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10 days to end of year Buhari raises  N819.5billion supplementary budget over 2022 floods

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***To rely on domestic borrowing to finance proposal

Barely 10 days to end of 2022, President Muhammadu Buhari has asked the Senate to approve N819.5b supplementary budget for the 2022 fiscal year to fix infrastructure destroyed by the flood disaster that ravaged the country recently
The supplementary appropriation as requested by the President in a letter read at plenary by the President of Senate, Ahmad Lawan, is meant for the capital expenditure component of the 2022 budget with increase in deficit to N8.17trillion.
President Buhari added that he will embark on additional domestic borrowing to finance the proposed N819.5b supplementary budget.
The letter reads: “The year 2022 has witnessed the worse flood incident in recent history which has caused massive destruction of farm lands at a point already closed to harvest season.
“This may compound the situation of food security and nutrition in the country. The flood has also devastated road infrastructure across the 36 states and the FCT as well as  bridges nationwide that are critical for movement of goods and services.
“The water sector was equally affected by the flood and there is a need to complete some ongoing critical projects that have  already achieved about 85 percentage completion.
“The nine critical projects proposed in the sector cuts across water supply , dam projects and irrigation projects nationwide.
“I have approved a supplementary budget of 2022 appropriation of N819.536 Billion, all of which are capital expenditure.
“The supplementary budget will be financed through additional domestic borrowings which will raise the budget deficit for 2022 to N8.17 .trillion and deficit to GDP ratio to 4.43%” 
Being a proposal meant for a year remaining 10 days to end, the President of the Senate hurriedly forwarded it to Senate Committees on Appropriation , Finance, Works, Water Resources and Agriculture for  expeditious consideration.

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Infrastructure

Gov Namadi Commits N8.3 Billion to Flood Damage Rehabilitation

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Umar Namadi

From Ahmed Rufai, Dutse
In response to the recent flood disaster that ravaged parts of Jigawa State, the government has allocated N8.3 billion for the rehabilitation of damaged infrastructure.
Managing Director of the Jigawa State Road Maintenance Agency (JIRMA) Eng. Abbas Muhammad Lalai, has indicated that the funds will be used to repair and reconstruct roads, bridges, and culverts washed away by the floods.

Lalai disclosed that tenders for the projects have been opened at the Ministry of Works and Transport, marking a significant step towards restoring the state’s road network.

“Governor Malam Umar Namadi’s administration has prioritized the rehabilitation efforts to ensure the state’s roads are safe and functional, supporting economic and social activities.

“The investment demonstrates the government’s commitment to mitigating the impact of the flood disaster and ensuring the state’s infrastructure is resilient and sustainable.”

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Infrastructure

FG in strategic partnership with NSIA to bridge infrastructure gap

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The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun has commenced a discussion with Nigeria Sovereign Investment Authority (NSIA) on innovative solutions for Nigeria’s infrastructure financing gap.

During a meeting held on Wednesday in his office in Abuja, a proposal for the establishment of a Nigeria Infrastructure Finance and Guarantee Facility (NIFF), a dedicated provider of credit and guarantees for local infrastructure projects was made
A statement by the director of media and information, Muhammed Manga indicated that the NSIA delegation, led by Managing Director and CEO, Mr. Aminu Umar-Sadiq, included:

– Mr. Kola Owodunni, Executive Director and Chief Investment Officer
– Mr. Victor Sesere, Financial Controller
– Mr. Tolu Adeleke, Partner at PwC
– Ms. Olumorin Motunrayo, Senior Assistant at PwC

The proposed NIFF according to the statement is to bridge the infrastructure financing gap by providing a stable source of funding and guarantees for critical projects.

This strategic partnership between the Federal Government and NSIA demonstrates a commitment to driving economic growth and development through innovative financing solutions.

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Infrastructure

AKK gas pipeline: Contrator defends NNPCL against allegation of project delay

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Media reports blaming the Nigerian National Petroleum Company Ltd (NNPCL) for the delay in the execution of $2.8billion Ajaokuta – Kaduna – Kano (AKK) Gas Pipeline Project has been debunked by one of the contractors, Brentex CPP Limited (BCL).

The company rather affirmed that it has received substantial support from NNPCL in delivering its segment of the AKK Gas Pipeline Project.
Brentex issued the clarification following its appearance at a Senate Committee on Local Content hearing on Tuesday.

The Senate through the committee had expressed displeasure at the delay in the execution of $2.8billion Ajaokuta – Kaduna – Kano (AKK) Gas Pipeline Project by Brentex CCP Limited.

The Committee Chaired by Senator Natasha Akpoti – Uduaghan (PDP Kogi Central) had taken on the management of Brentex CPP Limited, over $1.27billion stations execution component of the contract during the interactive session with them.

Some reports had claimed that Sani Abubakar, chairman of Brentex CPP Limited, informed the committee of attempts by NNPCL to descope the $1.27 billion station component of the contract.
However, Brentex, in a statement, absolved NNPCL of any wrongdoing mentioned in the reports.
The company clarified that the committee had requested BCL to confirm its commitment to deliver its segment (318 km x 40” Segment 2) of the project by the first quarter of 2025.
Brentex responded by stating that it has completed over 80% of the actual pipeline construction work, including crossings.
The company added that it is collaborating with NNPCL to deliver all the stations by the first quarter of 2025, except for two Terminal Gas Stations (TGS), which are currently under descope discussions between NNPCL and BCL.
The company also clarified that the $1.27 billion mentioned in some reports pertains to the entire value of the Engineering, Procurement, and Construction (EPC) Segment 2 contract, not the value of the two TGS.
It also said the two TGS stations represent only about 10% of the contract value.
The statement said, “We are one of the two contractors, and there are two segments of the project. BCL is only the contractor for segment 2 of the AKK project-Sarkin Pawa in Niger State to Tamburawa in Kano State.
“For the purpose of emphasis, BCL wishes to add that it is very proud with the progress of its work.
“The company said that any check will confirm that BCL’s performance is easily the best in the history of government-funded pipeline construction projects in Nigeria.
“Furthermore, BCL has always recognised the support it receives from the leadership of the NNPCL, without which we may have had no magic to deliver on this project.”

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