News
Subsidy: FG Owes NNPCL N2.8trn-Kyari
The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, yesterday in Abuja said the Federal Government still owes the company N2.8tn that it had spent on petrol subsidy.
“Today, we are waiting for them to settle up to N2.8tn of NNPC’s cash flow from the subsidy regime and we can’t continue to build this,” Kyari told State House Correspondents after meeting with President Bola Tinubu at the Presidential Villa, Abuja.
During his inaugural speech on Monday, the President said he was aware that the 2023 appropriation act does not provide for petrol subsidy beyond June; the end of the 18-month extension period approved by the Buhari administration for the discontinuance of petrol subsidy.
Therefore, he confirmed that the subsidy will not be continued.
Affirming the President’s stance, Kyari argued that the subsidy payment is no longer tenable as it makes it difficult for the company to fund its core businesses.
He said, “Since the provision of the N6tn in 2022, and N3.7tn in 2023, we have not received any payment whatsoever from the Federation.
“That means they (Federal Government) are unable to pay and we’ve continued to support this subsidy from the cash flow of the NNPC. That is, when we net off our fiscal obligations of taxes and royalty, there’s still a balance that we’re funding from our cash flow. And that has become very, very difficult and affecting our other operations.
“We’re not able to keep some of these cash for invest on our core businesses. And the end result is that it can be a huge challenge for the company and we have highlighted this severally to government that they must compensate and NNPC they must pay back an NNPC for the money that we have spent on the subsidy”.
Kyari who said the NNPCL has footed petrol subsidy from its cash flow said the government is unable to pay back the N2.8tn spent so far.
“So today, the country don’t (doesn’t) have the money to pay for subsidy. There’s incremental value that will come from it. But it is not an issue of whether you can do it or not because today we can’t afford it and they are not able to pay our bill. That comes to how much is the federation owing NNPC now.
“Today, we are waiting for them to settle up to N2.8tn of NNPC’s cashflow from the subsidy regime and we can’t continue to build this,” he explained.
Kyari said the reemerging petrol queues nationwide are understandable as marketers will like to understand the meaning of the President’s pronouncement that “subsidy is gone.”
He said that the uncertainty on the remark also caused consumers to rush for the product, causing queues.
The NNPCL boss assured Nigerians that the government would initiate measures to cushion the effects of the subsidy discontinuance.
Kyari was also joined by the Chief Executive Officer of Nigerian Mainstream and Downstream Regulatory Authority, Faruk Ahmed, who said the government will not place any price cap on the sale of petroleum products in the country.
News
FG Awards Lagos-Abuja, Lagos-PH Super, Coastal Highway Contracts To AEC, Hitech
The Federal Government has unveiled plans to embark on a 460km superhighway project that would cut travel hours from Lagos to Abuja from about 14 hours to four-and-a-half hours and the Lagos-Port Harcourt Coastal Highway.
While the Abuja-Lagos Superhighway project was awarded to Advanced Engineering Consultants (AEC), the Lagos-Port Harcourt Coastal Highway was given to Hitech Construction Company Limited.
According to the Minister of Works, Engr. Dave Umahi, who addressed a press conference at Eko Signature Suites in Lagos on Saturday, September 23, the road would be built with concrete, not asphalt, and the construction through a Public Private Partnership (PPP) would be on a Build Operate and Transfer (BoT) arrangement with a consortium led by Advanced Engineering Consultants (AEC) under the chairmanship of Chief Kenny Martins.
Umahi announced that the highway running from Abuja through eight states to kiss the Fourth Mainland Bridge in Lagos will be completed in four years.
He said, “The President has approved that I should FastTrack this project.”
The minister said that at completion, an average vehicle traveling at 100km/hr could get to Lagos from Abuja in four and half hours.
“This is a journey that is more than 14 hours presently, so people found it hard to believe when this idea was introduced, but that is the Renewed Hope agenda of our divine President Bola Ahmed Tinubu. That is what God has brought him to do. He is the last hope for Nigeria, no matter what people say… Things that couldn’t have been done are being done under this administration… Nobody can fix Nigeria like Tinubu.
“This project is going to be two lanes, but the two lanes will be two carriageways – 14 meters; the only carriageway that is equivalent to this is the Third Mainland Bridge where each carriageway is 14 meters. It’s going to be built on 275-millimeter thick concrete… The lifespan will be 100 years. Bridges will be built and there will be tolling points.”
Umahi, who was accompanied by top officials from the Federal Ministry of Works and contractors, said, “We are here to FastTrack the development of the Greenfield of the PPP development under a new program of the Federal Ministry of Works which is the HDMI Programme (Highway Development and Management Initiative).
“Under this programme, there are two kinds, we have the Greenfield, and we have the Brown Field. The Greenfield is the one we are doing with the Advanced Engineering Company. They identified the project; they came up to discuss it with us; we threw the idea to the market; we invited investors; they made proposals… They won the bid to further engage us.”
The superhighway will pass through the FCT, Niger, Kogi, Kwara, Ekiti, Oyo, Ogun, and Lagos – Abuja, North-Central, and South-West.
Umahi said that the government would not put money into the project but would give the bid winners every support.
He commended the promoters of AEC, who he described as brilliant people.
“I’m very satisfied with their concept and what they have put in place. The next stage is to bring their business proposal so that we can negotiate on what the cost of the project will be. And then, they’ll go to the Ministry of Finance to negotiate the cost.
“We are building on concrete, so we can predict the cost; with asphalt, you cannot predict the cost. The cost of asphalt roads changes every month. Today, the dollar is almost a thousand naira. The oil price is almost $100 per barrel.
“Concrete roads are more durable and cheaper than asphalt. I’ve directed that the remaining jobs on all the ongoing projects that have not advanced up to 80percent must change to concrete.”
The minister also spoke on failed roads across the country putting the blame on civil servants.
He warned that any controller that allowed trucks to fall on the road under his supervision would go on indefinite suspension, and the director in that region would be recalled.
He said, “Hold civil servants responsible for failure of road projects. Civil servants in other parts of the country apart from Lagos stay in the office and issue certificates to contractors.
“I’ve inspected roads in South-West and South-East. I spent 14 hours traveling from Abuja to Benin. I had pains, and I was so happy having the pains because Nigerians are going through the pains on a daily basis.”
Umahi also blamed the failed road projects across the country on lack of supervision; “contractors took money and didn’t do the work. They constructed failed roads. Roads that could not stand three years. They could not even maintain the roads. Trucks are falling. Travelers pass through communities. People are being kidnapped. I went to Warri. I went to Bayelsa, the story is the same.
“In every contract, there’s provision to maintain the roads. If a contractor is greedy to take a project of 150km that should go to three contractors, he should be prepared to maintain it. I’ve created a platform where I have all the contractors and the directors inside. Everybody is back to work. It’s the directive of Mr. President. He said that he must not see vehicles falling on highways again. I will get whoever flouts the directive out of the way.
“I have just informed Mr President that in 30 days if no urgent attention is given to the road, nobody will pass from Bayelsa or Port Harcourt to Warri. And that is very dangerous. So, he directed that I should go and inspect the roads and bring comprehensive information on what should be done immediately.
“He is a man who listens. He’s in a hurry to solve people’s problems in this country. He’s very much in a hurry to change the story. From Bayelsa, I went to Port Harcourt, to Akwa Ibom, to Cross River, and from there I flew to Enugu yesterday evening by 6 o’clock to discuss this road matter with the governor of Enugu State.
“I’m also to reinspect the Third Mainland Bridge and start work on it immediately, and then discuss with the Ogun State governor on the HDMI.”
Fielding questions from reporters on challenges that PPP projects have been facing in Nigeria, Umahi said that things would be different this time.
“We will tie ourselves very well with irrevocable agreement. On the issue of Right of Way, they own the entire land until they recover the money invested. If the Federal Government reneges, they have to pluck their investment directly from the Federation Account.
“If the investment must work, it must not be subjected to political dynamism. It has to be a business venture. That’s why I like President Bola Tinubu. He inherited 18,000 km of roads, and 2,640 projects; there are still constituency projects that are over another 2,000 in number. So, you have over 64,664 Federal Government projects that are ongoing.
“He has not stopped any contractor. He wants to complete all those things. Certain leaders will say we want to do our own, that is gross irresponsibility.
“They (bid winners) are going to give me a letter of comfort; if they back out, they must pay us $10million. My coming here is at a cost, and nobody should waste our time.”
In his response, Chief Kenny Martins assured that the road would be the first of its kind with communication cyber cable, rail lines, and coastal areas.
“The road will be ICT complaint so that electronic vehicles can operate on the road; there will be all kinds of security and there will be solar lights, the whole 460kilometres of the road,” he said.
The minister also mentioned that the Federal Government is working to actualise another project, the Lagos-Port Harcourt Coastal Highway.
He said that Hitech Construction would fund the project under the PPP model.
Hitech is a division of the Chagoury Group, a business conglomerate in Lagos that oversaw the construction of the Lekki-Epe expressway and the Ajah flyover.
Umahi added that upon completion, the highway would have multiple spurs connecting major towns and cities, including a spur connecting Ogoja-Ikom-Cameroon Road.
“There will be a spur that will connect the proposed fourth mainland bridge in Lagos,” he said.
“It is also connected to the deep seaport road being constructed by Hitech, under the concrete technology and it is also connected at Lagos-Badagry to the proposed Lagos-Abidjan superhighway.”
He said there would also be multiple connections with roads leading to the northern parts of the country.
“There is a proposal for connection to Sokoto. I think about four to five connections to northern Nigeria,” he said.
Umahi described the project as a brainchild of President Tinubu, who asked him to also “fast track this project because it is going to be a catalyst towards the economic development of this country.
“Let me announce that it is under PPP. The Hitech Group is going to look for the money. They have already found the money and that is the good news because we don’t waste our time talking and holding meetings and wasting resources,” he said.
“We are engaging seriously because we have seen the financial capacity and capability of Hitech and this project is going to be delivered in phases.
“Any section that we complete, we will toll it, and then business and transportation will start.
“The right of way of this project is about a 100-meter corridor. There is provision for a rail line in the middle of the road which is about 20 meters.
“The road has four carriageways. Each of the service lanes is 10 meters wide. The main carriageway is 14 meters.”
News
FG Awards Lagos-Abuja, Lagos-PH Super, Coastal Highway Contracts To AEC, Hitech

The Federal Government has unveiled plans to embark on a 460km superhighway project that would cut travel hours from Lagos to Abuja from about 14 hours to four-and-a-half hours and the Lagos-Port Harcourt Coastal Highway.
While the Abuja-Lagos Superhighway project was awarded to Advanced Engineering Consultants (AEC), the Lagos-Port Harcourt Coastal Highway was given to Hitech Construction Company Limited.
According to the Minister of Works, Engr. Dave Umahi, who addressed a press conference at Eko Signature Suites in Lagos on Saturday, September 23, the road would be built with concrete, not asphalt, and the construction through a Public Private Partnership (PPP) would be on a Build Operate and Transfer (BoT) arrangement with a consortium led by Advanced Engineering Consultants (AEC) under the chairmanship of Chief Kenny Martins.
Umahi announced that the highway running from Abuja through eight states to kiss the Fourth Mainland Bridge in Lagos will be completed in four years.
He said, “The President has approved that I should FastTrack this project.”
The minister said that at completion, an average vehicle traveling at 100km/hr could get to Lagos from Abuja in four and half hours.
“This is a journey that is more than 14 hours presently, so people found it hard to believe when this idea was introduced, but that is the Renewed Hope agenda of our divine President Bola Ahmed Tinubu. That is what God has brought him to do. He is the last hope for Nigeria, no matter what people say… Things that couldn’t have been done are being done under this administration… Nobody can fix Nigeria like Tinubu.
“This project is going to be two lanes, but the two lanes will be two carriageways – 14 meters; the only carriageway that is equivalent to this is the Third Mainland Bridge where each carriageway is 14 meters. It’s going to be built on 275-millimeter thick concrete… The lifespan will be 100 years. Bridges will be built and there will be tolling points.”
Umahi, who was accompanied by top officials from the Federal Ministry of Works and contractors, said, “We are here to FastTrack the development of the Greenfield of the PPP development under a new program of the Federal Ministry of Works which is the HDMI Programme (Highway Development and Management Initiative).
“Under this programme, there are two kinds, we have the Greenfield, and we have the Brown Field. The Greenfield is the one we are doing with the Advanced Engineering Company. They identified the project; they came up to discuss it with us; we threw the idea to the market; we invited investors; they made proposals… They won the bid to further engage us.”
The superhighway will pass through the FCT, Niger, Kogi, Kwara, Ekiti, Oyo, Ogun, and Lagos – Abuja, North-Central, and South-West.
Umahi said that the government would not put money into the project but would give the bid winners every support.
He commended the promoters of AEC, who he described as brilliant people.
“I’m very satisfied with their concept and what they have put in place. The next stage is to bring their business proposal so that we can negotiate on what the cost of the project will be. And then, they’ll go to the Ministry of Finance to negotiate the cost.
“We are building on concrete, so we can predict the cost; with asphalt, you cannot predict the cost. The cost of asphalt roads changes every month. Today, the dollar is almost a thousand naira. The oil price is almost $100 per barrel.
“Concrete roads are more durable and cheaper than asphalt. I’ve directed that the remaining jobs on all the ongoing projects that have not advanced up to 80percent must change to concrete.”
The minister also spoke on failed roads across the country putting the blame on civil servants.
He warned that any controller that allowed trucks to fall on the road under his supervision would go on indefinite suspension, and the director in that region would be recalled.
He said, “Hold civil servants responsible for failure of road projects. Civil servants in other parts of the country apart from Lagos stay in the office and issue certificates to contractors.
“I’ve inspected roads in South-West and South-East. I spent 14 hours traveling from Abuja to Benin. I had pains, and I was so happy having the pains because Nigerians are going through the pains on a daily basis.”
Umahi also blamed the failed road projects across the country on lack of supervision; “contractors took money and didn’t do the work. They constructed failed roads. Roads that could not stand three years. They could not even maintain the roads. Trucks are falling. Travelers pass through communities. People are being kidnapped. I went to Warri. I went to Bayelsa, the story is the same.
“In every contract, there’s provision to maintain the roads. If a contractor is greedy to take a project of 150km that should go to three contractors, he should be prepared to maintain it. I’ve created a platform where I have all the contractors and the directors inside. Everybody is back to work. It’s the directive of Mr. President. He said that he must not see vehicles falling on highways again. I will get whoever flouts the directive out of the way.
“I have just informed Mr President that in 30 days if no urgent attention is given to the road, nobody will pass from Bayelsa or Port Harcourt to Warri. And that is very dangerous. So, he directed that I should go and inspect the roads and bring comprehensive information on what should be done immediately.
“He is a man who listens. He’s in a hurry to solve people’s problems in this country. He’s very much in a hurry to change the story. From Bayelsa, I went to Port Harcourt, to Akwa Ibom, to Cross River, and from there I flew to Enugu yesterday evening by 6 o’clock to discuss this road matter with the governor of Enugu State.
“I’m also to reinspect the Third Mainland Bridge and start work on it immediately, and then discuss with the Ogun State governor on the HDMI.”
Fielding questions from reporters on challenges that PPP projects have been facing in Nigeria, Umahi said that things would be different this time.
“We will tie ourselves very well with irrevocable agreement. On the issue of Right of Way, they own the entire land until they recover the money invested. If the Federal Government reneges, they have to pluck their investment directly from the Federation Account.
“If the investment must work, it must not be subjected to political dynamism. It has to be a business venture. That’s why I like President Bola Tinubu. He inherited 18,000 km of roads, and 2,640 projects; there are still constituency projects that are over another 2,000 in number. So, you have over 64,664 Federal Government projects that are ongoing.
“He has not stopped any contractor. He wants to complete all those things. Certain leaders will say we want to do our own, that is gross irresponsibility.
“They (bid winners) are going to give me a letter of comfort; if they back out, they must pay us $10million. My coming here is at a cost, and nobody should waste our time.”
In his response, Chief Kenny Martins assured that the road would be the first of its kind with communication cyber cable, rail lines, and coastal areas.
“The road will be ICT complaint so that electronic vehicles can operate on the road; there will be all kinds of security and there will be solar lights, the whole 460kilometres of the road,” he said.
The minister also mentioned that the Federal Government is working to actualise another project, the Lagos-Port Harcourt Coastal Highway.
He said that Hitech Construction would fund the project under the PPP model.
Hitech is a division of the Chagoury Group, a business conglomerate in Lagos that oversaw the construction of the Lekki-Epe expressway and the Ajah flyover.
Umahi added that upon completion, the highway would have multiple spurs connecting major towns and cities, including a spur connecting Ogoja-Ikom-Cameroon Road.
“There will be a spur that will connect the proposed fourth mainland bridge in Lagos,” he said.
“It is also connected to the deep seaport road being constructed by Hitech, under the concrete technology and it is also connected at Lagos-Badagry to the proposed Lagos-Abidjan superhighway.”
He said there would also be multiple connections with roads leading to the northern parts of the country.
“There is a proposal for connection to Sokoto. I think about four to five connections to northern Nigeria,” he said.
Umahi described the project as a brainchild of President Tinubu, who asked him to also “fast track this project because it is going to be a catalyst towards the economic development of this country.
“Let me announce that it is under PPP. The Hitech Group is going to look for the money. They have already found the money and that is the good news because we don’t waste our time talking and holding meetings and wasting resources,” he said.
“We are engaging seriously because we have seen the financial capacity and capability of Hitech and this project is going to be delivered in phases.
“Any section that we complete, we will toll it, and then business and transportation will start.
“The right of way of this project is about a 100-meter corridor. There is provision for a rail line in the middle of the road which is about 20 meters.
“The road has four carriageways. Each of the service lanes is 10 meters wide. The main carriageway is 14 meters.”
News
Reps Resume Plenary On Tuesday

The House of Representatives has said it would resume from its annual recess on Tuesday to continue the first legislative year of the 10th Assembly.
The Clerk of the House, Dr Yahaha Danzaria, said this in a statement in Abuja on Saturday.
The 10th Assembly proceeded on its annual recess on July 27.
This followed a plenary session during which Speaker, Hon Tajudeen Abbas, announced the leadership of the standing committees of the house.
Commenting on the resumption, the Spokesperson of the House and House Committee on Media and Public Affairs, Hon Akin Rotimi, said the 10th Assembly had been prolific.
He said since its inauguration, the house had recorded 470 bills, with all passing first reading, while four passed second reading.
He added that there had been 175 motions considered by the parliament.
He said in spite of the recess, it had continued to function, as various ad hoc committees continued to carry out their crucial mandates.
He said this had generated significant positive public interest.
Rotimi said some of the key early developments expected on resumption was the conclusion of the work of all ad-hoc committees and the submission of their reports.
He said this was for the consideration of the House in line with the directive of the speaker.
He said the house would get the final draft of its Legislative Agenda developed by the ad hoc committee, led by the Majority Leader, Hon Julius Inhonvbere.
He said it would be considered and adopted by the house, adding that the draft agenda was developed following extensive consultations with critical stakeholders.
He also said that the membership of the standing committees would be announced and fully constituted.
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