•Gets €30m Students’ Housing Loan
•Okays N203.6bn for 6 major infrastructure projects in FCT
•Umahi: FG to take over uncompleted Lagos-Ibadan highway sections April
•Approves N242bn for 14 road projects nationwide
Deji Elumoye in Abuja
The Federal Executive Council (FEC) has approved the issuance of a N758 billion bond to offset outstanding pension liabilities for all categories of federal pensioners.
The approval granted yesterday, on the second day of the FEC meeting at State House, Abuja, will allow the Debt Management Office (DMO) to raise funds needed to settle pension arrears under the Defined Benefit Scheme – the system that preceded the current contributory pension scheme introduced in 2004 and amended in 2014.
FEC also approved a €30 million concessional loan from the French Development Agency (AFD) to support students’ accommodation projects.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed the approvals to newsmen after the FEC meeting chaired by President Bola Tinubu.
The federal cabinet likewise okayed N203.6 billion for six key infrastructure projects in the Federal Capital Territory (FCT), aimed principally to improve road network and water supply, as well as control erosion. Minister of State for the FCT, Dr. Mariya Bunkure, disclosed this while briefing reporters after day two of the FEC meeting.
That was as Minister of Works, Dave Umahi, warned that the federal government might take over any section of the Lagos-Ibadan Expressway not completed by contractors before April, as it moves to finalise the long-delayed project.
Umahi also said FEC approved 14 major road contracts worth N242.148 billion across the country.
Edun explained that the bond would address the financial burden faced by retirees owed a backlog of entitlements.
According to him, under the old Defined Benefit Scheme, some pensioners, who had not yet retired, required top-ups to their benefits whenever wage increases occurred, typically every five years.
The minister stated, “Equally important and addressing the issue of social interventions is one regarding pensions. There was an approval for the government through the debt management office to raise a federal government bond of about N758 billion.
“And that is to clear up the backlog of pension liabilities owed various categories of pensioners, who are owed funds under the defined benefit system that preceded the defined contributory pension scheme that came into force in 2004 and, of course, was updated with a new act in 2014.
“There were some accrued liabilities, which were building up over time. So, for example, someone, who was on a defined benefit scheme yet to retire, would need a top-up of their contributions or the amount due to them every time that there was a wage increase, every five years or so.
“So, this liability that built up to a point where it was not going to be easy to pay them down on an ongoing basis. And to clean up that important area and to give people their right, which is payment of the pension liabilities as and when due, the government has put in place an approval for debt management office to raise N758 billion that will pay down all these liabilities and, of course, be a tremendous relief to the beneficiaries.”
Edun said €30 million concessional loan from AFD will be implemented in collaboration with Family Homes Limited, the government’s partner for the initiative.
The concessional loan is expected to improve students’ housing conditions across the country, aligning with the administration’s commitment to enhancing educational infrastructure, according to Edun.
He stated, “I will just highlight particular approvals. First of all, a €30 million financing, long term concessional financing by Axon France, the French Development Agency, which is supporting student housing in conjunction with Family Homes Limited as the partner and implementer
“It is for tertiary student accommodation at project sites throughout the country to provide sustainable and clean energy based accommodation for students.
“We all know what an important intervention that is for the education sector and for students, given the shortage.”
On the economy, the minister said, “An approval has been given for the all-important National Single Window Project. So, the technology providers, the hardware suppliers, have been approved for implementation of the project.
“Some aspects will take 12 months for delivery of the hardware and for complete implementation, including the software solutions and the technology solutions and the e-government solutions that will take up to 24 months.”
He said the project would not only improve economic competitiveness, but also enhance the country’s ability to export efficiently.
According to Edun, “It also speaks to increasing government revenue. So, it’s both on the fiscal side, it is both revenue earning in terms of foreign exchange, and in terms of government revenue, it speaks to the increased productivity of the Nigerian economy
“As I said before, increased international competitiveness at a time when under the African Continental Free Trade Agreement, Nigeria is pushing to be a big player, both in the ECOWAS region and in the African continent, as well.
“Why that is particularly important, we are all seeing that the world is moving away from open trade, from the rules based World Trade Organisation-led world trading environment, is moving to a more closed environment, and so the regional and the continental markets will be that much more important for Nigeria.”
The minister added, “Finally, we also commented that given the plethora, the large amounts of approvals, which were given today, that there was the assurance also given that the economic management team is going to harmonise, synthesise, synchronise, and very much prioritise in an orderly fashion these different approvals in line with Mr. President’s priorities.
“First of all, to attract investment that will grow the economy and create jobs and reduce poverty, but more importantly, to also focus on his immediate priorities for stabilising for now, implementing what will strengthen the Nigerian economy and grow it and create jobs in the near term.
“Such as, strengthen food security, enhancing fiscal the fiscal condition, including, as we have seen, the revenue benefits that can come from the National Single window project, increased energy security, strengthen social protection, improved economic competitiveness.
“As I said earlier, and finally, timely implementation of the new national development plan, so that we all have a framework in which to implement the various programmes and policies of the government, and also to be able to show to all stakeholders the direction in which the government is going.
“As we clearly know, the benefits of the reforms are beginning to come through. There is greater fiscal strength, there is greater competitiveness of the Nigerian economy.”
FEC approved N203.6 billion for six major infrastructure projects in the FCT, with Bunkure saying the projects would enhance the living condition of Abuja residents.
She explained that the first project, valued at N13.18 billion, was awarded to Infu Ernest International Limited for the construction of an access road to the FCT Fire Service Institution and erosion control in Kaura District. The project was expected to be completed in 18 months.
The second approval was for the revised cost of the Guzape District Lot 1 engineering infrastructure project. The contract sum was increased from N22.2 billion to N70.89 billion, with an additional 18-month completion period.
The third project, awarded to CCECC, involved the construction of a seven-kilometre access road bypassing the airport’s second railway from Clinton Drive to Tunga Madaki settlement, including a full-span bridge.
The contract was valued at N27.6 billion, with a 12-month completion period.
The fourth project, awarded to Julius Berger, was for the rehabilitation and resurfacing of major roads in Maitama District.
The roads included Yakubu Gowon Crescent, Thomas Sankara Road, JFK Street, Ibrahim Taiwo Street, Muhammadu Ribadu Street, and Shehu Shagari Way (from N13 Ox Junction to Maitama Roundabout).
The contract was valued at N20.4 billion, with a completion period of eight months.
The fifth project, valued at N54.38 billion, was awarded to Dantata and Sawoe Construction Company for the completion of engineering infrastructure in Guzape Lot 1 and 2 and its surrounding neighbourhoods. The project had an 18-month completion period.
The final project was the rehabilitation of Phase 1, 3, and 4 of the Lower Usuma Dam Water Treatment Plant, awarded to SCC Nigeria Limited.
The contract was worth N17.2 billion plus $79,000, with a 12-month completion period.
Bunkure stressed that the projects reflected the Tinubu administration’s commitment to infrastructure development and enhancing essential services in the FCT.
“The Federal Capital Territory Administration is dedicated towards ensuring that residents benefit from world-class infrastructure, adequate water supply, and improved road networks,” she stated.
The minister assured Abuja residents that the government remained committed to completing the projects on schedule, and ensuring long-term benefits for the growing population.
FEC similarly approved the Creative Leap Acceleration Programme (CLAP), a digital platform to support creativity across Nigeria with training, funding, and networking opportunities. Minister of Art, Culture, Tourism and Creative Economy, Hannatu Musawa, disclosed this to newsmen after the FEC meeting.
Musawa said CLAP aimed to cater to all 49 creative sub-sectors and help creators become globally recognised.
She stated that the “Destination 2030 Nigeria Everywhere” brand was approved by FEC. f Musawa said the initiative focused on leveraging Nigeria’s cultural and creative content to enhance its global image.
According to Musawa, a seven-part series, titled, “Nigeria Everywhere Shorts,” has been initiated to promote national pride and self-reflection, with plans to distribute it globally.
Equally yesterday, the federal government hinted at taking over sections of the Lagos-Ibadan expressway not completed by contractors before April.
Umahi, who gave the hint, said the federal government was determined to inaugurate the project and would not tolerate further delay.
He said the remaining sections the Lagos-Ibadan expressway will be completed by RCC and Arab Contractors, with N30 billion allocated to finalise the outstanding work.
“We are poised to take over some parts of the route if they are not completed by April because we need to commission that project,” he said.
The Lagos-Ibadan expressway project, valued at N213 billion, was divided into two phases. Julius Berger completed the first phase, while RCC is still working on the second.
Umahi revealed that N30 billion was needed to complete the remaining sections, including an 8.55-kilometre stretch of the Lagos-bound carriageway.
The works minister stated, “The contract value of what is left is about N4 billion and then the Lagos-bound is about 8.55 kilometres and this is what we re-scoped. That amount is N22 billion so you technically have about N30 billion, even though the total value of the project is N213 billion.
“But don’t forget that what is needed to complete that route is N30 billion and that’s Arab Contractors.”
In line with the Renewed Hope Agenda of reviewing, re-scoping, and prioritising ongoing infrastructure projects, FEC also approved 14 major road contracts worth N242.148 billion across the federation, Umahi said.
One of the projects approved was the Agaye-Kachia-Baro Road in Niger State, awarded to Messrs GR Building Construction Limited at a cost of N22 billion.
The council approved N26.335 billion for the rehabilitation of the Odukpani Junction-Apeti section of the Calabar-Ikom-Ogoja Road in Cross River State, with Samatech as the contractor.
Umahi also detailed other road contracts.
In Ogun State, Messrs HMF Construction Limited will handle the Abeokuta-Ajibo spur to Iyana Mosa Road for N10.89 billion, while N13 billion was allocated for the Ijebu-Igbotita Road.
Similarly, Niger Cat was awarded N9.33 billion to construct the Inoma-Iyaka-Abaji section of the Ibaji-Odulu-Ajibu Road in Anambra State.
For the Umuahia-Ikot Ekpene Road, Umuahia-Umudike in Abia State, the contract was awarded to Heartland Construction Company at N14.37 billion.
Another major project was the Kaduna-Jos Road (Phase One) in Kaduna and Plateau states, which Setraco will execute for N33.423 billion.
The Yola-Fufore-Gurin Road in Adamawa State was also approved, with Wis China Worldwide Engineering Limited handling the N11.81 billion contract.
In Taraba State, Messrs Mode Limited will construct Lamido Road for N7.68 billion.
The Nkomoro-Isu Road in Enugu and Ebonyi states was awarded to Arab Contractors at N14.49 billion, while the Ikot-Ekpene Border-Aba-Owerri Road Dualisation was also approved for N11.55 billion, with Arab Contractors handling the project.
The Gashi-Bayamari Road (Section 2) in Yobe State was awarded to Rick-Rock for N9.68 billion.
Additionally, Arab Contractors will execute the Ikorodu-Shagamu Road in Lagos State for N27.59 billion.
Umahi disclosed that FEC stepped down a proposal for the construction of the Federal Roads Maintenance Agency (FERMA) headquarters, directing further research before reconsideration.
He reaffirmed the administration’s commitment to fast-tracking road infrastructure across the country, ensuring timely completion of key projects, and delivering on Tinubu’s infrastructure renewal drive.
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