GDP per capita global ranking.

Per capita GDP is a financial metric that breaks down a country’s economic value (output) per person, and is calculated by dividing the whole GDP by the country’s overall population. In Economics, it’s widely accepted that technology is the key driver of economic growth of countries, regions or cities. Technological progress allows more efficient production of goods and services, in which prosperity depends on. Technology brings skills, knowledge, process, technique, and tools together, toward solving problems concerning human existence, thereby making their life secure and happy. It’s very pertinent in today’s world, because is driving the global community as well as making it appear better. In fact, it is gradually becoming inevitable in our various homes, offices, and workplaces. The Nigeria’s tech patent has grown to be an envy of all who understands its real content. In terms of human and material attributes, it has over the years remains significant in the global society and market. Take a walk round the world, you would comprehend that, most recent tech inventions and innovations across the globe were mainly as a result of contributions from Nigerians. Similarly, Nigerians remain the reason several countries’ tech sector have grown beyond limits. Ironically, the Nigeria’s tech sector is presently nothing to write home about. As the days unfold, the sector continues to decline in its value, hence taking the country’s name to a state of ridicule. Each day, the governments at all levels come up with empty promises and policies as regards tech-driven activity and innovation. The politicians at the country’s helm of affairs have unequivocally, over the donkey’s years, failed us in this regard. The good news is that, in spite of the lingering hurdles and challenges, the prospects of the country’s tech value remain obviously great, perhaps owing to the fathomless resources lying fallow. It’s worth noting that countless factors are behind the ongoing impediments in the Nigeria’s tech sector. For us to get it right as a people, these barriers continually posing threat must be severely tackled by the concerned authorities at all cost.

A certain tech-driven contract might be awarded by the government, in the long run, we would be greeted with myriad of untold stories attributed to paucity of funds. In such case, it could be either the fund made available for execution of the project had been squandered or that insufficient fund was approved ab initio. The steady economic fluctuation is another glaring factor that cannot be swept under the carpet. This particular plight has left Nigerians tech experts with no choice than to becloud their reasoning with uncertainties and fear of the unknown. More so, those who – amidst the tough times – insisted in putting something together, would not find the apt market to sell their products or patents. This could be as a result of infrastructural decay occasioned by lack of maintenance culture, or the required physical infrastructures have never been in existence from the onset. The cost of running tech firm in Nigeria is too high, to say the least. Poverty has also on its part really posed a great danger to the Nigeria’s tech value. The individuals who have the zeal and ability to invest in their expertise might end up being frustrated, due to lack of capital. This is why the country’s GDP per capita has to be fixed or elevated if she actually wants her tech sector to excel headlong. Nigerians do not trust made-in-Nigeria goods. The mentality of seeing foreign products as superior while branding domestically-made ones inferior, must be tackled. Aside sensitization, apt policies can properly assist in eradicating the social menace, which could best be described as a cankerworm that has eaten deep into our collective bone marrow. The governments must not necessarily invest in technology for their respective tech values to grow. In most countries where technology is seriously thriving, the individuals domiciled therein remain the key players, not the government. But such a phenomenon can never be witnessed if the enabling environment is conspicuously missing. To fix this anomaly, we must be ready and determined to address the quagmire in the political system. The country’s political instability is so intense, and continues to skyrocket by the day, that one cannot possibly say what the nearest future entails for our indigenous tech patent.

The policies are so weak that they can’t even initiate a project, let alone accomplishing it. To get things rightly done, we need to acknowledge that a country’s growth in any sector depends majorly, if not solely, on her extant policies. To be on the same page with me, take a look at any nation that has grown in a certain sector, and then take time to painstakingly x-ray the policies guiding the area in question. Just a research and adequate analysis would make you understand where exactly I’m coming from. Growth is not rocket science; it takes some processes. For such processes or procedures to occur, there must be existing principles. The moment the rules (principles) are thwarted, it marks the beginning of the end of the procedures. There are no two ways about it. Lest I forget, we need to equally take into cognizance that the reason most of the needed policies cannot exist in countries like Nigeria is that, our corrupt political leaders have realized that technology exposes corruption. Read my lips. They are apparently of the view that if tech is deployed in any area, it would certainly expose their corrupt practices. Take for instance, a situation where technology is fully implemented in the country’s electoral system as well as using forensic audit pattern in the finance sector.

The above factors are the reason we ought to clamour for overhaul. The country is in damn need of total overhaul of the system. To achieve this, we need to realize the full benefits of investing in technology. We are not here to reiterate the numerous merits of technology but to point out the goals and lapses in the said sector, in a bid to do the needful. If we spend time to highlight the outpouring merits, three editions of this column might not be sufficient. Artificial intelligence is deeply gaining momentum on a daily basis, signifying it has come to stay. Ease of access to information cannot be overestimated. Ease of mobility is another overwhelming experience. Better communication means and improved banking have, beyond reasonable doubts, made the world to seem not unlike a minute village. Learning has been digitalized, thereby silencing any form of impediment, owing to the presence of technology. Cost efficiency and apt time management are being assured in all tech-driven activities. These are verifiable facts. Countless innovations are springing up by the day in every facet of human endeavour. The ‘disabled’ are now abled, because of tech-driven tools, yet Nigeria and her likes seemingly await more prophets to tell them that technology has come to take the planet to the promised land. Understanding that the presence of adequate tech hub drastically changes the economic outlook of any country involved, is enough reason to place its content ahead of others. Think about it!