One month to hand over date bihari approves N1.6 trillion contracts

Barely one month to the end of this buhari regime, the federal executive council has approved contracts totalling N1.6 trillion.

Some project contracts, following memos presented by the Minister of Works and Housing, Babatunde Fashola include the sum of N3.4 billion for the procurement of an aircraft by the nation’s Customs Service.

The Minister of State Budget and National Planning, Clement Agba, disclosed this while briefing State House correspondents at the end of the week’s cabinet meeting, chaired by the Vice President, Prof. Yemi Osinbajo.

The minister of state for budget also said “The Ministry of Finance Budget and National Planning presented a couple of memos for which approvals were obtained. The first one was for the award of contract for the procurement of a Cessna Caravan aircraft by the Nigerian Customs in the sum of N3,447,442,710, inclusive of 7.5 per cent VAT with a delivery period of 12 months,” he said.

He further disclosed that the sum of N45.9 billion was approved as augmentation for the cost of contracts for the construction of the Nigerian Deposit Insurance Corporation’s (NDIC) head office building in Abuja and Lagos, including its training institute in Lagos.

For the Ministry of Works and Housing, the contract awards included an augmentation cost for the Ogun-Sagamu road project.

Giving insight, Fashola said: “The Ministry of Works presented four memoranda, all of which were approved. The first was for the augmentation of an existing contract in Ogun-Sagamu road. The contractor has run out of quantities and needs augmentation to finish the road.

“I think out of about 32km, they completed over 20km, which has been open to traffic. So, Council approved N6.972 billion augmentation for them to complete the road.”

Explaining further, he said a memo on behalf of the Federal Road Maintenance Agency (FERMA) sailed through Council with respect to the rehabilitation of five roads and the construction of one road.

He listed the roads to include Orogun-Owerugbo and associated roads in Delta State in favour of Mrs. UYK in the sum of N2.99 billion.

Others are rehabilitation of Gege to Garage road in Yobe State in favour of Mother Cat for N12.926 billion, rehabilitation of Geshua to Potiskum road in Yobe in favour of Thinker Point at N2.986 billion.

“The rehabilitation and construction of Onitsha-Aguleri to Adani road in Anambra State in favour of Commerce Steel and Construction at N2.499 billion, rehabilitation of Geshuwa-Yusufani road in Yobe in favour of Saha Continental Civil Engineering Limited at the sum of N1.99 billion and rehabilitation of Oba-Nnewi-Okigwe road section one, Oba UG 35km in favour of Ferotex Construction in sum of N2.499 billion. That was the second memorandum, which was approved,” he noted.

On the third memorandum FEC approved, Fashola said it was with respect to the augmentation of the Potiskum to Damaturu section four part of the Kano-Maiduguri highway, which is about 600km.

“Shuware to Azare and Azare to Potiskum will be open to traffic. This section – Potiskum to Damaturu – is also almost completed. There’s just an augmentation of N2.577 billion to cover escalation of cost in materials and to provide for lane markings.

“So, that the road can be fully finally handed over. That was a third contract that was approved. The fourth and final one is the approval for the construction and rehabilitation of 11 Federal roads totaling 737.242km in the sum of N1.535 trillion, under phase two of the NNPC tax credit scheme.

“You will recall that in January this year, I presented a memo that Council approved for NNPC to invest N4.9 trillion in a row. There were then about 44 roads that had been awarded that were under contract,” the Works and Housing Minister stated.

On why the government was bent on contracts award when the lifespan of the administration was coming to an end, Fashola said: “If the question is posed to Nigerians whether these projects should be left undone and transferred to the incoming administration, majority of the citizens would prefer it comes now because of the implications for job creation and stimulating the economy.”

Most Nigerians interviewed are wondering why a government that has about one month to go will be in a hurry to awards billions of naira contracts instead of preparing their hand over notes for the incoming administration to continue from where they stopped.

Particular mention was made for the contract of billions of naira for supply of fire fighting trucks for some airports in the country.