FG Approves N733.89bn for Key Road Projects, N1.09bn for Airport Insurance

Minister of Works, Dave Umahi, announced this after the 24th Federal Executive Council (FEC) meeting at the Aso Rock Villa, Abuja.

The dualisation of the Ibadan-Ilorin Road, Section Two, covering Oyo-Ogbomoso in Oyo State, is valued at N147.89bn. The 147-kilometre stretch will be constructed with reinforced concrete pavement, and the contract has been awarded to GRVe.

Other Major Infrastructure Approvals

FEC also approved the dualisation of the Odupani-Itu-Idedem Item-Ikot Ekpene Road in Cross River and Akwa Ibom States. The contract, worth N55bn, has been awarded to Decon Construction Nigeria Limited.

Additionally, N507bn was allocated for the completion of the Abuja-Kaduna-Zaria-Kano Road, specifically Section Two, covering 164 kilometers. The contract has been awarded to InfoWest Nigeria Limited, the same company handling Sections One and Three.

Another key approval was for the construction of a flyover at Abakpa, near the 82 Division in Enugu, to ease traffic congestion. This project, valued at N24bn, has been awarded to CCECC.

Providing further clarification on the Odupani-Itu-Ikot Ekpene Road, Umahi stated:

“We have an entire section from Akwa Ibom cutting through this Odukpani, where we have the power plant, and then ending at Cross River.

“There are three sections that we inherited. One is CCECC. That’s the first one coming from Akwa Ibom. The second one is Berger. Berger had about 27 kilometers there, and then, they went onto Cross River, and then had about 17 kilometers, and then the last one is Somatech.

“When we came on board, we needed to review all the projects. And so, whereas the two other contractors, CCECC and Somatech accepted the review, Berger insisted that the project should be reviewed up to over N100bn, which warranted terminating it. That project is being re-procured through selective competitive bidding. And Decon won it with N55bn, as against N100bn plus.”

Addressing Regional Disparities in Project Allocation

Umahi also responded to concerns raised in the Senate regarding regional disparities in project distribution. He clarified that FEC approvals are based on submitted memos, not deliberate favoritism.

“Let me use one minute to correct an impression created in the Senate. There was a time we awarded some projects, and we came here to say the projects that FEC approved, and a senator raised a motion in the house, alluding that more projects were approved in the south than in the north.

“Let me correct that impression, because I’m not qualified to write to the senate president to fix it. However, the fact remains that it is the memo that comes to FEC that is approved. Sometimes a memo can be in favour of a particular region or a particular zone and so forth.

“So our briefing here should not be taken as if we are bringing projects in an equitable form. A project may go to BPP, and they are processing it, but it is not…like today, we have a total of N507bn, which is for Abuja-Kano section. And of course, in my zone, we have only N24bn. So if tomorrow you bring something big for Southeast, nobody should start saying…So the President is committed to completing all the inherited projects.”

He further emphasized that many of the ongoing projects were inherited from the previous administration and that President Bola Tinubu remains committed to completing all essential infrastructure across the country.

N1.09bn Approved for Airport Insurance

In a separate approval, the Federal Executive Council sanctioned N1.09bn for an insurance package to cover critical assets and personnel across all federal airports nationwide.

Minister of Aviation and Aerospace Development, Festus Keyamo, made this announcement after the 24th FEC meeting, presided over by President Bola Tinubu at the State House, Abuja.

Keyamo explained that the approval aligns with a directive from the Secretary to the Government of the Federation, mandating Ministries, Departments, and Agencies (MDAs) to insure critical government assets.

Additionally, the move is crucial for Nigeria’s airports to secure International Civil Aviation Organization (ICAO) certification.

“This memo was prompted by Mr. President because we cannot continue to run our airports and critical assets, as precious and expensive as they are, without insurance cover,” he said.

He noted that many airport assets remained uninsured for a long time, posing significant risks. The new insurance scheme aims to protect both infrastructure and personnel under the Federal Airports Authority of Nigeria (FAAN).

“This approval ensures that not only are our critical airport assets covered, but also the personnel working in these environments.

“It is in line with global best labor practices to ensure workers in such sectors have insurance protection,” he stated.

The N1.097bn insurance contract, which includes 7.5% VAT, will be executed over one year, starting once FAAN completes the premium payment.

Following a rigorous selection process, five leading Nigerian insurance firms have been chosen to handle the coverage:

Leadway Assurance Company Ltd. (Lead underwriter)

Cornerstone Insurance Plc

Linkage Assurance Plc

NEM Insurance Company

Anchor Insurance Plc