THE EXECUTIVE 02/06/2022
FEC Approves ₦22b Contracts For Police, Oil And Gas Sector
The Federal Executive Council, ( FEC) on Wednesday approved sundry contracts in the sum of ₦22 billion for the Ministry of Police Affairs, Oil and gas, as well as the power sectors.
Maigari Dingyadi, Minister of Police Affairs, while briefing State House Journalists after the FEC meeting, presided over by Vice President Yemi Osinbajo, said the Council gave approval to the Nigerian police Trust Fund, to award contracts for the supply of 82 operational vehicles, Toyota brand for the efficient operation of Nigerian police at the total cost of N2.2 billion.
“We also had approval for supply of customized police raincoat for distribution to police across the country at the cost of N1.9 billion. Also customized Police boots at the cost of N576 million. We also got approval for the supply of micro first aid kits for the police at the cost of N1 billion as well as customized instructional materials for the police colleges and schools at the cost of N664 million.
The Council also approved contracts for the supply of drugs and medical equipment for police hospitals across the country at the cost of N2 billion.
“ When you add all these, projects, they will come up to 8,315,209,825 billion.
“You’re all aware that the NPTL was set up as a special intervention fund to facilitate the improvement of the operations of Nigerian police force in the areas of equipment, training and welfare. And what we’re having now have been assembled from the output of the end user that is the Nigerian police force. And we believe by the time these items are on ground, they will go a long way in improving the efficiency and effectiveness of Nigerian police in the maintenance of peace and security in the country.
The Abubakar Aliyu, the Minister of power, revealed that the Council granted approval of a contract to supply and install emergency restoration system of 330 kV and 132KV transmission line for ongoing rehabilitation works in Lagos at the sum of $968,818 as the offshore component and an onshore component of N7,393 million, to be executed by Rab Power Industries Limited.
He also announced an approval of variation of contract for Katsina power project following escalation of the onshore component of construction materials.
“ The sum is N445,326,643.12 and the subsisting contract amount on the offshore is not affected.
“The onshore which was N939,410,664 has now moved to N1.938,737,307.12 and the Council graciously approved”
The Minister of State Petroleum Resources, Timipre Sylva, announced that the Nigeria National Petroleum Corporation (NNPC) limited, received approval to execute a memorandum of understanding with ECOWAS for the construction of the Nigeria, Morocco gas pipeline, this pipeline is to take gas to 15 West African countries and to Morocco and through Morocco to Spain and Europe.
“Council also approved the construction of a switchgear room, an installation of power distribution cables and equipment for the Nigeria oil and gas park in Ogbehia Bayelsa state in the sum of N3.8 billion. this park is to support local manufacturing of components for the oil and gas industry.
“Council also approved various contracts for the construction of an access road with bridges to the brass petroleum product depot in Nibomoyekiri in brass local government in the sum of N11 billion plus 7.5% VAT.
Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed that her Ministry presented the economic reports of the first quarter of 2022 GDP to the Council.
The report had shown that the Nigerian economy has grown by 3.1% in the first quarter of 2022. Compared to a growth of 0.5% in the first quarter of last year. This growth shows a gradual economic stability from the recession that we witnessed in 2020. And also it shows the six quarter of positive growth that the Nigerian economy has presented.
She disclosed that of the 46 economic activities, the bulk sector performance show that services sector grew strongly by 4.7%, agriculture also grew by 3.61%.
“Industry on the other hand contracted by minus 6.81%. And there’s also a significant contraction in the crude oil, petroleum and natural gas sector of 26.04%. Coal mining sector also declined, oil refinery the biggest contraction of 44.26%. electricity sector, textile outcome. therefore, even though there has been growth in some sectors, there are significant contraction than others but the net effect is positive growth”
She stated that the Ministry has been “very mindful of the fact that unless we have most of the sectors growing especially the growth in the jobs impacted sectors, that this growth that is positive will not be directly felt by the people. We also reported to council that inflation has started going upward to the extent that the monetary authorities the central bank have had to adjust the NPR to 13% in the last MPC that they have met, and that’s an attempt to manage the cost of inflation”
According to her “ the Council decided to set up special team to look at the sectors that are not growing and also to look at how we can grow the other sectors better.
“Council has also decided that the National Food Security Council will very quickly meet to address the issue of food inflation, and also provide a plan and some methods in which we can reduce the cost of food to support improved food prices for the citizens”
Speaking on the concession agreement approved by FEC in September 2020 in favour of e-customs HC project limited, the Minister stated that a concession agreement approved the E-customs project by Council earlier, “met some challenges that had to do with disagreements between the concession partners.
“Remember that government was not a partner of the concession, it was a group of different investing parties that came together and formed the consortium”
She disclosed that the Attorney General and Minister of Justice has intervene, after several meetings to try to iron out the difference.
“So it has to do with shareholder who has what responsibility. And at the end of the day, I think one of the partners in the concession did not agree with the arrangements. So the partner that signed was already in the initial concession. So that’s one party that did not agree with the terms that are signed. And there is a new agreement that has not been signed that partner was reported to have opted out of the concession.
“I haven’t seen the report yet but it was reported to have opted out of being in the concession. So there is a new concession agreement that has been committed. And to on the part of the ministry and I know Custom, what it means is that the implementation of E-customs project can now start with this resolution”.