FG Justifies Award of N327.34bn Contracts Few Days to End of Tenure

•Breakdown includes N129.8bn for Ogoni projects, FCT roads – N132.9bn, transportation – N12.63bn, aviation -N3.84bn

•FEC considers 37 agenda items in a day

•Unveils 10-year national automotive industry plan

Deji Elumoye in Abuja

The federal government yesterday, justified the award of multi- billion-naira contracts for various ministries and agencies, less than three weeks to the end of President Muhammadu Buhari’s administration, saying it would continue to approve contracts for award.

According to the Federal Executive Council (FEC), the administration remains in office and would work until the last day on May 28, 2023.

The explanation came after the FEC meetimg presided over by the Vice President, Prof. Yemi Osinbajo, at the State House, Abuja, considered 37 agenda items in a marathon session yesterday, before announcing the award of contracts in various sectors.

Answering reporters’ questions on why the administration waited till last minute before churning out yesterday’s contracts, the Minister of Transportation, Mu’azu Sambo, maintained that the administration would continue to perform its duties to May 28.

He said: “Without any intentions of mischief, this government was elected to function from 2019, to precisely 29th of May 2023. Should we now stop functioning one month before the next appointment because we’re coming to the end of the tenure?

“This government must work. We expect the next government to also work until the very last day of their tenure.”

Also speaking, Minister of Water Resources, Sulaiman Adamu, explained that contract processes take time, saying even if the administration cannot finish what it started, government being a continuum, would be the business of the incoming government.

According to him: “There are processes and this process have started. We’re still operating the 2022 budget, we have agencies. These things are not just done in one day. We had lots of submissions to BPP to ICRC, all the agencies involved in the procurement, and they have to get ready.

“So, anytime they’re ready, it’s at that point that we have to submit. And like the Minister of Transportation said, we’re still in office technically until the 28th of May.

So, we still have to operate. And this is the instruction that we have from Mr. President.

“Since the elections were conducted, that government must continue to function regardless of elections and so on. And so we’re just doing our duty as we should serve in the country.

“We do not control the process, but when it’s completed and we’re still in office, we’re duty-bound to bring these memos to Council for Council to approve. Government is a continuum. There are still a lot of memos.

“I can assure you a lot of contracts will not see the light of day in the next one week or two. And for those, we don’t have any option but to let the process continue. And then for the next government to come and continue. That’s what we face also. 

“Some of the very first memos we brought to council in 2015, for me, I had no idea when they started, but I had to be briefed on, this was the way that it had to be and then we were brought in here. So, government is a continuum. And it should be seen as such.

“And I think this administration should be given that full credit because, to a large extent, we have continued since 2015, to implement projects and programs that we didn’t initiate that which, in our assessment, were good for the country. We continued them, we didn’t jettison them, and we’re confident that the incoming administration will do the same.”

In all, contracts worth N327.34 billion were awarded by FEC at yesterday’s meeting.

The breakdown included Transportation N12.63 billion; Sports N8.4 billion; Aviation N3.84 billion; Ogoni projects N129.8 billion; FCT N132.9 billion and IRS building purchase in Abuja and Port Harcourt N10 billion.

Also speaking, the presidential spokesperson, Mallam Garba Shehu, described the session as quite extraordinary, saying: “It’s been a very long day for everyone, 37 agenda items were considered for today’s meeting. Quite extraordinary.”

Shedding more light on the contracts awarded, Shehu said two major projects for water project and remediation of newly identified hydrocarbon impacted cities were awarded for Ogoniland.

His words: “Two major contracts were approved for Ogoni. You know Ogoni is one of the flagships of the Buhari administration. And you’re aware the whole world is watching Nigeria. There is water project that have been awarded under the second phase in Ogoniland amounting to N22.8 billion

“Approval was also given for the contract for the remediation of the newly identified hydrocarbon impacted cites along the shorelines of Ogoniland, and this is for about N107 billion.

The spokesman further disclosed that several road projects were also approved for execution in the Federal Capital Territory ((FCT).

According to him: “The FCT also got quite a number of approvals. And these includes contract for the full scope development of the Shehu Shagari way, and it is for N91 billion. Another one is for rehabilitation of Rubochi township roads and upgrading of Rubochi-Gwagwalada road for about N5.7 billion.

“Council also approved N1.6 billion contract for the construction of 3.2km road leading to Kwali bridge in Kwali Area Council in the FCT. Another FCT contract is for the revised estimated cost for the provision of engineering infrastructure at Guzape District plot II  of the FCT and the contract sum is N28 billion”.

FEC also adopted a new 10-year national automotive policy that would run from 2023 to 2033.

Minister of Trade and Investment, Niyi Adebayo, explained that the new policy would explore how the automotive industry can migrate seamlessly from combustible engines into electric solar powered engines.

This was also in addition to FEC’s approval for the implementation of the first ever Nigeria investment policy 2023 to 2027.

Adebayo explained that the concept was for the country to develop rapidly through industrialization, then snowball into a sustainable investment climate to attract the kind of investment we desire.

He said: “We felt that there was a need for us to have an investment quality, which would give confidence and allow people who want to better the country, that confidence to bring their funds into the country, the result of which we put this policy together.

“Second memo, which we presented was for the approval of the Nigeria automotive industry development plan 2023 to 2033. This is an improvement on the 2013 automotive industry development plan, which was in place before.