Business

FG, Ogun To Fund Lagos-Ota-Abeokuta Road Construction

Published

2 years ago

September 6, 2023

After several decades of suffering, respite is on the way for commuters plying the Lagos-Ota-Abeokuta Expressway, as the Federal Government on Thursday proposed to jointly rehabilitate the road with the Ogun State Government.
Minister of Works, Engr. Dave Umahi, made the proposal during a courtesy visit to Governor Dapo Abiodun in his office at Oke-Mosan, Abeokuta.
The minister was on a tour of federal roads in the Gateway State, along with officials of the ministry.
Responding to Governor Abiodun’s complaints over the frustration experienced by Ogun and Lagos States during President Muhammadu Buhari’s administration, Umahi disclosed that the period of bureaucracy in road construction in the country was over.
Umahi noted that if the Federal Government is looking for corporate organisations to get involved in road construction and management, state governments should not be denied the same opportunity.
He said: “Let me say something about the frustration you had while you and the Lagos State Government wrote to take over the reconstruction of the Lagos-Ota-Abeokuta Road.
“Let me announce to you that it falls under our new program, HDMI, which is the High Way Development Management Initiative. It is a public-private partnership programme.
“People should begin to look at a state as a corporate entity. If you are looking for investors to come and invest on our roads; to construct, to own, to maintain and toll, why shouldn’t a state do that?
“So, on this Lagos-Ota-Abeokuta Road, I want us to work together, we’ve done 30% of the work. You can own 60per cent, we own 40per cent and you can do your portion of the 60per cent. You can give it to a contractor of your choice.
“I don’t believe in bureaucracy; we cannot reset the economy with the type of bureaucracy we have.
“If I get your request on this by WhatsApp, I will respond to you immediately. We will handle it under our HDMI”.
The Minister spoke on some other federal roads in the state, saying some of them are under reconstruction.
According to him, the Ikorodu-Sagamu remains about eight kilometres to be completed, with the deadline for its completion set for November 2023.
Other roads are the Abeokuta-Ajebo Road at 21per cent completed, the overlay of the Ore-Sagamu portion of the Sagamu-Ore-Benin carriageway and the Papalanto to the Benin Republic border, being done by Dangote through the Tax Credit Scheme.
The Minister, who also noted that the Federal Government under the leadership of President Bola Tinubu is open to any state willing to have a Public Private Partnership programme (PPP) with them, said the Federal Government is also planning to bring new security initiatives on the highways.
Umahi expressed appreciation to Ogun State for its commitment to repairing roads in its domain, whether State or Federal.
“In Ogun State, nobody is saying this is federal roads, this is state roads. When people are suffering, they don’t understand which one is which. Fix the roads and we can talk about who owns it. Anyone that is shouting and complaining is playing politics”, he said.
Addressing the entourage, Governor Abiodun recalled what he and his colleague in Lagos State, Babajide Sanwo-Olu, went through getting the Federal Government’s permission to take over the reconstruction of the Lagos-Ota-Abeokuta Expressway.
He expressed regret that despite the Federal Government meeting some of the requirements, the two states were frustrated, leading to further deterioration of the road.
He said: “I would like to highlight the Lagos-Ota-Abeokuta Road; Ota is a city that has earned us the prestigious title of being the industrial capital of Nigeria. It is a city where we share boundaries with Lagos State and you can hardly tell the difference between Ota and Lagos State.
“That road, I think the contract must have been awarded maybe in 2012 or 2010 under the administration of President Obasanjo. Since then, the contract has been subjected to so many reviews.
“When I assumed office, Governor Sanwo-Olu and I went to see President Buhari and we wrote one letter on a joint letterhead requesting for that road to be transferred to us.
“We brought a letter from our bankers. At that point in time, it was probably about N70billion, saying that this is N70billion that we want to put into the reconstruction of the road.
“Then, there was no Minister. We were told that because the road is under contract, what they would like to do is to partner the states and we said okay, let us sit down, and discuss on the basis of the partnership.
“That road is about 77 kilometres, let us discuss the basis of that partnership, Your Excellency, we made no progress”.
The Governor commended the Federal Government for bringing a new lease of life into the way and manner that approvals are given for road construction.
Abiodun expressed the hope that the Federal Government would help to fast-track the reconstruction of the Sagamu end of the Sagamu-Ore Road.

By: Nkpemenyie Mcdominic, Lagos

Business

Two Federal Agencies Enter Pack On Expansion, Sustainable Electricity In Niger Delta

Published

3 days ago

February 16, 2026

The Tide

The Niger Delta Development Commission (NDDC) has signed a Memorandum of Understanding (MoU) with the Rural Electrification Agency (REA) to expand access to reliable and sustainable electricity across the Niger Delta region.

The agreement, signed at the headquarters of the REA in Abuja, was targeted at strengthening institutional collaboration and accelerating development in underserved communities in the region.

A statement by the Director, Corporate Affairs of the NDDC, Seledi Thompson-Wakama, said the pact underscores renewed efforts by the two federal interventionist agencies to deepen cooperation and fast-track infrastructure delivery.

Speaking at the signing ceremony, the Managing Director of the NDDC, Dr Samuel Ogbuku, described the MoU as a strategic step towards realising the Commission’s vision to “light up the Niger Delta” in line with national priorities on distributed energy expansion.

Ogbuku said the agreement represents a shared institutional responsibility to deliver reliable energy solutions that will enhance livelihoods, stimulate local economies and create broader opportunities across the nine Niger Delta states.

According to him, electricity remains a critical enabler of national development, supporting job creation, healthcare delivery, education and inclusive economic growth.

He noted that the collaboration would help unlock the economic potential of rural communities while advancing broader national development objectives.

The NDDC boss added that the Commission has consistently adopted partnership-driven approaches in executing projects in the region and is prepared to support the implementation of the MoU by leveraging its community presence and infrastructure development capacity.

He reaffirmed the Commission’s commitment to working closely with the REA to ensure the timely and effective execution of the agreement.

The NDDC delegation at the event included the Executive Director, Projects, Dr Victor Antai; Executive Director, Corporate Services, Otunba Ifedayo Abegunde; Director, Legal Services, Mr Victor Arenyeka; Director, Finance and Supply, Mrs Kunemofa Asu; and Director, Liaison Office, Abuja, Mrs Mary Nwaeke.

In his remarks, the Managing Director of the REA, Dr Abba Abubakar Aliyu, described the MoU as a natural collaboration between two agencies with complementary mandates, reflecting a shared commitment to expanding access to sustainable electricity in rural communities.

Aliyu said the Niger Delta remains central to Nigeria’s economic fortunes and must be supported by infrastructure capable of driving productivity, enterprise and improved living standards, adding that the partnership signals readiness to deliver stable power to communities that have long awaited reliable electricity supply.

By: King Onunwor

Business

Why The AI Boom May Extend The Reign Of Natural Gas

Published

3 days ago

February 16, 2026

The Tide

Artificial intelligence is often viewed as a catalyst for electrification and subsequently decarbonization. Yet one of its most immediate effects may be the opposite of what many assume. The rapid buildout of AI infrastructure is increasing demand for reliable power, and that reality could strengthen the role of natural gas and other dispatchable energy sources for many years.

Investors focused on semiconductors and software valuations may be overlooking a key constraint. AI runs on electricity, and those electricity systems operate within physical and economic limits.

The energy sector has spent much of the past decade grappling with slow load growth. That is now changing, in a way that is reminiscent of the sharp rise in oil demand—and subsequently price—in the early 2000s.

Training large language models and operating advanced AI systems requires enormous computing resources. Hyperscale data centers are expanding rapidly, with developers requesting gigawatt-scale interconnections from utilities. In several regions, electricity demand forecasts have been revised upward after years of flat expectations.

This shift is significant because AI workloads create continuous, high-density demand rather than intermittent usage. Data centers cannot simply power down when the electricity supply becomes constrained. Reliability becomes paramount.

Wind and solar capacity continues to expand, but intermittent generation alone cannot meet the firm capacity needs of AI infrastructure without significant storage or backup generation.

Battery storage is improving, yet long-duration storage remains costly at scale. Nuclear projects face long development timelines and complex permitting hurdles. Transmission expansion also lags demand growth in many regions.

These constraints make dispatchable power sources critical. Natural gas plants can ramp quickly, operate continuously, and be deployed faster than many alternatives. As a result, gas-fired generation is increasingly viewed as a practical solution for supporting AI-driven load growth.

This does not undermine the role of renewables. In many markets, new renewable capacity is paired with gas generation to maintain grid stability. The key point is that AI-driven electrification is likely to increase fossil fuel usage in the near term.

Construction timelines favor gas-fired generation when demand rises quickly. Existing pipeline infrastructure reduces barriers to expansion. And for operators of data centers, reliability often outweighs ideological preferences. Downtime is simply too expensive.

Utilities are also revisiting resource plans as load forecasts rise. That shift may drive increased investment in transmission, grid modernization, and flexible generation assets.

The Decarbonization Story Is Complex

A common narrative holds that AI accelerates the transition away from fossil fuels because it increases electrification. The reality is more nuanced.

If electricity demand outpaces the buildout of low-carbon capacity, fossil generation may still increase in absolute terms even as renewables gain market share. Total emissions could rise, but the carbon intensity of the energy system may trend lower as cleaner sources make up a larger share of supply.

Ultimately, energy systems evolve based on engineering and economics, not just policy goals or market narratives.

Rising power demand could benefit utilities investing in transmission and generation capacity. Natural gas producers and midstream companies may see structural demand support from increased power-sector consumption. Equipment suppliers tied to grid reliability and gas turbines could also gain from the shift.

Longer term, advances in nuclear, storage, or efficiency may change the trajectory. For now, the immediate response to surging electricity demand is likely to rely on technologies that can be deployed quickly and reliably.

Artificial intelligence may reshape the economy in profound ways. One of the least appreciated consequences is that it may extend the relevance of natural gas as the world builds the energy backbone required to power the next generation of computing.

By: Robert Rapier

Business

Ogun To Join Oil-Producing States ……..As NNPCL Kicks Off Commercial Oil Production At Eba

Published

3 days ago

February 16, 2026

The Tide

Ogun State is set to join the comity of oil producing states in the country following the discovery and subsequent approval of commercial oil exploration activities in the Eba oil well, in Ogun Waterside Local Government Area of the state.

A technical team from the Nigerian National Petroleum Company Limited (NNPCL) has visited the area as preparations are in advanced stage for commencement of commercial drilling operations in the state.

The inspection followed President Bola Ahmed Tinubu’s approval for commercial exploration, forming part of the federal government’s efforts to deploy the required technical capacity and infrastructure for production.

Officials of NNPCL carried out the exercise alongside representatives of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and national security agencies to evaluate the site and confirm its readiness for drilling activities.

The delegation was led by Project Coordinator for Enserv, Hussein Aliyu, who headed the NNPCL Enserv technical team.

Other members included Wasiu Adeniyi, Onwugba Kelechi, Engr. Rabiu M. Audu, Ojonoka Braimah, Ahmad Usman, Akinbosola Oluwaseyi, Salisu Nuhu, James Amezhinim, Yusuf Abdul-Azeez, Amararu Isukul and Livinus J. Kigbu.

Speaking, Governor Dapo Abiodun, described the development as a landmark achievement for Ogun State, saying “the commencement of drilling at Eba would stimulate economic growth, create employment opportunities and attract increased federal presence to the state’s coastal communities.

Abiodun also expressed appreciation to President Tinubu for his support toward the development of frontier oil basins and the equitable spread of the nation’s energy resources.

Recall that geological reports had earlier confirmed the presence of hydrocarbons within the Ogun Waterside axis, leading to preliminary surveys and technical engagements by NNPCL.

The Ogun State Government also carried out an independent verification of the oil well’s coordinates, affirming the discovery is located within the state’s boundaries.

To secure the project, naval security personnel have been deployed to the site for over 18 months, with the support of the Ogun State Government, to protect the facility and its environs.

The Eba oil well is regarded as part of Nigeria’s strategic move to expand oil production beyond the Niger Delta region.