₦airaland Forum

olivertwist: President Babatunde Fashola, please hear the voice of my people on NL and grant their requests by purchasing 5000 Innoson buses for each 36 states and FCT. If you can do this, I can assure you that come 2015, you'll be re-elected as our president. Thank you Mr President.

The Executive Council of the Federation, FEC, on Wednesday approved the procurement of 30 units of 33-seater buses for N311 million. The buses are meant to reduce the transportation challenges faced by civil servants in Abuja.
Briefing journalists after the weekly FEC meeting, the Minister of Information, Labaran Maku, who briefed alongside the Minister of Special Duties, Tanimu Turaki, and the Head of Service, Bukar Aji, said the approval came following a memo tabled by President Goodluck Jonathan through the Head of Service.


The President’s memo had sought council’s ratification of his anticipatory approval for the procurement of the diesel air-conditioned Innoson buses (IVM6800), by the office of the Head of Civil Service of the Federation.
Mr. Maku said the choice of Innoson buses was in compliance with the directive of the FEC at its January 20, 2010 meeting that locally assembled and available vehicles be patronised instead of foreign ones.


He added that the procurement of the buses will serve as a palliative for transportation difficulties experienced by civil servants living in the Nigerian capital, Abuja, and its satellite towns; as well as raise staff morale for service delivery.
“In view of the priority placed on service delivery at institutional and individual levels in the public service by the administration and the enormous benefits of the scheme on the lives of he beneficiaries, council ratified the President’s anticipatory approval for the procurement of 30 numbers of 33-seater deselect air conditioned Innoson Bus IVM 6800 , in favor of Messrs Innoson Vehicle Manufacturing Company Ltd in the sum of N311,850,00.00, inclusive of VAT, with delivery period of 10 months,” he said.


The Head of Service while explaining the details of the procurement said the vehicles which will be brought in from the Innoson Company in Nnewi will cost N9.9 million each. He added that the main reason for the procurement of the vehicles was to help the civil servants commute from their residence to offices with ease following the scrapping of the ‘araba’ buses in Abuja.
The Federal Capital Territory Administration (FCTA) had in June restricted the old green buses from plying the city centre, which has caused hardship for residents living in satellite towns and coming to town in the city centre.
Mr. Maku also recalled that the President had earlier turned down a memo by the National Population Commission to buy vehicles from abroad, directing them to instead procure the vehicles from the Innoson Company in Nnewi.
He added that the president has also directed that all future procurement of tricycle and vehicles should be done locally, since there are companies that now manufacture and couple them in the country.

The Nigerian economy, hobbled for years by state inefficiency, is beginning to connect with the real sector as the pace of reforms in diverse areas accelerates.

Reforms in agriculture, banking and power and the establishment of a sovereign wealth fund (SWF) are beginning to impact the real economy.

Specifically, the reforms have attracted private sector financing commitments in agriculture to the tune of over $4 billion in executed letters of intent for investments, according to Akinwunmi Adesina, minister of agriculture and rural development.

“Bank lending to the sector [agriculture] has increased by 614 percent from N3.5 billion in 2012 to N25 billion this year, while 9 million metric tonnes of food was added to the nation’s domestic food supply in a boost to farmers and consumers,” Adesina said at the NESG summit held in Abuja two weeks ago.

Nigeria’s Sovereign Wealth Fund, with seed capital of $1 billion, has also begun to impact the real economy with plans to invest in infrastructure. The board of the SWF has decided on the first infrastructure investment, according to Finance Minister Ngozi-Okonjo Iweala.

The Nigeria Sovereign Investment Authority (NSIA) and Africa Finance Corporation (AFC) recently formalised a strategic collaboration to support the financing, development and implementation of infrastructure projects in Nigeria.

Dangote Industry Limited’s (DIL) planned $9 billion refinery and petrochemical complex – resulting from President Goodluck Jonathan’s attempts to reform the oil and gas sector by eliminating fuel subsidies – is another link between reforms and jobs.

Aliko Dangote, chairman of DIL, has hinted that favourable government policies were crucial for the refinery project to proceed. The complex should add 85,000 direct and indirect jobs on completion.

“Should the Dangote refinery address the domestic shortage and even result in moderate refined fuel exports to other African countries, this would clearly be a positive for the Nigerian economy,” Samir Gadio, emerging markets strategist at Standard Bank, London, said in a response to BusinessDay questions.

“A turnaround in private investment in the refining business has so far, however, been constrained by regulated petrol prices and an uncertain regulatory framework over the past decade.”

Reforms in the banking sector have also brought about better capitalised banks, which are now able to finance big ticket transactions.

Sanusi Lamido Sanusi, Central Bank of Nigeria (CBN) governor, said recently that the Dangote refinery deal signed with a consortium of Nigerian banks – Guaranty Trust Bank, Access Bank, Zenith Bank, Ecobank Nigeria Limited, Fidelity Bank, First Bank of Nigeria Limited, UBA, First City Monument Bank and Diamond Bank – showed that the banks are healthier, attributing it to the banking reforms the CBN carried out earlier.

Nigerian banks are also in the forefront of financing power privatisation as the reform of the sector nears conclusion. The reform involves the sale of majority stakes in power plants and letting private investors acquire holdings of as much as 60 percent in six transmission and 11 power-distribution companies spun out of the former state-owned Power Holding Company of Nigeria (PHCN).

AFC recently provided a $170 million debt financing facility, in conjunction with GTB, to the Mainstream Energy Solutions Limited consortium (MESL) for the acquisition of Kainji Power plc.

A successful execution the power reform agenda would eliminate electricity shortages and push growth to double digits, economists say, helping to create jobs and lift millions out of poverty.

In the meantime, just the movement on reforms in the power sector has led to a plethora of jobs in legal, finance, advisory and consulting services as the Discos and Gencos buyers navigate the complex deals and transactions.

Sincere 9gerian: That could only happen when the righteous is in power. I'm sure the govt must have given him the green light. Otherwise, if the govt and the powerful around govt want to frustrate him so the fuel import racket can continue, they can easily do that. The hope of Dangote is that ultimately, subsidy will be removed (most likely after 2015 elections), and that will open up the market, making him automatically, the leader in the market. But really, whether we like it or not, fuel subsidy must be removed to free up the market for the likes of Dangote to invest. Why should govt spend money in building a refinery when the private sector could easily do it?

Meanwhile, fools like Ifeanyi Ubah should learn from Dangote, who's always around any govt in power BUT does not mix business wit politics.

Dangote Industries Limited (DIL) is set to sign a $3.3 billion teterm loan agreement with a consortium of local and foreign banks on September 4 in Abuja for the construction of a 400,000 barrels per day (b/d) refinery, petrochemical and fertiliser complex that will cost the Nigerian conglomerate $9.05 billion to construct.

Confirming this Tuesday, Chairman of DIL, Alhaji Aliko Dangote, informed THISDAY that the signing of the syndicated facility would be done with a group of banks comprising Standard Chartered Bank, Standard Bank of South Africa and local commercial banks. He said most of the $3.3 billion would be provided by Nigerian banks.


Giving a breakdown of the cost of the project, he said DIL would be bringing $3.5 billion as its equity contribution, the banks - $3.3 billion, while export credit agencies and development finance institutions would provide $2.25 billion to construct the multibillion dollar complex, which will be first of its kind in Nigeria and the largest in Africa.


He said on completion in 2016, the 400,000b/d refinery would produce the equivalent of 20 million metric tonnes of petroleum products comprising gasoline (commonly known as petrol), diesel, aviation fuel/kerosene, some fuel oil and heavy distillates such as flury, which he explained is a raw material for carbon black that can be used for the production of tyres.
The petrochemical plant will produce polypropylene for industries while the fertiliser facility will produce 2.75 million metric tonnes of urea and ammonia for the agriculture sector.


Dangote revealed that the contract for the refinery and petrochemical plant had been awarded to UOP, a subsidiary of Honeywell International, a Fortune 500 company and US-based conglomerate that specialises in consumer products, engineering services and aerospace systems.


The project manager for the refinery and petrochemical plant is India Engineers Limited, an Indian government-owned company credited with the setting up of refineries in India, he said.
He added that the contract for the fertiliser plant had been awarded to oil and gas contractor, Saipem, a subsidiary of Italy’s Eni, which already has a presence in Nigeria.


He said DIL was in the process of getting the refinery licence for the project that would be located in the Olokola LNG (OKLNG) Free Trade Zone in Ogun and Ondo States.


On concerns that the subsidy regime in the Nigerian economy might hamper his investment in a refining plant, Dangote said petroleum products produced from the facility would be sold at the same price as other refineries worldwide.
“We have no intention of selling our products at subsidised prices; after all, when NNPC and oil marketers import petroleum products they do not go and procure at a subsidised price.


“They buy at the going rate and import it into the country, then sell at below cost. That is why the government makes up the differences. So we will be selling our products like any other refinery to oil marketers in domestic and sub-Saharan African markets. They in turn can collect the subsidy from government,” Dangote said.


He explained that the refinery/petrochemical/fertiliser complex would provide value added services to the Nigerian economy and create thousands of jobs that are currently being exported to other countries because of the fuel importation regime.
“This is an opportunity to create value and is another way of diversifying our economic base, as we move to counter the threat posed by massive discoveries of shale oil in the US and other parts of the world,” he said.

omenka: Some selected countries annual budgetary
allocation on education (Source - World Bank
2012)

1. Ghana 31.0%. 1st
2. Cote d’ Ivore 30.0%. 2nd
3. Uganda 27.0%. 3rd
4. Morocco 26.4%. 4th
5. South Africa 25.8%. 5th
6. Swaziland 24.6%. 6th
7. Mexico 24.3%. 7th
8. Kenya 23.0%. 8th
9. United Arab Emirate 22.5%. 9th
10. Botswana 19.0%. 10th
11. Iran 17.7%. 11th
12. USA 17.1%. 12th
13. Tunisia 17.0%. 13th
14. Lesotho 17.0%. 14th
15. Burkina Faso 16.8%. 15th
16. Norway 16.2%. 16th
17. Colombia 15.6%. 17th
18. Nicaragua 15.0%. 18th
19. India 12.7%. 19th
20. Nigeria 8.4%. 20th
(Last)


Source: www.impactng.com/impact/news_one.php?article=63

There you have it!
This is the part of the reason the government doesn't want you to know, and this is the major reason for their action.

THE Federal Executive Council (FEC) Wednesday approved the request from the Chairman of the National Population Commission (NPC), Chief Festus Odimegwu, for purchase of 40 new utility vehicles as part of the grand preparation for the 2016 head count.

The vehicles are expected to be bought strictly from a Nigerian firm, Innoson Auto Manufacturing Company, based in Nnewi, Anambra State.


The Council also approved the contract for the supply of water to the Abuja Technology Village (ATV) and the surrounding settlements like Galadimawa to the tune of N2.18 billion, while another N436 million was approved for the design of engineering infrastructure for Kiami District, one of those to be opened as part of efforts to open up the FCT.

Briefing State House correspondents after the meeting, Information Minister, Labaran Maku, along with his FCT counterpart, Senator Bala Abdulkadir Mohammed, and the Minister of State for Education, Nyesom Wike, said the approvals followed exhaustive deliberations on all the memos submitted by the affected ministers to the council presided over by President Goodluck Jonathan with the Vice President, Namadi Sambo in attendance.

Maku told journalists at the briefing that Jonathan would today in Abuja, be conferred with the highest National Honour of the Republic of Mali, in appreciation of the critical role played by Nigeria and its leaders in the return of democracy to the country, whose president just emerged. He said the out-going President of that country, Prof. Mouse Troure, would be in the Nigerian Abuja to confer Jonathan with the honour.

According to Maku, the preference for Innoson motor company was part of the desire of the president to promote the patronage of local entrepreneurs with a view to creating jobs for the teeming Nigerian youth, in addition to boosting the nation’ economy.

While he did not disclose the actual cost of the vehicles, promising to make it available to journalists at a later date, the minister assured that the award of the contract followed due process in line with the transparency and accountability drives of the Jonathan-led administration.

According to him, “ Innoson is being targeted to come into play in the course of helping the economy to grow in quality ands give Nigerians more jobs while encouraging the use of local materials to support the local and indigenous technologists.”

Wike said the Federal Ministry of Education decided to procure additional books to be used in the public primary and junior secondary schools across the country as a follow up to the ones already distributed to the schools . It is expected to be supplied in about six weeks from the date of awards.

Justifying the huge investments in the purchase of primary schools textbooks and library resource materials, Maku said the recent improvement in the performance of Nigerian students in public examinations was heart-warming.

For instance, he said the 39 percent pass last year to 64 percent of candidates that got five credits and above pass in the recently released West African Secondary School Council Examination (WASSCE) was an indication that the investments in that sector are paying off.

According to Maku, “after deliberations, Council approved award of contract for the design of engineering infrastructure and production of tender documents for Kyami District (Zone a) Phase V, FCC, Abuja in favour of Messrs Net Engineering Limited in the sum of N131, 938,632 with completion period of 16 weeks.

“Council also approved the award of contract for the design of engineering infrastructure and production of tender documents for Kyami District (zone B) Phase V, FCC, Abuja in favour of Messrs Ben Mose and Partners in the sum of N162,481,872 with a completion period of four months.

“Council further approved the award of contract for the design of engineering infrastructure and production of tender documents for Kyami Fistrict (zone C) Phase V, FCC, Abuja in favour of Messrs Vasons Concept Consultants Limited at N131,938,632 with completion of period of four months.”

The minister added that “the Federal Capital Territory Administration (FCTA) in line with its mandate of providing potable water supply to residents of the FCT is desirous of extending water supply through a section of loop 5 to the ATV, including some private developer housing estate.

“It is in view of the above that the minister of FCT tabled another memo before the council. After deliberations, council ratified the president’s anticipatory approval for the award of contract for the extension of Water Supply to Abuja Technology village (ATV) and some private developers’ housing estates in favour of Messrs Mecca (Nigeria) Limited, in the sum of N2,138,581 830.00 only with a completion period of four months.”

On the defence pacts, Maku said “The minster of state for Defence, sought the ratification for the implementation of the signed Bilateral Agreement between Nigeria and Niger Republic and the Memorandum of Understanding (MOU) between Nigeria and United Kingdom of Great Britain and Northern Ireland.

egift: Jonathan will do anything for his greedy 2015 interest.

Rossikk: Thanks. The ONLY reason is sabotage. Anyone with enough resources and knowledge to breach a pipeline is not doing it for 'survival' reasons, but out of sheer criminality and evil intent. I personally think such people should be apprehended and summarily executed without trial.

nuclearboy: Its always been a lie! Only when liquid condensate gets into the lines do issues occur but this lie of gas-line vandalization is just a ruse to cover up incompetence!

Note that these are highly pressurized pipes and any leak(s) are almost guaranteed to cause explosions!