National
Katsina Communities Protest Cancellation Of N147.6bn Road Contract
Some residents of communities along Katsina-Kankara-Dutsinma-Maraba Kankara road in Katsina State have appealed to President Bola Ahmed Tinubu to direct a reversal of the cancellation of a N147.6 billion contract for the full rehabilitation of the road.
They accused the Minister of works, David Umahi, of maliciously cancelling the contract which was awarded to an indigenous firm, Vipan Global Resources Limited, after fulfilling all the requisite requirements, has a completion period of 24 months.
Mallam Saidu Zaharadeen, a community leader in Yantumaki community one of the communities where the road passes through, said that the road project was awarded to the Firm on April 5, 2024 with contract number 8489 after a certificate of no objection was duly issued by the Bureau of Public Procurement as well as an approval by the Federal Executive Council (FEC).
Also, documents sighted by our correspondent include all the bidding documents, an award letter, Federal Executive Council (FEC) approval, acceptance letter, Engineer’s Order to begin work, and site handover letter, among others.
The Engineer’s Order signed by Engr O.U Bakare, instructed the Firm to commence work with effect from 15 April, 2024 with a directive that the work be completed on 14 April, 2026.
Also, in an official letter duly signed by one Engineer Tahir B.G, Federal Controller in Katsina State, the federal ministry of work handed over the road to the contractor on 24 April 2024.
A credible source confirmed that the Managing Director of the Company and officials of the federal ministry of works jointly signed an agreement for the road project on 10th May 2024.
Our source who is a staff of the works ministry said that the firm wrote a letter of request for advance payment guarantee to the ministry and mobilised to site and commenced work in line with the contractual terms.
It was while waiting for payment that Umahi’s ministry issued a letter on 16 July, 2024 asking the firm to stop the road project and vacate the site immediately.
In the letter signed by Engr Goni Mohammed, Director of Highways North West, on behalf of the federal ministry of works, the ministry stepped down the contract citing lack of funds, a claim many faulted because there is a N10.9billion budgetary provision for it in the 2024 budget.
Dissatisfied with the directive, residents of communities along the road alleged that the federal ministry of works’ action, taken at the instance of minister, was politically motivated even as they lampooned the minister for condoning acts that could saw a seed of discord between the federal government and residents of the area.
They wondered why Umahi cancelled a project in the north and did not cancel any from the south as if he is trying to pit the north against the president.
While accusing Umahi of witch-hunting, castigating, molesting and terrorizing opposition, they however appealed to President Tinubu, whom they described as a father to all, to direct Umahi to immediately reverse the cancellation of the road contract in the interest of justice and fair play.
But a source said Umahi claimed that the president directed him to cancel the contract after Katsina state governor, Umaru Dikko Radda and SA political to the president, Ibrahim Masari complained to the president that the man linked to the company has been giving the ruling APC tough time in Katsina state and so his company should not be allowed to do any business in the country.
“They even vowed to do everything possible to bring him down”, our source added.
According to the source, the firm has sunk huge sums of money into the project and was not prepared to incur losses.
When contacted, a senior staff of the works ministry confirmed that there are similar road projects awarded by the works ministry most of which have less budgetary provisions than the one in question.
These projects include the rehabilitation and dualization of Enugu-Abakaliki-Ogoja road awarded to Reinforced Global Resources Limited for N183.6bn with a budgetary provision of N2.5bn in the 2023 supplementary budget with 24-month completion period.
There is also the rehabilitation of Ugep-Abaomoge-Opkosi road in Cross River state awarded to Reinforced Global Resource Limited for N54.6bn with a budgetary provision of N2.5bn in the 2023 supplementary budget with 24-month completion period.
Another one is the contract for the construction of a 23-span flyover bridge project at Ele-Obinagu Junction, along Enugu-Abakaliki Road awarded to Reinforced Global Resources Limited for N19.4bn with a budgetary provision of N2.5bn and a 24-month completion period.
There is also the contract for the reconstruction of Bida-Lemu-Wushishi-Zungeru Road in Niger state awarded to Gerawa Global Engineering for N66.9bn for which there is a budgetary provision of N2bn in the 2023 supplementary budget and a 24-month completion period; construction of Otukpo-Nasarawa road in Benue state awarded to Wizchino Engineering Limited for N198.8bn in the 2023 supplementary budget with a 36-month completion period.
Ohers are contract for the rehabilitation of Abeokuta-Ibaro/Ilaro road in Ogun state awarded to Strabic Construction Company at N57bn with about N71.7m budgetary provision; and, rehabilitation of Ore-Ondo-Akure Road in Ondo state awarded to Civil &Building Construction (CBC) Global for N134.8bn with provision for N4.7bn made in the budget.
Another official of the works ministry even alleged that Minister Umahi has interest in Reinforced Global Resource Limited and most of the companies’ awarded contracts by the ministry.
Meanwhile, it was gathered that Umahi advised the Federal Executive Council to cancel the contract citing provisions of section 28(b) of the Public Procurement Act which he claimed confers the procuring entity ‘the authority to halt any procurement process at any stage without incurring liability’.
However, a deeper reading of the said section showed that the minister merely misled FEC as the provision he quoted applies only at the bidding stage not when the contract was awarded.
For instance, section 28 (a) of the BPP Act provides that a procuring entity may reject all bids at any time prior to the acceptance of a bid without incurring any liability to the bidder.
Also, section 43.1 of the Act provides that the procuring entity can reject all bids at any time “prior to acceptance of a bid without incurring any liability to the bidder”. The law also provides that “the rejection of all bidders requires prior approval of BPP.
Therefore, it is clear that the section cited by Umahi is not applicable to the road contract in question since the project is at the execution stage.
President Bola Ahmed Tinubu has officially dissolved the board of the Nigerian National Petroleum Company Limited (NNPCL), which includes the removal of Group Chief Executive Officer (GCEO) Mele Kyari and Chairman Pius Akinyelure, along with all other board members appointed in November 2023.
In an announcement, the President introduced an 11-member restructured board, appointing Engineer Bashir Bayo Ojulari as the new GCEO and Ahmadu Musa Kida as the Non-Executive Chairman. These changes are effective immediately, as stated by Bayo Onanuga, Special Adviser to the President on Information & Strategy.
Emphasizing the need for “enhanced operational efficiency, restored investor confidence, and a more commercially viable NNPC,” President Tinubu exercised his authority under Section 59(2) of the Petroleum Industry Act (PIA) 2021 to implement this significant reorganization.
The newly formed board comprises Adedapo Segun, who continues as Chief Financial Officer (CFO), alongside six non-executive directors representing Nigeria’s geopolitical zones: Bello Rabiu (North West), Yusuf Usman (North East), Babs Omotowa (North Central), Austin Avuru (South-South), David Ige (South West), and Henry Obih (South East). Additionally, Mrs. Lydia Shehu Jafiya, Permanent Secretary of the Federal Ministry of Finance, and Aminu Said Ahmed, representing the Ministry of Petroleum Resources, will serve on the board.
The President has charged the new board with conducting a strategic review of NNPC-operated and Joint Venture assets to optimize value. This includes increasing crude oil production to 2 million barrels per day (bpd) by 2027 and 3 million bpd by 2030, boosting gas production to 8 billion cubic feet daily by 2027 and 10 billion by 2030, and expanding NNPC’s refining capacity to 200,000 bpd by 2027 and 500,000 bpd by 2030. The administration also aims to attract $30 billion in oil investments by 2027 and $60 billion by 2030, building on the $17 billion secured in 2024.
Ahmadu Musa Kida, the new Chairman, is a Borno-born engineer and former Deputy Managing Director of Total Nigeria. He also has a background in basketball, having served as the ex-president of the Nigeria Basketball Federation (NBBF). Bashir Bayo Ojulari, the newly appointed GCEO, hails from Kwara State and was previously the Executive Vice President of Renaissance Africa Energy, where he led a $2.4 billion acquisition of Shell’s Nigerian assets. He brings extensive experience from Elf and Shell, having worked across Europe and the Middle East.
President Tinubu expressed gratitude to the outgoing board for their contributions, particularly their efforts in reviving the Port Harcourt and Warri refineries, which have resumed production after years of dormancy. Analysts view this leadership change as part of Tinubu’s broader reforms in the oil sector, following last year’s removal of fuel subsidies and the promotion of private refinery investments. With the new team established, there are high expectations for enhanced transparency, efficiency, and profitability within Nigeria’s state oil enterprise.
Heineken Lokpobiri, minister of state for petroleum resources, says the federal government plans to commence implementing the drill-or-drop provisions of the Petroleum Industry Act (PIA).
Section 94 of the PIA gives operators a period of three years to begin oil production or relinquish the assets to the federal government.
Speaking during the Cross Industry Group (CIG) meeting held on Tuesday in Florence, Italy, Lokpobiri said it is in the best interest of the country that all inactive wells go to work.
He said the federal government, under the leadership of President Bola Tinubu, has provided every necessary incentive to ensure international oil companies (IOCs) in Nigeria run smoothly and profitably.
“Now, it is imperative for these industry players to match the government’s efforts with increased investment by announcing final investment decisions (FIDs),” he said.
Furthermore, Lokpobiri discussed “the challenges, expectations, and measures to enhance the sector’s contributions towards domestic energy needs and regional expansion across Sub-Saharan Africa”.
He emphasised that while IOCs have highlighted engineering, procurement, and construction (EPC) contractors as a challenge, “EPCs will not come unless they see strong commitments from industry players”.
“The government has done its part to provide the requisite and investment-friendly fiscals, the ball is now in the court of the IOCs and other operators to make strategic investment decisions that will drive increased production and sustainability in the sector,” he said.
“We must also recognise that domestic crude supply is essential to national energy security. The best solution to this challenge lies in increasing production, which will ensure a balance between domestic supply obligations and external commitments.”
The minister further urged industry players to explore collaborative measures, such as shared resources for contiguous assets and the release of underutilised assets to operators ready to invest in production.
The minority caucus in the house of representatives has condemned the killing of 16 Kano-bound hunters in Edo state.
On Thursday, a mob in the Uromi area of Edo killed 16 hunters of northern descent who were travelling from Elele, Rivers state.
The travellers were attacked and lynched after some vigilance group members raised the alarm on suspicion that they were kidnappers.
The Edo state government said 14 suspects arrested in connection with the killing would be transferred to Abuja for further interrogation.
During a visit to some of the families of the victims at Bankure LGA in Kano, Monday Okpebholo, governor of Edo, assured that justice would be served.
In a statement issued on Monday, the minority caucus described the killing of the hunters as “barbaric”.
“We find such brutal killings of innocent Nigerians in any part of the country by lawless mobs very reprehensible, and if allowed to fester without being put in check by responsible organs of the federal government, such actions could threaten the peace and unity of the country,” the statement reads.
The lawmakers asked Nigerians never to resort to jungle attacks on fellow citizens but to always report any concerns to security agencies.
“We are a nation under the rule of laws, and our law enforcement agencies are always available to partner with every Nigerian to assuage their concerns,” the caucus said.
While noting that the incident is “already setting emotions on edge” in parts of the country, the legislators urged President Bola Tinubu to ensure that the security agencies investigate this matter and bring the perpetrators to justice.
“Also, adequate compensation should be paid to the affected families,” the caucus said.
The lawmakers implored Nigerians to remain calm, peaceful, and law-abiding and allow the federal and state governments to investigate the matter and ensure justice is served.
The statement was signed by Kingsley Chinda, minority leader; Ali Isa, minority whip; and Aliyu Madaki, deputy minority leader.