


DRIVING NIGERIA’S FUTURE: CELEBRATING TWO YEARS OF TRANSFORMATIVE LEADERSHIP AND THE LAGOS-CALABAR COASTAL HIGHWAY MILESTONE In a historic ceremony marking the successful completion of two years in office by President Bola Ahmed Tinubu, GCFR, the Federal Government officially commissioned the completed 30-kilometre portion of the 40.7- kilometre Lagos-Calabar Coastal Highway, Phase 1, Section I and several others, as well as flagged off the construction of new roads, in the Southern region, symbolically. The event, which was held in Lagos on Saturday, 31st May 2025, was performed by His Excellency, President Bola Ahmed Tinubu, GCFR. It brought together eminent government officials including; the President of the Senate, Sen. Godswill Akpabio, GCON, the Secretary to the Government of the Federation (SGF), Sen. George Akume the Governors of Lagos, Ogun, Borno, Imo, Bayelsa, Kogi and Edo States, Captains of Industry, Contractors, Traditional Rulers and other Stakeholders Honourable Minister of Works, Engr. David Umahi, CON, FNSE, FNATE; the Minister of State for Works, Bello M. Goronyo, Esq; Governors Hope Uzodinma of Imo State and Dapo Abiodun of Ogun State; Senator Godswill Akpabio; and other distinguished guests. In his opening remarks, President Bola Ahmed Tinubu, GCFR reflected on the bold strides made during his two years in office, under the Renewed Hope Agenda. He identified the Lagos-Calabar Coastal Highway as a flagship project that encapsulates the commitment to infrastructure development as a driver of economic transformation. Despite initial skepticism, the project has become a beacon of progress, connecting nine coastal states of Lagos, Ogun, Ondo, Delta, Edo, Bayelsa, Rivers, Akwa Ibom, and Cross River. It is projected to contribute up to US$12 billion annually to Nigeria’s GDP within its first decade. The President emphasised that the project will ease transportation, reduce costs of travel and vehicle maintenance, as well as travel time, and drive growth across agriculture, industry, tourism, marine, and commerce while creating thousands of jobs and expanding opportunities for Nigerians. He described the progress as clear evidence of purposeful leadership delivering tangible results. Speaking, the Honourable Minister of Works, Sen. (Engr.) David Umahi, CON, praised the scope and significance of the project, describing the highway as a game-changer that not only connects nine littoral states but also unlocks vital trade and industrial corridors. He echoed the anticipated economic impact, reaffirming that the project will reduce transportation costs, shorten travel times, stimulate local economies, and create extensive employment opportunities for Nigerians. He appreciated the President for the vision and leadership, the Federal Executive Council (FEC) for its consideration and approval and the Minister of Finance for providing the counterpart funding. The Minister of State for Works, Hon. Bello Muhammad Goronyo, Esq. reaffirmed the Federal Government’s unwavering commitment to national development through the provision of critical infrastructure. He emphasised that enhancing connectivity and fostering regional integration remain vital pillars for sustainable prosperity. Delivering a Goodwill Message, the Senate President lauded the transformative potential of the project, spotlighting the strategic partnership between the government and private sector entities such as Hitech Construction Company. He described the highway as a “backbone for economic revitalisation” that will attract investment and create new avenues for economic empowerment. Other goodwill messages echoed these sentiments and much more. Governor Hope Uzodinma of Imo State and the Chairman of the Progressive Governors Forum, commended President Tinubu’s resilience and clarity of purpose, recognising the highway as a powerful symbol of leadership that delivers on its promise. He expressed pride in the project’s pivotal role in national development and economic progress. Governor Dapo Abiodun of Ogun State described the Lagos-Calabar Coastal Highway as a legacy of visionary leadership and focused execution. He underscored its visible socio-economic impact through improved interstate connectivity and increased commercial activity, stressing that the project will significantly improve lives and economies across southern Nigeria. Earlier, in his welcome address, the Permanent Secretary, Federal Ministry of Works, Engr. Funsho Adebiyi, FNSE warmly welcomed all dignitaries and expressed heartfelt gratitude to Mr. President. He celebrated the milestone as a monumental achievement, noting that the highway will benefit not only the state on its alignment but the entire nation. He also emphasised that the project stands as a symbol of unity, progress, and a shared national vision for a more prosperous future. Others completed road and bridge projects in the Southern part of the country that was symbolically commissioned by the President including; While those that were flagged off, also symbolically, included; Mohammad Abdullahi Ahmed
i. Lagos-Ibadan Expressway, Phase 1, Section I (Shagamu-Ibadan) in Ogun and Oyo States,
ii. Ikorodu-Shagamu Road in Lagos and Ogun States,
iii. Lagos-Badagry Expressway (Agbara Junction - Nigeria-Benin Border in Lagos State,
iv. Dualisation of East-West Road, Section II, Subsection I, (Eleme Junction-Ahoada in Rivers State,
v. Upgrading of 15km of the East-West Road (Eleme Junction-Onne Port Junction) in Rivers State,
vi. Construction of a New Bridge to Replace the Near-Collapsed One at Akpoha in Ebonyi State,
vii. Rehabilitation of Enugu-Port Harcourt Expressway, Section III (Enugu-Lokpanta) in Enugu State,
viii. Reconstructed Collapsed Bridge at New Artisan Market in Enugu on the Enugu-Port Harcourt Expressway and
ix. Alesi-Ugep Road (Iyamoyung-Ugep) in Cross River State.
i. Rehabilitated Ibadan-Ife-Ilesha-Akure-Benin Road in Oyo, Osun, Ondo, and Edo States,
ii. Nembe-Brass Road, Section II in Bayelsa State and
iii. Section (107 Kilometres) of the Enugu-Onitsha Dual Carriageway in Enugu and Anambra States.
Director, Press and Public Relations.
Federal Government Addresses Concerns on Benin- Ekpoma- Auchi Okpella-Okene- Lokoja Road, Gives a Marching Order to Contractors To Justify The Funds Released to them or Risk Termination of Their Contracts 1. The Federal Government has issued a marching order to all the contractors handling the Benin- Ekpoma- Auchi- Okpella- Okene- Lokoja road to immediately commence accelerated work on the rehabilitation of the road or face termination of their contracts. This directive was handed over to the contractors by the Hon. Minister of Works, His Excellency, Sen. Engr. Nweze David Umahi CON during his inspection visit to the various project sites in Edo State on 9th March 2024.. The Hon. Minister who disclosed that the Federal Government under the Renewed Hope administration of His Excellency, President Asiwaju Bola Ahmed Tinubu GCFR had released funds to the contractors handling the federal projects, warned that contractors who fail to fully mobilize and commence immediate accelerated rehabilitation works on the projects would have their contracts terminated and such contractors blacklisted. 2. Speaking after a meeting with the Governor of Edo State, His Excellency . Goodwin Obaseki, the Minister described as unacceptable the delay of the contractors in fully mobilizing to site and effectively commencing rehabilitation work despite Mr. President's prompt release of funds to them for the projects. On the recent protest along the Jattu axis of the Benin- Auchi highway by the residents of the area,which disrupted vehicular movements, the Hon. Minister said that his meeting with the Governor was to brainstorm on the drastic measures to tackle the issues affecting the progress of work in the area." I have had a very serious meeting with the Governor here. We are concerned about what is happening between Benin-Ekpoma-Auchi- Okpella and the axis of Kogi State. That is what we have been brainstorming on. I have worked with him throughout last night to direct that the road should be unblocked, and if you see the grievances of those people you will not blame them so much, because people are dying, trucks are falling." 3. On his part, the Governor thanked the Hon. Minister of Works for his deep sense of commitment to the development of road infrastructure in Nigeria. He assured of the unwavering support of his administration to the concrete technology initiative introduced by the Renewed Hope administration, which he said was the best model for the road infrastructure along the East West and indeed parts of the country. "First, let me thank my brother and very good friend, the Honourable Minister of Works, who you know is an engineer par excellence, for the concern he has shown. Same time last year when I cried for help ahead of the rainy reason, we didn't get this kind of response. " He harped on the need to remove encumbrances to the construction of enduring road infrastructure in Nigeria. "We shall not continue to use expensive asphalt to do our roads. We should use sustainable local materials; we produce cement and steel, there is no reason why we can not begin to move towards utilizing more concrete in building our roads for sustainability so that our roads can last longer.' 4. The Hon. Minister who also inspected the Lokoja – Benin Road Dualization Projects, section IV: Benin – Ehor road in Edo State handled by RCC Nig. Ltd; the section III: Ehor – Auchi in Edo State handled by Dantata & Sawoe Nig. Ltd; and the section II: Auchi – Okene in Edo/Kogi States handled by Mothercat Nig. Ltd tasked them on the best standard and timely delivery of the projects. He further moved to the spot where the residents were blocking vehicular movements and addressed them on the efforts of Mr. President in improving the condition of roads in the State." Mr. President has directed me to go round the entire 36 States and brief him on the state of the roads. No contractor is being owed a kobo from Warri down to Kogi State. We are readdresing the situation here, you will see action from Monday" ...
Indigenous Contractors Nationwide to be Given a Pride of Place in the Construction Industry Under the Renewed Hope Administration of President Tinubu with more Opportunities for Road Construction on Concrete Technology 1. In the vision to promote local content as a major game changer in the economic recovery plans of the Renewed Hope administration of the President of Nigeria, His Excellency, President Asiwaju Bola Ahmed Tinubu GCFR, the Honourable Minister of Works, His Excellency Sen. Engr. Nweze David Umahi CON has assured that his Ministry would promote indigenous resources, skills and capacities through creating more opportunities for local contractors in the construction industry, especially in the new innovation of concrete technology being used in tough terrains across the nation. The Hon. Minister stated this when he paid inspection visits to some flood sections along the East West Road in Delta State undergoing remedial work by an indigenous contractor, Messrs. True Tech Nigeria Ltd. 2. The Honourable Minister, who was very impressed by the good job being done by True Tech Nigeria Ltd said his Ministry would do everything possible to ensure value for money, create wealth and jobs for indigenous professionals and technicians, introduce engineering solutions that are more economical and discourage delays in project delivery. He said of the project, " We have about 10 different washouts, which we are providing multiple culverts in place of a decompile, which would have been much more expensive. But our solution is very economical, and it will solve the engineering problems. And then we're raising the road level above the flood level. And we are also using a concrete pavement to do it." He said also that solar light would be put on the axis when the project is completed. "We're also going to put solar light, at least let it be the signature of Mr. President, and that will be the microcosm of the macrocosm of what Nigerians should expect on our roads under the administration of Mr. President". 3. Meanwhile, the Honourable Minister of Works has directed all Controllers of Works to ensure that all contractors use 70% stone base aggregate with only 30% dust base to form the base of the road construction jobs. He gave this directive when he inspected the dualization of Sapele- Agbor road, route no. 3 in Delta State handled by CGC Nigeria Ltd. He, however, commended the construction company for their good job. " CGC is known for a good job. I commend you for the one I have seen. It's good, so we will do everything to assist you, but listen to our directive. Follow the existing asphalt, pulverize it, and put 20cm stone base. Don't use dust base. " 4. The Minister, who also inspected the rehabilitation of Warri- Sapele road via route no. 2, section 3 in Delta State, handled by SKECC Nigeria Ltd; the Benin- Warri road rehabilitation, section 2, Sapele- Imasabor, handled by Geld Construction Nig Ltd/ Tracter Nigeria Ltd in Delta State; Benin- Warri road, section 1( Imasabor- Benin in Edo State, handled by Levant Nigeria Ltd; as well as the Benin- Agbor route no 4 and Benin By-pass route 5 all in Edo State, gave and ultimatum directing Geld Construction Nigeria Ltd/ Tracter Nigeria Ltd to within 14 days justify the mobilization received or have their job terminated. "After 14 days of this warning notice and there's nothing happening, I will come and terminate the job.". ...
FG Commences Construction of 700 Km Lagos- Calabar Coastal Road and Maintenance of Piers and Other Under Bridge Works of Critical Bridges in Lagos 1. As part of strategic plans for holistic economic recovery, the Federal Government has commenced the construction of the 700km Lagos- Calabar Coastal Highway, spanning 9 States with two spurs leading to the Northern States. This was expressed by the Honourable Minister of Works, His Excellency Sen. Engr. Nweze David Umahi, CON, during the official handover of the first phase of the project, made up of 47.47 kilometers dual carriageway, to Hitech Construction Company Ltd, and which is to be constructed in concrete pavement. 2. The Hon. Minister who was in company with the Federal Ministry of Works' Controller in charge of Lagos State, Engr. (Mrs) O. I. Kesha, emphasized the need for all contractors handling Federal Government’s road projects to deliver within a record time, noting that the government would not allow variation arising from delays or slow pace of work once mobilization had been done. He, however, commended very highly Hitech Construction Company Nigeria Ltd for being reputable for quality and speedy delivery of jobs. He acknowledged their efforts in starting work immediately after the contract was awarded. He said, " They have completed some filling of 1.3 kilometer from the day the project was awarded to them. It shows the speed they are going to deploy to this project. Within a couple of weeks, we awarded the project to them, they mobilized a lot of dredging equipment, and you can see that they have recovered 1.3 kilometer of section one of the phase". 3. The Honourable Minister who also visited project sites at the Queen's Drive Ikoyi, the Third Mainland bridge top deck, the underwater, the Eddo bridge, the Eko bridge and Carter bridge expressed the determination of the Federal Government to carry out a comprehensive rehabilitation of the bridges which he said are critical links between the Mainland and the Island of Lagos, the economic hub of the country. These repairs are expected to cover not only the top of the bridge but also the under-bridge works. He said, " At the Third Mainland bridge, we have three or four critical elements to be rehabilitated. The first one is the deck, and the deck is about 11 kilometers × two. That is dual carriageway, including the ramps, and it has been done by CCECC. They have done very beautiful jobs, but we have not concluded. Before the end of March, we'll be concluding the asphalt milling and the reasphalting. He further said, "But that is not all our commitment there. We are installing the guardrails, we are replacing the lights with solar light, we are going to put some decorative lights too, and then we are going to put CCTV camera both on top and under the bridge to check insecurity and illegal mining of sand, which is causing scouring on the piles and the pipe bits. The second job is that some sections of the slab are deflected, and so what we have done is to get an expert to understudy the level of deflection. That's the tendons of the slab that deflected. And so, we are going to cut open the slabs, enter and then look at it, scoop it, and then reinstate the tendons of the slab. There's nothing to worry about. It's been done at a Eko bridge by Buildwell. So, this one is not a threat to us at all. 4. He commended what Julius Berger Nigeria Ltd is doing already, which is restoration of deteriorated peirs and peir caps including the cover of peirs and peircaps themselves, and said the piles which he also inspected were the most critical of the works to be done. 5. Earlier in their respective remarks, the State Controller, Federal Ministry of Works and the representatives of Hitech Construction Nigeria Ltd, Julius Bergger Nigeria Ltd, China Civil Engineering Construction Corporation Ltd, and. Buildwell Nigeria Ltd assured the Honourable Minister that they would continue to work in line with the spirit of excellence, which the Renewed Hope administration of His Excellency President Asiwaju Bola Ahmed Tinubu GCFR is known for. ...
FCE Guzau Joins Beneficiaries Of FG’s Ongoing Road Intervention Scheme
· As Fashola commissions, hands over 1.5 km rehabilitated road to the all-female institution
The Federal College of Education (Technical) Guzau, Zamfara State, Tuesday, March 8, 2022, joined other beneficiaries of the on-going Federal Government Road Intervention Scheme in Federal tertiary institutions across the country as the Minister of Works and Housing, Mr. Babatunde Fashola, SAN, commissioned and handed over a 1.50-kilometre internal road rehabilitated by the Ministry.
The road, which, according to some students and staff of the all-girls institution, was in a very dilapidated condition before the intervention by the Federal Government, constituted a very big challenge to both residents and day students, especially in terms of access to lecture halls and hostels as it is a major link between the halls of residence and lectures as well as administrative blocks.
In his address at the event which attracted top administrators of the institution and other dignitaries, including the Emir of Guzau, Alhaji (Dr.) Ibrahim Bello, among others, Fashola reiterated the commitment of the President Muhammad Buhari administration to extend infrastructure provision to tertiary institutions saying the purpose was to improve the education environment of the institutions.
The Minister, who was represented by the Federal Controller of Works in the State, Alhaji Hassan Muhammad Isa, said in addition to improving the quality of education in the institutions, the objective was also in line with the progressive ideal of the Buhari administration to improve human condition, adding that the scheme represented “a critical intervention to support education”.
The Minister told the esteemed audience which also included the Chairman Governing Council of the Institution, Architect Ubokutom Nyah, “It is undebatable that the quality of education will be impacted by the quality of infrastructure and the learning environment.” He added that those in doubt of the assertion should “Simply listen to feedbacks from students in the various institutions that have already benefited from the scheme.”
Pointing out that the Ministry is currently intervening in internal roads in 30 Federal Institutions across the country, Fashola said the Ministry had already successfully intervened in 45 such institutions, 29 of which had been handed over since 2021 while the handing over of another set of 17 completed ones, including the FCE (Technical) Guzau, has commenced.
“Today, we converge at the Federal College of Education (Technical), Guzau, to hand over an important asset, 1.50-kilometre rehabilitated road by the Federal Ministry of Works and Housing on behalf of the Federal Government”, the Minister said, adding that while a lot of work still needed to be done in all sectors of the nation’s economy, including education, the Buhari government has stepped up to lead the process of getting that work done.
He declared with delight,” The gap of our infrastructure need is steadily being bridged by a gradual process of repairs, renewals and constructions on our major highways and it has now reached the schools,” pointing out that the interventions have enhanced the enthusiasm of students with regards to attending classes as some defective roads in the institutions had been restored to good condition.
Pointing out that although the interventions come as civil Works project, they represent an investment in education as well as means of job creation. The Minister added that during the construction of the road, 31 people were employed in the process “contributing to the job creation initiative of the government”, expressing the hope that the benefiting schools would take ownership of the assets and protect them from abuse.
In his address, the Deputy Governor of Zamfara State, Senator Hassan Muhammad Nashiha, commended, the Federal Government for the intervention in the institution describing it as unique in the history of governments in the country. He specially congratulated the Minister “for undertaking the project in a very special way”.
He also commended the Chairman Governing Council of the Institution, who, according to him, has brought so many projects to the institution during his tenure, including renovation of hostels and toilets as well as recreation centre. The Deputy Governor, however pleaded with the Federal Government to build a perimetre fence around the institution considering the state of insecurity in the state.
Also in his goodwill message, the Emir of Gusau, HRM Alhaji (Dr.) Ibrahim Bello, thanked President Buhari and the Minister of Works and Housing for carrying out the reconstruction and rehabilitation of the road in the institution saying it had constituted a grave challenge to students. He also pleaded with the government to help put a perimetre fence around the school especially as it is an all-female institution.
As for the students, the event was an occasion to express their joy and gratitude to the Federal Government and particularly the Minister of Works and Housing whom they praised for his consistency and dedication in carrying out the project to conclusion.
From the President of the Institution’s Students’ Union Government (SUG, Comrade Mariam Salisu, who studies Home Science to Nwada Oluchi Alago, who studies Home Economics and Fatima Abubakar, a Second Year Primary Education student; through Salihu Hamisu of ICT Department and Promise Julius and her two friends, Yemisi and Justina, who both study Biology and Integrated Science as well as Fatima Mohammad, a physically challenged student in Special Education Department, the intervention was both “God-sent and timely.”
Also present at the occasion were the Secretary to the Government of Zamfara State, The Chief of Staff to the Governor and some top officials of the State Government, deans of faculties and Directors of Departments as well a the executive officers of the Students Union Government and the students body who came in their large numbers to show their gratitude to the Federal Government for the intervention.
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