The Nation Newspaper

Tag: FEC

  • FG approves $1.3bn credit facilities for DBN

    The Federal Executive Council (FEC) on Wednesday approved $1.3 billion credit facilities to support the Development Bank of Nigeria (DBN).

    The Minister of Finance, Kemi Adeosun, disclosed this to State House correspondents at the end of the FEC meeting chaired by President Muhammadu Buhari at the Presidential Villa, Abuja.

    According to her, the DBN has obtained a total of $1.28 billion loans from some development partners, but the approval of the National Assembly is required to access the loans.

    She said the loans will be used to finance the many Micro-Small and Medium Entrepreneurs (MSME) in the country.

    The minister said: “The other memo was an approval for credit facilities totaling $1.3 billion to support the Development Bank of Nigeria. As you know the Development Bank of Nigeria recently received its licence and is been funded by some long term loans from some of our development partners.
    “So the World Bank had given us $500 million repayable over 21 years and all of this is at concessional rate. The African Development Bank is giving us $450 million and KFW is also giving us $200 million and the French Development Agency had given us $130 million.

    “To access this money, we are ready to disburse but there were two requirements that we need to make and one of them is the legal opinion by the Attorney General of the Federation and the other is the National Assembly approval.

    “Before it goes to the National Assembly it needs to be approved by FEC and the FEC simply approved today so that these loan requests should go to the National Assembly for approval so that we can access this money and the Development Bank of Nigeria can take off fully. The DBN is expected to transform financing to our MSME sector.

    “The Council enthusiastically approved these facilities which are long tenor meaning that the DBN will be able to lend to our MSMEs over much longer periods and at much lower rates. So the impact on the SMEs will be quite considerable.”

  • FEC raises panel to reconcile Executive, National Assembly

    FEC raises panel to reconcile Executive, National Assembly

    The Federal Executive Council (FEC) has initiated a move to smoothen all rough edges between it and the National Assembly. It raised a reconciliatory panel yesterday.

    It was gathered that Vice President Yemi Osinbajo will chair the committee. All ex-lawmakers serving in the cabinet are members.

    Information, Culture and Tourism Minister Lai Mohammed, who briefed reporters after yesterday’s FEC meeting said the strained executive/legislative relationship, was worrisome.

    “The executive is concerned that the relationship between the executive and legislative arms of government is not as smooth as it is supposed to be”, Mohammed said.

    He, however, acknowledged the continuous struggle in any democracy for balancing between the two arms of government because they are creatures of the law.

    He noted: “With the not too cordial relationship between the two arms of government due to issues concerning the Comptroller General of Customs, Hameed Ali, the Acting Chairman of the Economic and Financial Crimes Commission, Ibrahim Magu and the Secretary to the Government of the Federation, Babachir David Lawal, the Minister said a committee is already working to smoothen the relationship.”

    The minister said: “We must strive at all times to ensure that there is that balance, amity and smooth relationship.

    “Just today (yesterday) at the Federal Executive Council meeting, the issue was discussed and a committee is already working on ensuring that we resolve all these outstanding issues.”

     

  • FEC okays N102.08billion, $1.79b for roads, rail, other projects

    FEC okays N102.08billion, $1.79b for roads, rail, other projects

    The Federal Executive Council (FEC) yesterday approved N102.077 billion and $1.79 billion for roads projects across the country and rail project in the Federal Capital Territory (FCT).

    Minister of Power, Works and Housing Babatunde Fashola and Minister of FCT, Bello Mohammad, spoke with State House correspondents at the end of the meeting chaired by President Muhammadu Buhari at the Presidential Villa in Abuja.

    With them at the briefing was Minister of Information and Culture Alhaji Lai Mohammed.

    Fashola said N80 billion was approved for 12 roads and bridges in various states including Taraba, Adamawa, Sokoto, Zamfara, Bauchi, Plateau, Osun, Kwara, Kano, Oyo, Enugu, and Kaduna.

    He also said that there was approval of N150.84 million for the engineering and Consultancy design for access road 1 and 2 ?to link Asaba in Delta State and Onitsha in Anambra State to link the Second Niger Bridge project.

    “Subsequent to the award of further works of the Second Niger Bridge we have started work now by this approval on the design of the link road that will connect the two states to the bridge.

    “The design is expected to be completed in six months and we will start procurement and as the bridge advances, we can then connect the two states.” he added

    Fashola said there were also approvals for power projects?, relating to the extension of the consultancy and project management contract for the Katsina Wind Energy Farm project.

    He said: “It was awarded in 2010 and should have been completed in 2013. The expatriate who were implementing it were kidnapped and when he was eventually rescued he never came back and that delayed the project.

    “But we have revived the project, a new contracting team is back on site. The contract of the consultants representing us has expired and so we are extending his contract to cover new period of completion.” he said

    Another contract on power, which he said was approved by FEC, is the power sector recovery programme.

    He said “It’s a programme that comprises many policy actions, operational and financial interventions that needs to be carried out by government to improve transparency, service delivery, performance of DISCOS, Transmissions companies, the entire value change in order to create more viable power sector that is private sector driven.

    “Some of the highlights of the programme is how to simplify and reduce the cash deficits that have accumulated ?as a result of previous unilateral reductions of tariff by the last administration during the running of the elections, how to make the DISCOS viable, accountable, responsive to customers, ensure stability of the grid and expansion of the grid and transparency and communication within the sector.

    “And also processes for Ministries, Departments and Agencies (MDAs) debts? and how to improve sector governance, our roles in the business, the quality of personnel on the board of the DISCOS, it addresses access to renewable energy especially in rural areas using mini-grids and stand alone solutions and how we are going to carry out the solutions that have been developed for 37 federal universities and seven tertiary hospitals.

    “And how to solve the Niger Delta problem and also how to ensure there is a stable and predictable foreign exchange policy for the sector so that it is somewhat protected from sudden head winds of the volatility of the foreign exchange market so that they can plan and deliver.

    “Also how to address the issue of vandalization at consumer and production levels of pipelines and so on as this will help bring confidence to the market and stimulate the appetite that currently exists globally for Nigeria’s power sector.

    “We see a lot of people who want to invest but some of them are tied to what other international financial institutions do? and the institutions are also waiting to see us commit to these things.” he said

    The FCT Minister said the Council approved three key projects for the FCT.

    He said N2.454 billion was approved for 5 kilometre road to link Ring Road III to Wasa Junction with Karshi -Ara-Apo Road.

    Approval, he said, was also given for the award of contract for Phase 2 of the Abuja Mass Transit Lot 1B (26.77km) which is from Ring Road I, passing through Area 10 beside Wuse Market, Berger Junction, Jabi Motor Park, through Life Camp to Gwagwa and also covering the remaining part of Lot 1A (5.76km).

    He said the contract also included rolling stocks, workshop equipment and three years management contract.

    He said that FEC also okayed the$1.79 billion contract awarded to China Civil Engineering and Construction Corporation (CCECC) yo be funded by China EXIM Bank.

    The Minister said that FEC approved development of infrastructure at Jahi District at the amount of N19.473 billion

  • FEC okays N102.08bn for roads, rail projects

    The Federal Executive Council (FEC) on Wednesday approved N102.077 billion and $1.79 billion for roads projects across the country and rail project in the Federal Capital Territory (FCT).

    The Minister of Power, Works and Housing, Babatunde Fashola and Minister of FCT, Bello Mohammed, briefed State House correspondents at the end of the meeting chaired by President Muhammadu Buhari at the Presidential Villa, Abuja.

    They were led to the briefing by the Minister of Information, Lai Mohammed.

    Fashola said N80 billion was approved for 12 roads and bridges in various states including Taraba, Adamawa, Sokoto, Zamfara, Bauchi, Plateau, Osun, Kwara, Kano, Oyo, Enugu and Kaduna.

    He also said there was approval of N150.84 million for engineering and consultancy design for access road 1 and 2 ‎to link Asaba in Delta State and Onitsha in Anambra State to the Second Niger Bridge project.

    “Subsequent to the award of further works on the Second Niger Bridge we have started work now by this approval on the design of the link road that will connect the two states to the bridge.

    “The design is expected to be completed in six months and we will start procurement and as the bridge advances we can then connect the two states,” the minister added.

     

     

  • FEC okays $470m, N186m for FCT water projects 

    FEC okays $470m, N186m for FCT water projects 

    THE Federal Executive Council (FEC) has approved $470 million and N186 million for water projects in the Federal Capital Territory (FCT).

    FCT Minister Mohammad Bello spoke to State House correspondents at the end of the FEC meeting chaired by Acting President Yemi Osinbajo.

    He was with the Minister of Information Lai Mohammed and Minister of Budget and National Planning Udoma Udo Udoma.

    Mohammad said the approvals were given after FEC considered three memos from his ministry.

    He said: “During FEC meeting, we discussed three very important memoranda from FCT. The first one was the approval of the contract for the construction of greater Abuja water supply project at the total cost of $470 million.

    “This is a very important project for the residents of the city because it aims to provide portable water to the greater part of the city and it intends to leverage on the facility that we have in the city – that is lower Osuma Dam as well as the Water treatment plant for the city which is reputed to be one of the largest on the African continent.

    “As you know, water supply to the city based on the masterplan has not been able to extend to other phases of the city. The intention of this project, which is being funded by the China-Nexim Bank, is to provide water to what we called loops 1, 2, 5 and 6.

    “The overall masterplan for the city has 10 loops. Already Loops three and four are currently operational, providing water to Garki, Maitama, Asokoro and Central Business District.”

    He said the water would be extended to other critical areas of the city with new additional four loops.

    According to him, it is a significant infrastructure project under the present administration

    The project, he said, would also have impact on the wider number of population in the FCT.

    The second memo, he said, was for supply of alum to serve the FCT Water Board, towards providing portable water to the city’s residents.

    He said the contract amount is N186 million for the supply of 1,000 tons of alum.

    “It is a very important priority for us and this supply is coming from an indigenous manufacturing company, which is in line with the Federal Government’s local content policy as well as encouraging investors that are employing labour to be able to continue in their business,” the minister said.

    The third contract, he said, has to do with Wupa water treatment plant, which is an extension of contract to a period of 24 months, including its maintenance, training and retraining of competent workers.

    He added that the FCT administration is working hard to improve the state of the Karishi, Orozo, Jikwoyi, Nyanya road.

  • FEC approves $470m for FCT water projects

    The Federal Executive Council (FEC) on Wednesday approved the sum of $470 million and N186 million for water projects in the Federal Capital Territory (FCT).

    The Minister of FCT, Mohammed Bello, disclosed this to State House correspondents at the end of the FEC meeting chaired by Acting President Yemi Osinbajo.

    He was with the Minister of Information, Lai Mohammed and Minister of Budget and National Planning, Udoma Udo Udoma, at the briefing.

    Mohammed said the approvals were given after FEC considered three memos from his ministry.

    He said: “During FEC meeting, we discussed three very important memoranda from FCT. The first one is the approval of the contract for the construction of greater Abuja water supply project at the total cost of $470 million.

    “This is a very important project for the residents of city because it aims to provide portable water to the greater part of the city and it intends to leverage on the facility that we have in the city, that is lower Osuma Dam as well as the Water treatment plant for the city which is reputed to be one of the largest on the African continent.

    “As you know, water supply to the city based on the master plan has not been able to extend to other phases of the city and the intention of this project which is being funded by the China-Nexim bank is to provide water to what we called loops 1, 2, 5 and 6.”

     

  • FEC okays $39.9m for Nigeria-Cameroon link bridge

    The Federal Executive Council (FEC) on Wednesday approved $39.9 million for construction of the Cameroon-Nigeria link bridge.

    The Minister of Power, Works and Housing, Babatunde Fashola, disclosed this to State House correspondents at the end of  the FEC meeting chaired by Acting President Yemi Osinbajo at the Presidential Villa, Abuja.

    He was with the Minister of Information, Lai Mohammed and outgoing Minister of Environment, Amina Mohammed at the briefing.

    Fashola said the project is under the African Development Bank (AfDB) support.

    He said: “We presented a memo to construct the Cameroon-Nigeria link bridge, at Ikot Efiom under the African Development Bank (AfDB) support for improving relationship between Cameroon and Nigeria post the ICJ judgement over Bakassi and council approved that bridge.

    “It is part of the link road between Enugu Abakiliki way which is already completed and part of larger Lagos-Mumbasa Highway.

    He also said that FEC approved N32 billion for Kaduna Eastern bypass highway.

    The minister added: “We also presented a memo for the resuscitation and completion of the Kaduna Eastern bypass highway, which was started in 2002 and was initially planned to be completed within three years. But 15 years after, it remains uncompleted. Council also approved the programmes to complete it now and it is a 50 kilometer highway and dual carriage way with nine bridges over rivers and rail crossings there.

    “The project was first awarded in 2002 at N16 billion, we have had to get approval for N22 billion verbatim and so that takes that project cost now to N32 billion.”

     

  • FEC okays N21.5bn for road, power projects

    The Federal Executive Council (FEC) on Wednesday approved N21.5 billion for the construction of Ilorin-Omu Aran-Kabba road to link Kwara and Kogi States.

    It also approved N589 million for consultancy services for line route studies and environmental/social impact assessment towards accessing Japanese International Corporation Agency’s loan.

    These were disclosed by the Minister of Power, Works and Housing, Babatunde Fashola, at the end of FEC meeting on Wednesday.

    He said: “Council considered and approved the construction of Ilorin-Omu Aran-Kabba Road, Section I in order to complement ongoing works on the Kabba-Egbe Road to link Kwara and Kogi States.

    “The justification for the memo and consequent approval is consistent with our promise to continue to reduce travel time, to ease the cost of doing business and the cost of goods and services.  This project is for N21billion.

    “The second approval was for consultancy services for professionals to conduct line route studies, environmental/social impact assessment and resettlement action plan as well environmental/social management plan in order for us to access the Japanese International Corporation Agency’s loan to support TCN to continue its transmission grid expansion programme.

    “Before we start the construction, we must do an assessment of the routes that some of the transmission lines will pass through.

    “The projects for which approval has been obtained from Council cover areas like Arigbajo, Abeokuta, Olorunshogo, Ikeja West, Oshogbo, Ogijo, Ikorodu, Shagamu and part of Benin towards Edo State continuous to Ondo State around Omotosho as well as Agbara and Badagry.

    “When completed and construction takes place, it will help us in the evacuation of power from the Olorunshogo Power Plant to supply industrial clusters in Ogun and part of Lagos State. The consultant service for the three is for about N589 million.”

  • FEC approves measures to reduce food prices

    The Federal Executive Council on Wednesday approved some measures to reduce food prices in the country.

    The Council took the decision based on the interim report submitted by the food security task force set up last week  to explore how best to address the rising cost of food items across the country.

    The Minister of Agriculture, Audu Ogbeh, briefed State House correspondents at the end of the Federal Executive Council (FEC) meeting.

    He said the committee has identified that the hike in cost of food is not caused by shortage but high cost of transportation.

    He noted that food items are generally moved across Nigeria with heavy trucks whose operations have been affected by increase in the price of diesel.

    To this end, he said the government has decided to start using railway wagons to transport food items across the country.

    He said: “We had a committee set up last week to look at the issue of hike in food prices and we submitted an interim report today. Our work is almost rounded up.

    “We identified the causes of food price increases. The good thing is that there is no real shortage of food. There is food but the prices are a bit too high and Nigerians are groaning under the pain.

    “One of the things we found out is that the cost of transportation is becoming extremely high especially because most of our transpiration is by road and diesel prices have gone up. Trucks are finding it difficult to move from place to place at old prices.

    “So we considered the following alternatives: using railway wagons along the current railway network. As we did before when we moved cattle from North West to Lagos, we brought down the cost and avoided the multiple taxation on transporters by local governments which delay movement.

    “We have decided to work with the state governments and the police to reduce delays. We are going to adapt what they have in Ivory Coast. Trucks carrying foods are given labels. In fact, in Ivory Coast, they cannot be stopped for more than 10 minutes anywhere.

    “Even if something serious has happened, the security agencies will follow them to their destinations and come back to investigate whatever has happened.”

     

  • FG approves N3.5bn for Odogunyan power plant

    The Federal Executive Council (FEC) on Wednesday approved the upward review of contract for the completion of the Odogunyan transmission substation in Ikorodu, Lagos.

    The contract, which was awarded in 2009 and abandoned due to paucity of funds, was reviewed by N274.3 million to N3.5 billion on Wednesday.

    The Minister of Power, Works and Housing, Babatunde Fashola briefed State House correspondents at the end of FEC meeting presided over by Acting President Yemi Osinbajo.

    Fashola was with the Minister of Information, Lai Mohammed, at the briefing.

    He said: “You will recall that in previous briefings we told you that the strategy was increasing power in a short while and that is what we are addressing. Expanding the transmission and improving generation. This approval was to help us complete the Odogunyan transmission substation in Ikorodu, Lagos and to provide additional transformer capacity at the substation 260 MVA transformers and transmission lines of 132KVA.

    “This will complete the works in that area generally known within the power industry as Ayobo West. You will recall that we visited the substation at our last meeting, this is an extension of that. The contract had been awarded before now but not completed because it wasn’t paid for. It was awarded in 2009 and should have been completed in 18 months which would have been sometimes in May 2011. But due to paucity of funds which you know the story, nothing happened.”