UMAHI SHOWCASES FEDERAL PROJECTS IN EBONYI, SAYS SOUTHEAST IS GRATEFUL TO TINUBU AS EBONYI SET TO DEMONSTRATE ITS APPRECIATION TO THE PRESIDENT ON MONDAY The Honourable Minister of Works, Senator Engr. David Umahi, CON, on Saturday, June 13, 2026 led a Federal Government delegation headed by Presidential Adviser on Information and Strategy, Mr. Bayo Onanuga, on an inspection of ongoing federal road projects across Ebonyi State, using the occasion to highlight what he described as the unprecedented infrastructure transformation taking place under the administration of President Bola Ahmed Tinubu. Speaking during the inspection, Umahi showcased several strategic federal projects across the state and the Southeast, explaining that the region remains deeply grateful to President Tinubu for the tangible evidence of inclusion, fairness and development. At the Calabar - Abuja project sites, the Minister explained the strategic importance of a major flyover under construction along the Trans-Sahara Super Highway corridor. “Let me say that this is the point where the Trans-Sahara Route takes a bend. The essence of this flyover is to resolve the conflict at this point,” he said. According to him, the Federal Government has already made provision in the 2026 budget to connect the corridor directly to the Ebonyi State capital. “The road going to the capital city, which is 18km from this point, is included in the 2026 budget, and the Federal Government will undertake the connection to the city centre.” Umahi stressed that despite funding challenges, work would continue uninterrupted across project sites. “Of course, the contractor has not been paid, but we are creditworthy. All contractors being owed will be paid. There should be no stoppage of work because we want to see if we can commission this project by December. The cost is ₦25 billion.” The Minister described the projects as only a glimpse of what President Tinubu is delivering in the Southeast. “This is just the beginning. You will see remarkable projects of President Bola Ahmed Tinubu in the South-East. When we talk about the gains of the South-East under President Bola Ahmed Tinubu, some people who do not understand what we are talking about will continue to criticize us.” He declared that the people of the Southeast have taken notice of the President’s interventions and are prepared to openly express their appreciation. “The people of the South-East are very appreciative of what the President is doing. By Monday, under the leadership of the Governor of Ebonyi State, we will demonstrate this appreciation when we adopt the President as our sole candidate and, of course, the Governor.” Umahi was emphatic about the region’s political direction. “Let it be known that Ebonyi State is not obedient because we want to catch up with the rest of the country, and we will never be obedient. What happened before was an accident of history. It will not repeat itself.” The Minister also provided updates on the flagship Trans-Sahara Super Highway, revealing that a ₦668 billion contract has already been awarded and construction is progressing steadily despite the rainy season. “The project is about 28% completed. We are not stopping because of the rains. Work continues, especially with President Bola Tinubu’s concrete road technology.” Tracing the history of the corridor, Umahi said the project was originally conceived during the colonial era but remained unrealized for decades. “We presented the concept to the President, a man divinely called to do the impossible. What was once a colonial dream is now being realized more than sixty years later.” He described the highway as a critical economic route that will connect Nigeria to neighbouring countries while unlocking agricultural and industrial opportunities across the country. “The President is fulfilling that vision, and I am very happy because this is a major trade corridor. It connects us to Cameroon and serves as a transport route for rice-producing areas in Cross River, Benue, and Ebonyi States.” Highlighting the broader economic vision behind the President’s infrastructure agenda, Umahi said the four legacy projects of the Tinubu administration are far more than roads. “As I have always said, the four legacy projects of Mr. President are not merely road construction projects; they are investments.” Drawing comparisons with advanced economies, he explained that infrastructure investment remains one of the most effective tools for stimulating economic growth. “Infrastructure investment is critical. In countries such as the United States, whenever there is an economic downturn, governments invest heavily in roads and bridges because such investments stimulate growth across other sectors of the economy. That is exactly what the President is doing.” He further pointed to visible projects already completed or nearing completion across Ebonyi and neighbouring states, including major bridges, flyovers, dual carriageways and the Dangote Tax Credit Road Project. “We are grateful to the President and pleased with the work being done by our Governor.” Reaffirming the Southeast’s support for President Tinubu, Umahi said the region now sees clear evidence of inclusion in federal infrastructure investments. “The South-East has been included. Inclusiveness, fairness and equity are what we have always sought, and today we can point to tangible evidence of that inclusion.” The Minister also noted that having a Minister of Works from the Southeast has helped ensure the region’s needs receive the attention they deserve. “Without a Minister of Works from the South-East, we might not have secured all that has been achieved.” He added: “We can proudly say that while we may not be the first beneficiaries of federal road investments, we are certainly no longer the last.” Providing updates on President Tinubu’s four signature legacy projects, Umahi highlighted progress on the Lagos-Calabar Coastal Highway, the Sokoto-Badagry Super Highway, the Calabar-Ebonyi-Benue-Kogi-Nasarawa-Abuja Corridor and other strategic national routes. According to him, the administration’s infrastructure programme is designed to create jobs, support agriculture, expand regional trade, attract industries and unlock new economic opportunities nationwide. “The four legacy projects are investments designed to transform the Nigerian economy.” He explained that plans along the corridors include dams, irrigation systems, power infrastructure, agricultural settlements, housing developments, factories, hotels and renewable energy facilities. “The benefits are extensive and include both direct and indirect employment opportunities for Nigerians.” The Minister ended with a strong endorsement of President Tinubu’s leadership. “President Bola Ahmed Tinubu, God brought you. God will continue to guide and preserve you. We stand with you for the years ahead.” Addressing contractors handling federal projects in the state, Umahi reiterated the Federal Government’s commitment to quality and durability. “The moment you do not execute the work properly, it will be obvious. If you do it well, it will reward you. The method is the same, the principle is the same, and the quality is the same. We are using Grade 40 concrete.” He revealed that the 51-kilometre Okposi-Ohaozara-Ukawu-Cross River road project, valued at ₦53 billion, is nearing completion, with one section already over 90 percent completed and another at about 60 percent completion. The Minister further disclosed that the Federal Government has included the extension of the road to Akam in the 2026 budget, where the newly approved South-East Army Depot is located. He added that additional contractors are already working along the Enugu axis and that a new flyover has also been planned at Okposi to improve traffic flow and enhance connectivity in the area.
HON MINISTER OF WORKS, DEPLOYS MINISTRY’S PERSONNEL, MAINTENANCE TEAM OF CONCESSIONAIRE TO THE RECENTLY FLOODED SECTION OF COMPLETED LAFIA-MAKURDI ROAD, TASKS THEM ON PERMANENT SOLUTION TO FLOODING ALONG THE CARRIAGEWAY -APOLOGIZES TO MR. PRESIDENT, ROAD USERS FOR THE EMBARRASSMENT CAUSED BY NEGLIGENCE OF THE CONCESSIONAIRE WHOSE DUTY IS TO OPERATE AND MAINTAIN THE ROAD. In a passionate response to the flooding situation that occurred along Lafia-Makurdi road that severely disrupted traffic flow on 18th June 2025, the Honourable Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi, CON has directed the immediate deployment of the Ministry’s personnel and the maintenance team of China Harbour Operations and Maintenance Company, concessionaire for Abuja-Keffi-Akwanga-Lafia-Makurdi road to bring effective and permanent solution to flood disturbances along the road. In a Press Statement made in his office on 19th June 2025, the Honourable Minister condemned the unfortunate negligence by the concessionaire whose duty under the Highways Development Management Initiative (HDMI) of the Federal Government is to operate and maintain the road. “We have got information on the unfortunate flooding of a section of Keffi-Makurdi road which is under HDMI, that is, a PPP with China Harbour. We know that the project has been completed and it is tolled, but unfortunately yesterday there were a lot of debris that covered an existing culvert there and that led to flooding but in the midst of that rain we deployed our Ministry of Works personnel in Makurdi State and also the China Harbour personnel and they had to go to the inlet of the culvert and removed all the debris and the flood has been totally evacuated.” That section of the road has been reinstated He directed the concessionaire to critically assess the primary cause, provide a permanent solution to flooding along the carriageway, and take all steps necessary to prevent future occurrence. "We apologize very profusely to Mr. President and Nigerians, for the embarrassment, this unfortunate incident caused him and Nigerians." He commended the President for his fatherly intervention in the unfortunate incident in Benue State. "We also commend Mr. President very highly for his fatherly role in Benue State. His visit there has made a lot of impact in the lives of the people of Benue State and everyone living in that place. With God on his side, Benue people shall see sustainable peace and progress." Speaking earlier during the courtesy visit of the Managing Director/CEO of Citibank Nigeria Ltd, Nneka Enwereji, the Honourable Minister highlighted some of the initiatives of Federal Government of Nigeria under the present administration to improve the quantity and quality of the road assets in Nigeria, especially the initiative to construct the four Renewed Hope Legacy Projects which are critical road infrastructure necessary for the economic advancement of the nation. He sought for the partnership of the bank by investing on any of the Renewed Hope Legacy Projects “I'm happy to have Citibank Executives here in my office today to discuss how they can partner with us over the four Legacy Projects of President Bola Ahmed Tinubu, GCFR and also other infrastructural developments in the country. We have had a very fruitful meeting, and I am very happy that the efforts of Mr President on external inflow is yielding desired result and that the international community has commended him very highly on his transformative reforms. This project shall be realized by the courage and commitment of President Bola Ahmed Tinubu GCFR.” In her mission statement, the Managing Director/Chief Executive Officer of Citibank Nigeria Ltd, expressed the willingness of the Bank to partner with Federal Government of Nigeria through sustainable investment and funding in the development of those projects that would make a positive impact to the progress of the country. She expressed pleasure over the impressive strides of the Renewed Hope administration, which are necessary to build investor’s confidence. “We are here as Citibank to discuss how we can effectively partner with you,to know the project you are undertaking, and see how we can leverage the access that we have to support some of those projects and make a positive impact to the progress of the country. We want to discuss some of the specifics and some of the projects that we are already looking at in the country. We are very impressed with the big strides that you are making. And we want to support that as much as we can.” Hon. Barr. Orji Uchenna Orji Special Adviser (Media) to the Honourable Minister of Works ...
PPP IS SOLE DRIVER OF INFRASTRUCTURAL DEVELOPMENT -Barrister Goronyo The Nigeria Public-Private Partnership (PPP) Summit 2025, hosted by the Infrastructure Concession Regulatory Commission (ICRC), had the theme: Role of Public-Private Partnerships in Delivering the Renewed Hope Agenda". Its aim was to assemble policymakers, investors, and industry leaders to engage in insightful discussions about the evolving landscape of infrastructure in Nigeria and its global implications. The Summit, which held on June 17 and 18 at the State House Banquet Hall and Congress Hall, Transcorp Hilton in Abuja, Nigeria, also explored how collaborative efforts between the public and private sectors can drive transformative change. The Federal Ministry of Works, which is a major stakeholder in this initiative, was represented at the event by its Minister of State, Barrister Bello Mohammed Goronyo, who presented to the Summit, the perspective of his ministry on Highway Development and Management Initiative ( HDMI) and various concessions under PPP arrangements like the 227.2km Akwanga-Lafiya -keffi and the recently signed 127km Benin-Asaba Barrister Goronyo actively participated in and impacted on.the panel discussion, where he emphasised the commitment of the administration of President Ahmed Bola Tinibu to fix Nigeria's infrastructural deficit, revealing that Nigeria has over 200,000km of roads 35,000,km of which are of Federal. He told the Summit that the current government inherited over 2,600projects, with a total worth of about 19 trillion, explaining that since the nation's budget cannot fund these projects, there is a necessity for PPP as a feasible option. The Minister pointed to the need for concessionaires to be open and transparent in their agreement because "we cannot in the name of PPP, mortgage our country by signing agreements that tend to favour concessionaires." Barrister Goronyo expressed appreciation to President Tinubu for recognising infrastructure as key driver of economic growth and development. ...
WORKS MINISTER ORDERS TERMINATION OF CONTRACT WITH LEVANT CONSTRUCTION LTD ON BENIN- SAPELE-WARRI ROAD PROJECT FOR NON-PERFORMANCE DIRECTS JOINT MEASUREMENT. DESCRIBES AS ABSOLUTELY UNFOUNDED MALICIOUS AND UNCHARITABLE SPECULATIONS THAT THE NORTH IS BEING MARGINALIZED ON ROAD INFRASTRUCTURE DEVELOPMENT UNDER THE RENEWED HOPE ADMINISTRATION The Honourable Minister of Works,His Excellency, Sen. Engr. Nweze David Umahi CON has ordered the termination of the contract with Levant Construction Ltd on the reconstruction of Benin-Sapele-Warri Road (Section 1: Benin - Imasabor) being executed under Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, due to non-performance. In a briefing after a meeting with the Chief Executives of GELD Construction Ltd and SKECC Nigeria Ltd over the delay in the execution of the Benin-Sapele-Warri road project held in his office, Mabushi-Abuja on 17th June 2025, and which had in attendance, the Honourable Minister of State for Works, Rt. Hon. Bello Muhammad Goronyo Esq, the Permanent Secretary Federal Ministry of Works, Engr.Olufunso Adebiyi, and directors of key departments, the Honourable Minister expressed disapproval over the failure and/or neglect of Messrs Levant to live up to expectation in their contractual duties in respect of the section of the road awarded to them. He stated, “We have three sections there. We have the Levant section. Unfortunately, Levant has not lived up to expectation. We even had to intervene and beg the Governor of Edo State to please get the worst sections of that route done. We divided the worst sections into two and told Levant to concentrate on one part. While the Governor of Edo State intervened,which I think is about 23 kilometers for N35 billion, and that section the Governor of Edo State intervened is ongoing very well, Levant has since left site. We gave them a series of warning letters. We also gave them the last termination notice. When a termination notice is given to you, it is for you within 14 days to go back to the site and begin to do those things you were not doing. This time is for them to remobilize to the site and for them to work, but they did not respond." He directed the Permanent Secretary get the job properly terminated and write them a letter for a joint measurement, and also to write their bank to request for repayment of the APG failing which the matter would be taken to EFCC. The Honourable Minister, however, expressed satisfaction with the outcome of the discussion with SKECC Nigeria Ltd and Geld Construction Ltd over the need for them to step up work on the respective sections of the road project being handled by them. He commended the Governor of Delta State, His Excellency, Rt. Hon. Sheriff Oborevwori and the Governor of Edo State, His Excellency,Rt Sen. Monday Okpebholo for their interventions on some kilometers of that road project. “I have called the Governor of Delta State, and I commend him for the very beautiful work he's doing. Three flyovers at the same time, beautiful flyovers. In this country, we need such beauties. We have also learned from that design. So we appealed to him to get any contractor within that zone to put ten kilometers with reinforced concrete. He has accepted to do that. So I commend him very highly, which means that the Governor of Edo State is intervening in that section, and the Governor of Delta State is intervening in that section. We are grateful to them." On the jobs by Messrs SKECC and Messrs Geld, the Honourable Minister stated, “SKECC has about one kilometer which they started with milled asphalt, yes the money in the budget for SKECC within their own section, NNPC allocation, is exhausted. But we are pleading with them to go back and remedy this one kilometer that they have milled the existing asphalt." For Messrs Geld, he said, "Geld has accepted to go back to their own section, and we've agreed to review their project to cater for the unforeseen circumstances that they encountered. So they are going back to the site, and we've agreed to work very well with them. And we're happy about that. And the second job they have, which is Lokoja-Abuja road, we've also agreed that they should go back to the site and review the project, because as of today, the asphalt cost is 9,000 per square meter, whereas asphalt is about 30,000 per square meter. So they are going back to the site on trust, and we're going to do that. And then you get to Itoki – Ikorodu road, which is 34 kilometers. We've agreed with them on all the issues. They are going back to the site, and I thank Mr. President for his interest in all the projects in the federation.” While reacting to statements by some groups who purport to speak on behalf of Northern Elders and who alleged that the Federal Ministry of Works is doing more projects in the South than in the North, the Honourable Minister debunked such impressions as false and misleading, noting that the Renewed Hope administration of President Bola Ahmed Tinubu, GCFR, has been consistently inclusive in the implementation of road and bridge projects across the six (6) Geo-Political zones, both in the execution of the inherited ongoing road projects and in the distribution of the Renewed Hope road Legacy Projects. While recounting the numerous ongoing projects in the north, he stated, “ In this ministry, we don't count where anybody came from. We don't count where projects are cited. We are using the example of Mr. President who came on board. He took all the inherited projects of the ministry and continued to go with them. He didn't want to know the lopesidedness of the projects. For example, this Tax Credit of NNPC is only 5% in South West and 4% in South East, Niger State has 26% alone. So, he didn't want to care about where these inherited projects are. He had to, as a very unique leader, take over the entire thing, and he's going on with them. And so we should stop looking at a project as it's coming from the North, it's coming from the South because the Southern people use the roads of the North, and the Northern people use the roads of the South. So we should see ourselves as one people one country, this is very important.” Also responding to other uninformed criticisms on the distribution and funding of projects across the Zones, he said, "they talked about Second Niger Bridge. They talked about Lagos-Ibadan. They said Lagos-Ibadan is ₦195 billion. What they didn't know is that ₦195 billion is the total contract sum from the past administration, and that what this administration is putting to complete the project is only ₦33 billion. So it's not ₦195 billion. They talked about Second Niger Bridge. This section II A is ₦134 billion, and section II B is ₦174 billion. Now, if you look at the projects in the North, just to properly inform the people, you look at Abuja-Kaduna-Zaria- Kano road, Sections I and III. It's ₦252 billion. 30% is already paid for that job. And it's being done with the same quality of Lagos-Calabar Coastal Highway. The job is ongoing. Section II is 164 kilometers, and it is ₦525 billion. And it's being done with concrete, the same quality of Lagos-Calabar Coastal Highway. Mr. President has approved 30% payment, which is ₦152 billion, and work is ongoing. You come and see the project that was awarded in March 2023, which is the Sokoto-Zamfara-Katsina-Kaduna, a total of 750 kilometers, totaling initial cost of ₦825 billion. That project is ongoing.There was no shovel on the project before we came on board. It's Mr. President that is doing the project. In Sokoto axis, by August, CBC would have completed about 50 kilometers on Continuously Reinforced Concrete, the same quality Lagos-Calabar Coastal Highway project. We have the Mothercat. We have the Tracta. We have the Sectraco working, major top companies that are doing the project. We have Zaria-Nkru project, which is 152 kilometers.That project is ongoing. We have the project that covers the BUA Tax Credit, which is 256 kilometers, that is going through Jigawa, Kano, Katsina. It's also under BUA Tax Credit. We have the Kano Northern Bypass. That project is ongoing. We have Section l of Kano-Maiduguri, 100.9 kilometers by Tracta. That project is ongoing. We have the Dikwa project, which is 52 kilometers in Borno State. That project is ongoing under Dangote Tax Credit.You have the Bama project in Borno State, which is 49 kilometers. That project is ongoing under Dangote Tax Credit. We have section V of the Kano - Maiduguri project being done by CCECC, that project is ongoing. We have the fourth Renewed Hope Legacy Project of Mr. President, which is the Akwanga- Jos-Bauchi-Gombe Superhighway, 439 kilometers. We are completing the design by the directive of Mr. President. It was on flexible pavement. President said, "No, I want it double carriageway, three lanes each, concrete pavement. We have the Maraba-Keffi project, 43 kilometers by two, ₦73 billion by China Harbor. That project is ongoing. We have the Makurdi down to 9th mile Enugu, 260 kilometers by two, which is about a billion U.S. dollar project. That project is ongoing. We have the Manado project in Kebbi State. That project is ongoing. Time will fail me to read out the projects that Mr. President is doing in the North and also doing in the South. So, when you look at the four legacy projects of the President, the North has 52%, and the South has 48%. Let me tell you something. People talk about Lagos-Calabar Coastal Highway. Yes, we procured Section I, which is ₦1.068 trillion, 30% has been paid. We procured Section II, which is the flyovers of Section I and Section II, passing through Dangote Refinery, passing through swamp, which is about ₦1.6 trillion. Yes, we have procured Section III A and III B, which is the end of the project, in Akwa Ibom and Cross River, which is about ₦1.33 trillion. When you aggregate this thing, this is about 3 point something trillion Naira. But then you get to Kebbi, we have 258 kilometers of one carriageway, which we procured for about ₦958 billion, only one section. The second carriageway is going to FEC. So, when you put the two together, you have about ₦2 trillion on the Kebbi axis alone. Then Sokoto is 120 kilometers, where my brother, the Honourable Minister of State for Works, hails from. We've already procured ₦454 billion for the 120 kilometers. And by the time you procure the second one, you're almost about a trillion. So, the two together are about ₦3 trillion. It is done with the same quality of the Lagos-Calabar Coastal Highway. The one that's coming from Cross River to Ebonyi, to Benue, to Kogi to Nasarawa, to Abuja, Section I has been procured which is ₦362 billion for 118 kilometers. It is being procured, and we are just reviewing it to include an additional 5 kilometers of road because of underlying factors. So, Mr. President is very committed. I've never seen such a unique President." For those who criticize the pace of work on Eleme-Onne project, which is also a Tax Credit project, the Honourable Minister explained, "When we came on board, the total cost was ₦156 billion for 30 kilometers of the road, and plus decompile towards Akwa Ibom section of the East West road, and then also a bridge at Aleto, and then four flyovers. One flyover has been started at refinery junction, and then Aleto Bridge is ongoing, very beautiful design, 80-meter span there, which is a beauty to behold. Let me say that the contractor, RCC, after the initial fight with them,they are behaving very well and doing beautiful work now. People were saying that we did not complete one carriageway. We've completed one carriageway. But they now say, oh, if you've completed, why are you doing asphalt on the same carriageway? If you go and check where we are doing asphalt on the same carriageway, you will find out that it is on the location of the flyover. We are not supposed to do that. But because we wanted a seamless traffic movement, we said, "Okay, come and do asphalt in those locations." The Honourable Minister expressed commitment to the Ministry’s mission of restoring the confidence of Nigerians on the road infrastructure nationwide and thus make the people appreciate the transformational power of the renewed Hope administration of Mr. President. Hon. Barr. Orji Uchenna Orji Special Adviser (Media) to the Honourable Minister of Works ...
FG COMMITTED TO BRIDGING INFRASTRUCTURE GAP IN TERTIARY INSTITUTIONS - FASHOLA
The Honourable Minister of Works and Housing, Babatunde Raji Fashola, SAN has restated Federal Government’s commitment to bridging the road infrastructure challenges in tertiary institutions across the country.
The Minister who spoke in Enugu at the official commissioning and handover ceremony of the 1.0 kilometre road project constructed at the Federal College of Dental Technology and Therapy Enugu State by his Ministry said the gap of the nation's infrastructure needs is steadily being bridged by a gradual process of rehabilitations and constructions and it has reached the tertiary institutions.
Fashola, who was represented at the occasion by the Federal Controller of Works in Enugu State, Engr. Olufemi Oyekanmi explained that the intervention by the Federal Government was to boost quality of education and renewed hope and enthusiasm with regards to attending classes as defective roads have been been restored to motorability.
"It's undebatable that the quality of education will be impacted by the quality of infrastructure and the learning environment and those who doubt it should simply listen to some feedbacks from the students of the schools where this type of intervention have taken place" the Minister said.
He disclosed that under the Tertiary Institutions road Intervention Programme initiated by his Ministry, the Federal Government is currently working on 76 roads projects in selected Federal Tertiary Institutions across the nation.
" We have successfully intervened in the internal Road networks of 46 Tertiary Federal Institutions and handed over 29 as at 2021and we now have another 17 ready to be handed over while we are currently attending to 30 roads in similar institutions across the country, making a total of 76", Fashola said.
The Minister described the construction of the internal roads by the Federal Government in the federal tertiary institutions as a pointer to President Muhammadu Buhari's administration's progressive ideal of improving the human condition by supporting education.
In his response, the Rector Federal College of Dental Technology and Therapy, Dr. John Emaimo thanked the Honourable Minister and Federal Ministry of Works and Housing for selecting the college to benefit from this laudable Government Intervention in bringing infrastructural development gap saying that it is a dream fulfilled bearing in mind the deplorable state of the roads before the intervention.
According to Dr Emaimo, infrastructure is critical to the progress of stakeholders it can attract.
He added that with this kind gesture from the Ministry, the institution wears a new look making it conducive for both teaching and learning.
The Rector appreciated the Honourable Minister yet for another project currently being executed by the Ministry which he said is the provision of street lights to illuminate the campus during night hours.
Emaimo however, requested for the Ministry's intervention in the construction of two more roads in the school premises which are in a deplorable condition.
KEYNOTE SPEECH BY H.E BABATUNDE RAJI FASHOLA, SAN AT LAGOS BUSINESS SCHOOL EVENING WITH THE MINISTERS SERIES HELD ON SEPTEMBER 29, 2021
Distinguished Ladies and Gentlemen:
The compelling part of the LBS’ invitation letter to me dated August 31st 2021 signed by Dr. Franklin N. Ngwu is the part which talks about:
“…the need for more public/private sector dialogue and collaboration for Nigeria’s inclusive and sustainable economic growth and development.”
It is about those 3 (three) things: inclusiveness, sustainable growth and development that I wish to focus my intervention today.
But before I do so, let me push back against the part of the letter that says that:
“Some key constraints such as limited trust, lack of information on the opportunities available, impact of policies and business and operational frameworks of engagement limit their collaboration.”
The first question I wish to ask is “limited trust” on whose part?
My appeal to those who have a one-sided view of the public sector is to stand back and take a hard look at the antecedents of many of those who now occupy leadership positions in the public sector.
What you will see is that many of them, including me, spent a sizable part of their careers in the private sector.
Have we become unworthy of trust because we chose to serve?
And speaking of information or lack thereof about opportunities and policies, I recall that it was to this business school that we came for the launch of the Highway Development and Management Initiative (HDMI) to share information and opportunities regarding the planned concession of 12 highways spanning over 1,000 km of federal road network, and the opportunity for investment growth and job creation.
It is the largest highway concession ever undertaken on the African continent with the potential to create 5,000 direct jobs and 200,000 indirect jobs if successful.
We did not go to a foreign business school to launch the initiative; and there are many we could have gone to, if we so desired. We came to the Lagos Business School, because we wanted a homegrown success.
By way of updates, even though LBS has not come back to ask for one, I can report that out of 75 applicants, 18 have been prequalified, and will soon be requested to submit requests for proposals, environmental and social impact studies are concurrently being undertaken and the national tolling policy has been approved to guide the development of business plans.
Of course, as far as providing information about development and growth goes, many of us regularly brief the public about projects, I go on many project inspection tours to highlight what is going on.
Every quarter, the National Bureau of Statistics (NBS) releases reports about the growth situations in the economy.
What I have observed of course is that the negative results are readily acceptable and pleasing to some people, while they question the data when the same Bureau announces positive quarterly economic performances.
I will now return to the 3 (THREE) issues of:
a) inclusiveness;
b) sustainable growth and
c) development
But first, I must set the context.
Between the period 2012 to 2015 Nigeria‘s economy was reportedly growing at between 5% to 7%. But if we all take time to go back to the reviews and reports in the media at the time, the overwhelming response was that it was “jobless growth or “non-inclusive growth.”
This was the story then and it is not a new story. The other context before we proceed is to remind ourselves that at the peak of that growth, sometime in 2014, the then Minister of Finance issued a statement that Nigeria was heading towards a recession.
These were her words:
“There are some difficult moments out there in the international economy and we have noticed a downward slide in oil prices in recent weeks. Nigeria may not be so lucky to avoid recession this time as it did during the last economic meltdown.”
The question to ask is a recession under who’s watch?
My response is that it did not matter who was managing the economy, the recession was inevitable. We had consumed all the prolific and extraordinary income we earned from high prices of crude oil sales.
We did not invest them in infrastructure, new hospitals, universities, rail, bridges, broadband rollout, airports etc.
So the logical issue would be, what is the plan to get out of the recession?
Before I proceed let me quickly deal in broad strokes with some of the things that happen during a recession.
One of them is that it is the “services sector” that first feels the pinch, and when growth returns the services sector is the last to recover and that is when the feel-good factor returns. I will come back to this.
So in deciding what to do when the recession beckons or happens, the first thing to look at is who is managing the economy and what views do they espouse, because this is likely to shape the choices they will make.
Regrettably, many have again fallen into the error of believing the one-sided story that there is no ideology in Nigerian politics or in the political parties.
Nothing could be further from the truth and any worthy scholar who goes through the various party manifestoes will find not only differences but also similarities and this is one thing I commend for further study and analysis by this business school.
Whilst I will do my best not to be overly partisan, I find it difficult to effectively discharge my task without linking policy to politics.
For example, my party professes a progressive ideology and what this simply means is a “commitment to improving the human condition” and this is one difference between us and the others.
Ask them what they profess?
The other difference is that in 6 (SIX) years we have ensured that the average Nigerian remembers what we committed to: anti-corruption; economic development and security. This is a major reason why we have been held accountable.
You have to go back to 1993, (28 years ago); or further back to 1978 (43years), to find a political era where the public remembers what the parties promised during the campaign.
In MKO Abiola’s SDP, the party manifesto hinged on Energy, Rural Development, Education and Defence. In UPN, Awolowo’s 4 (FOUR) cardinal points (Free Education, Free Health Services, Integrated rural development, Employment) were examples of political promises or ideology so clearly articulated and retained.
This is another difference between us and them, and I challenge many here to ask themselves if they can remember two or three things they were promised in the 16 years before us.
With this background I will now go back to the choices for getting out of recession; because we inherited the doomsday which was foretold.
As I have said earlier, in over five years when oil sold about $100 per barrel, we did not invest in infrastructure.
The 2015 Federal Government budget left by our predecessors for Nigeria’s road network was N18 billion, less than the 2015 budget for roads in Lagos State of N31 billion. (Office of Infrastructure budget)
The said budget had a 15% capital component and 85% of the recurrent component. A budget says a lot about what the Government wants to do. Consume 85% and invest 15%, at the time that oil prices were high.
This is another area of vast policy difference between us and them because from the first budget of 2016 we committed to a minimum of 30% capital investment in the annual budget and an expansive infrastructure investment to boost growth, facilitate development and create jobs.
With oil revenues averaging $43 per barrel in 2016, the works budget for roads was cast at N200 Billion naira, an increase of 1011%.
This pattern has continued to date, where we are spending even more on infrastructure with far less resources.
We must remember that with very high oil prices the total FGN budget in 2015 was N4.4 Trillion while the first budget passed under this administration was N6.06 Trillion.
The Economic Recovery and Growth Plan (ERGP) 2017 - 2020 which was developed as the pathway to recovery from recession was underpinned by infrastructure investment as it committed to:
a) Achieving a stable microeconomic environment;
b) Creating a globally competitive economy and
c) Investing in the Nigerian people.
Apart from over 13,000 km of roads and bridges now under construction or rehabilitation nationwide, hitherto very difficult projects, like Bodo-Bonny Bridge, Lagos-Ibadan Expressway, Abuja-Kano Expressway and Second Niger Bridge now underway and heading towards completion before 2023, a generation of Nigerians can now travel by rail in their own country from Lagos to Ibadan and Abuja to Kano for the first time after a very long hiatus.
This did not happen in 16 years before us.
You may not like how we look or what we say, you may even disbelieve what we say but you cannot disbelieve what we have done with limited income on infrastructure.
This is another difference between us and them.
There is yet another difference and it relates to how we the progressives have chosen to deploy resources.
Between 1999 and 2015 all the infrastructure we are talking about today were crying out for attention.
In spite of prolific oil resources in between that period, I ask anyone to show one bridge, major highway, airport or a rail project that our country built.
I will remind you that in 2005 we choose to pay $12.09 billion to negotiate a Paris debt forgiveness when there was infrastructure crying out for attention.
However, by 2015 the debt stock we inherited was $10.3 Billion in spite of prolific oil resources.
That was a policy choice. No debt, no infrastructure while population grows.
On the contrary, with limited resources and commitment to expansionary fiscal investment and infrastructure to improve the living conditions of Nigeria, our budgets have been deficit budgets funded by debts to invest in infrastructure.
It is our belief that instead of increasing the tax burden of Nigerians, if we borrow to build infrastructure, small businesses who need broadband, rail, roads, bridges and other infrastructure will improve their efficiency and create opportunities.
This can only lead to the inclusiveness, sustainable Growth and development that my invitation letter speaks about.
The Economic Recovery and Growth Plan that we developed to address the recession that our predecessors predicted has worked.
By the second quarter of 2017 we were out of the recession that started in Quarter 2 of 2016 and we recorded 12 consecutive quarters of growth until COVID-19 struck.
By staying true to our core beliefs and by developing the Economic Sustainability Plan to deal with the COVID-19 impact, we came out of a second recession which was global and we now have a 5.1 GDP growth in Quarter 2 with services sector growing at 2.8%.
Remember I told you that the services sector is the last sector to recover after recession and this result is therefore clear evidence that the economy is on the mend and we must sustain it and expand it. In this regard I urge cautious optimism.
If you still think we are the same, let me share with you two different quotes from two sides of the divide to disabuse your minds.
The first is by the Vice-Presidential candidate of the main opposition party during the last elections in 2019.
This is what he said on August 8th 2021 about how to grow the economy.
“You cannot use infrastructure to drive economic growth…taking people out of poverty is not magic.”
But contrast President Buhari’s views expressed in Owerri on 9th September 2021 when he said:
“If we fix infrastructure, people will get on with their businesses.”
I am persuaded that President Buhari gets it.
His contemporary in the USA (a country held out as the example to follow) also gets it when he said:
“The American Jobs Plan will generate historic job growth, historic economic growth, help businesses to compete internationally, create more revenue as well. They are among the highest-value investments we can make in the nation — investing in our infrastructure.”
What limits or enhances the capacity of business is the infrastructure in the environment they operate.
The better the infrastructure the more efficient business becomes and the more productive and prosperous they will be.
If they can move goods and services in quicker time, through ports, rail and road, if they can transact financial services through reliable broadband, move fuel through new pipelines like the Ajaokuta-Kaduna pipeline project, if they can traverse about 40 kilometres on the Bodo-Bonny Bridge on land rather on canoes through the creeks, businesses will prosper and the economy will grow.
This in part is what the enablement of this private sector by the public sector means; in addition to fiscal and monetary policy.
This is a clear road to sustainable growth; and it is growth that will need more people to manage it thereby achieving inclusiveness.
Thank you for listening.
Babatunde Raji Fashola, SAN
Honourable Minister of Works and Housing
DRIVING NIGERIA’S FUTURE: CELEBRATING TWO YEARS OF TRANSFORMATIVE LEADERSHIP AND THE LAGOS-CALABAR COASTAL HIGHWAY MILESTONE
DRIVING NIGERIA’S FUTURE: CELEBRATING TWO YEARS OF TRANSFORMATIVE LEADERSHIP AND THE LAGOS-CALABAR COASTAL HIGHWAY MILESTONE
MID -TERM REVIEW MEETING ON THE IMPLIMENTATION OF THE DECISIONS REACHED AT THE 29TH NATIONAL COUNCIL ON WORKS (NCW) DAY 1
MID -TERM REVIEW MEETING ON THE IMPLIMENTATION OF THE DECISIONS REACHED AT THE 29TH NATIONAL COUNCIL ON WORKS (NCW) DAY 1