FEC okays N1.2 trillion road, power, aviation projects

The Federal Executive Council (FEC) Monday approved N1.202 trillion for various projects in the works, power and aviation sectors reflecting President Bola Ahmed Tinubu’s administration’s commitment to economic revitalisation through targeted capital investment.

Addressing State House correspondents at the end of the FEC meeting chaired by President Bola Ahmed Tinubu, Minister of Works, Mr Dave Umahi, said the council approved N175.08 billion for Section II of the East-West Road, from Port Harcourt to Ahoada,.

“This project was inherited. In 2009, it was awarded for N44.83bn but reviewed in 2014 for N93.41bn. Our administration reviewed it because of the floating of the naira and the petroleum subsidy removal in 2023,” he said.

He said the council added N30bn to an earlier revision to bring the final figure to N175.08 billion.

The Minister of Power Mr Adebayo Adelabu said the council approved projects worth over N40 billion for the ministry.

He said the council approved replacement for the preferred bidder for the 6-megawatt Ikere Gorge Hydro Power Plant concession in Iseyin, Oyo state.

“If I may take you back, the council, at its meeting of Wednesday, 27th March 2019 actually approved the concession of five small and medium hydro power plants under public-private partnership.

“However, the preferred bidder for the Ikere Gorge hydro power plant, Misuse Power Control and Appliances Limited, failed to accept the offer within the stipulated time frame, and for five years running, nothing has happened,” said.

“The government has now approved the reserved bidder, Quent Power Infrastructure Nigeria Limited, to take over the concession. We have carried out due diligence on this company, and we have also discussed with their technical partner.

“We have realized that they have all it takes to ensure that this hydro power plant in the Iseyin part of Oyo State is revamped and even improved to 15 to 20 megawatts,” he said.

He said the approval includes a one-time concessional fee of about N291.6 million and an annual concession fee of N66.3 million.

“Apart from increasing revenue to the government, this will also improve power supply to the Oke-Ogun parts of Oyo State. We believe that the agriculture industry of that axis will also improve, as well as attracting more businesses into the area,” he said.

He said another power-related approval covered the construction and installation of a 2×60 MVA, 132/33 kV substation in Ibadan, Oyo State.

“The contract was awarded to Enitem Global Limited in the sum of $18.3 million and N9.9 billion, inclusive of 7.5% VAT. A separate consultancy service contract for the substation was approved for Team Spirit Consult Limited at $1.4 million and N589 million, also including VAT. Both projects are to be completed within 24 months.

“This will ensure that power supply is strengthened and we also secure the national grid for effective power wheeling and improved service delivery for strategic investments that will address the power supply challenges, support economic development, and improve the quality of life for the residents,” the minister said.

The Minister of Aviation and Aerospace Development, Mr Festus Keyamo, said the council approved three major memos totaling N987 billion to modernize Nigeria’s aviation infrastructure and safety systems.

“First, Terminal B at the Nnamdi Azikiwe International Airport, Abuja, will be upgraded for N2,442,418,004.

“Second, the government will establish command and control centers at major airports at a cost of N2,924,907,002.69. Keyamo noted this will streamline emergency response, communications, and overall operational coordination.

“The third and most substantial aviation approval was for the procurement of critical navigation aids and spare parts, valued at $654.5 million plus N201 million. The equipment will be sourced from Indra of Norway.

“These approvals aim to modernize facilities and ensure safety by having readily available spare parts. This is especially important in reducing flight delays and maintaining global safety compliance,” he said.