NewsBudgIT Laments As FG Jerks Up Appeal Court Building Contract Approval To...

BudgIT Laments As FG Jerks Up Appeal Court Building Contract Approval To N37bn From N10bn

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Civil society groups in the country have lamented President Bola Ahmed Tinubu’s approval of N37 billion for the construction of the Court of Appeal building.

The federal government had earlier approved  N10 billion for the project in the 2023 Supplementary Budget,  says BudgIT, an NGO projecting accountability in government.

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According Ayo Ladipo, the Head of Tracka, an accountability project of BudgIT, the contract was among the 20 different contracts approved by the Tinubu-led Federal executive Council, FEC recently.

The contracts, according to her lacked transparency and contradicts the Public Procurement Act, she said wondering how such a humungous contract was not allowed to go through the normal bidding process as required by extant laws.

Apart from BudgIT, CIJD is also among other civil groups that recently condemned the manner that the FEC approved the contracts allegedly without regard to the Act guiding contract awards in the country.

They are demanding that the details of the contractors who were awarded the projects, including their names, duration of project and contract amount be listed for public information.

Noting that only the details of three of the 20 contracts have been provided, the groups said the projects include road construction, installation of street lights and purchase of buses, amongst other projects.

Speaking, Ladipo said the secrecy in which the projects were awarded would make it difficult for citizens to hold the government accountable and for civil society bodies to “track”.

“It also makes it very difficult for you to tell what goes into the negotiations of the contracts and the final decisions or even to find out how much has been released,” she said.

She raised concern about the construction of the Court of Appeal building which was approved at a cost of N37 billion. She said N10 billion was initially budgeted for the project in the 2023 supplementary budget.

“I don’t know what procurement process allowed you to get three times of what was in the supplementary budget,” Ladipo said.

On May 15 Bayo Onanuga, Special Adviser to President Tinubu on Media and Strategy issued a statement on his official ‘X’ handle highlighting the details of the FEC meeting.

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Below is the statement titled “HIGHLIGHTS OF THE FEDERAL EXECUTIVE COUNCIL MEETINGS HELD ON 13TH AND 14TH MAY, 2024”.

The Federal Executive Council concluded its meeting that started yesterday today, Tuesday May 14, 2024.

After exhaustive deliberations, the council approved a number of policies and projects that will further boost the economy, facilitate investments and promote the ease of doing business in the country. The under-listed are the major highlights:

  1. Council supported a series of initiatives set to be launched that will revolutionize Nigeria’s Infrastructure and Housing sector through Public-Private Partnerships

The initiatives which can unlock about N2 trillion are aimed at transforming the nation’s infrastructure and housing mortgage sector, meet the urgent demand for critical infrastructure and affordable homeownership, fostering job creation, inclusive growth, and long-term productivity enhancement.

Inspired by the 1970s era, the government envisions a future where ordinary Nigerians can access 25-year mortgages at low-interest rates to realise their dream of owning a home. By collaborating with private institutional investors, the government seeks to replicate past successes and address current challenges effectively.

This strategic partnership aims to leverage the expertise and capital of private investors to accelerate the delivery of vital projects, driving sustainable development and economic progress for all Nigerians.

  1. FEC approved that all users of Federal airports all over the country must now pay tolls at the gates. No one is excluded. The President and Vice President of Nigeria will also pay the toll.
  1. The council announced a ban on sand dredging 10 kms from all Federal bridges throughout the country.
  1. Council annouced a 4-week deadline for review of visa policy to enable tourists, business people, and creative professionals visit Nigeria. The ease of doing business, the council agreed cannot materialise if prospective visitors face a herculean problem getting our country’s visa. Part of the review envisaged is that visa applicants can apply for the visa online and get one within 48 hours. Also visas may be waived for holders of visas of some countries.
  1. The council granted approval for the supply, installation and training of operators of disabled aircraft recovery system at Murtala Muhammed Airport in Lagos. The contract will cost N4.2 billion. Similar contract was awarded in 2021 for Nnamdi Azikiwe International Airport in 2021.
  1. Council approved Special Purpose Vehicle to be created on a PPP basis to develop 90,000 kilometres of fibre optic cable to increase Nigeria’s internet connectivity by 60-70 percent. The SPV intends to copy the NLNG model.
  1. Council approved a consultancy service for the reconciliation and expansion of the remittances to NITDA.
  1. Council approved the request of the Ministry of Communications to convert the property at 324 Jackson Street, San Francisco, USA into a Nigerian Digital Technology Exchange Programme Hub. Property owned by the Nigerian government is valued at close to $7million.
  1. The Federal Executive Council also approved the award of contract for the building of bus terminals and other transport facilities in the Federal Capital, Abuja. Terminals will be built within 15 months at Kugbo, Abuja Central Business District and Mabushi. The whole project will cost N51 billion and will be executed by Planet Projects Nigeria Limited, which did similar contracts in Lagos and Oyo states.
  1. Council approved the award of contract to Messrs El & Matt Nigeria Limited to upgrade Kwaita-Yebu Road in Kuala Area Council of Abuja at a cost of N7.6 billion. Completion time is 18 months.
  1. Council approved contract for the building of the Court of Appeal Abuja Division at a cost of N37.2 billion. Project will be executed by Messrs Visible Construction Limited.
  1. The Council awarded contract at a cost of N412million for street lights on Bill Clinton Drive, Airport Expressway. The job includes the procurement of 8 back-up generators, which will be powered by Compressed Natural Gas( CNG) or Solar, in line with government’s decision about migrating from fossil fuel to renewable energy. The council discussed extensively the need for this energy transition, as it is climate friendly, because of low emissions and also because it will reduce cost of transportation and inflation.
  1. Council approved the request by Nigeria Customs Service to buy 200 Toyota Land Cruiser Buffalo V6 at a cost of N12.5 billion. All the vehicles will be CNG powered. Government also approved insurance cover for the vehicles at a cost of N522 million. The cover will be provided by NEM.
  1. Messrs Yuan Resources Limited was awarded the concession to deploy a revenue assurance platform under PPP arrangement in the lottery and gaming sector. The concession which will be for 15 years, will be done via DFBOT option, which means Design, Finance, Build, Operate and Transfer.
  1. Before the Monday meeting was adjourned till Tuesday, council approved several road projects. Among them was the reconstruction of Iseyin-Okeho-Iganna Road in Oyo State.
  1. Council approved Section 2 of the Lagos-Calabar Coastal Superhighway for construction, at a cost of N1.6 trillion.
  1. Approval was granted for the award of contract for reconstruction of Koton-Karfe -Abaji Road (Abuja bound), along Abuja-Lokoja Route in Kogi state at a cost of N89 billion.
  1. On Day 2 of the FEC meeting, approval was given for the award of contract for the equalisation of Lokoja-Benin Road, Okpela Section, Lokoja-Benin, Dualised Auchi Section -Uromi Link Road and Lokoja-Benin Road, Ekpoma Section. It was on this road that a fuel tanker fell into high water recently, with villagers having to swim to rescue the occupants of the tanker. The reconstruction will be financed by BUA Cement at a cost of N120 Billion under the tax credit scheme.
  1. Council approved contracts to various contractors to build roads and bridges in Kaima-Tesse, Kwara State, Benin-Agbor, BeninByepass and Ngaski-Wara in Kebbi State. All the four contracts will cost N546 billion.
  1. Messrs CCECC was awarded contract at N230 billion to build Kano Bypass. The road which is 37kms long will include bridges and several flyovers. The company has 36 months to complete the work.
  1. The Council approved for procurement the Sokoto-Illela-Badagry superhighway, which is meant to join the Lagos-Calabar Coastal superhighway. The road was first awarded in 1976 and then abandoned

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