JUST IN: FEC approves N660bn federal highway contracts

FEC approves N660bn federal highway contracts

The Federal Executive Council on Wednesday approved 13 contracts for the Ministry of Works, aimed at rehabilitating, rescoping and completing critical road infrastructure inherited from the previous administration....Read Full Article >>➤

The Minister of Works, Dave Umahi, disclosed this when briefing State House Correspondents after the 25th Federal Executive Council meeting at the Aso Rock Villa, Abuja. Among the key projects is the rescoping and variation of the Alkaleri-Ukuk Road in Bauchi State, which has now been phased for completion in six months, with a contract sum of N11.28bn.

Similarly, the Uturu-Isikwato-Akara Road in Abia State was revised for phased completion, with phase one valued at N5.93bn. Umahi said that the adjustments are part of a broader plan to allocate resources strategically, ensuring that available funds are used effectively to complete sections of ongoing projects before committing to new ones.

Approval was also granted for the construction of a new road spanning Zaria Hunkuyi, Kolmani, Danbali, Maraba, Kanya, Subawa, and Kasa in Kaduna and Katsina states. The project, awarded to Mothercat Nigeria Limited, was contracted at N198bn and will be executed over 36 months.

Additionally, a section of the Kano-Maiduguri Road, previously awarded to Dantata and Sawoe, was reassigned to Tracta Nigeria Limited after a competitive bidding process.

The project, covering the Kano-Wudil-Shuari axis, is valued at N128.40bn, with a construction period of 18 months.

The approvals also include the rehabilitation of Wukari-Akwana Road in Taraba State, rescoped to N12.62bn and scheduled for completion in 12 months.

Similarly, the Bida-Lambatta Road in Niger State was revised, with phase one now set at N39.49bn for a six-month completion period.

In Kebbi State, the FG approved N2.65bn for the 57-kilometre Bagudu Road project, focusing on protecting ongoing works, particularly the binder course, from environmental damage.

Other projects include the Iyin-Ilawi-Ekiti Road (Section One), which was initially approved with an error, now corrected with a new contract value of N15.63bn.

“And this project is being done by Kingly Global Venture Limited. It was procured for N15bn, but there was a mistake from the Ministry of Works. And so, what was presented to FEC was N13.74bn and it was approved.

“So when we discovered the mistake, we had to now run back to BPP to obtain a fresh objection of N15.63bn, and FEC has withdrawn the previous approval and adopted the N15.63bn.

The Ilogu Road in Kwara and Osun States was also been rescoped with a six-month completion plan at N7.56bn.

Additionally, FEC approved the rescoping and variation of the Aba-Nnewi-Arisizogu-Okigwe Road, which cuts across Imo and Anambra States.

The contract was revised to ensure phase one is completed within six months, for N8.45bn, based on available funding.

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In Lagos, the Outer Marina Shore Protection Project saw its contract sum increase from N144bn to N176bn, following a review that incorporated additional shoreline protection needs, particularly for Navy, Army, Police, and rail infrastructure along the coastline.

The minister emphasised that the project is crucial to safeguarding federal institutions and assets from further coastal erosion.

Umahi said another intervention was the Cham-Numan Road and Bridge project, which suffered severe damage during flooding in October.

He noted that President Bola Tinubu personally intervened, directing that the project be completed as quickly as possible.

He said the road, which was broken into two due to extreme weather, is now undergoing reconstruction, with final approvals granted by FEC.

The Aba-Ikot Ekpene Road dualisation project was also revised, with its first phase valued at N30bn.

The minister noted that the FG hopes to prioritise funding for ongoing projects, ensuring that completed road sections are protected from deterioration, particularly from heavy rainfall.

He stressed that all projects have been rescoped based on available funding.

MDAs procurement threshold

Meanwhile, the Federal Government says it is considering raising the procurement threshold for ministries, departments, and agencies to reduce contract-related memos reaching the Federal Executive Council and allow for more policy discussions during council meetings.

The proposal was discussed during the latest FEC meeting, with President Bola Tinubu leading the deliberations, the Minister of Information and National Orientation, Mohammed Idris, told journalists at Wednesday’s briefing.

He said, “You will notice that so many of these memos coming to the council are related to procurement contracts at the FEC level.

“So FEC thought that it would be good to review this so that more time will be given to policy discussions at the Federal Executive Council. In other words, increasing the threshold for ministers and other MDS to execute contracts or procurements at their ministerial, departmental levels, and agency levels.

“So the idea is that it’s not yet conclusive what the final decisions are, but there is a very fruitful debate led by the chairman of Council, Mr President himself, to review this so that we can have more time for policy discussions at the council meetings.”

By raising the procurement limit at the ministerial and agency levels, Idris said the FG plans to fast-track decision-making, enhance efficiency, and ensure that FEC meetings prioritise national policy discussions.

The Council also approved N10.30bn to cover third-line antiretroviral drugs for HIV patients, locally manufactured diabetes diagnostic kits, essential medicines and advanced diagnostic equipment for a teaching hospital.

The Coordinating Minister of Health and Social Welfare, Prof. Ali Pate, disclosed this at the briefing with State House Correspondents in Abuja.

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Pate revealed that N997m was allocated for the procurement of third-line antiretroviral drugs to support Nigerians living with HIV/AIDS who have developed resistance to first-line treatments.

The move follows an earlier approval of first-line ARVs, ensuring that patients receive uninterrupted treatment despite global health funding shifts occasioned by the dismantling of the USAID programme by President Donald Trump.

Pate explained that the latest approval includes third-line antiretroviral drugs such as Ritonavir and Darunavir, which are more advanced and expensive treatments reserved for patients who have developed resistance to earlier therapies.

He said “FEC approved a contract of N10.299bn for various products that are linked to enhancing the accessibility and affordability of health commodities and services by Nigerians.

“The first category was the third-line antiretroviral drugs. A few weeks ago, we approved the first line of antiretroviral drugs. These are second and third-line for those who are resistant. Nigeria is putting forth resources almost N997m worth of contracts to procure the third-line antiretroviral drugs for those who are HIV infected.

“I believe you will understand the importance of this, given the changes in the global health financing and moving towards domestic financing to allow Nigerians to continue on treatment that they require.”

He further noted that first and second-line antiretroviral drugs are already being manufactured locally in Nigeria through technology transfer partnerships with Indian firms. However, the newly approved third-line drugs will need to be imported, as no Nigerian company currently produces them.

The Council also approved N2bn for the procurement of locally manufactured diagnostic kits for diabetes, which Pate called a significant step in domestic healthcare production.

He noted that a Lagos-based private company would manufacture the test kits, making Nigeria one of the first countries on the continent to locally produce such essential diagnostic tools.

This also includes the distribution of blood glucose monitoring devices alongside the test kits, particularly targeting low-income and vulnerable Nigerians.

“The second category is the procurement that was approved for locally manufactured diagnostic kits for diabetes. So the Federal Government is procuring N2bn worth of those diagnostic kits out of this total amount that I had mentioned.

“Diabetes is a major issue in our country. It’s among the fastest-growing segments. We have lots of our population suffering from diabetes, and some are not even aware they have diabetes. In addition, we are having a local company for the first time, one of the first in the continent, who will manufacture these diagnostic test kits in Nigeria.

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“This is a company based out in Lagos, which we had commissioned. It’s a private company, but it is manufacturing here in Nigeria. So the government is procuring the diagnostic kits, the On-point Blood Glucose monitoring system that is manufactured here in Nigeria,” he noted.

Additionally, N4.5bn was allocated under the Medical Relief Programme to procure antibiotics, antihypertensives, and antidiabetic medications.

Pate said the initiative aims to reduce the cost of essential drugs, encourage local pharmaceutical manufacturing, and expand access to treatment for chronic conditions.

He argued that Nigeria’s 230 million population includes a large number of people suffering from hypertension and diabetes. However, the minister revealed that government funding cannot cover free medication for all Nigerians.

Instead, the relief programme will prioritise the poorest and most vulnerable patients who rely on primary healthcare centers and public hospitals but cannot afford essential medications.

The Minister affirmed that the 2025 expansion of the Medical Relief Program will include enhanced monitoring mechanisms to prevent diversion and leakage.

The program will also feature branded medications to ensure that approved medicines reach those in genuine need, stating that no Nigerian should be forced to choose between buying food and purchasing life-saving medications.

The council also approved N2.1bn earmarked for the procurement of a mobile X-ray machine and rehabilitation of a 64-slice CT scan (computerised tomography) to improve diagnostic services at Abubakar Tafawa Balewa University Teaching Hospital in Bauchi.

The equipment was upgraded “so that the diagnostic services and the clinical care Nigerians will receive in that hospital will be of the highest quality that we can make it, and it serves as a referral, not only in the state where it is located but also in the region,” the minister explained.

He noted that the FG plans to support local pharmaceutical companies such as Jawa Pharmaceuticals, which has expanded into antibiotic production, and a Lagos-based manufacturer that is producing the first locally made blood glucose test kits in Sub-Saharan Africa.

Through the Presidential Initiative to Unlock the Healthcare Value Chain, he said over 77 investment cases have been identified, supporting the development of medical textiles, diagnostic kits and pharmaceuticals.

...Read Full Article >>➤

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