Business
Works Ministry Begs NASS To Increase Budget To N1.5trn
ABUJA —The minister of Works, Sen Dave Umahi has asked the National Assembly to increase the ministry’s 2024 budget to about N1.5 trillion to enable it complete at least 10 selected critical roads and bridges in each of the six geo-political zones of Nigeria.
The minister also asked the Senate and House of Representatives committees on Works to equally support a review of all certified debts to contractors and if possible ,convert same to promissory notes to contractors to enable the ministry focus on using any funds appropriated to pursue the ministry’s set objectives .
Engineer Umahi who stated that out of N383,351,656,449.00 the sun of N184,351,147,332.29 which represents 48.01 percent of the capital allocation in the 2023 leaving a balance of N199,405,010,166.71 to be released, pointed out the need to encourage contractors to key into the Road Tax Credit Scheme to increase the number of private sector interventions .
The minister who appeared before the joint Senate and House of Representatives committees on Works further explained that the monies so far released was utilized for payments of some certified certificates for executed works on roads and bridges by Highway projects of engineering services and common services department .
He explained that as at November 2023 the ministry had an unpaid certificate in the sum of N1,507,873,365,616.02.
Engineer Unahi said the ministry had generated the sun of N723,063,678.62 from January to November 2023 and the sum remitted to the consolidated Revenue Account .
Speaking to the 2024 budget proposal of N657,228,251,596 the minister stated that part of the monies will be used to complete the Lagos-Ibadan expressway substantially completed about 90 percent .
The Abuja-Kaduna -kano road, Zaria-kano road,2nd Niger bridge although completed but needs Approach roads 2a And 2b already awarded awaiting funding will be included in the budget of 2024.
The minister further advised the lawmakers to consider a provision of an emergency fund of about 30 percent of the budget to carter for unforeseen emergencies that regularly occur on the road network especially during raining seasons.
Senator Adams Oshiomhole had challenged the minister and accused of abandoning his core mandate of road construction and delving into road maintenance which is the core mandate of FERMA.
Lawmakers also queried the wisdom in splitting contract sums instead of allocating reasonable monies that will complete big and important projects.
According to Oshiomhole, “the behaviour of the Ministry of works contradicts the renewed agenda of the current administration .
“We have passed resolutions in the Senate about the state of the roads and what we see in this budget simply dashed the hopes of Nigerians.
“As an Engineer will you in true science say a mere N200 million for a federal road in Edo ?
“I have also observed that you are more interested in repairing roads which is not the mandate of your ministry ,this is the mandate of FERMA. Are you constructing roads and not mere repairs ?
“You have paid attention to state roads more than the federal roads as your core mandate and I ask how?
But in his response the minister said ,” I will do state roads when I have the need to do it”.
The minister further explained the policy direction of the ministry to use rigid pavement on her projects.
According to him, “the Ministry’s new policy is to prevent excessive augmentation of contacts considering the scarcity of forex and weakening of the Naira against the Dollar which makes the cost of Bitumen increase in geometric progression against the authentic progression of cement prices in concrete road pavements “.
Nigeria’s public debt rose by 48.5 per cent year-on-year (YoY) to N144.67 trillion ($94.23 billion) in 2024 from N97.34 trillion ($108.23 billion) in 2023.
The Debt Management Office (DMO) disclosed this in its latest public debt profile report.
The debt stock consists of external debt of N70.29 trillion ($45.78 billion) serviced with $4.66 million and domestic debt of N74.38 trillion ($48.44 billion).
The report showed that the country’s external debt increased by 83.89 per cent YoY from N38.22 trillion ($42.5 billion) in 2023.
Domestic debt also grew by 25.7 per cent YoY from N59.12 trillion ($65.73 billion) in 2023.
The report further indicated that the Federal Government’s domestic debt component rose by 32 per cent YoY to N70.41 trillion from N53.26 trillion in 2023.
But the domestic debt of states and the Federal Capital Territory declined YoY by 32 per cent to N3.97 trillion in 2024 from N5.86 trillion in 2023.
The rise in public debt can be attributed to fluctuating trends in exchange rates amidst changes in global economic conditions.
The sharp increase, particularly in external debt, highlights the nation’s vulnerability to exchange rate volatility and changes in global economic conditions.
With the continued depreciation of the naira, the cost of servicing foreign debt could escalate, adding pressure on the country’s financial resources.
The Nigerian National Petroleum Company Limited (NNPCL) has announced the appointment of a new eight -man Senior Management Team.
The appointment followed the recent announcement followed the appointment of the Group Chief Executive Officer (GCEO) and Board of Directors.
Disclosing this in a statement on Friday, NNPCL Chief Corporate Communications Officer, Olufemi Soneye, said the appointments all take immediate effect.
“Following the appointment of the Group Chief Executive Officer and Board of Directors, the Nigerian National Petroleum Company Limited (NNPC Ltd) has announced the appointment of a new 8-man Senior Management Team on Friday,” he stated.
“The team which will be headed by the GCEO, Mr Bashir Bayo Ojulari, has Rowland Ewubare as Group Chief Operating Officer; Adedapo Segun as Group Chief Financial Officer; and Olalekan Ogunleye as Executive Vice President Gas, Power & New Energy.
“Other members of the team are: Udy Ntia as Executive Vice President Upstream; Mumuni Dangazau as Executive Vice President Downstream; Sophia Mbakwe as Executive Vice President Business Services; and Adesua Dozie, as Company Secretary & Chief Legal Officer. All appointments are with immediate effect.”
Ngozi Okonjo-Iweala, the director-generaI of the World Trade Organisation (WTO), says the recent tariffs announced by the United States (US) will have significant implications for global trade and economic growth prospects.
On April 2, President Donald Trump announced sweeping global tariffs on all imports into the US, imposing 14 percent on Nigeria.
In a statement on Thursday, Okonjo-Iweala said the WTO secretariat is closely monitoring and analysing the measures announced by the nation.
The WTO DG said many members have “reached out to us”, adding that the secretariat is actively engaging with them in response to their questions about the potential effect on their economies and the global trading system.
“The recent announcements will have substantial implications for global trade and economic growth prospects,” the economist said.
“While the situation is rapidly evolving, our initial estimates suggest that these measures, coupled with those introduced since the beginning of the year, could lead to an overall contraction of around 1% in global merchandise trade volumes this year, representing a downward revision of nearly four percentage points from previous projections.”
Okonjo-Iweala expressed concern over the decline and the potential for escalation into a tariff war with a cycle of retaliatory measures that could lead to further declines in trade.
“It is important to remember that, despite these new measures, the vast majority of global trade still flows under the WTO’s Most-Favored-Nation (MFN) terms,” she said.
“Our estimates now indicate that this share currently stands at 74%, down from around 80% at the beginning of the year. WTO members must stand together to safeguard these gains.”
According to the WTO DG, trade measures of this size have the potential to create significant trade diversion effects.
Therefore, she called on members to “manage the resulting pressures responsibly to prevent trade tensions from proliferating”.
“The WTO was established to serve precisely in moments like this — as a platform for dialogue, to prevent trade conflicts from escalating, and to support an open and predictable trading environment,” Okonjo-Iweala said.
She encouraged members to utilise the forum to engage constructively and seek cooperative solutions.