The Nigerian National Petroleum Company (NNPC) Limited, now a Companies and Allied Matters Act (CAMA)-regulated enterprise, was floated with an initial capital of N200 billion to provide better returns to shareholders, enhance oil industry operations and improve Nigeria’s revenue base. As a private sector enterprise, NNPC Limited is expected to create improved and more transparent operational framework for Nigeria’s oil and gas industry while sustaining confidence of local and foreign investors, writes Assistant Business Editor COLLINS NWEZE

The conversion of the Nigerian National Petroleum Company (NNPC) Limited from public to private sector enterprise was considered impossible several decades ago. That explains why not too many people saw the reforms and unbundling of the NNPC into commercially-oriented and profit-driven smaller units coming.

Then on September 2021, the Corporate Affairs Commission (CAC) completed the incorporation of the NNPC Limited in accordance with the new Petroleum Industry Act (PIA), a law that had taken almost 20 years to bring to fruition. With the hurdles off the way and official documentation completed as specified in section 53(1) of the law, the operationalisation of the Act to transform the troubled petroleum industry in the country commenced.

The PIA was signed into law by President Muhammadu Buhari on 16th August, 2021, following its passage by the National Assembly in July of the same year. Specifically, Section 53 (1) of the Petroleum Industry Act 2021 requires the Minister of Petroleum Resources to cause for the incorporation of the NNPC Limited within six months of the enactment of the PIA in consultation with the Minister of Finance on the nominal shares of the company.

With the registration by the CAC, the NNPC Ltd was floated with an initial capital of N200 billion. The Group Managing Director of the NNPC, Mallam Mele Kyari, said NNPC Ltd is expected to become a commercially-oriented and profit-driven national petroleum company that would be the envy of all players in the sector. He disclosed that the NNPC would be managed like a private sector enterprise that is more efficient in its operations, effectively maximise returns on investment for the 200 million Nigerians, ensure returns for shareholders and pay taxes to the government.

Kyari said that President Buhari will officially unveil the new NNPC Ltd on July 19 and invited all players in the sector to be part of the epoch-making event. At the same time, Section 65 of the Act encourages NNPC Limited and its joint venture partners to explore the use of incorporated joint venture companies. Consequently, he said the firm may be required to declare dividends to its shareholders as well as withhold 20 per cent of profit as retained earnings to grow its business like any other incorporated entity incorporated under the CAMA.

“Consequently, our company, the NNPC Limited will be unveiled on 18th of July 2022 by our President, and I invite you to join us in Abuja Nigeria for the historic event as we create the largest corporate entity in Africa,” he told a gathering of oil and gas professionals recently.

Speaking separately in a recent interview on a national television, he stated that when the NNPC is fully commercialised, the company will no longer render free services to the federal government. Kyari noted that from then, all services rendered to the government by the NNPC limited or its subsidiaries will come at a cost to government, including the remittance of federation crude account funds.

He stated that the NNPC was on course towards its final lap of completion, explaining that it will no longer have access to government funding, but would survive based on its internal resilience and efficiency. “First of all, the PIA is very clear that within six months, we must incorporate the NNPC as a company that is bound by the CAMA. The meaning of this is that you must be fully commercial, you must be profitable. It means that you will have no access to any other results, other than from your own production and your own productivity. So, that means that NNPC will be the different company that it has to be.”

Kyari said that when NNPC becomes a limited liability company, it will operate in a competitive environment, with the sole aim of making profits. He pointed out that the NNPC decided to be more transparent in its operations because of the perception of Nigerians that the company operates in a very opaque environment, explaining that even for its lenders, the condition of accountability remains sacrosanct.

“We know for sure, that historically many people have doubts about what NNPC does. Our shareholders think that we are an opaque company, that we are not representing them well, and that we don’t know what we are doing. We know that trust is very essential for our business. We also know that our partners, you know, financial institutions, even commercial partners would like to see and know what we are doing, so that they can invest in our company.

“So we know that making transparency and accountability, a primary focus of our activities will serve the best interests and will also enable our partners to see what we are doing, so borrowing will become easier for us,” he added.

Understanding the PIA

The PIA directs license holders to establish Host Community Development Trust(s) (HCDT) to manage community-related projects and issues within areas of operations. Thus, existing corporate social responsibility and community Memorandum of Understanding (MOU) must transfer projects and assets into these trusts.

For funding, the PIA sets a three per cent charge on the preceding year’s operating expenditures for upstream activities and two per cent for midstream and downstream activities. These activities focus on petroleum product depots, refineries, gas processing plants, fertiliser plants,

compressed natural gas (CNG), liquefied petroleum gas (LPG) depots, and liquefied natural gas (LNG).  The implementation of the contents of the PIA will see to the incorporation of a commercial and profit-focused NNPC Limited under Companies and Allied Matters Act (CAMA), with ownership vested in the Ministry of Finance Incorporated (and Ministry of Petroleum Incorporated) on behalf of the Federation to take over assets, interests and liabilities of NNPC. This structure is expected to pave the way for the eventual sale of shares to Nigerians.

Views from stockholders

An analyst at Renaissance Capital, Nikolas Stefanou, gave new insights on what NNPC should do. “As international investors, in particular the majors, are divesting their exposure from Nigeria’s upstream sector, the onus now is on the indigenous companies and NNPC to inherit operatorship, invest and grow production.”

According to him, the majors’ divestment theme is not new in Nigeria and has been ongoing for over a decade now, leading to the creation of many indigenous companies, some of which invested and increased production from the acquired assets (the success stories), while some others achieved little progress.

“For stakeholders in Nigeria’s upstream sector, the hope is for a Nigerian oil sector renaissance to follow post the majors’ divestments, with indigenous companies successfully taking over by investing in and growing production,” he said.

The report titled: ‘Nigerian O&G – The stakes are high,’ Stefanou, disclosed that  issues like under-investment in Nigeria’s oil sector, combined with low infrastructure uptime and sabotage/oil theft will be corrected by the NNPC current status. In emailed report to investors titled: ‘2022 Outlook: A Gentle But Steady Recovery,’ Head, Equities at FBNQuest Capital,  Olubunmi Asaolu, said the PIA attempts to create a new and more transparent framework for Nigeria’s oil and gas industry.

He disclosed that locally, there were significant changes in the oil and gas industry. The most obvious was the passage of the PIA into law because its passage was the most substantial piece of legislation for the industry in decades. The new law’s scope is wide-ranging but focuses on building a more efficient, profitable, and energy future-relevant industry.

“The PIA incorporated the national oil company, NNPC. It established two new regulators, the Nigerian Upstream Regulatory Commission (the Commission) and the Nigerian Midstream and Downstream Regulatory Authority (the Authority). This establishment was through combining functions of the now-defunct Department of Petroleum Resources, the Petroleum Institute, the Petroleum Equalization (management board) Fund, and Petroleum Products Pricing Regulatory Authority,” he said.

In addition, the PIA will create a more competitive fiscal environment for the country and has eliminated investor doubts on fiscal terms.

The Executive Director, Civil Society Legislative Advocacy Centre (CISLAC), Auwal Musa Rafsanjani, called for increased public trust and investors’ confidence in the NNPC following the reforms in the sector. He said the PIA law stipulates that NNPC be fully commercialized within a process that is also stipulated in the law.

He said the impact on the economy is looking good. “With the public being shareholders in the establishment will entail the public will benefit from the dividends of the business so also the government who holds 60 per cent of the shares. There is a potential of better management of the institution as it will be managed prudently as a private business,” he said.

Also speaking, the President, Nigeria Gas Association (NGA), Ed Ubong, said the PIA is the key that can transform the oil and gas sector, describing it as the biggest achievement of this government.  Speaking during the 5th Nigeria International Energy Summit (NIES 2022) held in Abuja, with the theme: “Revitalising the Industry: Future Fuels and Energy Transition,” he said that the PIA plays a major role in driving the Nigeria gas agenda.

Company and Allied Matters Act 

With the passing into law of the reformed Company and Allied Matters Act (CAMA, 2020), which replaced the CAMA 1990 Act, companies like the NNPC are now provided a regulatory framework for how businesses should be carried out in the country. These include the framework on areas of shareholding, registration processes, statement of compliance, minimum share capital, audit obligations among others.

Being now a commercially-oriented and profit-driven entity, the NNPC is expected to be managed like a private sector enterprise, well in some sense, and devoid of government’s brazen interference. In essence, these processes, it is expected would translate to a more efficient, slim and nimble national oil firm, which is able to take decisions without constant recourse to the powers that be.

Analysts explained that like every other company in the country, NNPC will pay taxes to the government and eventually be able to pay dividends to its shareholders, represented by government in its teething stages and then the public when it decides to have an Initial Public Offer (IPO).

Furthermore, the new NNPC will serve as a holding company for all its subsidiaries, over a dozen of them, in the post-PIA era. Under the new arrangement, the new NNPC will review its existing assets and liabilities, determine those that it intends to operate based on sustainable commercial principles and incorporate those assets into her balance sheet.

Since the NNPC does not and cannot operate without partners or third parties, those of them with subsisting contract(s) and joint operating agreements with the NNPC, will also have their fate determined by the PIA. This development will come drawing from Section 54 of the PIA, which provides that all assets and liabilities of the NNPC will be transferred to NNPC Ltd within the first 18 months of the PIA coming into effect.

Further to that, Subsection 2 of the Act states that any assets, interests, or liabilities not transferred shall remain that of the NNPC until extinguished or transferred to government. This means that some toxic assets may be excluded.

When the transitioning takes off in effect, existing contracts and Joint Operating Agreements (JOAs) with NNPC will be evaluated and transferred in line with agreed principles to ensure business continuity. As a business under CAMA and with the overarching guidelines of the PIA, the NNPC Ltd., or the new NNPC will enter new investments and partnerships in upstream assets to increase gas production.

It is also expected to expand its downstream operations, while modular or small-scale refineries will be developed in addition to current investment in rehabilitation of existing refineries to ramp up in-country refining.

Also, in transforming to a CAMA company, the NNPC will need to source for private funding, outside the apron strings of the government. It is also expected, to, due to a renewed commitment to transparency, scale up its credibility to its creditors.

The NNPC recently secured a $5 billion corporate finance commitment from the African Export Import Bank (Afreximbank) to fund major investments in Nigeria’s upstream sector. That’s perhaps part of the initial funding for the activities of the new entity. In another connection, the company has hinted that it will be raising between $3.5billion and $5billion as corporate finance to fund major upstream investments and would be pushing to take over ownership from non-investing partners through acquisition of pre-emption rights in the sample Joint Ventures (JVs).

NNPC’s profitability / transparency

The NNPC recently released its 2020 Audited Financial Statements (AFS) which showed N287billion group profit, up from N1.7billion loss position in 2019. The publication of the NNPC’s Audited Financial Statements on its website followed President Buhari’s declaration of N287billion profit after tax (PAT) in the year 2020 for the corporation.

While announcing the outstanding feat a little over a fortnight ago, President Buhari, who is also the Minister of Petroleum Resources, had said: “I have further directed the Nigerian National Petroleum Corporation to timely publish the Audited Financial Statements in line with the requirements of the law and as follow up to our commitment to ensuring transparency and accountability by public institutions.”

Kyari, had at various times since the President’s declaration of profit, attributed the turnaround to aggressive cost cutting, automation of the system and renegotiation of contracts downwards by about 30 per cent, among other tough measures.  Analysts said Nigerians, the economy, shareholders and other stakeholders will benefit from the new reforms at NNPC centre on transparency and efficiency of operations.

With the vast majority of Nigerians living in the country’s massive rural areas, agriculture can be a key driver of both human and economic development. However, farming is seen as a risky business, especially where small and medium-scale farmers often have to contend with risks and uncertainties related to financing, among other challenges. In this report, ASSISTANT EDITOR NDUKA CHIEJINA reviews efforts in the last 45 years to promote agricultural lending and insurance as a strategy to promote employment and higher levels of productivity

For 45 years, Nigeria has been grappling with how to solve one serious problem without creating another. For years, successive administrations have struggled to make access to finance easy for small and medium-scale farmers by de-risking rural agricultural finance or opening up access to credit in order to promote productivity; while at the same time assuring the banks that the credits they extend to farmers will not go down the drain.

To this end, many interventions were initiated by the government and the Central Bank of Nigeria (CBN) to make access to credit easier for farmers. However, the banks that were supposed to provide the credits were uncomfortable channelling credit to the farmers for several reasons. Top among the reasons was the risk and unpredictability that surrounds the practice of agriculture in Nigeria. Also, agricultural insurance was practically non-existent; so were the crisis of not having high-yielding seeds that are resistant to drought and negative vagaries of weather, weak debt recovery strategies and the mind-set of many farmers that bank loans are their share of the national cake and, as such, they did not factor in paying back the loans given to them by the banks.

To de-risk agriculture and make it attractive to the banks, the federal government and the CBN came up with two interventions. The Agricultural Credit Guarantee Scheme Fund (ACGSF) and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) were conceived.

The Agricultural Credit Guarantee Scheme Fund (ACGSF)

The Agricultural Credit Guarantee Scheme Fund (ACGSF) was established by Decree No. 20 of 1977 to guarantee agricultural credit facilities granted to farmers. The Federal Government and the Central Bank of Nigeria (CBN) both contribute to the fund in the ratio of 60 per cent and 40 per cent, respectively. The CBN doubles as the managing agent of the scheme and the secretariat of the ACGSF.

The scheme encourages deposit money banks and microfinance banks to lend to those engaged in agriculture by providing guarantee. It mitigates risks associated with banks’ lending to agriculture by guaranteeing to pay banks 75 per cent of the net amount in default in accordance with the provisions of the enabling Act. The ACGSF Amendment Act was assented to by President Muhammadu Buhari on June 24, 2019. In the Amendment Act, new strategies were introduced to repackage and reposition the scheme for greater effectiveness and efficiency with the aim of positioning Nigeria to become a self–sufficient food producer, creating millions of jobs, supplying key markets across the country and dampening the effects of exchange rate movements on local prices.

Under the new ACGSF Amendment Act 2019, the maximum for a non-collateralised loan has increased from N20,000.00 to N100,000.00 and the maximum for a collateralised loan rose from N10 million to N50 million. The ACGSF Amended Act 2019 ensured that agricultural value chain financing is now allowed under the scheme these includes; the financing of the production of farm machinery, implements and equipment for production, processing, storage and transportation as well as any purpose connected with activities within the agricultural value chain.

Speaking on the issue, Mr Stephen Okon, Chairman, Board of the ACGSF, said: “The Board in 2021 approved the increase of the interest drawback rebate for farmers and participants in the agricultural value chain from 40 per cent to 50 per cent to cushion the effect of the COVID-19 pandemic. The increase took effect from 1st January, 2022.

“The ACGSF scheme has proved relatively successful in de-risking the agricultural sector in Nigeria as evidenced in the number of loans guaranteed from inception to date. A total of 1,232,326 loans, valued at N130.903 billion, were guaranteed from inception to May 2022 out of which 973,646 beneficiaries had repaid a total of N98.91 billion.”

Narrowing the guarantees to the state level, Okon noted that the Federal Capital Territory (FCT) from January to May 2022 has guaranteed a total of 82 loan beneficiaries under the scheme, valued at N22.580 million. This brought the total guaranteed loans in the FCT from inception of the scheme in 1978 to May 2022 to 14,258, valued at N1.748 billion. In terms of loan recovery, 11,726 loans, valued at N801.058 million, were repaid under the scheme in the FCT from the inception of the scheme. These records, Okon said, show the level of “determination of the farmers to utilise the opportunities offered by the scheme to empower themselves and improve their lots.” He urged participants in the agricultural value chain in the FCT to take advantage of the opportunities provided in the Amended Act.

Lack of collateral to secure the loans was identified as a major challenge, which the farmers and banks had worked around. However Okon noted that “the major challenge for the farmers was taken care of by the Central Bank through its credit register and de-risking of the loans thought its credit guarantee schemes. As a result, the scheme has recorded 85 to 90 per cent repayment success from the farmers.

Ogbu Onyeka Michael, Branch Controller, CBN, Abuja Branch, said the ACGSF is not only an important programme of the CBN, but the first development finance intervention scheme to be established by the bank. “In fact, the scheme heralded the birth of the Development Finance Department (DFD) of the Bank.” The success achieved under the ACGSF, he said, “has led to significant improvement in Deposit Money Banks’ (DMB) lending to the agricultural sector and has led to remarkable growth in agri-business value chain in Nigeria.”

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL)

Launched in 2011 and incorporated in 2013, the CBN set up a $500million non-bank financial institution wholly-owned by it but operates with a private sector disposition to executing projects. That was how the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) was born. NIRSAL was established and incorporated by the CBN to stimulate the flow of affordable finance and investment into the agricultural sector by de-risking the agribusiness finance value chain, fix agricultural value chains, build long-term capacity and institutionalising incentives for agricultural lending through five strategic pillars namely: risk-sharing, insurance, technical assistance, rating and incentives. Essentially, NIRSAL was created to deliver bespoke solutions to de-risking agriculture.

In 2018, the National Bureau of Statistics (NBS) released a report that Nigeria’s oil and gas sector received the highest allocation of private sector credit, around 22 per cent of the total credit. Second place was manufacturing with 14 per cent; while all other sectors received less than 10 per cent. Agriculture, which employed at the time around half of those working in Nigeria and contributed around a third of the country’s GDP, received only three per cent of total bank credits.

Commercial banks are set up purposely for profit-making. They are basically interested in short-term lending with high returns. Oil and gas companies fit perfectly into what the banks would like to do business with as they export crude oil and the import of its refined products – a short-term activity with high returns. Investment in agriculture, on the other hand, is a long tenured investment. It has a longer gestation period. Commercial banks don’t want to tie down their facilities. Added to this is the lack of sophistication, proper book keeping, and collateral, all of which characterised small holder agricultural ventures across Nigeria. These inadequacies made financing agriculture unattractive to the banks.

To bring finance to the farmers NIRSAL Plc came in to act as a guarantor for commercial banks. It will stand as a guarantor that lending commercial banks will go to should ‘something’ go wrong with the facility extended to an agro-businesses. In discharging this important mandate of creating linkage between segments of Nigeria’s agricultural value chain (AVC), NIRSAL has facilitated over N73billion into Nigeria’s agro processing industry from inception till date. NIRSAL does not give credit facilities to farmers; it mobilises funds from sources, including deposit money banks, development finance institutions, private equity investment firms and other financial institutions to lend out to farmers.

NIRSAL’s credit risk guarantee (CRG) in agriculture value chain contributes immensely to boosting federal government’s agricultural promotion drive. The CRG is the agency’s core item for sharing agribusiness-related credit risks with commercial banks and financiers by up to 75 per cent depending on the segment that the CRG applicants operate in. The riskier the farmer group or agribusiness operations, the higher the percentage of risk NIRSAL shares.

By protecting financiers and investors from possible losses when they facilitate credit to agricultural business, NIRSAL has built up their confidence to lend to players in the sector, a sector once widely considered as a no-go area in finance circles. With NIRSAL CRG now in place, farmer groups and agribusinesses, which hitherto before advent of  CRG  had difficulty securing loan approvals from commercial banks, now enjoy smoother approval processes for the loans they require to expand their operations, increase their profits and enhance their livelihoods.

Also critical in the creation of NIRSAL CRG-backed loans is NIRSAL Plc’s constant engagements with commercial banks and training of their officers. Over 4,250 bank officials have been trained on NIRSAL CRG guidelines and efficient agriculture lending, resulting in a better understanding of the two, an improvement of banks’ disposition towards agriculture lending and an increase in bank lending. With the introduction of the NIRSAL Plc’s CRG scheme, banks’ lendings to agriculture have jumped from 1.4 per cent pre CRG to 5.4 per cent as of Q3 2021. As at the time of this report, NIRSAL’s CRG portfolio now stands at N152,859,549,314.5

Speaking recently on NIRSAL’s role as a credit guarantor, Managing Director/CEO Mr. Aliyu Abdulhameed, said that as a guarantor, its support positively impacts financiers, borrowers and the nation’s economy. According to him, “while financiers are now able to confidently invest in profitable agribusiness ventures, agribusinesses who borrow from them can improve productivity and profitability, all of which generate much-needed local economic activity.”

The agency’s finance facilitation efforts have generated around US$2.5 billion worth of economic activity through agricultural products/outputs and other value chain economic activities, created 360,000 direct jobs and positively impacted the lives of 1.8 million Nigerians. As a result of the success of NIRSAL’s risk-sharing model, commercial banks have pledged a combined US$500 million to fund agriculture and agribusiness. Furthermore, NIRSAL has been approached by other African countries to provide support for the establishment and implementation of risk-sharing facility models in their respective jurisdictions.

In specific terms, NIRSAL issued 50 per cent Credit Risk Guarantee (CRG) and 20 per cent Interest Drawback (IDB) on respective loans of Gbagolo Integrated Farms Limited – a livestock producer and TOAJ Nigeria Limited a cocoa dealer. Leveraging on its CRG, NIRSAL facilitated the approval and disbursement of N81.8 million and N150 million from Union Bank Plc and Sterling Bank Plc respectively to Gbagolo and TOAJ. While Gbagolo Integrated Farms Limited will use its N81.8 million Term Loan to finance the purchase of 25,000 point of lay birds, 25,000 capacity battery cages and feeding compliments, TOAJ Nigeria Limited will channel its N150 million Export/Trade Finance facility towards the sourcing and purchase of cocoa for export.

The injection of these finances will create a positive knock-on effect for players along each segment of both value chains and the agribusinesses’ host communities at large. Another element for de-risking agriculture is the provision of insurance coverage. Abdulhameed, at an event in Lagos, once disclosed that NIRSAL had provided insurance cover worth N6.5 billion to protect farmers in the country. He said NIRSAL had developed and launched the Area Yield Index Insurance product and protected over 37,399 farmers, with over N121 million paid out as compensation.

In another development, NIRSAL, in collaboration with the Royal Exchange General Insurance Company (REGIC), recently developed the Hybrid Multi-Peril Crop Indemnity-Index Insurance (HM-II).

The new product is designed to protect farmers from losses during a planting season caused by bad weather (low and high rainfall, early and late season dry spells, lightning, hailstorms and thunderstorms), pest outbreak, disease outbreak, fire outbreak and permanent disability or death of the farmer. A key advantage of the HM-II is that in cases where such risks happen, benefits paid out to the farmer would be up to the maximum loan or the insured amount after confirmation by advanced satellite technology, an assessment by an agriculture expert, or both.

Despite these interventions to de-risk agricultural financing, many banks are still sceptical when it comes to lending to the sector. What this means is that the banks still consider agriculture to be a high risk venture to finance. The fears being exhibited by the banks are justified considering wide-ranging socio-economic/structural issues like insecurity in many parts of the country, inadequate infrastructure characterised by almost non-existent power, poor rural roads to facilitate the evacuation of farm products. Also, lack of sophistication, that is the adoption of modern technology to boost agriculture and poor booking methods, is bound to scare away the banks.

However, NIRSAL and ACGSF appear determined to bridge the gap between farmers and finance to change the narrative from mere farming or agriculture to a full-scale commercial enterprise with all the trappings of a modern business enterprise.

Foot bridges abound in Lagos, Nigeria’s commercial hub, a city estimated to have over 20million residents, struggles with infrastructure challenge but the government with resources at its disposal continue to close the infrastructure gap. TOFUNMI SANUSI looks into the reality of pedestrian bridges in Lagos.

One of the duties of every government in a country is to provide certain facilities that will aid ease, comfort and security for its citizens. One of these numerous facilities is the pedestrian bridges.

To reduce avoidable deaths on the roads, many of such bridges have been constructed on high density corridors of Lagos such as Ojota old garage, palmgrove-onipanu, 7up motorways, Ojodu-Berger, Oworonshoki, Cele, Sanya, five star, Obanikoro, Charlie boy by Gbagada, Alapere, Cele, amongst others.

Sadly, these foot bridges are not being utilized by residents of the state. This sad development has triggered fears of people being hit by cars for their failure to utilize available foot bridges.

Level of compliance/Enforcement level

On the 2nd of August, 2012, the one time Governor of Lagos State, Babatunde Raji Fashola (SAN) signed the Lagos Road Traffic Bill into law in order to ensure safety and orderly flow of traffic in the state, bearing in mind that accident rates was on the rise during his tenure. Typically, when there is a law, there should be punishment for offenders. This was clearly stated in the law, but as it is today, the enforcement level in the state is quite low. This has in turn given people confidence to flout the rules.

It is no longer news that accidents sometimes occur when people choose to ignore these bridges. Several cases of oncoming vehicles on very high speed hitting people have recorded. It is also rampant to see people contending the roads with public and private vehicles, waving and pleading to cross thereby leading to congestion that sometimes elongates to miles away.

Take Ojota bridge for example, even the okada riders are seen navigating their way on these highways to get to the other side of the road.

All these is as a result of low or epileptic enforcement. Residents of Lagos are comfortable going against constituted rules because there’s no logistics put in place to call them to order.

The Actual Reality

Some bridges have been deserted to the point that it becomes scary if a lawful citizen decides to use it as a result of the loneliness and quietness of the environment. It has become a den of thieves and hooligans.

As against its original purpose, market women have turned these bridges to their point of sales. Beggars and people with various ailments have turned the place to their abode. It is even very common to see some physically challenged men, sweeping the stairs that leads to the bridges. These bridges are still in use but for wrong purposes. More people are comfortable crossing the road as it a faster means of getting to their destinations.

Another reality is that, as a result of people disregarding these bridges, traffic flow is disrupted because vehicles have to wait for people crossing to pass.

Residents Perspectives

Residents of the state have given one reason or the other as to why they don’t use the bridges

At night, sometimes in broad daylight, there is robbery attack and the private car owners are usually victims where their personal belongings are taken. Now, cases like this can been avoided or drastically reduced if no pedestrian is allowed to ply the roads.

This happened to Rasaq Ayeola who shared his ordeal with The Nation about the incidence that happened to him last year at Oworonshoki bridge where two men approached his car, disguised as though they wanted to cross to the other side of the road but ended up robbing him at about 5:28pm on his way back from his office.

In his words “if there weren’t other people crossing and causing congestion on the road, they won’t have had the courage to commit that kind of atrocity. My laptop and phones were taken.”

Although, there still exist some law abiding and safety conscious citizens that still ply the bridges, but some argue that the bridge is less safer than the roads as it has become a gun point for robbery and ritual killings especially when the day is not so bright like early in the morning and late evening.

This was the case of Ojomo Victor who was robbed of his belongings sometime in 2020 at the Ojodu-Berger bridge on his way to work in the morning. Since then, he vowed never to use any bridge anymore.

For Chinwe Francis, a 57 year old teacher, laziness to climb the bridge makes her cross the highway.

“I have never had any bad experience on bridge, I just don’t like using the stairs. By the time I get up there, I pant profusely.”

Likely solutions

As it is today, it appears that pedestrians have stylishly become their own enemies. The infrastructure put in place to guarantee security has been bastardized. It is therefore important that government take charge of the situation. Every organization/body put in place to ensure compliance should be greatly awakened. Epileptic enforcement should be discouraged.

If things are done this way, there’s a high possibility that there would be a drastic reduction in deaths. Apart from this,orderliness will be the order of the day as vehicles will ply the road, and pedestrians will use the foot bridges, just as it ought to be. Although attempts have been, and are still being made, efforts should be doubled.

It is also important that offenders be prosecuted. This will serve as a lesson to many likely future offenders. A lesson for one will show the seriousness and level of commitment to safeguarding citizens and making things ad they should be.

Restoring confidence in the Judiciary, improving the welfare of judicial officers, enthroning a culture of accountability, ensuring justice over technicality and speeding up justice administration through reforms are some of the tasks before the Acting Chief Justice Olukayode Ariwoola, report Deputy News Editor JOSEPH JIBUEZE; ADEBISI ONANUGA and ROBERT EGBE.

A lot is expected of the Acting Chief Justice of Nigeria, Olukayode Ariwoola, who was sworn in yesterday by President Muhammadu Buhari.

He is coming when confidence in the Judiciary is at its lowest ebb and Justices of the Supreme Court, for the first time, openly complained of neglect and criticised a CJN.

In addition to addressing the issues at the apex court, he must work to restore confidence in the Judiciary, improve the welfare of judicial officers at all levels, enthrone a culture of accountability and carry out holistic reforms towards speeding up justice administration.

He must also bring an end the era of technical justice over

The Nigerian Bar Association (NBA), as well as senior advocates of Nigeria (SANs), including former NBA President Dr Olisa Agbakoba, Mike Igbokwe and former Lagos State University (LASU) Vice Chancellor Prof Lanre Fagbohun, urged him to hit the ground running.

Others who spoke include a former NBA Vice President Monday Ubani, activist-lawyer Debo Adeleke; a former member of the Ogun State Judiciary Service Commission, Abayomi Omoyinmi and judicial watchdog Access to Justice.

The NBA urged the Judiciary to prepare to reform itself in the wake of the resignation of Justice Ibrahim Tanko Muhammad as CJN.

Its President, Mr. Olumide Akpata, said there was an urgent need for “cleansing the Augean Stable” following recent concerns about the welfare of Supreme Court Justices and dwindling public confidence in the third arm of government.

Akpata thanked the outgone CJN for enabling a smooth relationship between the Bar and the Bench.

NBA said: “It is, however, impossible to consider His Lordship’s retirement in isolation of the recent unprecedented developments at the Supreme Court where 14 Justices of the court censured the outgone CJN over His Lordship’s handling of their welfare and related issues.

“Beyond this, there is near universal agreement that public confidence in the Judiciary and indeed the legal profession is at an all-time low.”

The association demanded immediate judicial reform by Justice Ariwoola.

Akpata said: “There is now more than ever the need for urgent reforms in the Judiciary and to rebuild the almost dissipated confidence that Nigerians have in the Judiciary and the wider legal profession in Nigeria.

“These should form the immediate first tasks for Justice Ariwoola.

“The NBA welcomes his appointment and pledges its readiness to work together with His Lordship and the Judiciary in cleansing the Augean Stable and addressing the ills that have continued to plague not just the Judiciary but the entire legal profession.”

Dr Agbakoba expects a reform of the justice administration processes.

“I know Mr Justice Ariwoola and a lot will be expected of the Acting CJN to turn around the justice administration process as it is clearly at a very low point,” he said.

 ‘Lean less on technicalities’

Prof Fagbohun identified key issues the Acting CJN must address.

He said: “I heartily congratulate my Lord CJN, Hon Justice Ariwoola. The reality confronting Nigeria’s justice sector is such that the new CJN must hit the ground running.

“Achieving autonomy in ways that will bring self-respect is critical. Entrenching discipline must be at the core of his agenda.

“The Supreme Court must be able to deal with the cynicism that the court is leaning more in favour of technical justice and rigorous adherence to inordinate legalism.

“Let us have a Supreme Court that will push form over substance.

“History indeed beckons on my Lord CJN to work with other Lord Justices in ensuring that our apex court is no longer perceived as sabotaging justice.”

 Igbokwe: financial independence crucial

Igbokwe urged the Acting CJN to focus on welfare.

He said: “I congratulate him and wish him well. Against the background of welfare issues raised by Justices of the Supreme Court recently, I believe he is already aware of those welfare issues.

“So, I expect that he will immediately tackle them not only at d Supreme Court but as the head of the Nigerian judiciary, tackle them also at the Court of Appeal and trial courts as the problem is not limited to the Supreme Court.

“Such issues should not be allowed to raise their ugly heads again and distract the court.

“It is very important because the judiciary cannot be independent and fully perform its role as an arm of government and in excellent justice service delivery unless its welfare is well taken care of and it is financially independent.

“He must wear the hat of an adept administrator of the judiciary and justice also in order to successfully manage its various problems to make it stronger, more reliable and to occupy its pride of place in the common law countries.

“From his antecedents, I believe he will not fail Nigerians who are looking up to him and that he will leave the office better than he met it.”

Ubani said Justice Ariwoola has a duty to implement some of the reforms he knows that are necessary for the Supreme Court.

“The long delay experienced in the Supreme Court to have dates must be looked into expeditiously,” he said

‘Respect Justices’ demands’

Adeleke and Omoyinmi urged Justice Ariwoola to respect the demands of 14 justices.

They said the demands were a pointer to the fact that all is not well with the apex court and that there is an urgent need to fix the problems to save the judiciary.

Adeleke urged Justice Arinwoola to address all issues raised by his colleagues.

“I expect him to justify the confidence reposed in him by addressing those issues. The fact that they voice them out means it has gotten to an alarming stage.

“The judiciary is the only institution that has not been balkanised by political parties and politicians.

“He should do the right thing and return normalcy  to the judiciary.”

Adeleke believes the appointment of Justice Ariwoola was a good omen as due process was followed.

Omoyinmi agreed with Adeleke on the need for Justice Ariwoola “to look at the demands of the 14 Justices in all its ramifications in respect of funding, allowances for diesel to fuel their generators and other issues raised in their letter.”

Omoyinmi urged the Acting CJN to ensure full autonomy for the judiciary.

“If he fails to do this, those issues raised by his colleagues would rear their ugly heads again in the nearest future.

“He should work towards ensuring that those issues are addressed. Something urgent must be done about them.

“He should hit the ground running and put things right in the apex court. He should set an example for others to follow,” he advised.

 ‘Chance to reboot Judiciary’

A2Justice, in a statement by its Convener Joseph Otteh, said Justice Muhammad’s resignation draws the curtain on his illustrious career, having risen from humble beginnings.

“Although circumstances of his emergence as Chief Justice remain controversial, Access to Justice commends Justice Muhammad for the decision to step down following reported health concerns.

“A decision to give up an office with so much influence, prestige and power cannot come lightly, and a less forthright person may have chosen a different course of action.

“By this action, he has shown utmost responsibility of office and personal integrity.”

A2Justice said Justice Ariwoola’s emergence “offers a new opportunity for rebooting the Judiciary and resetting it on a path of renewal and re-energization”.

It added: “Nigeria’s Judiciary has, for too long, been hung over by dark clouds and has performed poorly across a number of performance indices.

“Public confidence is at low thresholds, and the Judiciary’s transparency and accountability have come under increasing question.

“All this is taking place while the welfare of judges is dwindling, and the independence and autonomy of the judicial department are increasingly undermined by the government.

“Justice Ariwoola must declare a state of emergency in the Judiciary and take every step necessary to restore the health, efficiency, authority and accountability of the Judicial arm of government.”

Despite perennial issues such as paucity of fund and other daunting challenges seriously affecting the federal and sub-national governments, Ogun State under Governor Dapo Abiodun is steadily rewriting the narratives in critical sectors of the state economy in a way that is bringing renewed development to the Gateway State. ASSOCIATE EDITOR ADEKUNLE YUSUF and ROBERT EGBE report

The day was Tuesday, May 24, 2022. The venue was the popular Panseke Junction, Abeokuta, capital of Ogun State. The event was the official inauguration of the 3km Panseke-Adigbe-Opako Road within the Abeokuta metropolis. The strategic road, which traverses Abekouta South, Obafemi-Owode and Ewekoro LG, was one of the major roads started but abandoned by the immediate past administration in the state.

Speaking at the inauguration ceremony at the popular Panseke Junction, Governor Dapo Abiodun described the event as symbolic, stressing that the project is a fulfilment of his administration’s promise to the people of Ogun State. In many ways, the 3km road is particularly of tremendous economic importance to the Gateway State, as it traverses three Local Government Areas and also provides a viable bye-pass to the busy Ita-Oshin-Lafenwa end of the Abeokuta-Ifo-Sango-Lagos expressway through Obada Oko.

On the micro level, the road adds to the infrastructure aesthetics of the area, with reinforced concrete median, a carriage width of 8m in each direction, and reinforced concrete drain and walkway. The benefits of getting the road done, if weighed on the macro scale, are also equally huge. Among other benefits, it puts in a position of advantage the state’s Transport Master Plan, especially the road transportation aspect of the administration’s multi-modal transport agenda, since the road will serve as a boost to the state’s transportation development plan for Abeokuta, one of the fastest growing cities in Ogun State.

“This road has a history. It was started on December, 2018. That makes it one of the inherited projects from the immediate past administration. At the inception of our administration, and in our usual methodical, strategic and inclusive approach, we inaugurated a committee to consider the status and viability of these inherited projects.

“Then, I made a promise to the good people of Ogun State that we will complete all inherited projects that have direct bearing on the development of our dear state. Here we are! We are fulfilling our promises. Since 29th May, 2019, our dear state has witnessed a new vista in infrastructural development. We thank God that we are here gathered today not only to commission this road, but to fulfil the promise made. This is to show that our words are our bond with the people of Ogun State,” an elated Abiodun said.

That was not the only landmark project successfully completed and delivered by the administration. On Thursday January 13, during the inauguration of 14km Ijebu Ode-Mojoda-Epe Road, President Muhammadu Buhari, who was officially in the state for the purpose, was so impressed that he said Governor Abiodun has justified mandate given to him by the people of Ogun State. President Buhari described Abiodun as the ‘‘performing Governor of Nigeria’s Gateway State,’’ saying he is a worthy example of ‘‘promises made, promises kept.’’

The President gave the accolade while addressing residents of the state, during his one-day official visit to the state where he inaugurated some landmark projects delivered by Abiodun’s administration. During the official visit, President Buhari inaugurated the Ijebu Ode-Mojoda-Epe road and other four projects located in different parts of the state. The President’s entourage included other governors: Yobe State, Mai Mala Buni; Ekiti State, Kayode Fayemi; Osun State, Gboyega Oyetola; Lagos, Babajide Sanwo-Olu; Ondo State, Rotimi Akeredolu, and representative of Oyo State Governor, Engr Rauf Olaniyan. Also on the ground were Africa’s richest man, Alhaji Aliko Dangote, and former governors Olusegun Osoba, Senator Ibikunle Amosun, Otunba Gbenga Daniel, among others.

The President, who showered praises on Governor Abiodun, for delivering visionary and trail-blazing projects for the wellbeing of the people of the state, despite prevailing and challenging circumstances occasioned by the COVID-19 pandemic, declared that the present administration under Governor Abiodun has transformed the state than how he left it after his last visit in 2019. The President noted that the lofty projects: the Gateway City Gate; the 42-Kilometre Sagamu Interchange-Abeokuta Road; the 14km Ijebu-Ode-Mojoda- Epe expressway and two Housing Estates for low, medium and high-income earners at Kobape and Oke-Mosan in Abeokuta, respectively, could not be possible without the state government’s huge investment and commitment to the security of lives and property.

‘‘This project has made Ogun State one of the safest and most peaceful states in the country and investors’ destination of choice. You (Prince Abiodun) have justified the mandate of the people of Ogun State. You have represented our party (APC) very well,’’ President Buhari said.

The President expressed delight that the 14km Ijebu Ode-Mojoda-Epe Road inaugurated by him has been reconstructed into a modern expressway by the state government. He noted that the road would complement the Sagamu-Benin Expressway that the Federal Government is currently reconstructing; also due for commissioning this year. ‘‘Just across the road is the 42-kilometre Sagamu-Interchange-Abeokuta road, which the state government has reconstructed and equipped with street lights. That road enjoys a direct linkage with the Lagos-Ibadan Expressway that the Federal Government is rebuilding and due for completion later this year. I am particularly impressed by the quality and standard of your road projects, and the creative way you have deployed resources to reconstruct and rehabilitate them. It is significant to note that the two road projects being commissioned today are federal roads. This is an example of constructive engagement, cooperation and collaboration between the States and Federal Government. These roads also fit well into our rail transportation masterplan that connects Lagos, Nigeria’s economic capital to Kano, with Ogun State having more rail stations, along the Lagos-Ibadan rail corridor.’’

Three years after taking the reins of government, Governor Abiodun’s administration has remained focused in waging relentless war against poverty and all indices of underdevelopment in the state.  Since May 2019, Abiodun has been making good his promise to develop road infrastructure with an even distribution and commitment of resources and time to all senatorial districts of the state. In all, more than 270km of new roads have been constructed; while over 300km of roads have been rehabilitated. Essentially, there is a minimum of one road project in each of the state’s 20 LGAs. These records are not unconnected to the revival and operationalisation of the state’s road maintenance agency known as the Ogun State Public Works Agency (OGPWA).

In Ogun West, the reconstruction of Raypower Road and Imasayi-Ayetoro Road has been completed and the new roads are already being used by motorists; while Oke Ola Road in Imeko and Owode-Ilaro Road are currently being reconstructed. Also, the government has reconstructed the Odo Afa Road and Bridge in Ipokia LGA, which had been in an unfavourable condition for use over a long period of time. Of particular importance is the 19.2km Agbara-Lusada-Atan Road, which had long been abandoned despite the industrial significance of the region to the state’s economy.

The road project, which was flagged off by the governor on Thursday, April 29, 2021, in which asphalt is now being laid on a section, is going at a commendable pace that will deliver a quality road on completion. It would also be recalled that in the same month, Governor Abiodun commissioned the 10.25km Lusada-Igbesa Road, which was constructed by the Ogun Guangdong Free Trade Zone in partnership with the Ogun State Government.

In Ogun East, completed road projects include: Oru-Awa-Ilaporu-Ibadan Road, Fusigboye-Ojofa Street Road and Asafa Oke-Asafa Isale-Ayegun-Ojofa Street Road in Ijebu Ode. Other projects, which are ongoing, include: the 14km Ijebu Ode-Epe Expressway; Oba Erinwole Dual Carriageway, Sagamu; Molusi College Road; Ilishan Market Road; 11km Atan-Erunwon Road; Ogbagba Street Road; and Ejinrin-Oluwalogbon-Mobalufon-Ibadan Road.

In Ogun Central, completed road projects include: Obantoko Road (Fajol-American Junction-Unity Estate-Gbonagun); Idi Aba-Oke Lantoro Road; and Ikoritameje-Adenrele/Olose Titun-Vespa Road. Ongoing project which are nearing completion at a commendable pace include: construction of the 42km Abeokuta-Sagamu Interchange; reconstruction of Panseke-Adigbe Road; as well as extension of the proposed gate Development at Sagamu Interchange. In Ifo LGA, roadworks are ongoing on Akute-Denro-Ishasi-Oluwakemi Road.

Among township roads, the 6km Koriko Village Road that leads to Association of Senior Civil Servant Housing Scheme was upgraded in the period under review – designed to ease the hardships faced by residents and other road users. While inaugurating the 2.1km Lantoro-Elite-Idi-Aba Road in Abeokuta on Wednesday June 16, 2021, Abiodun reiterated that his administration’s commitment to intracity road is to reduce travel time and resolve gridlock. The governor, while delivering the road leading to the home of the first civilian deputy governor in the state, late Pa Sesan Soluade, said the road which was chosen for reconstruction by his administration in conjunction with the Community Development Associations, traditional rulers and other stakeholders, would drastically reduce travel time and resolve traffic gridlock in the axis.

He noted that the road was executed through direct labour under the watch of Ogun State Public Works Agency (OGPWA) to ensure minimal cost without compromising the quality of the job, adding that the method provided direct employment to the youth in the project catchment area and engage local suppliers of materials, thus supporting his agenda of socio-economic development of the state and individual prosperity of citizens.

“This project, Oke lantoro-Elite-Idi-Aba road, is 2.1 km in length. It will serve as an effective alternative and bye pass to those who are coming from either Lantoro or Obantoko area or Asero and going to Idi-Aba or Ajebo road. They would not need to go through Iyana Mortuary Junction. This will not only serve the purpose of reducing travel time and resolving traffic gridlock, it will also enhance the quality of life of residents around this area and increase the value of properties and become a source of prosperity to the owners, which is a major anchor of our governance vision.

“Let me reassure our people that construction, rehabilitation and maintenance of intra-city roads will continue across all the 20 LGs in the state. We have reinvigorated the Ogun State Public Works Agency, OGPWA, to take on this challenge. We will continue to look out, o cater for and attend to the welfare, well-being and wellness of the people of Ogun no matter where they live in the state at all time”. Abiodun stated.

Abiodun explained that his administration’s methodical approach to infrastructural development of the state had informed the reconstruction of arterial roads linking the state with Lagos State, such as Ray Power Road and Ikola / Navy – Osi-Ota Road in Ota, Ijebu -Ode to Epe road, and Atan-Lusada-Agbara road which was flagged few months and due for completion next year. He added that roads were being constructed in 18 out of the 20 Local Government Areas in Ogun, disclosing that via Transportation Masterplan the state will soon launch its ultra-modern mass transit bus system with the pilot scheme in Abeokuta metropolis.

Transport, health, housing, water, and waste management

Beyond road infrastructure, Governor Abiodun’s administration has established the new Ogun State Waste Management Agency (OGWAMA), which has been operating effectively. This has verifiably controlled indiscriminate waste disposal, drainage clogging as well as reduced the cost of state funds previously expended on dredging.

In the area of transport, ICT-enabled mass transit buses have joined the fray in Ogun State. Having taken delivery of high-capacity buses in May 2021, which it said was the first batch of the internet-enabled vehicles to be used for the state’s Bus Mass Transit Scheme targeted at easing access to safe, public transportation as well as create jobs in the value chain while also giving the state internally generated revenue (IGR) a boost, the state government, on April 7 2022, launched its transport scheme and multi-modal transport masterplan. The buses, which are operated located locally, are fully air-conditioned and have Wi-Fi within them.

Having delivered over 1,000 units of the 2,500 housing units targeted by the administration as at the end of 2021, a minimum of 1,000 additional units are currently being worked upon in 2022, spreading across the Prince Court Estate, Kemta, Idi-Aba, Abeokuta; Kobape in Obafemi-Owode LGA; the King’s Court Estate, Oke-Mosan, Abeokuta. Others are at different stages of completion in Ijebu-Ode, Sagamu, Ilaro and Otta.

In the period under review, the state government has rehabilitated the Iberekodo Dam, with five new gates installed as well as gear hoists, cofferdam demolished, and water flow restored. With water flow already restored, the Ogun State Water Corporation has resumed supply. A 14.5ml water reservoir has also been constructed in Abeokuta, the state capital.

The state government has commenced the construction of the Ogun Agro-Cargo Airport in Iperu-Ilishan Remo. The airport, which is a major boost to the local agro-processing and export subsectors of the state, is located in the AfDB-approved Special Agro-Processing Zone (SAPZ), which hosts several major industries, and it will ease logistics of end product export.

To guarantee adequate provision of potable water supply, Ogun State, through the Rural Water Supply and Sanitation Agency in the period under review has rehabilitated a total of nine (9) hand and motorised boreholes into complete solar-powered boreholes in Odeda; while constructing two (2) new ones. In Yewa North LGA, eight (8) boreholes have been rehabilitated with solar power; while five (5) have been fully constructed. Five (5) hand and motorised boreholes were also rehabilitated in Ado Odo/Ota LGA, while thirteen (13) new ones were constructed. In Ipokia LGA, twelve (12) new solar-powered boreholes were constructed, while eight (8) were rehabilitated.

There has also been urban water resuscitation at Arakanga, Abeokuta North LGA, now providing water to Abeokuta and other major communities. There are also now mini water schemes in Ikenne, Igbogila, Ibooro, Odonopa, Ipokia, Idowa, Omu-Ijebu, Ago-Iwoye, Igbesa, Owode-Yewa, Imoru, Ibefun, and Ikangba, even as the powerline at Ikangba Borehole Scheme in Ijebu-Ode has been reconnected. Also, Government is introducing a community-based water supply scheme known as “water kiosking” which would ease supply to central sources in different communities.

Similar feats have been recorded in the health and other critical sectors. For example, in the area of expanding access to electricity, the state government has commissioned the 100KWp solar mini-grid Hybrid Electrification System at Olooji Community. Equally, Atapa Community in Ogun Central Senatorial District and Koto Obo in Ogun West have also been provided with complete Household Solar Lighting Systems. Transformers have also been procured for institutions and communities. In the period under review, the state government has procured over 100 units of 500KVA transformers for installation across educational institutions and residential communities across the 20 LGAs of the state.

It has also modernised fish processing, through the Ministry of Rural Development, by fabricating and distributing a large number of modern smoking kilns to fish processors in different LGAs including Ikenne, Sagamu, Odogbolu, Ijebo Ode, Obafemi Owode, among others. Government also constructed and continues to maintain 385 (Dug-Out – 235; Tank – 130) new fish ponds/tanks for 300 fish farmers across the State. This has empowered and assisted at least 2,815 farmers in stocking over 3,815,000 Clarias fingerlings.