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FCT minister gives low-down on $53m saved from $128m contract awarded by Buhari

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Nyesom Wike

The minister of the Federal Capital Territory (FCT), Nyesom Wike has disclosed how his administration was able to save $53m for Nigeria from contract of $128m approved by the immediate past adminiatration of President Muhammadu Buhari

He said the administration of President Bola Tinubu met the contract for the operation of the Abuja Metro Light Rail at a whopping $128million.

Speaking before the Senate Committees on FCT and FCT Areas Councils that the administration was forced to demand details and urgent reviews of the sum because there was no way the Federal Government could afford to pay such an amount.

Wike, who appeared before the committees to defend the N1.1trillion statutory budget of the FCT for this year, told lawmakers that the contract was signed by the government of his predecessor, former President Muhammadu Buhari.

Narrating the encounter between him and the contractor, CCECC, the minister said he got to learn that the cost of operations also covered personnel training for 29 months.

He stated, “This was projected by the last administration. We did a review and brought it down to $75m, in the process, saving about $53m for the government.

Wike added, It had to do with the Metroline. “The cost for the construction is different, the cost for the operation where CCECC is insisting, we train our people 29months so and it was approved by FEC before this administration $128m.”

“I told CCECC, you have made your money in the construction and you don’t want this job to go on, convert $128m how much is it.
“Obviously you are saying that this thing will not work and it is a sabotage. I look at it, I told my team to call the contractor for us to sit in argument.
“We argued back and forth and I insited no, it is better we leave the contract. To cough out $128m from where? At the end if the day the committee recommended $63m I said OK.
“By the end of the day we came up with $75m because of the additional work and since we are preparing for the opening on the 29th because there are 12 Stations where we have to put them in order. That is why it became $75m and I have told them to prepare the agreement and let them go and start working.
“There is no way for operation to train our people to gulp $128m it is unbelievable
I had made it known to that council and if they had not agreed no option but to tell the.President, there is nothing we can do, we can not go kn with the project. $128m at what Naira to a dollar? Calculate it.
Even $75m calculate it.”

Commenting on the delay or non-ompletion of public projects, the minister spoke of his belief that most government contracts were “inflated”, adding that he owned no one apologies for taking that stance.

According to Wike, contracts inflated deliberately because government doesn’t pay on time, thereby giving contractors and others on the project chain the window to call for variations.

An idea he said he had opted to implement was to use Internally Generated Revenue (IGR) sources to part-fund some projects, while awaiting the releases of main capital budgets and in that way scuttle the plots by contractors and their collaborators in the system to seek variation at the slightest opportunity.

The N1.1tn statutory budget for 2024 is N506.5bn (44%) higher than the revised 2023 budget of N641.2bn.

Wike attributed the difference in the increase to “the expected loan from the commercial bank in the sum of N500bn”, which he said would be applied to new and ongoing projects in the territory.

The Personnel Costs component is N140.9bn, up from N99.5bn in 2023 or a difference of N41.3bn (29%).

“The increase is to accommodate the emoluments of the appointed mandate secretaries and other political appointees of the administration, payment of staff promotion arrears, peculiar allowance, staff wage award arrears and AEPD Conraiss arrears (11 months)”, he explained.

From N135.4m in 2023, the Overhead Costs of the FCT jumped to N280.5bn (24.44%) in 2024.

The minister told the lawmakers the additional N145.1bn would be spent on FCT Security Services; Loan Repayment; Logistics Support to Security Agencies; Operation and Maintenance of Wupa Sewage Treatment Plant; Maintenance of Dump Sites in Satellite Towns; Water Treatment Chemicals; and Welfare Packages (FCT Staff Palliative).

Compared to N2023 when the Capital Allocation was N406.2bn, the budget size for this year is N726.3bn or a 63.28% raise.

Wike also spoke on the challenges of managing land allocation in the FCT, disclosing that up to 1,500 cases were instituted against the administration, a reason it had also earmarked N5.5bn for legal servcyin 2024.

Among other issues, Wike revealed that the administration was battling cases of multiple allocations of the same land to different individuals and organisations.

“This time around, we are ready to take on them head-on; we are going to engage senior lawyers.

“We won’t rely on FCT Civil service lawyers because these ones also collude with those causing problems for for”, he added

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Kemi Badenoch Sparks another Controversy with Comments on Nigeria

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Kemi Badenoch

British Conservative Party leader, Kemi Badenoch, has again drawn sharp criticism following comments made during an event organized by the think tank Onward.
In her remarks, Badenoch expressed concerns about Britain potentially facing the challenges she attributes to Nigeria, describing her home country as plagued by “terrible governments.”
The Conservative Party leader, who was born in the UK but mostly raised in Nigeria, had repeatedly described growing up in fear and insecurity in a country plagued by corruption.
Nigerian Vice-President Kashim Shettima accused her of denigrating the country.
Speaking to the audience on Thursday, Badenoch recounted her upbringing in Nigeria and how her family struggled financially despite working hard. She noted that her experience shaped her determination to prevent similar circumstances in the UK.
“And why does this matter so much to me? It’s because I know what it is like to have something and then to lose it,” Badenoch said. “I grew up in a poor country and watched my relatively wealthy family become poorer and poorer, despite working harder and harder as their money disappeared with inflation. I came back to the UK aged 16 with my father’s last £100 in the hope of a better life.”
Badenoch’s comments drew attention for their critical tone, particularly her remark about the Nigerian government:
“I have lived with the consequences of terrible governments that destroy lives, and I never, ever want it to happen here.”
Badenoch further criticized Nigerian institutions, including the police, comparing her experiences in Nigeria to those in the UK.
She accused the Nigerian police of corruption, sharing a personal anecdote:
“The police in Nigeria will rob us,” she said, to laughter from the audience. “When people say I have this bad experience with the police because I’m black, I say well, I remember the police stole my brother’s shoe and his watch.”
These statements have been met with backlash from Nigerians, with many accusing her of reinforcing negative stereotypes and distancing herself from her roots.
Critics argue that Badenoch’s comments overlook the complexities of Nigeria’s challenges, while others see them as a betrayal of her heritage.
Some have taken to social media to express disappointment, accusing her of using her background to score political points.
While some observers have defended Badenoch’s remarks as honest reflections of her experiences, others have urged her to focus on contributing solutions rather than critiquing from afar.
This is not the first time Badenoch’s comments about Nigeria have stirred controversy. Recently, she distanced herself from the country’s northern region, stating she has “nothing to do with the Islamic northern region.”

As the leader of the UK’s Conservative Party, Badenoch’s remarks highlight the tension between personal narratives and political diplomacy, sparking debates about identity, governance, and the responsibility of leaders with multicultural roots.

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FG Hits Back at Emir Sanusi’s Economic Reform Remarks: ‘We Don’t Need Your Approval’

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Bola Tinubu and Sanusi Lamido Sanusi

The Federal Government has delivered a sharp rebuttal to Emir Muhammadu Sanusi II’s recent remarks about President Bola Tinubu’s economic reforms, expressing disappointment over his refusal to endorse the government’s actions.

Sanusi, a former Central Bank of Nigeria (CBN) governor, had voiced his hesitation to speak in support of the reforms, stating, “I have decided not to speak about the economy or the reforms, nor to explain anything regarding them. If I explained, it would only help this government, and I don’t want to help this government.” His comments were made at a public event in Lagos, where he also indicated that he would withhold his explanations despite the significant economic impact of the reforms.

In response, Minister of Information and National Orientation, Mohammed Idris, acknowledged that Sanusi’s decision to withhold support for the government’s economic agenda was his personal choice, but expressed frustration at his stance.
“It is rather curious for someone from an institution that champions transparency and integrity to openly admit to withholding the truth due to personal interests,” Idris remarked.
The Minister stressed that while everyone has the right to their opinion, the reforms under President Tinubu were designed to confront deep-rooted economic challenges, requiring bold and transformative actions. These reforms, including the unification of exchange rates and the removal of the fuel subsidy, are vital steps to secure Nigeria’s economic future.
Idris addressed Sanusi’s acknowledgment that the current economic pains were a necessary result of years of mismanagement, stating that these reforms are already showing positive results. “The unification of exchange rates has instilled investor confidence, leading to increased foreign reserves and better protection from external shocks,” he noted.

The government also highlighted the positive outlook for Nigeria’s economy, pointing to World Bank projections showing an upward trend in GDP and improvements in key sectors like infrastructure, education, and healthcare.

While expressing disappointment over Sanusi’s sudden criticism, Idris emphasized that Nigeria’s path to recovery requires unity and collective effort. “It is disheartening that reforms which were previously endorsed by experts like Emir Sanusi are now being subtly undermined,” he said.

Idris urged leaders like the Emir to set aside personal and partisan interests and work towards the greater good of the country. “This is a pivotal time for Nigeria, and what is needed is collaboration, not division,” he concluded.

The Federal Government reiterated that it remains committed to advancing economic reforms and fostering inclusivity, with a focus on long-term growth. The administration remains open to dialogue with all well-meaning stakeholders while steadfastly putting the country’s interests first.

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Ex-REDAN President Warns Developers of Moure Consult Fraud, urges FG Support on Housing

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By Ben Ogbemudia, Abuja

The immediate past President of the Real Estate Developers Association of Nigeria (REDAN), Dr. Aliyu Oroji Wamakko, has sounded an alarm to estate developers nationwide about the fraudulent tendencies of Moure Consult Ltd, under the leadership of its Managing Director, Sadiq Dalhatu Ado.
Speaking in Abuja, Dr. Wamakko revealed a surge in complaints from developers, particularly in the Federal Capital Territory, accusing Moure Consult Ltd of breach of agreements and unfulfilled promises.

According to Wamakko, many victims of the company have lodged formal petitions with relevant agencies, citing dubious financial practices.
He disclosed that in February 2024, Moure Consult Ltd approached various developers with a proposal to secure loan facilities for infrastructure development. The firm touted its expertise and partnerships, luring developers into agreements under false pretenses.
“Developers met all conditions laid out by Moure Consult Ltd with the expectation of receiving funds within 45 working days. But to date, no funds have been disbursed. Instead, developers have been subjected to excuses, missed deadlines, and evasive tactics,” Wamakko said.
The former REDAN president noted that victims were promised that funds, allegedly placed in fixed deposits, would be available by May 30, 2024. However, the deadline passed, and subsequent extensions yielded no results. Instead, developers received vague alternatives, including agricultural proposals and state contracts, which Wamakko described as distractions.
He condemned these actions, calling them a betrayal of trust that tarnishes the real estate industry’s credibility.
Amidst the warning, Wamakko urged the Federal Government to support the private sector in achieving affordable housing through the Ministry of Finance Incorporated (MOFI). He called for deliberate funding under President Bola Tinubu’s Renewed Hope Housing agenda to bridge Nigeria’s housing deficit.
“The government must create avenues for accessible financing that empower reputable developers to deliver affordable housing to Nigerians. It’s time to address the systemic barriers affecting both developers and citizens seeking shelter,” Wamakko emphasized.
This clarion call serves as a dual message: to warn against fraudulent practices and to advocate for proactive government intervention in the real estate sector.

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