Gov Otu Presents N250bn 2024 Budget For Cross River

Governor Bassey Otu of Cross River on Thursday presented a budget of N250 billion for 2024 to the state House of Assembly for approval. Presenting the budget titled: “The Peoples First Budget’’, Otu said that the figure was made up of N154billion capital expenditure and N96billion recurrent expenditure. He said that the budget was aligned with the Sustainable Development Goal (SDG) goal 11, which focused on zero hunger, goal 111 which focused on good health and wellbeing and goal 1V which focused on quality education. “The 2023 budget of quantum infinitum which my administration inherited sought to transform as well as empower citizens through wealth creation and employment generation, improvement of educational standard, access to healthcare among others. “So, we intend to consolidate on the gains made by my predecessor as well as deliver quality service to our people. “For the 2024 fiscal year, the government is expecting N133 billion from the Federal Allocation Account (FAAC) while independent revenue is estimated at N35 billion,” he said. Otu said that the budget would priotise agriculture, education, healthcare delivery, environment, infrastructure, youth and sports development, security, tourism and general administration. The governor said as a newly elected governor, he would continue from where the previous administration stopped by continuing with some of priority projects while adding some innovative ones. “The 2023 budget of quantum infinitum which my administration inherited sought to transform as well as empower citizens through wealth creation and employment generation, improvement of educational standard, access to healthcare among others. “So, we intend to consolidate on the gains made by my predecessor as well as deliver quality service to our people. “For the 2024 fiscal year, the government is expecting N133 billion from the Federal Allocation Account (FAAC) while independent revenue is estimated at N35 billion,” he said.

Yuguda Tasks Private Sector On Infrastructure Funding

Director General of the Securities and Exchange Commission, Mr. Lamido Yuguda has tasked the private sector to rise up to the challenge of sourcing long term financing from the capital market that would fund the provision of infrastructure in the West African Sub region. Yuguda stated this at a pre-event press briefing on the forthcoming West Africa Capital Market Conference scheduled to hold in Lagos October 25-26 with the theme ‘Infrastructural deficit and sustainable financing in an integrated West Africa Capital Market’. According to Yuguda, “Infrastructure deficit refers to a situation where there is insufficient infrastructure relative to the needs of the population. Availability of infrastructure, such as power, telecommunications, roads, rail, schools, hospitals, shopping malls, hotels etc. is crucial to raising the living standards of the people”. He disclosed that in many countries, the responsibility for the provision of infrastructure has been steadily moving away from government to the private sector owing to increasing demand and reduced ability of the government to fund infrastructure alone, adding that the need to tackle the infrastructure deficit in the sub-region as well as embrace principles of sustainable finance to promote economic development are some of the issues to be discussed as the conference. The conference is being jointly organised by the  West Africa Securities Regulators Association (WASRA) comprising  the Securities and Exchange Commission (SEC) Nigeria, the Securities and Exchange Commission (SEC) Ghana, and Autorite de Marche’s Financiers or AMF-UMOA, in collaboration with Economic Community of West African States (ECOWAS), the West Africa Capital Market Integration Council (WACMIC), and the West African Monetary Institute (WAMI) are jointly organizing the 3rd biennial West Africa Capital Market Conference (WACMaC) 2023. The SEC boss said, “This deficit also poses a significant challenge to the region’s sustainable development. To address this gap, there is a growing need to adopt innovative financing mechanisms, and sustainable financing options to mobilize the desired funds to meet the region’s critical infrastructure needs, foster economic growth, and achieve sustainable development goals.  “The Conference will bring together a distinguished array of experts, regulators, policymakers, and industry leaders who will share their insights, experiences, and strategies to proffer solutions to the region’s massive infrastructure deficit. The WACMaC 2023 provides a unique platform to engage in meaningful discussions, share insights, and forge partnerships that will help shape the future of our capital markets. The DG added that this year’s conference is particularly significant, as over 300 stakeholders will converge at the Eko Hotels and Suites, Lagos from October 25-26, 2023 to hold discussions around the general theme with a view to contributing significantly to infrastructural development in Nigeria.

Cement Price Won’t Hit N9000; Road Contractors Always Inflating Contracts, Says Umahi

The Minister of Works, Senator Dave Umahi has debunked claims by Cement manufacturers that the price would hit N9,000 if the government starts constructing concrete roads. According to the minister, the claims were all campaigned against him by the cabals in the construction industry. Umahi, who made the remarks during a meeting with contractors handling federal roads, expressed dismay at how contractors cheat Nigerians in the materials they use to construct roads in the country. He lamented that roads that are currently constructed in the country would not last for seven years after they are completed. The minister said the contractors have been in the habit of increasing the cost of their projects to swindle the country through contract variation and the use of asphalt materials, which are subject to the international price of crude oil. He added that he has stopped the signing of the funds to be released to contracts who are seeking price variation of their contracts, and bemoaned the pains Nigerians face while traveling on federal roads saying he had to feel their pains when he traveled to Edo state from Abuja. “There is no project being constructed right now in Nigeria that is going to last for seven years. The question is, are we going to be maintaining or reconstructing our roads every 10 years? That is what we have been doing. I traveled from Abuja to Benin City through Lokoja, all the stretches of the road are on contract, ongoing; this is through the policy of the last administration but how much of the roads are motorable? “I traveled through the roads myself and I shed tears for the kind of pain our people are going through. I spent 14 hours on the road having started my journey from 10am and got to Benin City at 2 pm the next day. I was very happy I experienced the pain. “President Tinubu said I must travel through all the projects so that I will brief him on my experience and tell him the truth.” He added that he is doing his work with the fear of God as he is representing the people and I receive instructions from the President.

Concrete Road Will Drive Cement Price To N9000 —Manufacturers

Cement manufacturers under the umbrella of the Cement Producers Association of Nigeria have warned that the price of the product may further rise following plans by the federal government to introduce the use of concrete for road construction. Fielding questions from journalists at its AGM, the Chairman of BUA group owners of Bua Cement said cement prices will drop from N5000 to N3500 by January 2024 when its new plants finally begin operation. The Minister of Works Dave Umahi since his appointment has been an advocate of the use of concrete for road construction, as according to him, it lasts longer than roads constructed with asphalt. In a statement jointly signed by PrinceDavid Iweta and ChiefReagan Ufomba, the National Chairman and National Secretary respectively, the Association warned that the price of cement may rise to as N9000 from the present ₦5000. However, the Cement manufacturers warned that there would be dire consequences if the supply end is not addressed properly, noting that if it is not addressed the price of cement would not come down. The Association therefore called on the government to emphasise road designs that allow both cement technology and asphalt pavement to run concurrently. “Our findings from various parts of the country show that cement sells for as high as N6000 per bag in the rainy season. Our prediction is that it will sell for over N9,000 per bag in the dry season, especially with the pronouncement of the Honourable Minister of Works on cement technology and the marching order on housing by Mr President if the government does not take proactive steps. “While we commend the Honourable Minister’s position on cement-made roads, we warn of the dire consequences if the supply end is not properly addressed. In fact, it would amount to dereliction of duty not to intervene. And the time is now. To do otherwise is to continue in a worsening pipe dream that prices would suddenly drop on this essential input that will continue to drain the purse of Nigerians, render them homeless, encourage chaos between demand and supply, and worsen the infrastructure deficit it sets out to cure, and lead to an unprecedented price hike. “We also call on the Honourable Minister of Works to lay more emphasis on the design criteria of roads that allow both cement technology and Asphalt pavement to run concurrently, in turn, will provide ample time for a smooth transition that allows contractors to invest in commensurate and requisite equipment and retooling. We must also as a nation regulate static and dynamic load traffic by introducing weighbridges at access points on our highways.” While urging the present administration to conclude the backward integration policy started by late President Yar’adua administration, the Cement manufacturers noted that availability and affordability of the product cannot be achieved if the government fails to break the chain of monopoly and favouritisms. It, therefore, called on President Bola Tinubu’s government to permanently solve this perennial cement price hike problem by expanding participation in the sector with companies who have verifiable evidence of local investment, including greenfield licenses and quarrying.

AfDB, Korea Sign $28.6m Grant Deals

The African Development Bank (AfDB) and the Government of Korea have signed a $28.6 million dollars grant to boost Africa’s development agenda. The AfDB in a statement on its website on Saturday, said the funding complemented 600 million dollars co-financing under the Korea-Africa Energy Investment Framework, agreed with the Korean government in 2021. According to the statement, the framework supports African countries to build human capacity and develop their energy sectors. The agreements were signed in Busan, during the 7th Korea-Africa Economic Cooperation Ministerial Conference (KOAFEC), which is being co-hosted by the Bank and Korea. The statement said the new funding would primarily support energy access, agricultural transformation, and knowledge and capacity-building across a number of African countries. It said the amount would be disbursed to the AfDB Group in three instalments of 4.6 million dollars in 2023, and 24 million dollars in 2024 and 2025. The AfDB Group President, Dr Akinwumi Adesina, and Korea’s Deputy Prime Minister and Minister of Economy and Finance, Kyungho Choo, signed the first agreement for 28.6 million dollars. Korea’s Deputy Prime Minister and Minister of Economy and Finance, described Korea as “a true partner for African countries”. Choo further said that the government would do its best to contribute to Africa’s sustainable growth and development. Meanwhile, the AfDB president said Korea’s additional funding was timely, especially as the nation celebrated the 40th anniversary of joining the Bank. Adesina commended the government for its commitment to a strong partnership between the AfDB and Korea. “Korea’s relationship with Africa is unique. There is a lot to learn from Korea which moved from a poor country relying on aid, to a donor country within a single generation,” he added. The statement said the second agreement was signed by AfDB’s Chief Economist and Vice President, Kevin Urama, and Commissioner of Statistics Korea, Hyoung il Lee, on behalf of their institutions. It said under the agreement with Statistics Korea, the two institutions would collaborate to raise statistical awareness and share new data sources and methods to improve statistical quality, including big data. It said the agreement document identified areas for possible cooperation, such as AfDB’s Africa Information Highway for evidence-based decision-making. The Africa Information Highway is a mega-network of live open data platforms electronically linking all African countries and 16 regional organisations. The AfDB’s figures indicate that the Korea-Africa Economic Cooperation Trust Fund is the largest of the Bank’s active bilateral trust funds in terms of contributions received and portfolio size. The fund, which had received 108 million dollars in contributions as of Dec. 31, 2022, had financed 203 projects since its inception.

Umahi stops payments to South East road contractors

The Minister of Works, Dave Umahi has stopped some road construction in the South East pending the review of the existing and additional contracts. Umahi gave the directive on Thursday in Enugu during the inspection of some ongoing construction/rehabilitation of federal roads across states in the South-East. The minister expressed dismay that four bridges and three kilometres of additional work were costing N15 billion. “I have directed directors in the ministry to sit with the contractors and review it. “I strongly believe that there is no way that the project will cost us more than three to four billion naira, and when a project is too expensive, and the budgeting process is very low, then contractors will remain on site for 10 to 15 years,” he said. Some of the roads inspected included the Ozalla- Akpugo-Amangunze-Isu Onicha (Enugu-Onitsha) with a spur to Onunwere in Enugu State done by Arab Contractors and rehabilitation of Old Enugu- Onitsha Road also done by Arab Contractors. Others were the construction of the Nenwe-Nomeh-Mburubu -Nara Road with a spur from Obeagu-Oduma road, Enugu State, Rehabilitation of Nsukka -Ikem, Eha Amufu – Nkalagu in Ebonyi State among others. Umahi commended the quality of work done on some of the roads in Enugu, adding that he stopped certain payments until contractors, and the ministry reviewed the existing contracts and additional works. The former Ebonyi governor said he stopped payment of RCC and Arab Contractors until they all sit down to review the cost of the projects and methods of construction. He also said because of funding he had directed works on spots should come in the second phase to enable contractors to complete carriage ways first. He equally directed the contractor handling the Mmaku road seven days to return to the site to cover the binder course. He also directed that the right-hand side of the Enugu-Onitsha expressway be done with concrete to save costs. “I discovered something unprofessional where contractors put a binder course and leave it up to five to eight years, and within that period, the binder course fails. “Henceforth, no contractor will leave the binder course for more than one month without covering it because the binder course admits water which affects subgrade. “It is not healthy for contractors as they lose money for the equipment they are using to maintain the work,” he said. The binder course is an intermediate, bitumen-bound aggregate layer placed between the base layer and the surface of an asphalt pavement. The minister explained that Nigerian roads failed because of the bad asphalt placed on them as a result of adulterated bitumen imported into the country.  According to him, most of our roads are not failing because of sub-base or subgrade but fail because of bad asphalt placed on them. “So the fight of turning to concrete is a continuous one, and we will not give up until our roads are able to last up to 30 years to 40 years without maintenance when built. “At Enugu section three to Port Harcourt section 3, I have also directed that the second carriage be totally done on concrete as we are safer with concrete in southeast roads,” he said. To buttress his point on the concrete road, Umahi, who took newsmen to Nigercem – the first cement factory in Nigeria, said the factory road built in 1950 with concrete was still stable as well as other roads in Nkalagu built with concrete seven years ago. “This is what we are advocating and basically, South East, South-South, and South-West roads shall be on concrete because of their terrain,” he said.