Infrastructure

ICRC DG, Ohiani says Nigeria needs N348tr to address infrastructure deficit

Published

5 months ago

June 26, 2024

admin

***Urges sub-national governments to embrace PPP Initiative

By our correspondent in Minna

The Director-General of Infrastructure Concession Regulatory Commission (ICRC), Mr Michael Ohiani, has indicated that for Nigeria to meet its infrastructure deficit, the country requires about N348 trillion investment.
Ohiani disclosed this when he addressed participants on Wednesday at the 2nd Quarter 2024 Nigeria Public Private Partnership Network (NPPN) meeting held at the Justice Legbo Kutigi Conference Hall in Minna, Niger State capital.
The theme of the two day meeting is “Using PPPs in Infrastructure Delivery in the States to ensure National Food Security and Economic Growth”, brought participants and other key players in the public private partnership from the 36 states of the federal
The ICRC Director-General stated that going by the Medium-term Development Plan, the country requires over N348.1trillion investment in infrastructure.
According to him, of this amount, the private sector is expected to provide the chunk of this investment to the tune of about N298.3 trillion while subnational governments can provide N49.7 trillion.
“This goes to show the importance of private sector in infrastructure development,” he added.
He pointed out that the revised National Infrastructure Investment Master Plan for the next 23 years (2020-2043) envisaged that the country would require 2.2 trillion US dollars to bridge the infrastructure deficit in the country.
He said the various options available through which the government can raise funds is borrowing, further repatriation of national funds and seeking further foreign intervention.
Other options he added are to raise more bonds, Sukuk, tax credit schemes, Public Private Partnership (PPP) both through solicited, unsolicited proposals.
In his keynote address while declaring the meeting open, the Secretary to the Government of Federation (SGF), Sen. George Akume said that Public Private Partnership (PPP) remains the only primary tool for social economic development of the country.
The SGF pointed out that it is impossible for government to finance all programs and projects alone especially now due to drastic reduction in the oil revenue in the country.
He therefore commended State governors for embracing the benefits and opportunities of PPP as an alternative procurement method.
Akume, who was represented at the occasion by Simon Tyuugu, a Director in the Office of the SGF, said the meeting was timely given the infrastructure deficit in the country and government’s efforts to invest in renewal and modernisation
In his remarks, Gov. Umaru Bago, the Executive Governor of Niger state, said his administration was focusing on farming thereby taking advantage of the vast arable land in the state.
Bago, represented by Alhaji Abubakar Salisu, Head of Service, added that the state would continue to partner with the Federal government and international agencies in respect of agricultural development.
A communique is expected at the end of the two days meeting.

Infrastructure

Gov Namadi Commits N8.3 Billion to Flood Damage Rehabilitation

Published

3 months ago

August 29, 2024

admin

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.”

Infrastructure

FG in strategic partnership with NSIA to bridge infrastructure gap

Published

4 months ago

August 1, 2024

admin

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.

Infrastructure

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

Published

4 months ago

July 19, 2024

admin

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.”