Tag: road

  • Why we can’t return to sites,by Fed road contractors

    Why we can’t return to sites,by Fed road contractors

    • Reconsider concrete road plan

    Contractors handling federal road projects have kicked against the directive by Minister of Works Dave Umahi to return to sites before a review of payment.

    According to them, the change in prices of materials due to the current economic situation will make it difficult for a return to sites immediately.

    A source close to a group of contractors said at the weekend: “We all know how much diesel and petrol was sold for in 2015, and the current prices. They know how much sand, chippings, asphalt, and even the cost of moving goods in 2015 vis-a-vis now. Telling a man who secured a contract in 2015 that he must return to site in 2023 and complete the job at 2015 price is not reasonable.”

    He added: “All contractors are not dubious. There’s no contractor that won’t love for Nigerians to praise his company for delivering on good roads. Unfortunately, road construction companies do not manufacture the equipment they use for work. Even if they do, they need to fuel their equipment, pay their workers, and buy things like asphalt and cement. All these things require a lot of money and their prices have kept changing.”

    The sources said the blame for the delays in executing federal government road contracts should not be heaped at the feet of contractors, but on poor funding by successive governments at the federal level. According to them, the immediate past Federal Capital Territory (FCT) Minister Mohammed Bello was particularly known for delaying payments to contractors  for work done.

    They also described Umahi’s call for concrete road as “self-serving”, adding that “many countries that move heavy loads on roads,  including the United States and Brazil, still rely heavily on roads built with asphalt.”

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    They lauded the House of Representatives for calling to question Umahi’s plan for concrete roads.

    “The reason they call FCT Minister Nyesome Wike ‘Mr. Projects’, when he was governor of Rivers State, is  because he changed the procurement process to allow contractors be paid as much as 75 per cent upfront. With such level of funding, it was impossible to have abandoned road projects in the state.

    “As Ebonyi State governor, Umahi’s approach was direct labour. Under his watch, the state bought several construction equipment with which his administration was able to deliver good roads.

    “Comparing the performance of both former governors on roads to what obtains at the federal government level is like comparing apples and oranges. There was a time Umahi’s predecessor, Mr. Raji Fashola made it known,  that federal government was owing road contractors over N10 trillion. How are they supposed to perform under such a heavy debt burden?

    “What the minister of works should have done is to dialogue with the contractors, instead of issuing an order for them to return to sites and deliver good roads to Nigerians at reasonable prices.”

  • Reps decries poor state of road urges repair

    Reps decries poor state of road urges repair

    House of Representatives has urged Ministry of Works and Federal Road Maintenance Agency (FERMA) to rehabilitate Bauchi–Ningi–Kano Road in Ningi/Warji of Bauchi State.

     The House urged the agencies to deploy resources to address the situation and include it in 2024 budget.

     Its Committees on Works and Federal Road Maintenance Agency (FERMA) were mandated to ensure compliance.

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     These resolutions followed adoption of a motion moved by Adamu Ranga, Aliyu Garu, Mansur Soro, Adamu Yakubu, Rabiu Yusuf, and Abdul Hakeem Kamilu Ado.

     The House noted the deplorable condition of Bauchi—Ningi—Kano Road, which was built in the late 1980s and rehabilitated about 2007.

     It noted the road, connecting Bauchi to Kano, is a major route with over five famous markets in Gadar Maiwa, Ningi, Nasaru, B/Kudu, Kachako, Darki, and Ladin Makole.

     The House noted the poor state is causing deaths and destruction of property due to more vehicles from Gombe, Adamawa, and Jos plying the same road to Kano.

  • Firm promises progress on road, solicits cooperation 

    Firm promises progress on road, solicits cooperation 

    Construction firm, Craneburg, has assured Lagos State residents of progress in rehabilitation and upgrade of Eti-Osa/Lekki/Epe Expressway (Phase IIB) from Greensprings to Abraham Adesanya.

    The firm solicited cooperation during duration of the project, promising smoother commuting for road users.

    It said traffic measures executed in partnership with Police, Lagos State Traffic Management Authority (LASTMA), Ministry of Works and Infrastructure as well as Lagos Neighbourhood Safety Corps (LNSC) will minimise disruption for road users.

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    “Construction this huge leads to temporary diversions, and reduction in lanes. 

    “Moreover, breakdown and accidents involving heavy vehicles increase congestion on limited lanes.

    “To mitigate the challenges, measures are in place to ensure smooth traffic.

    “We also ensure implementation of accelerated and strategic execution for day and night work as well as deployment of well-trained and motivated traffic personnel, among others.

    “Visual representations of previous and current states of the road are displayed, showcasing progress in traffic management…” it noted in a statement yesterday.

  • Reps probes delay in road rehabilitation

    Reps probes delay in road rehabilitation

    House of Representatives has mandated its Committee on Works to probe in rehabilitation of Jibiro–Sarou–Belel Road in Adamawa State after funds were allocated

    It urged Federal Ministry of Works to ensure the contract is executed promptly when work begins.

    The committee is to report back in four weeks.

    These resolutions followed adoption of a motion: “Rehabilitation of Jibiro-Sarou-Belel Road,” by Aliyu Boya.

    The House stressed importance of good roads to development of communities as it affects peoples’ wellbeing.

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     It noted that the rehabilitation of Jibiro–Sarou–Belel Road was awarded to alleviate the suffering of the people, whose sustenance was hindered by the bad road.

     The House said it was aware its rehabilitation has been in the budget for seven years.

     It added allocations were made and contract awarded but to the people’s dismay, no work was done.

    The House was disturbed funds allocated for the road were either misappropriated or mismanaged.

      It regretted the failure to begin work despite award of contract raises questions about effectiveness of the procurement and execution process.

     The motion reads: “The delay has not only caused frustration for the people of the communities but also undermines public trust in the government’s commitment to infrastructural development.

     “The House is concerned the continuous neglect impacted negatively on the people, causing suffering, economic loss, limited access to essential services and hardship.”

  • Between concrete and Asphalt road

    Between concrete and Asphalt road

    • Based on socio-economic cost-benefit analysis, concrete roads provide superior returns on social capital outlays in the medium to long-term basis

    The ongoing debate between concrete road construction and asphalt road construction in Nigeria has gained significant attention due to current circumstances. This discussion revolves around key factors such as durability, cost-effectiveness, maintenance, and environmental impact. Each method has its advantages and disadvantages, leading to a careful consideration of multiple factors before making a choice. Minister of Works, Dave Umahi, recently emphasised these points, sternly reprimanding dissatisfied foreign contractors. He urged them to stop undermining the implementation of concrete road technology in Nigeria. Umahi, who disclosed that he had obtained President Bola Tinubu’s approval to proceed with this transformative policy, made it clear that the government’s initiative to adopt concrete road technology would continue without hindrance during his tenure. Although the minister refrained from naming specific wrongdoers, he expressed his determination to crack down on contractors who manipulate asphalt thickness, denying the government and the people the full value of their investment.

     According to a recent statement by the Infrastructure Concession Regulatory Commission (ICRC), about 135,000 kilometres of road network in the country are un-tarred. Nigeria has about 195,000 km road network out of which a proportion of about 32,000 km are federal roads while 31,000km are state roads. Out of this, only about 60,000km are paved. Of the paved roads, a large proportion is in very poor unacceptable condition due to insufficient investment and lack of adequate maintenance.

     In last 24 years, the federal government has allocated substantial funds for road construction, totalling over N2.4 trillion in the last 24 years. Notably, N301.8 billion was earmarked for road construction in 2016, followed by N347.5 billion in 2017, N159.5 billion in 2018, N262 billion in 2019, and N315.5 billion in 2020 for works and housing. Additionally, N241.864 billion was allocated in 2021, N280 billion in 2022 for road infrastructure, and N356 billion for both works and housing in 2023, with N321 billion designated for capital projects.

     However, mounting debt overhang for road contracts is a growing concern. The present administration currently owes contractors approximately N14 trillion for 2,604 roads covering 18,000 kilometers, inherited from the previous administration. There are apprehensions that the budget for road infrastructure might double due to these financial obligations. Umahi revealed, “The ministry has paid N4 trillion out of the N14 trillion owed to contractors between when we came on board and now. The balance left now is N10 trillion.”

     This financial strain might be the driving force behind the pivotal policy shift of the Tinubu administration, transitioning from traditional asphaltic, coal tar, or macadamised roads to concrete pavement, especially for arterial roads. Umahi, a two-term governor of Ebonyi State and a civil engineer himself, played a pivotal role in this decision. He has successfully implemented concrete roads in his state, roads that have withstood the test of time.

    Globally, transportation is acknowledged as a significant economic enabler, connecting goods and services to consumers across various societal segments. Nations worldwide consistently invest heavily in creating robust road networks. Road construction is a vital facet of infrastructural development, and the choice of materials for road pavements profoundly influences their durability, maintenance requirements, and overall performance. This decision-making process carries substantial implications for the nation’s road infrastructure and the convenience of its citizens.

    Concrete and asphalt roads – any difference?

    Concrete roads and asphalt roads differ fundamentally in their composition and properties. Concrete roads are constructed using a blend of cement, water, aggregates and sometimes chemicals to enhance adhesiveness, strength, and durability. Cement primarily binds the components together in concrete roads. Asphalt roads, on the other hand, utilise bitumen, a thick black liquid substance derived from petroleum, mixed with aggregates to create asphalt concrete. Asphalt roads have waterproofing properties, making them suitable for various weather conditions.

     While concrete roads are generally considered more expensive upfront compared to asphalt, they offer lower maintenance costs and an extended lifespan, often lasting for at least 50 years. In contrast, asphalt roads start showing signs of wear and stress after around 15 years. Experts speculate that Umahi may have considered the long-term cost-effectiveness of concrete roads, which involve minimal maintenance expenses over their lifetime. Dr. Omolola Adetona, former Lagos State Chairman of the Nigerian Institution of Civil Engineers, acknowledges that the maintenance costs for rigid pavement, such as concrete roads, might be higher and more technical than those for asphalt. However, she notes that evolving technologies, particularly precast methods, could simplify the deployment of concrete pavements, reducing the need for extensive on-site preparations. Despite technical advancements, Adetona points out potential challenges, such as material scarcity due to widespread adoption and geometric inflation of resources like cement, sand, reinforcements, and labour.

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     Ogbonnaya Obasi, a veteran in the construction industry, finds the ongoing conversation about concrete roads intriguing. He suggests that Umahi is confronting the practical realities of road construction, particularly in areas where the soil texture favours the use of concrete pavements for specific arterial roads over flexible alternatives. This highlights the importance of choosing the appropriate road construction method based on local conditions and long-term sustainability.

     While some, such as Isa Egbeyemi, attribute asphalt road failures to what he terms “the Nigerian factor,” emphasising the importance of precision in engineering, others argue for a combination of materials.  Afolabi Adedeji suggests that arterial roads should be made of concrete due to their durability and the heavy loads they endure daily. However, he acknowledges the quick deployment advantage of asphalt roads, especially in rural areas. Concrete roads tend to last 40 to 50 years with minimal maintenance, making them a cost-effective choice in the long run.

     Yet, the shift to concrete roads poses challenges. The initial cost for concrete roads can be significantly higher than that of asphalt roads. Adewuyi Adedeji, an engineer, highlights the cost difference: a kilometer of concrete road can cost up to N59,181,594.70, while an asphalt road costs around N49,766,822.68. This financial disparity raises concerns about job losses for local contractors, especially if multinational companies dominate the concrete road projects. Additionally, scarcity of bitumen, a key ingredient in asphalt pavements, could hamper the industry, necessitating government emphasis on bitumen exploration. The Cement Producers Association of Nigeria warns that the government’s concrete road plan might escalate cement prices. To mitigate potential crises, experts emphasise comprehensive soil tests to address soil challenges and suggest concurrent use of concrete and asphalt technologies, allowing time for contractors to adapt. Moreover, the government could support contractors by establishing machinery zones in each geopolitical zone, reducing equipment rental costs for road projects.

     A recent report by Proshare Nigeria Limited, titled “Roads – Concrete Vision, Asphalt Competition: Looking Ahead,” also emphasised the crucial need for durable materials in road construction in Nigeria. The report highlighted that the primary challenge in road construction within the country has been poor durability, not inflated costs. Concrete roads were identified as having an advantage over asphalt-bitumen-based constructions due to their superior durability. According to the report, asphalt roads tend to deteriorate under heavy traffic and intense tropical weather, making them fragile and requiring frequent repairs. In contrast, concrete roads are significantly more durable, lasting between 25 and 30 years without major reconstruction or repairs. The report emphasised that, from a socio-economic cost-benefit perspective, concrete roads provide superior returns on social capital outlays in the medium to long term.

     The report acknowledged the need for both concrete and asphalt roads, tailored for different parts of the country and various traffic conditions. It suggested constructing roads with heavy traffic and deadweight tension using concrete, while roads with lighter traffic and fewer vehicles should be built with asphalt technology, provided proper substructure preparation is undertaken. Regarding specific regions, the report recommended that roads in the southern part of the country, exposed to heavy rainfall and constructed on marshy and waterlogged terrains, should be made with concrete material. It also noted that both asphalt and concrete roads have their places in the overall infrastructure plan, with concrete being the default option for national and state highways, especially in regions experiencing heavy annual rainfall. Asphalt roads, on the other hand, are suitable for the northern part of the country with savannah plains and lower annual rainfall.

     The report emphasised that commercial competitiveness should guide the road architecture aligned with Nigeria’s socioeconomic aspirations. It highlighted that efficient road networks are critical for facilitating the movement of goods and people, which, in turn, enhances the country’s economic competitiveness. The report stressed that improving transportation efficiency within Nigeria’s borders and expanding value distribution to neighbouring African states are essential steps, especially in the context of the African Continental Free Trade Area (AfCFTA).

     In summary, evidence shows that concrete roads are highly durable and can last for several decades without significant wear and tear, especially when properly constructed; concrete roads require minimal maintenance compared to asphalt roads because they are less prone to potholes and cracks, reducing the need for frequent repairs; concrete roads can withstand heavy loads, making them suitable for high-traffic areas and industrial zones; concrete surfaces offer lower rolling resistance, potentially resulting in better fuel efficiency for vehicles. However, constructing concrete roads often involves higher initial costs compared to asphalt roads; concrete roads require adequate time to cure and harden before they can be opened to traffic, causing potential delays; the production of cement, a key component of concrete, contributes to carbon emissions, making it less environmentally friendly.

     On the other hand, asphalt roads are generally cheaper to construct than concrete roads, making them a preferred choice for many projects; asphalt roads can be laid quickly and are ready for use shortly after construction, reducing traffic disruptions; asphalt is more flexible than concrete, allowing it to expand and contract with temperature variations, reducing the likelihood of cracks; damaged asphalt roads can be repaired relatively easily, and routine maintenance is simpler compared to concrete roads. However, asphalt roads have a shorter lifespan compared to concrete roads and may require more frequent resurfacing and repairs; due to wear and tear, asphalt roads need regular maintenance, including filling potholes and resurfacing, which can be costly over time; asphalt production involves the use of fossil fuels and can release pollutants into the environment.

    Roads are the lifelines of a nation, connecting people, places and opportunities. The choice between concrete and asphalt, the two most common road construction materials, involves a careful consideration of various factors. In the Nigerian context, the debate often centres on balancing the immediate cost concerns with long-term durability and maintenance requirements. Factors such as the availability of funds, the expected traffic volume, and the local climate influence the decision-making process. Some regions might opt for concrete roads in areas with heavy industrial traffic, while others might choose asphalt roads for their cost efficiency and quicker installation. Ultimately, the choice between concrete and asphalt road construction in Nigeria requires careful consideration of all these factors to ensure the construction of reliable, cost-effective, and environmentally sustainable road networks.

  • Reps call for building of section v of East West road

    Reps call for building of section v of East West road

    The House of Representatives has urged Federal Ministry of Work to ensure the commencement of the building of section v of the East West road.

    It mandated the Committees on Works and Appropriation to make provision for the construction of the road to link Oron in Akwa Ibom State and Odukpani Calabar in Cross River State in the 2024 budget estimate.

    These resolutions followed the adoption of a motion moved by Bassey Akiba, Mike Etaba, Alex Egbona,

    Joseph Bassey, Emil Inyang, Victor Abang, Peter Akpanke and Godwin Offiong.

    The House said the East-West road, a 388-kilometre federal trunk A2 dual carriageway connecting Niger Delta states and Ikom federal trunk A4 road, initially designed with 42 bridges and 1,000 culverts, was awarded at N246 billion in 2006.

    It noted that the road was divided into five sections, Warri-Kaiama in Delta/Bayelsa State; Port Harcourt-Ahoada-Kaiama in Rivers/Bayelsa State; Eleme-Onne-Ete in Rivers/Akwa Ibom State and Ikot Abasi-Eket-Oron Road in Akwa Ibom/Cross River State.

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    The House said sections I to IV of the road have reached 85 per cent completion, with the Federal Government releasing funds for a new bypass and other works.

    This, it said, had increased the contract sum from N246 billion to N506 billion, with over 80 per cent of the funds already released.

    The House was concerned that the building of section IV of the 30km dual carriageway from Oron to Calabar was

    ongoing, despite contract awards from the Federal Government.

    It said the road, which linked Cross River and Akwa Ibom states, was in poor condition, with potholes causing loss of lives and forcing commuters to travel by sea.

    It said the construction of section v of the East-West road would address infrastructural deficit and enhance economic stability by facilitating the movement of goods.

    The House added that the building of a new East-West road section was expected to alleviate the current six-hour journey time, which had increased fares in the region.

  • N150 billion Sukuk to fund 53 road projects

    N150 billion Sukuk to fund 53 road projects

    The federal government will use the net proceeds of its ongoing N150 billion Sukuk issuance to fund some 53 road projects across the country.

    Director General, Debt Management Office (DMO), Ms. Patience Oniha, at an investors’ forum yesterday in Abuja, said the 53 roads cover more than 3,000km.

    She said the tolls collected from the roads will be used to repay the Sukuk. Sukuk is a non-interest, asset-backed bond that is based on the principles of Islamic finance.

    Mr. Hassan Usman of Buraq Capital Limited and former Managing Director of Jaiz Bank described Sukuk as an attractive ethical instrument with stringent project approval and disbursement mechanisms.

    He emphasised its efficiency and assured that funds raised would strictly serve their intended purpose.

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    Oniha said the federal government remains committed to value-driven borrowing through project-focused Sukuk, which has contributed to visible road and bridge projects.

    Recognizing infrastructure’s pivotal role in economic growth, she stated, “infrastructure is an enabler of economic development.”

    She expressed optimism that the N150 billion Sukuk would be oversubscribed, noting that the extra funds that may be realised will be used for available projects.

    According to her, government’s optimism in the over subscription of the Sukuk is based on the fact that the federal government has made significant investments in infrastructure development, through which it has managed to raise a total of N742 billion.

    She said the massive investment serves as a strong example or evidence of the high level of interest and enthusiasm that investors have shown in Sukuk.

    According to Oniha, “the government and people involved believe in the use of Sukuk and plan to continue offering it every year. The hope is that ethical investors will invest in the Sukuk.”

    She invited ethical investors to take advantage of the opportunities present in sukuk to participate in subscribing to the offer. She encouraged widespread participation, highlighting that Sukuk VI’s proceeds would fund projects across the country’s six geopolitical zones.

    The DMO boss noted that banks are interested in sukuk because of “its tax-exempt status and the liquidity it affords them”.

    Ms. Oniha stressed the importance of infrastructure for attracting investors and economic growth. She acknowledged the government’s resource limitations and the need to involve the private sector in infrastructure funding.

    The N150 billion 10-Year Ijarah Sukuk is set to mature in October 2033, offering a rental rate of 15.75 percent per annum.

    In Abuja, Sukuk proceeds have already supported road construction projects, addressing critical infrastructure needs.

    It’s worth noting that Nigeria was ranked 130th out of 141 economies in the 2019 Global Competitive Index Report for infrastructure quality.

  • Minister urges contractors to deliver good quality roads

    Minister urges contractors to deliver good quality roads

    Minister of Works, Engr Dave Umahi, has urged contractors handling road projects in the country to ensure they deliver good quality jobs.

    The Minister gave the charge during his maiden press briefing since assuming office in Abuja.

    This was as he lauded the China Harbour Engineering Company (CHEC) for the work on the Keffi-Akwanga-Makurdi Road project.

    He said, “We also have HDMI which is a PPP arrangement. That is Highway Development and Management Initiative. It has gone through a lot of processes and was finally approved by the federal executive council. Permit me to say that this arrangement is such that it is on green belt and brown belt. Brown belt is where a road has been completed. Like you have Lagos-Ibadan, it is completed, but there may be some needed road architecture that may be required to enhance safety and also improve on the road.

    “An investor may take up such roads and agree to the process, a very rigorous process, that is usually transparent and then will toll the roads and maintain roads, provide safety, provide lighting on the road. So that is ongoing. We have quite a number of them that are here.

    “Green belt is where you take a brand new road, whether it is an existing road, but dilapidated or it is a fresh road you are constructing, and then you construct it and you toll it. We have an example of brown belt which is Keffi-Akwanga-Makurdi. That job has been completed by China Harbour and I think they have also reached an advanced stage on the issue of tolling. And we have certain things to do. We are going to that immediately.

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    “They have another project that is taking off from Makurdi to Enugu. It is 85 percent funded by China EXIM Bank and 15 percent participation by the Federal Government. They are setting up their site offices and soonest they will start. That one they will do and toll. That is the example of green belt. Keffi-Akwanga to Makurdi is an example of brown belt.”

    Engr Umahi is expected to carry out an inspection to the project of expansion of 5.4km of Abuja-Keffi Expressway and dualization of Keffi-Akwanga-Lafia-Makurdi Road.

    Serving as part of A3 Expressway, this project, constructed by China Harbour Engineering Company Limited (CHEC) under the Belt and Road Initiative in cooperation between Nigeria and China, consists of 5.4km of Abuja-Keffi Expressway and 220km of Keffi-Akwanga-Lafia-Makurdi Road.

    It commenced in April 2019 and achieved substantial completion and was taken over by the Federal Government of Nigeria in April 2023. In the following years, CHEC is going to extend from both ends and build Phase II and III of this road.

    Since opening to traffic, the road has provided local residents with more convenient and safer transportation infrastructure, shortened the travel time from Abuja to Makurdi from 7 hours to 4.5 hours, and significantly reduced the incidence of traffic accidents.

    Meanwhile, this project has offered employment and skill training opportunities, and the contractor has built schools, bore holes and made donations to local communities. It does not connect the towns along the road but also brings closer the minds of Nigeria and China.

  • So far, so fair

    In its determination to unlock the economy, the Buhari administration is tackling headlong the challenges of transportation, writes ADEYINKA ADERIBIGBE

    The sector witnessed unprecedented activities across all the modes – road, water and air – last year.

     

    State of roads

    The Federal Government took off  last January by reviewing the Lagos-Ibadan Expressway, approving N134 billion to accommodate more features on some sections of this critical artery in the road architecture. The government announced the extension of the deadline for the delivery of the road from 2018 to 2020. The repairs started in 2006.

    The Federal Government pursued the completion of 44 highways, 66 interstate roads and 45 bridges scattered across 34 states, which were awarded in 2017. But last year, it awarded close to 60 roads, bridges and highways, which cut across 12 states – Yobe, Adamawa, Benue, Kwara, Ekiti, Lagos, Ogun, Edo, Enugu, Borno, Anambra and Sokoto, the Minister of Power, Works and Housing, Babatunde Fashola.

    The ministry had a N555.9 billion budget last year; out of which N295 billion was earmarked for key capital projects, and the funding of road construction, expansion and maintenance.

    The Federal Government also approved N5.44 billion for the construction of the Otukpo (Benue State) and Enugu road, as well as N348.59 billion for the Akwanga – Jos-Bauchi – Gombe road expansion which cover 420.6 kilometres.

    The road, according to Fashola, completes the integration of the Northcentral with the Southeast and the Northeast.

    “Council had previously approved the Abuja-Keffi Road and the Akwanga-Lafia-Makurdi Road – all in the Northcentral.  In May, Council had also approved Nineth Mile, Enugu to Makurdi road that connected the Southeast to the Northcentral.

    “That completes the spine of the major movement of agro produce and other related produce,” Fashola disclosed.

    The ministry in October received N100 billion proceeds from Sukuk bonds subscription to fund repairs of 25 key economic road projects across the six geo-political zones.

    Fashola, who disclosed that the worst road networks in the country were located in the Southsouth and Southeast geo-political zones declared that the Federal Government would change the narratives and deliver these road projects on time, in view of the high traffic usually recorded at the end of the year.

    These are apart from the $1.5 million African Development Bank loan approved for the Lagos-Abidjan road project, which, according to the Minister of Finance Zainab Ahmed, was Nigeria’s allocation of the $13.5 million approved for the multinational highway, which involves Benin Republic, Ghana, Togo and Cote d’Ivoire.

    According to Fashola, this is outside the N63.023 billion approved last November by the Federal Executive Council (FEC) for the construction of the Lagos-Badagry-Seme border Expressway and the $575.5million awarded to Julius Berger, for the construction of the 11.9 km link road to the second Niger Bridge.

    Fashola said the government had embarked on massive rehabilitation and construction in response to the critical situation of the road network.

    Though Nigeria has 108,000 km surfaced roads as at 1990, largest road network in West Africa and second largest, south of the Sahara, it has battled decaying infrastructure.

    The minister believes the administration is doing so much with much less, underscoring the regime’s penchant for prudence in the public sector.

    Waterways

    Though the nation still battles with massive underfunding of the waterways, the government has made appreciable investments in the provision of water ambulance across the waterways to prevent fatalities. The government, through the National Inland Waterways Authority (NIWA), has embarked on aggressive enlightenment to drive home the need for voluntary compliance with regulatory codes by all operators on the waterways.

    But, perhaps, more significant is the readiness of NIWA to begin the operation of its strategic inland ports, such as the Baro River Port in Niger State, the flagship port in the North, which despite the huge investments, were rendered unusable by lack of motorable roads.

    The port, which is being equipped with top of the range cargo handling equipment, would soon be inaugurated by President Muhammadu Buhari. The inland port would reduce the pressure on Lagos ports as cargoes for the Northern parts of the country may find their way there quickly.

    NIWA Managing Director Senator Olorunnimbe Mamora said he was determined to steer the agency towards the path of efficiency as he is determined to improve NIWA’s effectiveness as the regulator on the waterways. He expressed readiness to work with other state agencies in driving sanity into all operators on the waterways in order to reduce the level of accidents and deaths.

    He expressed the hope that operators would soon begin to deploy safer and better water craft to the water way to enhance safety, profitability and efficiency on the water.

    Railway

    Though the concessioning of the narrow gauge to the United States’ (US’s) industrial giant General Electric (GE) ran into stormy waters, when  it announced its divestment from transportation, the Buhari government, however, insisted the concessioning remains on course as it has resumed discussion with the GE’s major partner Transnet International.

    The deal is to address sundry issues, such as refleeting of the fixed and rolling stocks of the Nigerian Railway Corporation (NRC), which upon the ratification of the concession deed operate as the regulator of the subsector.

    While it firms up negotiations on ensuring smooth operations on its narrow gauge asset, the Federal Government in 2017 began work on the Lagos Ibadan Standard Gauge. The $1.7 billion project, which is the second Lot on the Western line, which is to construct a standard gauge rail line from Lagos to Kano, is penciled to be delivered within the first quarter of 2019.

    When done, passenger and cargo traffic would be able to move from the Ports to Ibadan on a speed train that could connect the two southwest states within one hour.

    The Minister of Transportation Rotimi Amaechi, who has been driving the construction, awarded to China Civil Engineering Construction Corporation (CCECC), said the government envisages high subscription of the train service, especially as the speed rail cuts across several border towns of Lagos, Ogun and Oyo States.

    He said the train service will proceed on the final lot – Ibadan to Kano – once the contractor delivers on the Lagos-Ibadan this year.

    Amaechi, whose ministry disbursed N263.7 billion last year, said the government intends to link at least all the state capitals by rail before 2023, adding that once the government accesses funds, work would also begin on the Lagos-Calabar coastal rail line, even as work, according to him, would also start soon on the construction of speed rail line on the eastern flank, from port Harcourt to Maiduguri. He said narrow gauge train connects up to Gombe, and could have hit Borno, but for the prevailing insecurity.

     

    Enabling laws

    The National Assembly has been instrumental to the increasing government’s activity on the transport sector. No fewer than six inhibiting laws are in various stages of amendments. The Nigerian Railway Corporation Act 1945 amendment Bill, is awaiting concurrent amendment from the House of Representatives, even as others, such as the Nigeria Transportation Commission Bill, which seeks to establish a regulator for the transportation sector is awaiting second reading at the National Assembly, the Nigerian Shippers Council Amendment Bill, and the Nigeria Ports Authority Amendment Bills are also are at various stages before the National Assembly.

    Senate Committee Chairman on Land Transport Senator Gbenga Ashafa assured the National Assembly would strive to remove all bottlenecks towards ensuring that the transportation contributes maximally to the nation’s Gross Domestic Product (GDP).

    Ashafa insisted that seamless transportation remains the bedrock of any economy, adding that this cannot be achieved where obnoxious laws, or absence of it impedes the operations of the sector.

     

    Conclusion

    From sustaining the gains of its predecessor on the railway transformation agenda, the government moved towards the reinvigoration of the 25-year railway development policy. This policy not only sustained the rehabilitation of the narrow gauge, but embarks on modernisation of the rail system by standard gauge.

    The development of other transportation modes – waterways, road and air – remains the way to go if the nation is to break the jinx where the sector contributes the least (four percent) to GDP.

     

  • Road to the future

    •A tech giant suggests the way forward for Nigeria

    The recent suggestion by American software giant Microsoft Corporation that Nigeria deploy Information and Communication Technology (ICT) more decisively in its battle to reduce unemployment is an excellent one.

    Ms Salwa Smaoui, the company’s Public Sector and Government Business Leader for the Middle East and Africa, explained that cutting-edge jobs in artificial intelligence and cybersecurity should be seen as viable growth areas which the country’s youth should be encouraged to work in. Pointing to a deficit of 3.5 million jobs in cybersecurity, she said the country could be at the forefront of the Fourth Industrial Revolution by reconfiguring tertiary institutions to produce the personnel which would be needed for newly-evolving professions.

    This is sage advice. The exponential rise of the internet, social media, and technology firms like Microsoft, Google and Facebook is a clear indication of where jobs of the future lie. While traditional occupations in industry, agriculture and manufacturing are still important, it is obvious that ICT-related employment has become increasingly significant. A nation with an official unemployment rate of 18.8 per cent as at the third quarter of 2017 cannot afford to overlook this reality.

    The ICT sector contributed N1.5 trillion to the country’s Gross Domestic Product (GDP) in the second quarter of 2017. It accounted for 11.22 per cent to the country’s GDP in the second quarter of 2018. It grew by 15.34 per during the same period.

    It is being driven by huge demand for ICT hardware and software, an increasing realization of the ways in which ICT can facilitate existing businesses and encourage the emergence of new ones, and growing numbers of so-called “digital natives,” citizens who fully appreciate the benefits of ICT in their working and personal lives.

    In spite of the obvious opportunities for growth in ICT in Nigeria, there are several obstacles which hinder its ability to properly contribute to the resolution of the country’s unemployment problem. There is the paucity of educational and training facilities, the lack of investment in tech hubs and startups, as well as long-standing issues with public electricity supply, internet access and governmental policy.

    Countries like China, India, Singapore and South Korea have demonstrated that a deliberate and clearly thought-out programme of ICT development is the surest way for any nation to avail itself of the job-related and other benefits of ICT.

    In July, Nigeria launched an ICT roadmap. Since that time, very little has been heard about it. Such policy paralysis is unhelpful if things are to change for the better. One way of halting this is to tie policy to implementation by setting targets and deadlines for specific goals, such as the number of tech hubs, coding schools and ICT professionals the country should have by designated periods in time.

    The country must also accelerate its plans to formulate its long-awaited national policy on ICT which is expected to cover infrastructure, internet and broadband, local content development, and legal and regulatory framework. It is essential to creating an enabling environment for the sector to flourish.

    Such policy formulations must be accompanied by comprehensive changes to the curricula of the country’s secondary and tertiary institutions. It is incredible that basic coding and programming are still absent from the curricula of most secondary schools in 21st century Nigeria. An increasing emphasis on the opportunities in ICT should be part of the new emphasis on entrepreneurship in tertiary institutions.

    ‘Nigeria has the right mix of human resources, educational capacity and commercial viability that is vital to benefitting maximally from ICT. What is now required is a clear regulatory environment, consistent government support and the necessary infrastructural provisions’