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N700bn Contract Scam Rocks N’Delta Ministry …FG Orders Contractors’ Arrest, Prosecution
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The Federal Executive Council (FEC) has received a report on the probe of activities in the Niger Delta Ministry between 2009 and 2015, which uncovered massive contract scams from the N700 billion released to the ministry within the period.
According to the report, despite the huge sums paid to contractors, only a dismal 12 per cent of contract performance was recorded, even as government now plans to recover the outstanding balance from the contractors or have them prosecuted.
Minister of Niger Delta Affairs, Usani Usani, disclosed this to State House correspondents after the weekly FEC meeting presided over by Acting President, Prof Yemi Osinbajo, at the Presidential Villa, Abuja.
He said, “the revealing content of the report shows that over N423billion has been expended in the region by the ministry alone, not other intervening agencies. From this amount, project execution rate has been at 12 per cent, with an average completion rate of a project standing at five years and the impact rate is eight per cent.
“So, today we have sought approval from council to have the recommendations of this report conveyed to the legitimate agencies charged with the statutory responsibilities of recovering government assets that are either misappropriated, misused or found to be idling in some quarters.
“With this, it means all those who have accessed government resources for one purpose or another must be compelled to make adequate use of same, otherwise face the recommendations that go with such violations. That is our position concerning that report and we have got council approval for that”.
The minister explained that the figures mean that 60 per cent of the funds appropriated for 427 contracts were paid out to contractors who only managed a 12 per cent completion rate.
He continued: “When we say 60 per cent, it is 60 per cent of the amount of money that was actually appropriated, being N700billion. And so, 60 per cent of that constitutes N423billion.
“So, to find that N423billion has been expended in the region with the type of result we see obviously shows that there is something tangibly and obviously wrong with how procurement had been carried out in the ministry”.
On the punishment to be meted to defaulting contractors, Usani said, “The measure of action to be taken to address the shortfall of our expectations of commitment to contractual commitments will be the determinant of what will be done. So, those that require sanctions will be sanctioned and the sanctions may not be uniform. It will also be according to the measure of liabilities owed by each of those contractors.
“Some should be compelled to return to site. Some, of course, should be made to refund money – those who we have seen by action displaying criminal intent by collecting money and not appearing at site at all.
“The report is not just all about punishing people. There are also those who have performed well and are commended and the report recommends that they should be encouraged to carry on in their contractual commitments”.
He also noted that officials like those of evaluation or monitoring personnel the ministry found to have connived with the defaulting contractors will be approximately dealt with, though he didn’t confirm any impending purge of officials.
On the slow pace of work on the East-West Road, Usani said, “As you know, no government agency is sufficiently funded. That becomes a major challenge. The second issue is to address the concern about commitment or lack of it by government. No administration, to the best of my knowledge, within a democratic setting, has been more committed than this present government.
“And demonstration of this is the action of this administration to go ahead and seek extra budgetary special loan credit from China to the tune of $500million. Now, we are making a fresh application to increase that to $774million to be able to tackle an aspect of that road, and this came under five of the special projects nominated by the president to see that work doesn’t stop, and if you look at our budget as lean as it is – about 50 per cent goes on the allocation to the East-West Road.
“Beyond that, for this year, the budget ministry proposed N8billion counterpart funding for the credit facility we are getting from China. So, we are committed but it is just impossible to say we will be able to allocate enough funds because the competing demands do not allow satisfaction in every sector of the economy. So, it is a problem for us”, Usani added.
Meanwhile, the House of Representatives Committee on Public Procurement yesterday, summoned the Minister of Finance, Kemi Adeosun, over alleged payment of N17 billion for procurement of office equipment.
It also summoned the Auditor-General of the Federation (AGF), Ahmed Idris, and former Accountant-General of the Federation, Jonah Otunla, over the transaction.
The three top officials are to appear before the committee members on Tuesday.
Their invitation was sequel to their failure to appear at the public hearing on the allegation organised by the committee on Thursday.
The minister sent the permanent secretary in the ministry, Isa Dutse, to represent her, but the lawmakers refused to accept any excuse for her absence at the investigative hearing.
Before issuing the summons, the chairman of the committee, Oluwole Oke, said the three officials had violated the provisions of section 15 of the Public Procurement Act 2007 as it pertained to the role of procurement entities.
He told the permanent secretary that the minister must provide documents that include the president’s approval for the contract, agreement signed by the contractors and record of payment of the contract by the ministry.
He said the summons became necessary because there was a document from the Office of the Accountant-General of the Federation showing that they had paid N17 billion on the contract.
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Reps Propose Creation of 31 New States
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The House of Representatives Committee on Constitution Review has proposed the creation of 31 new states in the country.
If the proposal scales through, the Nigerian state will be made up of 67 sub-national governments.
The proposal for new states was contained in a letter read during yesterday’s plenary session by the Deputy Speaker, Benjamin Kalu, who presided over the session in the absence of the Speaker, Mr Tajudeen Abbas.
The committee chaired by Kalu proposed six new states for North Central, four in the North East, five in the North West, five in the South East, four in the South-South and seven in the South West.
The letter read in part, “The committee proposes the creation of 31 new states. As amended, this section outlines specific requirements that must be fulfilled to initiate the process of state creation, which include the following:
New state and boundaries
“An act of the National Assembly for the purpose of creating a new state shall only be passed if it requires support by at least the third majority of members.
“The House of Representatives, the House of Assembly in respect of the area, and the Local Government Council in respect of the area are received by the National Assembly.
“Local government advocates for the creation of additional local government areas are only reminded that Section 8 of the Constitution of the Federal Republic of Nigeria, as amended, applies to this process.
“Specifically, in accordance with Section 8 (3) of the Constitution, the outcome of the votes of the State Houses of Assembly in the referendum must be forwarded to the National Assembly for fulfillment of state demands.
“Proposals shall be resubmitted in strict adherence to the stipulations. Submit three hard copies of the full proposal of the memoranda to the Secretariat of the Committee at Room H331, House of Representatives, White House, National Assembly Complex, and Abuja.
“Sub-copies must also be sent electronically to the Committee’s email address at info.hccr.gov.nj. For further information or contact, please contact the Committee Clerk at 08069-232381.
“The committee remains committed to supporting the implementing efforts that align with the Constitutional provisions and would only consider proposals that comply with the stipulated guidelines. This is coming from the Clerk of the Committee on Constitutional Review.”
The proposed new states are Okun, Okura and Confluence states from Kogi; Benue Ala and Apa states from Benue; FCT State; Amana State from Adamawa; Katagum from Bauchi State; Savannah State from Borno, and Muri State from Taraba.
Others are New Kaduna and Gujarat from Kaduna State; Tiga and Ari from Kano; Kainji from Kebbi State; Etiti and Orashi as the 6th state in the South East; Adada from Enugu, Orlu and Aba from the South East.
Also included are Ogoja from Cross River State; Warri from Delta; Ori and Obolo from Rivers; Torumbe from Ondo; Ibadan from Oyo; Lagoon from Lagos; Ijebu from Ogun State, as well as Oke Ogun/Ijesha from Oyo/Ogun/Osun States.
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TUC Opposes FG’s Proposed Toll Gate On Federal Roads, Rejects Electricity Tariff Hike
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The Trade Union Congress of Nigeria, (TUC), yesterday, opposed the plans by the Federal Government to toll selected federal roads in the country, as a means of revenue generation.
The TUC also kicked against any attempt to increase telecom tariff, saying it will compound the present economic hardship Nigerians are going through.
President of TUC, Comrade Festus Osifo, while presiding over the 1st Quarter 2025 National Administrative Council (NAC) of the Union in Abuja, yesterday, condemned the proposed reintroduction of toll gates on some federal highways without first of all ensuring that the roads are in good condition.
Osifo, who blamed the hardship in the country as a result of the government policies like the flotation of the naira, wondered why the Federal Government should initiate policies bothering on the citizens without due consultations with relevant stakeholders.
He said its is annoying that most of the roads which are unpaved, dilapidated, and riddled with potholes should be open for collecting tolls.
A communique issued at the end of the meeting partly read: “NAC deliberated on the proposed introduction of toll gates on selected federal roads and strongly condemned it in its entirely. While we acknowledge that tolling is a globally recognized method of generating revenue for road maintenance, it is unacceptable to impose tolls on roads that are unpaved, dilapidated, and riddled with potholes.
“The NAC views this as an insult to Nigerians, who are being asked to pay tolls on roads that are in total disrepair. Our highways are death traps unsafe, abandoned, and filled with potholes. Rather than fulfilling its responsibility to fix and maintain these roads, the government is resorting to shameless extortion.
“The Congress, therefore, demands that all roads earmarked for tolling must first be fixed, properly tarred, and repaired to international standards before any discussion on tolling can be entertained”.
Although the Federal Government recently debunked plans to increase electricity tariff by 65 percent, TUC said it was alarming that the government even considered the hike in the first instance.
Osifo lamented that the previous increment already inflicted severe hardship on citizens.
He said, “This proposed increase is not only ill-timed but also a deliberate act of economic oppression against Nigerians, who are already struggling under unbearable economic conditions.
“The improved service quality promised during the last tariff hike, particularly for consumers under the so-called “Band A” category, has not been realized. Most consumers, regardless of their tariff band, continue to live in perpetual darkness”.
TUC observed that the root cause of escalating prices and galloping inflation was the devaluation of the Naira.
Going down memory lane, Osifo said in February 2024, the TUC addressed a world press conference, where it clearly stated that the excessive devaluation of the naira was the primary cause of rising inflation and the continuous increase in the prices of goods and services.
He said Congress also warned that this trend would worsen inflation in 2024, impacting virtually every sector of the economy and severely affecting the social and economic well-being of Nigerian workers and the masses if the solutions it canvassed were not adopted.
The TUC President said 12 months later, the Congress position remained unchanged, alleging that the symptoms of the root cause have manifested clearly.
According to him: “These include the skyrocketing prices of essential goods, the escalating costs of social services, the proposed hike in telecom tariffs, the increase in electricity tariffs (with plans for further increments), the rising prices of petroleum products amongst others.
“The TUC remains focused on addressing the root cause of these economic challenges rather than merely reacting to the manifested symptoms. To this end, the TUC demands a better foreign exchange (FX) management regime from the Central Bank of Nigeria (CBN) as the naira is currently undervalued, as confirmed by both local and international experts.”
He warned that if the policies were not reviewed to favour the citizens, the TUC may be compelled to mobilise for mass protest.
“The NAC, on behalf of the Congress, strongly advises the government to refrain from introducing policies that would further exacerbate the current economic hardship faced by hardworking Nigerians.
“If the administration insists on implementing these policies, the TUC will have no choice but to mobilize the working class, civil society, and the oppressed masses for a nationwide action. This level of exploitation is unacceptable. A stitch in time saves nine,” he warned.
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Africa Must Stop Depending On Foreign Blueprints -Tinubu
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President Bola Tinubu has charged African leaders to stop clinging to their old habit of depending on foreign plans, saying the continent is in dire need of leaders who wield policy as a surgical blade instead of a slogan.
Tinubu lamented what he described as “the tragedy of our time” whereby African leaders do not only confine themselves to foreign blueprints but refused to emancipate themselves from client-state mentalities and governance by hashtag activism.
The President made these remarks in Abuja, yesterday, during the Dr. Kayode Fayemi commemorative symposium and launch of the Amandla Institute for Policy and Leadership Advancement, with the theme “Renewing the Pan-African Ideal for the Changing Times: The Policy and Leadership Challenges and Opportunities.”
The symposium was organised to commemorate the 60th birthday of the former Governor of Ekiti State, Dr Kayode Fayemi.
Represented at the event by the Vice-President, Senator Kashim Shettima, the President said, “Whatever our differences across the continent, one fact that can’t be eroded by our infighting is that we are in the age of machines, and we can’t fight our development dilemma with spears and arrows while the rest of the world is fighting the same battle with missiles and tanks. The world is not waiting for Africa to catch up.
“While we parse political rivalries, others parse datasets. While we litigate history, others engineer futures. The train of progress accelerates, yet too many of our leaders cling to old carriages. These are our client-state mentalities, our dependency on foreign blueprints, and our governance by hashtag activism. This is the tragedy of our time.
“The founding of Amandla Institute emerges as an antidote to this paralysis. We are here not only to generate more ideas but to create executors. We need leaders who wield policy as a scalpel, not a slogan. We need visionaries who see AI as a collaborator, not a competitor. We need a generation of Africans who recognise that Pan-Africanism, renewed for this age, must be rooted in actionable sovereignty.”
Tinubu pointed out that it would be wishful thinking to hope that the renaissance of Africa will happen as a gift, maintaining that it must be built.
He regretted that for too long, leaders in Africa have outsourced their thinking, relying on institutions and ideologies that treat countries on the continent “as consumers, not creators,” just as he insisted that the youth must be empowered to innovate in tech hubs across the continent.
“But the post-idea world dissolves excuses. With the democratisation of knowledge, we must empower our youth to innovate in tech hubs across the continent, from Cairo, down through Nairobi, to Lagos, building unicorns without the permission of any gatekeepers. What they lack is not ideas but ecosystems—systems where policy, funding, and political will converge to scale their genius,” he noted.
The Nigerian leader further urged African leaders to “evolve from custodians of power to architects of platforms,” adding that their “imagination of Africa must be one where every government ministry houses.
“AI strategists, where continental trade policies are drafted by homegrown think tanks like Amandla Institute, not foreign consultants, and where “Made in Africa” signifies not raw materials but algorithms, green tech, and cultural capital.”
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