President Bola Tinubu-led Federal Executive Council has awarded 51 contracts worth N6.27tn for procuring, constructing and developing various infrastructural projects across the federation in eight months.

The contracts, awarded between October 16, 2023, and May 14, 2024, totalling eight months, were allocated to facilitate the development of a wide array of infrastructural projects across critical sectors, encompassing the construction of roads, bridges, train systems, and airport infrastructure.

It awarded 43 road projects and three airport contracts, among others.

The FEC is the highest executive body in a Federal Government system. It’s composed of senior government officials including ministers and other high-ranking cabinet members and has a constitutional role to formulate policies, execute government projects, and, more broadly, aid the President in discharging his executive functions, although the president is the ultimate executive decision-maker.

The President, in his inaugural speech on May 29 last year, promised massive development of infrastructure.

He stated, “We shall continue the efforts of the Buhari administration on infrastructure. Progress toward national networks of roads, rail and ports shall get priority attention.“

At the FEC inaugural meeting last August, Tinubu charged his cabinet members to work hard and be committed to creating a buoyant economy that will serve every Nigerian.

Tinubu told FEC members including ministers to work hard, saying that the expectations of Nigerians were very high and underperformance would not be tolerated.

The President also restated his government‘s policy agenda which includes reforming the economy to deliver sustainable and inclusive growth and strengthen national security for peace and prosperity.

“You and I know that expectations are high, and these are tough times. We must work hard and move ourselves to create a buoyant economy that will serve Nigeria. We have an unacceptable employment rate, and we are facing threats from climate change.

“To turn things around, you have been selected to perform your utmost best. Our policy implementation will reform the economy, ensure inclusive growth, and strengthen security for peace and prosperity. Without security, there can be no investment,” the president said.

He also approved the conduct of the FEC weekly meeting to be held every Monday. Under the previous administration, the FEC meetings were held on Wednesdays every week.

Abuja-Lokoja route

A breakdown of the projects showed that during the FEC meeting held on May 14, the Ministry of Works secured an approval of N89bn for the reconstruction of Koton- Karfe -Abaji road (Abuja 12 bound), along the Abuja-Lokoja route in Kogi state.

The FEC also on the same date awarded a contract worth N120bn for the equalisation of Lokoja- Benin road, Okpela Section, Lokoja-Benin’ dualised Auchi section. The road will be financed by BUA Cement under the tax credit scheme.

This decision was reached during a lengthy meeting chaired by Tinubu on May 14, during which 21 significant policy initiatives were unveiled.

Section two of the Lagos-Calabar coastal highway was also awarded on the same day at a cost of N1.6tn while N546bn was apportioned for roads and bridges in Kaima- Tesse, Kwara State, Benin-Agbor, Benin Byepass and Ngaski-Wara in Kebbi State and N230bn Construction of a 37-kilometre Kano Bypass road.

On February 26, the Federal Government approved N1.067tn for the first phase of the highway’s construction. The Minister of Works, David Umahi, explained that the section, a 47.47 kilometres dual carriageway of five lanes on each side and a train track on the middle, is part of the 700-kilometre road spanning nine states and with two spurs leading up north.

The Lagos-Calabar coastal highway project, designed to stretch 700 kilometres and pass through nine states, was awarded to Hitech Construction Company Limited on an Engineering, Procurement, Construction, and Financing arrangement, where the bulk of the risk falls on the contractor.

On March 26, Umahi said FEC approved N1.495tn contracts for 29 roads and bridges across the country.

Umahi explained, “Today, the Federal Executive Council considered and approved 29 roads and bridges totalling N1.5tn. After going through the Bureau of Public Procurement, they were all approved by FEC, and we got Certification of No Objection.

Benue projects

“Council also approved the Bukuru bridge across Katsina-Ala River in Benue State. It is a twin bridge matching the dualised road there, and each of the bridges is about 850 meters. Put together, it is 1.7km and costs about N83.799bn.

“FEC also approved a road from Shaki to Okerete in Oyo State. The road is 91.432km and will cost N144bn.”

Also in March, N992.23bn was awarded for the rehabilitation and construction of seven road projects.

The FEC also approved N5.5bn to fund the construction of access roads serving communities along the Abuja light rail project.

In the aviation sector, N4.2bn was awarded for the supply, installation and training of operators of disabled aircraft recovery systems at the Murtala Muhammed Airport in Lagos State.

On December 13, 2023, the FEC approved N6.33bn for technical support services at the Murtala Muhammed International Airport, Lagos and the procurement of a wide area Multilateration Air Traffic Management system at the Port Harcourt International Airport, Omagwa, Rivers State.

The Minister of Aviation and Aerospace Development, Festus Keyamo, said the technical support service, which involves maintenance of the new international wing of the Lagos Airport, would be carried out by the China Civil Engineering Construction Corporation Ltd. for five years, costing N4.1bn.

The Multilateration air traffic management system to be sited at the Port Harcourt International Airport would cost N2.23bn.

“It is for the first five years for a contract sum of N4.1bn, inclusive of 7.5 per cent VAT, with a completion period of five years. It is for the comfort of the travelling public, for Nigerians,” he added.

Other projects are the building of bus terminals and other transport facilities in the FCT at the cost of N51bn, the upgrade of Kwaita-Yebu 5 Road in Kuala Area Council of Abuja, N7.6bn; and the building of the Court of Appeal Abuja Division at N37.2bn.

Speaking with our correspondent in Abuja, financial experts lauded the government’s strategic decision to prioritise infrastructural projects, recognising it as a proactive and forward-thinking initiative aimed at bolstering economic growth, enhancing connectivity, and fostering sustainable development across various sectors.

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said awarded projects were worthwhile and held significant value in fostering development.

He said, “The projects are worthwhile and hold significant value, each dedicated to fostering development. They are projects that support the development of our country and you can only have as many projects as you have resources. The government must allocate ample resources to bring them to fruition. It is the number of resources that you have that will determine the number of projects but as far as the value of those projects is concerned from a development point of view, all of them are very important and the government just have to ensure that they have enough resources to see them to completion.”

Similarly, a professor of Economics at Babcock University, Segun Ajibola, said the government had been creative in procuring contracts via private and public partnerships.

Ajibola said, “This administration has been very creative in terms of awarding contracts within these few months. There are so many projects that are so desirable but the funding capacity may be limited and there are so many ways and manners projects are awarded these days. For example, the Oshodi-Apapa expressway commissioned recently was done via a partnership with Dangote which will come back to the company by way of tax rebates. Also, some of the projects are on Public-private Partnerships and will not draw funds directly from the government.

“We have uncompleted projects dotting the landscape and others are begging for attention like road projects. We can only continue to encourage the government and pray for the country as a whole to up the ante by increasing the revenue being mobilised. The environment is a serious infrastructural deficit and begging for serious attention.”

On his part, the Chief Executive Officer of Cowry Treasurers Limited, Charles Sanni, emphasised the importance of maximising the benefits derived from these projects, stressing the necessity of prioritizing those with longer timelines for completion over those that can be immediately concluded, especially considering the existence of other unfinished projects awaiting attention.

Sanni said, “Again, there are political issues in economic policies, so if you ask on the streets in terms of economic optimisation, I would say they may not be necessary. Still, for the president, maybe it is a reward for political patronage but it is strictly economic and finance. It behoves the government to optimise the benefit of those projects. I don’t think that it is necessary to embark on those projects for which you have a longer time to complete when you can immediately conclude on some other unfinished projects.