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Lagos- Ibadan standard rail line to be completed December 2018

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…Jibowu, Costain bridges to go***

…As National Assembly puts Lagos-Ibadan road reconstruction on hold, dumps N135bn request***

The Minister of Transportation, Rotimi Amaechi on Tuesday assured that the Lagos-Ibadan standard gauge rail line would be completed in December 2018 and be commissioned in January 2019.

Amaechi gave the assurance during inspection of Lagos-Ibadan standard gauge rail line in Papalanto, Ogun State, saying he was impressed with the level of ongoing construction work, while noting the challenges the contractors were facing, slowing the pace of work.

The Minister reiterated his strong belief that the Jibowu and Costain bridges in Lagos would be demolished during the process, adding that the ministry had gotten the right of way.

“I was on a tour with the Governor of Lagos, Akinwunmi Ambode, and we have agreed that the two bridges will come down, our target is 2018 December”, Amaechi stated, adding that it was the best thing to do in the circumstance.

“There is no way you can do construction without challenges in different forms and kinds and you have to address them.

“The challenges are not even here in Ogun, they are worse in Lagos. We are dealing with water, drainage, gas, power and the military.

“The only thing we are dealing with here is just gas and a few power transmission lines and we can manage it”, he indicated further, noting that two locomotives and 10 coaches have arrived the country; and that the President will commission them, this December.

In the meantime, the National Assembly has yet to approve the request by the Presidency to move N135.6bn to other pressing sub-heads in the 2017 budget five months after the request was submitted to it by the executive.

Both chambers of the National Assembly, on Tuesday, told The PUNCH that the virement, which seeks improved funding of key projects, including the Lagos-Ibadan Expressway and the Second Niger Bridge, had been overtaken by events.

Vice-President Yemi Osinbajo, as the Acting President while President Muhammadu Buhari  was in London on medical vacation, had, on July 20, 2017, written to both chambers of the National Assembly seeking approval for the re-allocation of some funds in the 2017 budget.

The Senate, however, did not treat the request until November 6, 2017, when it was referred to the Committee on Appropriations. The committee has yet to present its report to the chamber as of the time this report was filed.

The executive and the National Assembly had clashed after Osinbajo signed the 2017 Appropriation Bill of N7.441trn into law on June 12.

Both arms of government disagreed on the reduction of budgetary allocations to key projects, including budgetary votes to the Lagos-Ibadan Expressway and the Second Niger Bridge.

The contractors, reconstructing the Lagos-Ibadan Expressway – Julius Berger and RCC – suspended work on the highway, described as the most important in the country, in July due to mounting debts by the Federal Government.

The lawmakers had reduced allocation to the work on the road from N31bn to N10bn while the National Assembly added N10bn to its allocation to take its budgetary allocation from the previous N115bn to N125bn, ascribing the increase to inflation.

The executive had, in July, submitted the virement request as part of efforts to inject more funds into the dilapidated highway, the new Niger Bridge and other critical projects.

Speaking with one of our correspondents on the telephone, the Vice-Chairman, Senate Committee on Appropriations, Senator Sunday Ogbuoji, blamed the delay on committees which supervised the Ministries, Departments and Agencies affected by the virement.

He said, “You’re right to say it was referred to the appropriations committee but, you know, the process of appropriation is that when you refer something to the committee on appropriations, the  committee will send it to the various committees who have the responsibility (over the MDAs).

“We have yet to get feedback from the committees who have the responsibility. That is why we have not presented the report.”

When asked what the fate of the request was when the National Assembly has started working on the 2018 Appropriation Bill, Ogbuoji said, “You will know as we progress. That report must be laid before the Senate.”

A member of the Committee on Appropriations, Senator Mao Ohuabunwa, was asked about the status of the request at the committee stage, he said, “I can’t remember.”

He was, however, reminded that the request was made by Osinbajo in July. He was also told the amount and the committee it was referred to.

In his response Ohuabunwa said events had overtaken the process, adding that the 2018 budget was already being prepared and would soon be passed, leaving the 2017 Appropriation Act expired.

“How can somebody even be talking of virement now when we have treated MTEF/FSP (Medium Term Expenditure Framework/Fiscal Strategy Paper) and the processing of the 2018 budget is on?” he asked.

When asked if the 2018 budgetary process had any implications on the approval of the virement request, Ohuabunwa stated, “It has been overtaken by events. By bringing a new budget and as we are processing it, every other thing is nullified.”

A breakdown of the virement showed that in the Ministry of Transportation, N66bn would be moved into projects, while N46bn was recorded for the Ministry of Power, Works and Housing.

In the Ministry of Interior, N7.6bn will be moved while in the Ministry of Defence, the figure is N3.1bn.

The Federal Capital Territory Administration will move N3bn and another N2.8bn in the Ministry of Water Resources.

Also, the House of Representatives, on its part, said the N135.6bn virement was no longer relevant because attention had shifted to the 2018 budget.

The Chairman, House Committee on Works, Mr. Toby Okechukwu, told The PUNCH on Monday that the approval of the virement was no longer important.

“How can we be talking of 2017 virement again now that we are on 2018 budget? The issue now is 2018 budget,” he stated.

Okechukwu also informed The PUNCH that the target of the House was to provide adequate funds for the Lagos-Ibadan Expressway and the 2nd Niger Bridge in the 2018 budget.

However, he explained that the amount of money to be put into the projects would be determined by the outcome of an investigation about to be conducted into their funding status by the House.

Okechukwu added, “There is a House resolution to investigate the exact funding status of the Lagos-Ibadan Expressway and the 2nd Niger Bridge.

“We have to fully establish whether the projects are being funded through Public Private Partnership or they will be through total budgetary allocations by the government.

“Whichever is the outcome of the investigation will determine what further actions the House will take.

“But definitely, there will be adequate funding of the projects in 2018.”

Additional report from Punch

Economy

Nigeria Secures $600m Danish Shipping Seaport Infrastructure Investment

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Nigeria Secures $600m Danish Shipping Seaport Infrastructure Investment

President Bola Tinubu has secured a 600 million U.S. dollar Danish shipping and logistics company, A.P Moller-Maersk, investment for Nigeria’s seaport infrastructure.

This investment is to expand existing port infrastructure to accommodate more container shipping services in Nigerian ports.

Chairman of A.P Moller-Maersk, Mr Robert Uggla, disclosed this during a meeting with Tinubu on the sidelines of the World Economic Forum Special Meeting in Riyadh, Saudi Arabia, on Sunday.

Tinubu noted that this investment would complement the administration’s ongoing one billion dollars investment in seaport reconstruction across the eastern and western seaports of Nigeria.

The President added that it would further support the country’s port modernisation efforts and port process automation through his administration’s implementation of the national single window project.

The window is aimed at enhancing trade facilitation, easing import/export flow, reducing corruption at the ports, while improving the efficiency and transparency of port processes in Nigeria.

“We appreciate your business and the contribution you have made and continue to make to our country’s economy over time. We do not take our partners for granted.

”A bet on Nigeria is a winning bet. It is also a bet that rewards beyond what is obtainable elsewhere.

“More investment opportunities are available, and my government has worked on various reforms to encourage investments. We need to encourage more opportunities for revenue expansion and minimize trans-shipments from larger ships to smaller ships,” he said.

The President assured Maersk of his administration’s commitment to collaborating and creating an enabling environment for businesses to thrive in the country.

He cited Maersk’s previous partnership in the development of the Ogun State container terminal as a testament to fruitful partnerships with the reputable logistics company.

Highlighting Maersk’s longstanding engagement in Africa’s most populous nation and his belief in the future of Nigeria, Uggla said his company had made significant investments of over two billion dollars in Nigerian ports and other activities.

He emphasised the potential for Nigerian ports to accommodate larger container ships and stressed the need for expanding port infrastructure to meet this demand, while reducing the cost of logistics.

‘’We have seen a significant opportunity for Nigeria to cater for larger container ships. Historically, most of the West African coasts are already served by smaller ships. Currently, we see an opportunity to deploy larger ships to Nigeria.

“To achieve this, we need to expand the port infrastructure, especially in Lagos, where we need a bigger hub for logistics services. The growth potential is hard to quantify.

‘’We believe in Nigeria, and we will invest 600 million dollars in existing facilities and make the ports accommodating for bigger ships.

‘’In my humble view, given that Nigeria is the most populous country in Africa, Nigeria should have the best and biggest port and we are very eager to invest.

“We will continue that dialogue with the relevant Nigerian authorities to explore further investment opportunities,’’ Uggla said.

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Economy

NRC Flags-off 2024 Annual Capital Procurement Process, With 524 Bidders

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NRC Flags-off 2024 Annual Capital Procurement Process, With 524 Bidders

The Nigerian Railway Corporation (NRC) flagged off Thursday, its annual Capital procurement process for 2024 at the National Headquarters in Ebute Metta, Lagos.

The Maritime First learnt that the significance of this exercise was to ensure transparency in the selections of the most competent bidders among the 524 documents that bidder.

The Managing Director/ Chief Executive Officer, Engr. Fidet Okhitia was represented, by Dr. Monsurat Omotayo flagged off the exercise. 

In her remarks, she promised it would be a transparent exercise, even as she identified some of the challenges before they arrived at the present state of the exercise.

She however noted that placing two Adverts, on the nation’s national daily was not planned for initially.

According to the Director of Procurement, NRC, 524 companies bid across the three categories, as published in the National newspapers.

The Categories were: 

*Works, comprising renovations, growth, and repairs of locomotives, coaches and rolling storks.

*Services, covering business concerns bordering on insurance, and alternative revenue generation.

Goods, which touches on supplies of lubricants, diesel (AGO), spare parts, and track materials.

Amongst the audience were professional evaluators, and representatives of the Federal Ministry of Transport, Chartered Institute of Purchasing and Management Supplies. 

Others were Non-governmental organizations like the Civil liberty, Professional bodies, Outside observers, and the members of the Fourth Estate.

Engr. Fidet Okhiria

Participants were made to register their details at the entry point. While, the Health Safety and Environment (HSE) was also on ground to ensure adequate care, and to nip in the bud, any health challenges.

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Economy

Naira Loses 6% Against Dollar At Official Market

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Naira Loses 6% Against Dollar At Official Market

The Naira on Monday slightly depreciated at the official market, trading at N1,234.49 to the dollar.

Data from the official trading platform of the FMDQ Exchange, which oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed that the Naira lost N64.50.

This represents a 5.51 per cent loss when compared to the previous trading date on Friday, April 19, when it exchanged at N1,169.99 to a dollar.

However, the total daily turnover increased to 110.17 million dollars on Monday, up from 86.68 million dollars recorded on Friday.

Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,295.00 and N1,051.00 against the dollar.

CBN Governor, Yemi Cardoso, on Saturday, April 20, 2024, said the apex bank was doing everything possible to achieve a stable exchange rate.

He said the apex bank was also working to ensure that the exchange rate found its adequate price discovery level.

Cardoso said that CBN’s foreign exchange reforms were paying off and had made the naira the best-performing currency globally.

He spoke at a press conference during the annual meeting of the International Monetary Fund (IMF) and World Bank Group.

He predicted ups and downs but assured the global economic community that the Naira would steadily gain against foreign currencies.

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