logo
Nigeria: FEC approves $489mln, $652mln for dams, roads in Ondo, Ekiti, others

Nigeria: FEC approves $489mln, $652mln for dams, roads in Ondo, Ekiti, others

Zawya06-05-2025

Federal Executive Council (FEC) on Monday, approved a total of N787.14 billion and $651.7 million for a wide range of infrastructure and ecological projects across Nigeria, including major road constructions, dam rehabilitations, and irrigation schemes – all aimed at boosting connectivity, food production, and economic resilience.
The approvals followed a marathon cabinet session presided over by President Bola Tinubu at the Presidential Villa, Abuja.
Minister of Works Dave Umahi told journalists that the Council approved revisions and fresh contracts for major road projects spanning 13 states, including key corridors inherited from the previous administration.
Among them is the rescoping of the Akure-Eta-Ogbese-Iju-Ekiti border to Ikere-Ado-Ekiti dual carriageway, now revised to ₦19.4 billion for 15km of the 18.4km stretch.
Similarly, a long-delayed 375km Sokoto-Zamfara-Katsina-Kaduna highway will now focus on an 82.4km segment with six new bridges—retained within the original ₦105 billion budget.
In Borno State, the 105km Maiduguri-Monguno road has been segmented, with the first 30km awarded for ₦21 billion. Additional contracts include:
Abakaliki-Afikpo Flyover, Ebonyi State – ₦25 billion; Ikoga and Atan-Alapoti-Ado-Odo Roads, Ogun State – ₦37.05 billion; Enugu-Onitsha Dual Carriageway (Tax Credit, MTN) – ₦150 billion for 77km and Benin-Shagamu-Ore Road (96km segment) – ₦187 billion.
Umahi also announced a $651.7 million funding package from the China Exim Bank for the 50km 7th Axial Road, a key transport corridor linking the Lekki Deep Seaport and Dangote's industrial complex.
'The road includes five kilometers of bridgework and will serve as a major evacuation route for cargo, reducing pressure on Apapa Port,' he said.
Progress on the high-profile Lagos-Calabar Coastal Highway was also highlighted. Umahi said over 70 percent of Section One is complete, with 30km set for commissioning. In Section Two, 10km is nearly finished. A separate 10km of the Sokoto-Badagry corridor is targeted for delivery by May 25.
The minister added that recent reviews by international lenders, including Dutch Bank and the Development Bank of Southern Africa, validated the integrity of the procurement process. 'They even said the project was undervalued,' he said.
In a separate briefing, Dr Emanso Umobong, Permanent Secretary of the Cabinet Affairs Office, announced critical interventions in water and agricultural infrastructure. FEC approved the rehabilitation and expansion of: Tiga Dam, Kano – ₦11.83 billion; Shalagua Gorge Dam – ₦7.47 billion and Kafinciri Irrigation Scheme – ₦7.4 billion
'These projects are integral to President Tinubu's Renewed Hope Agenda, which prioritises food security, rural prosperity, and climate resilience,' she said.
Umobong explained that the dams and irrigation works would benefit over 30,000 farming households and more than 50,000 acres of land, enabling up to three farming cycles annually and generating over 300,000 jobs.
She also confirmed ecological interventions, including erosion control, watershed restoration, and flood prevention across 16 local government areas in Kano.
In Maiduguri, the Council approved emergency works on Alau Dam, which caused serious flooding in 2023. 'This will avert future disasters and ensure better water management in Borno State,' Umobong added.
Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (Syndigate.info).

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Nigeria's Dangote aims to end Africa's fertiliser imports
Nigeria's Dangote aims to end Africa's fertiliser imports

Zawya

time7 hours ago

  • Zawya

Nigeria's Dangote aims to end Africa's fertiliser imports

Africa will be self-sufficient in fertiliser within 40 months, Nigerian billionaire Aliko Dangote said on Friday, on the basis of a planned expansion of his $2.5 billion plant on the outskirts of Lagos. Africa currently imports over 6 million metric tons of fertiliser annually as it struggles to produce enough food in often challenging growing conditions. The benefits of increasing domestic production would include reduced foreign exchange expenditure, which has been a major economic burden in Nigeria because of the weakness of the local currency. "In the next 40 months, Africa will not import fertiliser from anywhere. We have a very aggressive trajectory right now. We want to put Dangote to be the highest producer of urea, bigger and higher than Qatar - give me 40 months," Dangote said at the annual Afreximbank meeting in Abuja. Dangote runs Africa's largest granulated urea complex, which has annual capacity of 3 million tons, 37% of which it exports to the United States. It will need to double current output to achieve his ambition. Dangote has said he is not worried about the impact of Trump tariffs. Analysts say the market outlook for fertiliser is bullish, but there are also challenges and the kind of expansion Dangote seeks requires infrastructure to be built. "Any new fertiliser plant or expansion project faces cost overrun risks to the producer," Seth Goldstein, senior equity analyst at Morningstar Research, said. Mikolah Judson, an analyst at global risk consultancy, Control Risk, cited the need for "transport infrastructure and port capacity," saying "bottlenecks routinely delay various import and export projects in Nigeria". Dangote has a track record for delivering big projects. He also owns the Dangote Petroleum Refinery, Africa's largest, although its launch was repeatedly delayed and it exceeded its initial budget. He has said he intends to list the 650,000 barrels-per-day refinery next year and on Friday he also confirmed plans to list his fertiliser plant on the local stock exchange this year.

NSDC removing impediments to sugar production in Nigeria — Bakrin
NSDC removing impediments to sugar production in Nigeria — Bakrin

Zawya

time8 hours ago

  • Zawya

NSDC removing impediments to sugar production in Nigeria — Bakrin

The Executive Secretary/CEO of the National Sugar Development Council (NSDC), Mr. Kamar Bakrin, has briefed critical stakeholders on the progress made by the council in addressing impediments to improved local sugar production in Nigeria. Speaking at a tripartite meeting of the agency, the Ministry of Industry, Trade and investment and the major BIP operators, the NSDC boss said the Council has elevated performance monitoring and oversight of the Backward Integration Programme (BIP) operators beyond what the Sugar Industry Monitoring Group (SIMOG) used to do. According to him, NSDC under his watch has emphasised robust, one-on-one, physical and virtual engagement with the operators, giving them targets and following up on deliverables. Bakrin said 'the operators have complained about the existing loopholes in the free trade zone regime, which they believe certain participants in the NSMP have exploited. 'They also cited delays in the clearing of equipment at the ports, smuggling of sugar into the country, host community resistance to the expansion of their BIP programmes as the primary causes of the delays in their BIP execution.' 'The loopholes in the FTZ regime are being addressed by the ongoing amendment of the NSDC Act by the National Assembly.' He explained that the amendment process involves engagement with the relevant National Assembly Committee, and key stakeholders among other objectives to address the concern of the BIP operators and also make the industry more attractive to other investors. 'The delays in the clearing of equipment at the ports is something that is also being addressed with the Nigeria Customs Service. On the issue of smuggling, the volumes do not significantly alter the economics of sugar production and the market dynamics. But regardless, we have engaged the relevant security agencies on the matter. 'In terms of host community resistance, the council consistently intervenes and has actually driven the resolution of these grievances, especially the more significant ones that have been experienced in places like Numan in Adamawa State, and this has been resolved. 'At the moment, there is currently no backward integration programme in which the host community has restricted access to a significant proportion of land in the country,' he added. The Executive Secretary also informed the gathering that as a Council, the NSDC is working on getting comprehensive financing support to aid the development of the industry and in addition to help the existing operators lower the cost of irrigation. 'One of the things we need to do is aggressive pushing of a sugar sector development fund, as well as securing the kind of guarantees that will allow the cost of borrowing to come down. 'Also, to possibly extend whatever support we can provide around the issues of irrigation facilities, not necessarily as grants, but just to lower the overall cost of irrigation infrastructure.' Emphasising the need for severe sanctions for underperformance, Mr. Bakrin said: 'We believe that the two critical things that must happen is that the operators must act immediately to stop the deterioration in the output of their current operations, especially around the issues of agronomic and factory practices, which are clearly below global norms and standards. 'They must also actively expand their existing brownfield operations. In addition, we believe that without going into the specifics of individual companies for confidential reasons, the operators need to, as a matter of urgency, take a much more aggressive approach to expanding their BIP programmes to ensure that they are able to deliver on the NSMP targets. 'We believe that basic improvements in agronomics and factory practices can take annual raw sugar production to 200,000 metric tonnes in the short term even from the current land planted with sugarcane,' he noted. The NSDC boss argued that while the business of importation of raw sugar and refining at the existing facilities owned by the major operators may seem profitable on the surface, the more challenging work of actually growing sugar cane and processing it in Nigeria is ultimately more sustainable and rewarding for the operators and the country at large. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (

Nigeria: Electricity distribution, challenges and efforts of IBEDC to change the narrative
Nigeria: Electricity distribution, challenges and efforts of IBEDC to change the narrative

Zawya

time8 hours ago

  • Zawya

Nigeria: Electricity distribution, challenges and efforts of IBEDC to change the narrative

Soji Ajibola examines challenges facing electricity distribution, consumers' perspectives, and efforts of Ibadan Electricity Distribution Company (IBEDC) to change the narrative. Electricity distribution has been one of the major challenges facing the various companies saddled with the responsibility nationwide. The challenges can be aptly described as 'It was in the beginning, so it is now.' While consumers are groaning over persistent darkness as being experienced nationwide, it was noted that nothing has changed except the names of the organization. Different administrations in the country have approached the challenges facing the power sector from different angles. In order to ensure the effectiveness of the sector, especially in the area of power generation and distribution, the administration of former President Goodluck Jonathan privatised the sector, which gave birth to the distribution companies, including Ibadan Electricity Distribution Company (IBEDC) nationwide. IBEDC was formed in November 2013 during the unbundling and privatisation of the Power Holding Company of Nigeria (PHCN). IBEDC inherited decades of systemic inefficiencies: dilapidated infrastructure, a poorly metered customer base, erratic load allocation, tariff deficits, billing inefficiencies, meter bypassing, staff-customer collusion, and weak revenue collection. Also, the company is being confronted with the vandalism of its equipment, which includes transformers and cables, while fraudsters, on the other hand, are not helping matters. These challenges were further compounded by broader macroeconomic pressures—policy volatility, inflation, and shifting regulatory frameworks. However, in its efforts to change the narrative, the management has since July 2022 embarked on critical reforms that have been instrumental in recent successes, which include its being regarded, within the industry, as Nigeria's most improved distribution company, underscoring its successful turnaround and commitment to excellence. The feat recorded, according to its Managing Director/CEO, Engr. Francis Agoha, is being attributed to the various policies put in place aimed at ensuring optimal performance. He said the management has not only sustained past gains but significantly recalibrated internal systems to deliver sustainable results. As a testament to the ongoing revival championed by the current leadership, IBEDC has successfully transitioned from a loss-making entity to a profitable enterprise. In its 2021 audited financial statement, the company reported a Loss After Tax of N62.89 billion, with total assets exceeding N557 billion. In 2022, the Loss After Tax reduced significantly to N17.90 billion. The 2023 audited financial report, conducted again by reputable audit firm Ernst & Young (EY), showed positive indications. The report translated to improvement from loss-making to profit after tax, which stands at over N8.9 billion, while total assets grew to over N685 billion. The fiscal prudence has significantly enhanced IBEDC's credibility with key stakeholders, including the Nigerian Bulk Electricity Trading (NBET) Plc, Market Operator, Transmission Company of Nigeria (TCN), and power generation companies (GenCos), while also restoring investor and regulatory confidence. It was also disclosed that IBEDC's monthly revenue collection more than doubled—from an average of N10 billion to consistently above N20 billion since December 2024. In February 2025, the company hit an all-time high monthly collection of N22.028 billion, following a N21.985 billion collection milestone in October 2024. Furthermore, IBEDC recorded its best Non-Maximum Demand (Non-MD) collection of N7.634 billion in January 2025. For effective and optimal performance, the company has introduced targeted interventions that are already delivering measurable results. This initiative underscores the customer-centric approach, including the launch of the Customer Care WhatsApp platform, personally championed by the Managing Director. This commitment to service excellence is further reflected in the recent string of awards the company has won for outstanding customer service. IBEDC has significantly improved customer experience and digital accessibility for easier, faster, and more convenient payment solutions. In July 2023, the company introduced the i-Recharge platform in collaboration with i-Recharge Tech-Innovations. This multi-channel payment solution allows customers to recharge via USSD codes, ATMs, POS terminals, and mobile money agents, providing broad access even in low-connectivity areas. Also in 2024, IBEDC introduced IBEDCPay, an innovative home-grown payment app offering a wide range of benefits to customers, including speed, biometric security, and transaction history. ALSO READ FROM NIGERIAN TRIBUNE: NSCDC, Immigration, others: FG postpones recruitment, changes portal IBEDC has also ramped up customer communication through dedicated weekly radio and television programs across its service areas. These programmes offer interactive platforms for customers to raise concerns, ask questions, and stay informed about ongoing improvements. The Managing Director added that the company's grassroots engagement strategy has further strengthened its relationship with customers. In the first half of 2024, IBEDC recorded approximately 3,000 monthly interactions across 18,000 communities. These touchpoints—facilitated by Distribution Transformer Managers, Executives, and Communication Officers—are vital to resolving issues in real-time and fostering trust. The customer-centric approach, according to the Managing Director, is aligned with the Nigerian Electricity Regulatory Commission's (NERC) recent directive requiring DisCos to resolve at least 75% of customer complaints from Q1 2025 onward—a benchmark IBEDC is well-positioned to exceed, closing the metering gap. With a customer base exceeding two million, only 43% were metered as at 2024. The company is now aggressively addressing this gap, targeting a metering coverage rate of over 60% by the end of 2025. He stated that the ambitious goal is being pursued through multiple initiatives. Over 104,000 meters were deployed under Phase 0 of the National Mass Metering Programme (NMMP), while the revitalized Meter Asset Provider (MAP) scheme now offers improved meter availability and a more user-friendly online application process. In 2024 alone, over 69,000 meters were installed, and IBEDC was recognised by the Nigerian Electricity Regulatory Commission (NERC) as number one among all DisCos in Q2 2024 for meter installations. In January 2025, IBEDC launched the Presidential Metering Initiative scheme: Metering Acquisition Fund (MAF) to expedite deployment of meters in high-impact areas and along critical feeders, with an annual target of over 240,000 meters. Energy theft, the Managing Director said, remains one of the most critical threats to sustainable electricity distribution in Nigeria. Between January and October 2024, IBEDC recorded over 8,000 incidents of energy theft, including meter bypasses, illegal reconnections, and direct tampering. According to him: 'IBEDC has repositioned its Revenue Protection Team and intensified crackdown of offenders through a partnership with the Special Investigation and Prosecution Task Force on Electricity Offences (SIPTEO). Offenders are now being prosecuted under the full weight of the law, signaling a strong deterrent against future infractions.' Alongside enforcement, IBEDC is running extensive community awareness campaigns to educate customers on the financial and legal consequences of energy theft. Simultaneously, it is investing in smart metering solutions and Advanced Metering Infrastructure (AMI), enabling real-time monitoring, leak detection, and remote disconnection—critical tools for loss prevention and improved efficiency. With these combined measures, IBEDC aims to reduce its Aggregate Technical, Commercial, and Collection (ATC&C) loss rate from an average of 32.73% in 2024 to below 25% by the end of 2025. In fact, the company recorded its lowest-ever ATC&C loss rate of 24.30% in October 2024. IBEDC ranked 3rd best in ATC&C performance in Q4 2024, a testament to the impact of these measures. He added that IBEDC is also upgrading customer supply bands, and in Q1 2025, the number of Band B, C, D, and E customers migrated to Band A feeders surged from 30 in April 2024 to 126 by May 2025, increasing the share of customers receiving 20–24 hours of daily electricity. As part of efforts to strengthen infrastructure and address the growing demand for transformers across its franchise, IBEDC established a transformer repair workshop in 2023. Leveraging local expertise, the workshop delivers high-quality repair services. Since its launch, over 127 transformers have been successfully repaired, bringing relief to approximately 400 communities. This innovative initiative has significantly mitigated the high costs associated with transformer replacement, which have soared due to foreign exchange challenges. Investing in People and Performance IBEDC said it understands that a motivated, capable workforce is critical to sustained success. To support its team, the company recently implemented a 25% salary increase to help offset inflationary pressures and uplift staff morale. The revised Condition of Service of the company was signed and implemented in 2023. The conclusion of its 2023 performance appraisal exercise saw the recognition and rewarding of 1,327 employees with promotions, salary increments, and performance bonuses. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store