Online Editor at Interarchtiv Media Company
Past COREN President, Chief. E.B. Osoba (left); President, Association of Consulting Architects Nigeria, Omotayo Babalakin and ACEN President, Dr. Temilola Kehinde during the association’s annual conference in Lagos, recently
IRKED by the influx of foreign professionals into Nigeria, experts in the construction industry are calling for special financing products to professionals as part of its efforts to facilitate the process of economic development.
They recommended that World Bank through the Central Bank of Nigeria (CBN) and other banks should design and strengthen financial products that will foster collaboration between professionals and can lead to the formation of consortiums, adding that such finances should enjoy moratorium for a given period like the infant industry initiative.
The experts who met at the 2015 Annual Conference of the Association for Consulting Engineering in Nigeria (ACEN), held at Sheraton Hotel & Towers, Ikeja, Lagos on the theme, ‘Multilateral Development Institutions’: Strategies for Consultants to key into their Development, stated that there is urgent need for consulting firms to perfect all joint venture agreements to avoid capital flight, which is detrimental to the economic growth of the nation.
ACEN President, Dr. Temilola Kehinde said: “World Bank in Nigeria, had established a threshold of project costs, about $300,000, where projects falling below this level are reserved for local consultants. The indication is that this ‘right of first refusal’ had not even attracted enough interest from our members. And where Nigerian firms had even come up, they are not members of ACEN; and the quality of service being delivered may not have been the best possible, and may have even blunted, rather than expand future opportunities.
“There are project opportunities with the Multilateral Agencies for studies and project preparation work that they carry out directly. We come forward typically in ‘too small outfits’, which may not be competitive; we do not display readily the necessary care and attention to bidding details.”
However, the Principal Partner, Unecon Associates Limited, Mr. Tunde Ogunde pointed out that “if consulting engineering in Nigeria could be described as one of the poorest in the world, then International Development Association (IDA) should come to the rescue of the industry and provide support that would lead to the creation of jobs which would in turn benefit both people and the economy. “
The Chief Executive Officer, Ove Arup & Partners Nigeria Limited, Kunle Adebajo called for government initiatives by legislative actions to recognise consulting engineering professionals as partners in the development process as well as ensure that contractual obligations are met especially in respect of payment for services.
Senior Procurement Specialist, World Bank, Adebayo Adeniyi, advocated for the establishment of standards and norms for best practice, codes of ethics that members are to observe in execution of their assignments.
He pledged to support ACEN initiatives and policies toward maintaining the highest level of integrity among their members.
President, Council for the Regulation of Engineering in Nigeria (COREN), Kashim Ali disclosed plans to regulate activities in the area of practice to ensure that the local firms is better protected.
He said that COREN has also entered into Memorandum of Understanding with ACEN, which makes it mandatory for any prospective consulting firm seeking to register with COREN to have an ACEN certificate.
Disturbed by the incidences of collapsed buildings in Lagos metropolis with the seeming hopelessness of stemming the tide, builders took a critical look at the past efforts by the officials in addressing the menace.
However, stakeholders in the built environment, who commented on the matter, were of the view that government, as a matter of urgency, should be more proactive in addressing the issue than waiting for collapse to occur.
To be proactive, it was argued that Governor Akinwunmi Ambode must look at the recommendations made by the various groups in the built environment on the best way to address the issue.
Specifically, members of a professional body, Nigeria Institute of Building (NIOB), in one of their deliberations penultimate week, asked what has been the position of government over more than identified 4000 properties categorized as distressed across the state.
While admitting that government has done well by identifying those buildings, it needs to go further by ensuring their demolition.
According to Mr. Bashir S. Ashimiyu, NIOB Chairman, Lagos Chapter, government should, as a matter of urgency, evacuates occupants of the distressed buildings, especially, those that are in a precarious condition and ensure the immediate demolition.
To Ashimiyu, government should invoke laws guiding building codes in Lagos and if need be, seeks legislative approval that would empower the executive arm of government to expedites demolition exercise, particularly, those that may not be regenerated.
Speaking in similar vein, the immediate Commissioner for Physical Planning and Urban Development, Mr. Olutoyin Ayinde suggested what he described as “constructive engagement” among the stakeholders.
These include government officials, building owners, professional bodies, law enforcement agents and possibly, non-governmental organizations (NGOs).
In 2014, authorities of the Lagos State Ministry of Physical Planning and Urban Development marked 191 distressed buildings for demolition, as it has also stated that about 447 defective buildings may collapse in the city.
Sources revealed that in the last one year, 5,910 structures were identified and served contravention notice, while 447 defective buildings were also identified in different parts of Lagos State.
Source: The Guardian
The Federal Government recently advised the Senate to immediately consider long-term plans for technical re-design and expansion of the Apapa-Ijora-Orile-Mile 2 access trunks, and the Apapa/Tin Can-Mile 2-Oshodi corridor in Lagos State.
This was sequel to a motion sponsored to that effect by Senator Oluremi Tinubu (APC Lagos Central) and 106 other senators.
The upper legislative chamber also called on the Nigerian Port Authority, NPA, to immediately reactivate the railway link from the port to the outer parts for easy evacuation of petroleum products, adding that the Lagos State Government should collaborate with Federal Government agencies for short and long term solutions to the gridlock.
Similarly, it directed its Committee on Marine Transport when constituted, to invite the management/leadership of NPA, Nigerian Shippers Council, Federal Ministries of Works and Transport, the Western Naval Command, National Union of Road Transport Workers, NURTW, Association of Maritime Truck Owners, AMATO, and the Nigeria Police, among others to dialogue on the way forward.
Tinubu in the motion entitled: “The Apapa Port Gridlock,” noted that 75 per cent of Nigeria’s trade is ship-borne and shipped through the Apapa Port where cargo and petroleum products bearing trucks regularly cause gridlock on Papa-Mile 2 and Apapa-Oshodi corridors, adding that the trucks also parked on bridges and flyovers for days and weeks.
She therefore expressed concern that “this perennial logjam on all access roads in the Apapa maritime corridor has resulted in telling consequences on the nation’s economy.”
The lawmaker also regretted “the obvious non- compliance of the world-class and notable local marine operators with the 25 years Lagos Port concession terms to modernise port facilities.”
She added that non-provision of free flowing shipping activities was responsible for the sustained incidence of traffic lockdown of the Apapa shipping corridor.
According to her, “the Apapa Port terminals are critical integral part of our national inter-modal transportation chain that bear directly on Nigeria’s maritime/economic activities.”
She said the Senate was mindful of the huge national security, human and environmental risks of the present traffic situation in the Apapa maritime axis, arising from deadly fumes and falling containers as a result of bad roads.
The Senate President, Bukola Saraki, while ruling on the motion, urged all the relevant Federal Government agencies to find short and long term solutions to the gridlock in order to save money, time and lives being lost on the road.
He also advised maritime players and other operators to always use railway to transport petroleum products instead of tankers, so as to drastically reduce the gridlock.
Source: National Mirror
Concerned about the report of the United Nations Development Programme, UNDP, which puts Nigeria’s housing deficit at 17 million, President Muhammadu Buhari during his electioneering campaign promised to build one million new housing units annually. However, industry stakeholders see the target set by the President as a tall order which may not be feasible unless huge fiscal sacrifices are made to fund the capital-intensive sector. SYLVA EMEKA-OKEREKE reports
Experts in the housing sector have argued that it will take Nigeria several years of long planning to actually close the yawning housing gaps.
This is as they noted that if the Federal Government really wants to build the one million housing units yearly as promised, houses, it clearly cannot achieve it in the next ten years, as Nigeria may not have enough building experts to realize the promise.
Beyond the housing units, the President also promised to create 720,000 jobs in one year with 20,000 jobs per state yearly for people with basic education. Experts also said, the Federal Government may not have adequate clear plans to accomplish these ambitious goals.
John Adeyemi, a property expert said, several months had gone in the present administration, without a clear roadmap to meet the target. ‘’If you want to build one housing units within a year, you don’t wait half the time before you come up with a programme.
It is very clear that the government has no serious intention to pursue this housing programmes that will produce one million housing units a year’, Adeyemi stated. ‘’Just imagine one million new housing units in this country.
It will take years just for first level planning and then take more years to actually build the houses. That is, if the government really wants to build the houses and if it does, the government clearly cannot achieve it in four years. You don’t have to be a building expert to see that this promise is unrealistic’’, he stated.
He therefore advised the Federal Government to stop proposing fantastic ideas that will never going to get off the ground, saying this is not what the Nigerian people really want.
According to him, what the people really want is a visible improvement in the housing sector as well as other sectors of the nation’s economy.
It would be recalled that the United Nations Development Programme, UNDP, had revealed that Nigeria has about 17 million housing deficits, heightening speculations that the country needs over 5,000 housing units annually in the next 12 years to fill the yawning gap.
“We are ready to reform the housing sector. We don’t have housing units and the few ones we have are in the hands of few individuals at the top of the echelon in the society.
So, we are looking at what government can do in the aspect of the reform, so that private sectors can be empowered as in other countries of the world to provide the housing units”, he stated.
As it is, it is likely that the prices of houses will continue to rise, but at a slower pace than we have seen in the outgoing year, with most experts predicting less than 5%, though, there might be considerable variations in some states, depending on land mass as well as locations.
The United Nations Development Programme (UNDP) had recently revealed that Nigeria has about 17 million housing deficits, heightening speculations that the country needs over 5,000 housing units annually in the next 12 years to fill the yawning gap.
It would be recalled that the housing deficit rose from 7 million in 1991 to 12-15 million in 2008 and 17-18 million in 2012 and unless the federal government is able to deliver on its promise to provide one million new housing units yearly, the situation will get worse.
UNDP had during the report urged Nigerian government to adopt a multi-pronged approach to redress the housing shortages, listing those methods to include involvement of central, regional and local governments in housing projects.
This collaboration, according to the global agency would involve private sector, nongovernmental agencies, community associations as well as developing a viable mortgage finance sector to assist the private sector.
Already, the World Bank had warned that the rising population could hit more than 200 million by the year 2050, which would increase rural and urban drifts as well as the rising building costs, exerting serious pressure for shelter.
Federal Ministry of Housing had earlier disclosed that since the establishment of the Federal Housing Authority, FHA, in 1973, it has been able to deliver only 35,309 housing units nationwide with Lagos metropolis having the highest number of the units.
Investigation has shown that the number of housing units in Lagos metropolis rose from 393,000 in 1970s to 700,000 in 1992 and grew further to 1.25 million units in 2012.
It would be noted that since the second phase of the national policy on housing was announced in 1972, under which about 5 million housing units were said to be delivered by the three tiers of government, less than 200,000 have actually been delivered till date.
With the growing population of over 160 million, experts said, Nigeria needs more than 17 million new housing units to withstand the test of time with an estimated costs of over N50 trillion to reverse the trends.
Currently, over 80 per cent of Nigerian adults are said to be living in rented apartments, compared to 19 percent in South Africa and 22 percent in Ghana. Already, there is an urgent need for guest houses in urban area and it has been growing on daily basis.
In some Nigerian cities, residential accommodations have disappeared while commercial properties like eateries, banks and telecom offices have taken over the apartments.
Also, some of these cities have developed reputations for excessive night life services like clubs and shopping malls, thus making the prices of the property in those areas, to go up as the demands are hitting the rooftop. Just as some stakeholders are seeing the incoming 2015 as a year of contrasting halves, they however noted that there might be actually a huge rise in property prices.
They also noted that 2015 will be a year of rapid development of properties, especially estates and blocks of apartments.
Plots of land would be bought at the fastest rate, if the Land Use Act is being reviewed by the federal government to give developers easy and comfortable access to develop more housing units in the country.
There is also greater need for security and infrastructure to spur more demands for serviced estates and apartments, where people will feel safe with access to water and light.
They therefore advocated for the housing models of some countries like Singapore, South Africa and United States of America, where private operators were encouraged to build more housing units, using modular technology to achieve it.
To give flip to these models, there will be need to recapitalize the nation’s mortgage banks, which is not only necessary, but very urgent to attract capital funding to support the real estate development.
Overall more homes need to be built to meet demands and in 2015, there would be tremendous steps to access loans by developers and the deals offered could be the key to more successful housing units in the coming year and beyond.
Experts have said, that until the monetary authorities bring down the interest rates to single digits to enable low income earners to obtain affordable mortgage financing, the nation’s mortgage industry will remain at its present dismal level, contributing below one per cent to gross domestic product, compared to 24.7 per cent in Malaysia, 29 per cent in South Africa, and 85 percent in New Zealand, according to the Central Bank of Nigeria, which has laid out plans for a N200 billion intervention fund.
Federal governments should as a matter of urgency, invest massively in basic infrastructure like roads, electricity and water, whose inadequacy has increased the cost of building.
The state governments should as well, engage private sector to target millions of new housing aimed at developing well-planned new towns. Collaborative efforts between the government, research institutes and private developers are necessary to promote alternative building materials as against the expensive cement-based block style that often accounts for over 40 percent of the total costs.
Government should revive its reforms of the mortgage sector to reverse a situation, where over 70 per cent of all housing projects is undertaken by private individuals and informal sector, where mortgage loans account for only 0.5 per cent of all lending, compared to 30-40 per cent in other emerging economies and 60-80 per cent in developed economies.
There is no doubt that Nigeria should adopt similar models like the South Africa’s Reconstruction and Development Plan, which delivered 2.3 million housing units in the last 13 years.
Also, China’s Affordable Housing Policy delivered 12 million units in five years and similar programmes in Canada, Kenya, Sweden, France and Tanzania, where tax holidays, cooperatives, savings and loans strategies are utilised to make housing available to low and medium income earners.
Nigerian government should also encourage Lagos state government to revive its mass housing scheme, initiated by the former governor, Alhaji Lateef Jakande to increase housing units, rather than spending billions to reclaim land and buildings meant largely for the rich while leaving the tax-paying poor masses to their faith. NEWS 80% Nigerian adults, 19% Ghanaians live in rented apartments-Investigation
A recent investigation has shown that over 80 per cent of Nigerian adults are said to be living in rented apartments, compared to 19 percent in South Africa and 22 percent in Ghana.
Prior to now, the World Bank had warned that the rising population could reach 289 million by 2050, thereby increasing rural and urban drift as well as rising building costs, exerting pressure on shelter. UNDP had noted that many Nigerians live in slum areas, warning that the number might increase over time.
According to the investigation, the housing deficit rose from 7 million in 1991 to 12-15 million in 2008 and 17-18 million in 2012, noting that unless the federal government is able to deliver on its recent promise to provide one million new housing units yearly, the situation will get worse.
Source: National Mirror
Some stakeholders in the housing sector have called for strict adherence to master plans to boost regional and urban planning in the country.
The stakeholders who spoke to the News Agency of Nigeria (NAN), in Abuja on Saturday, explained that lack of master plan could bring set back and severe housing challenges in the country.
Mr Desmond Chieshe, Director, Initiative for the Support and Promotion of Human Shelter (ISPHS), an NGO, noted that master plan was designed to guide urban and housing development.
Chieshe held that many cities lacked plans, adding that government should ensure that the cities had plans and that they were strictly followed.
Chieshe said government should be strict about the use of plan to develop cities.
“Due to constant rural urban drift, it will be very difficult to manage the city if it is not well planned’’, he said.
Mrs Morenike Babalola, Director, Heights of Hope: Centre for Women and Children Development, (HHCW&CD) an NGO, contended that master plans in the country were obsolete.
“The master plans need to be reviewed, many cities have no master and structural plans, these are the things that guide development.’’
She urged government to be more proactive in creating a synergy to ensure functional cities.
She said Abuja would not be able to absorb the type of pressure Lagos was able to absorb if care was not taken.
Babalola recalled that Lagos was regarded as a congested city which prompted the movement of the administrative capital of Nigeria to Abuja.
“Lagos is running over a century and Abuja is about 35 years.
“If you give Abuja another 70years and if we are not conscious of the planning, it may not be able to absorb the problems and challenges being faced by Lagos state.
“It is so because the infrastructure that is supposed to be in place in Abuja since 2000 had not yet been completed.
“We are supposed to be in phase five development up to airport down to satellite towns.
“But we are still developing phase two whereas the infrastructure in phase one is already dilapidating’’, Babalola said.
She attributed this development to the dwindling resources the government could offer.
She said proper planning and coordination by government would correct the lapses.
Chief John Uyi, building and civil engineer, also advised the government to be consistent in the usage of the master plan.
Uyi said the issue of new government coming up with its own plan and discarding the old one had negative effect on the system.
Mr Onibokun Abimbola, Secretary-General of the Nigerian Urban Forum, an NGO, also told NAN that the government should ensure that all Nigerian towns and cities utilised master plan.
Abimbola said ensuring the utilisation of the master plan in the country would aid urbanisation and global competitiveness.
NAN reports that ISPHS in collaboration with HHCW&CD had earlier marked the World City Day with a sensitisation programme tagged “Cities and Motor Parks’’ at Jabi Motor Park, Abuja.
The programme was to address the centrality of public transportation and functional public spaces in the cities.
UN designated Oct. 31 of every year as World Cities Day (WCD) to promote international community’s interest in global urbanisation, address challenges of urbanisation and contribute to global sustainable urban development.
The theme for this year’s celebration is “Designed to Live Together.”
Source: News Agency of Nigeria
Osborne Phase 2 is currently one of the busiest locations within Ikoyi when it comes to the private developments of multi-unit apartment buildings. Just recently, we reported the impact Lekki Gardens was making on land prices within the estate. Misa Limited 08033000540 another developer who is however not new to the Osborne Estates and Ikoyi axis already has a new development coming up in Osborne Phase 2. Known as Bazaki, the development consists of 2blocks of 7units 4bedroom duplexes each (14 units in total) to be developed on over 6,000sqm of land. Each duplex has a ground floor that consists of an ante room, living room, dining area, guest room, kitchen and a maid’s room as well as a top floor that has a family living area, two bedrooms, a master bedroom with a walk-in closet, terrace area and a box room. Facilities for the estate includes: green areas, swimming pool, gate house, generator house, borehole and water treatment plant as well as ample parking spaces. Selling for $750, 000 per duplex, a payment plan that allows prospective buyers to be pay over five installments is available. Construction work on Bazaki is expected to commence before the end of this year and be completed by the second quarter of 2016.
While foreign professionals and practitioners are bringing their resources and technological knowhow, their Nigerian counterparts are in position to relief themselves of financial burdens and technological inadequacies, only that there must be an enabling environment that would not put Nigerians in a disadvantage positions.
THE Nigerian Institute of Building (NIOB), Lagos State last pledged to renew its efforts towards enthroning standards and safety within the construction industry.
The builders unanimously expressed concerns over the invasion of the industry by foreigners, on one hand, and artisans on the other.
At the 2015 Builders’ Conference gathering, organised by the Nigerian Institute of Builders (NIOB), Lagos Chapter, held at the Sheraton Lagos Hotel, Ikeja last week, NIOB said it was unacceptable that a country of 150 million people, with huge potential in the construction industry to be exporting artisans from neighbouring nations.
But while deliberating on the theme of the event: “Foreign Professionals and Artisans/Craftsmen in Construction Industry: Its Implications on the Nation’s Economy”, divergence views were expressed by the participants. These include legal practitioners, developers and professionals bodies and rep
resentatives of artisans/craftsmen.
For instance, the Managing Director, UACN Property, Mr. Hakeem Oguniran, represented by Mr. Yemi Ejidiran, who agreed that it is a thing of concern for foreigners to take over project construction in Nigeria, added that, it could also be of immense benefits to the indigenous professionals, who stand the chance of gaining from the expertise of their foreign counterparts.
According to him, the presence of foreign practitioners is an instrument for cross-fertilization of ideas, a situation that would be of mutual benefits to both parties. “While foreign professionals and practitioners are bringing their resources and technological knowhow, their Nigerian counterparts are in position to relief themselves of financial burdens and technological inadequacies, only that there must be an enabling environment that would not put Nigerians in a disadvantage positions.
Beyond concern of foreign invasion of the construction industry, issues of building collapse resonated throughout the deliberation.
Mr. Femi Falana, a Senior Advocate of Nigeria (SAN), while accusing builders of doing little in exterminating quackery from building industry, accused government of chasing shadows, by harassing project owners instead of professionals who handled buildings that collapse.
Falana, while charging the institute to take proactive measures to tackle the menace of quacks, noted that their existence and activities are not only embarrassing to the professional builders, but also a direct assault to the professional integrity of registered practitioners.
On the seeming influx of foreigners that are taking advantage of their connections with people in power, the legal luminary counseled builders and other bodies in the construction industry to emulate lawyers and medical practitioners whose functions cannot be performed unless they are members of the two bodies.
Out of the 10 developing countries from where paint samples were collected and analysed for total lead contents, Nigeria paints showed highest percentage of samples of lead followed by Tanzania, Mexico, South Africa, Belarus, Senegal and values more than 600ppm were even found (100per cent of the samples).
AMID the study that Nigeria paints showed highest percentage of samples containing more than 90 parts per million (ppm) of lead than other countries in Africa, an environmental group, Sustainable Research and Action for Environmental Development (SRADev Nigeria) has called of urgent adoption of a national mandatory policy that will phase out the manufacture and sale of paints containing lead, a major source of childhood lead poisoning along with lead-contaminated dust.
The group in a statement issued to mark this year’s International Lead Poisoning Prevention Week of Action (ILLPPWA) sponsored by the United Nations Environment Programme (UNEP) and the World Health Organization (WHO), pressed for local measures to complement the global goal of phasing out of lead paint by 2020.
WHO estimates that childhood lead exposure to contribute to about 600 000 new cases of children with intellectual disabilities every year. Children are most likely to be exposed to lead from ingestion of flakes and dust from decaying lead-based paint, which, affecting children’s brain development and their measurable level of intelligence (IQ).
Many other health effects such as: gastrointestinal effects, anaemia, hypertension and hearing loss, effects on the nervous system such as on behaviour and cognition), on development, and on the reproductive system, as well as genotoxicity, carcinogenicity and social effects have been associated with lead exposure.
According to the study of new household paints sold in Lagos carried out by SRADev Nigeria in collaboration with International POPs Elimination Network (IPEN), Out of the 10 developing countries from where paint samples were collected and analysed for total lead contents, Nigeria paints showed highest percentage of samples containing more than 90 ppm of lead followed by Tanzania, Mexico, South Africa, Belarus, Senegal and values more than 600ppm were even found (100per cent of the samples).
“All samples had lead concentrations higher than the permitted lead levels for paints (that is far beyond the recommended limit of 90 ppm). Despite this alarming situation, till date, Nigeria has no standard or legal limit for lead in paints. The general public is at the mercy of paint manufacturers. In May 2009, at the Second International Conference on Chemicals Management, Nigeria was among more than 100 countries that endorsed a Global Partnership to Eliminate Lead from Paint,” said Leslie Adogame, Executive Director, SRADev Nigeria.
He said: “It’s essential for our society to respond to this global challenge and make the phase out of lead paint a top public health priority. We must act with urgency as the health of our children can be permanently and irreversibly damaged even at very low exposures to lead.
“Europe banned lead in paint in the 1920s. What are we waiting for when safer alternatives are available? We need to protect our children and eliminate lead from paint and we can only hope that the paint manufacturers embrace in interim a voluntary approach,” he said.
The Paint Manufacturers’ Association of Nigeria (PMAN) is a member of the International Paint and Printing Ink Council (IPPIC), which is in turn a contributor to the Global Alliance to Eliminate Lead Paint, established by the United Nations and World Health Organisation. WHO, which considers lead as one of the “ten chemicals of major public health concern,” has stated “there is no safe level of exposure to lead.”
“Safe, cost-effective alternatives to lead in paint have been in use for more than 40 years in the United States, the European Union and other high income countries,” said Dr. Sara Brosche, International Lead Paint Elimination Project Manager at IPEN, a global civil society network pursuing safe chemicals policies and practices.
The Senate on Wednesday kicked against the N64 billion contract for the construction of a second runway at the Nnamdi Azikiwe International Airport, Abuja.
The Senate, at its plenary declared that the contract sum was "too high".
In a three-point motion by Dino Melaye (APC Kogi West), the Senate acknowledged the urgent need for a second runway at the airport, but ruled that the contract sum was "too exorbitant".
The Senate urged the Federal Government to ensure that due process and diligence is followed in the design, award and procurement of the contract, while the cost should be "drastically reduced".
"The Federal Government should reduce this unrealistic cost and duly monitor the award process," Mr. Melaye said.
He said the proposed cost of the runway far exceeded the cost of constructing some airports around the country and even abroad.
He noted that the terminal 5 in Heathrow Airport, with four lanes of 4km runway, cost less than N25 billion, while the entire Gombe Airport, with 3.66km runways, cost N8.2 billion.
He said that the Jigawa Airport cost N11 billion, Bauchi Airport, N12 billion, Enugu Airport, N13 billion, while the Akwa Ibom Airport cost about N18 billion.
He, therefore, wondered why the proposed construction of a mere runway at Abuja Airport would cost N64 billion.
Mr. Melaye recalled that the contract had been cancelled earlier by the Jonathan administration over its high cost, and urged President Muhammudu Buhari to similarly reject it.
The President of the Senate, Bukola Saraki, in his remarks,acknowledged that the second runway was necessary, but added that it could only be executed "at a reasonable price".
"It is important, but we cannot continue with such reckless expenditure.
"We have to let all the MDAs know that those days of recklessness are over and these kinds of figures will not be accepted.
"'In fact, it is not just in aviation, but in all other sectors of the economy," he declared.
Source: Premium Times
The Director General, Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo, has said that Nigeria would need $3.9 trillion investment over the next 30 years to close infrastructure gap.
According to Gwarzo, who was represented Mr. Zakawanu Garuba, Executive Commissioner, Corporate Services & Supervising Executive Commissioner Operations, SEC, during the Nigeria Debt Capital Market 2015 Workshop, yesterday in Lagos, this massive sum cannot come from budgetary allocations but can be achieved through the debt market.
He said the Nigerian domestic debt market has witnessed remarkable growth and activity within the last few years, despite the increasing focus of investors on the money market. “Since the FMDQ began operations, we have seen a phenomenal increase in the liquidity of debt market instruments. We have moved from N7.1 trillion in annual trading volumes in 2012 to an average of N5 trillion in monthly volumes”, he stated.
The SEC boss said the Commission welcomes plans by the Federal government to launch a $25 billion emergency fund for investment in infrastructure, adding that SEC is confident that a substantial part of that fund should be raised from the domestic debt market.
Gwarzo noted that the revival of the corporate bond market has been quite slow and there are number of challenges to tackle in order to encourage companies to issue bonds. Key among these challenges is the current monetary policy. “We hope that soon, the right fiscal policies will be in place to drive down interest rates so that Nigerian businesses can assess affordable capital for investment, expansion and job creation. This should be a collective priority for all of us as the task of addressing Nigeria’s rising unemployment must be a goal for everyone”, he advised.
In her address, the Chairman, FMDQ OTC Securities Exchange (FMDQ), Mrs. Sarah Alade , pointed out that a vibrant and well-functioning Debt Capital Market (DCM) will address Nigeria infrastructure problem.
According to Alade, who also was represented by the Vice Chairman FMDQ, Mr. Jubril Aku, Nigeria is currently faced with a host of challenges, ranging from low credit transmission to inadequate infrastructure (power, housing and transportation) and low employment -with a host of others. “A lot of these challenges can be addressed by a vibrant and well-functioning DCM”, she said.
She lamented that the Nigerian DCM, unfortunately, is not adequate enough to address these issues and, as a result, is not functioning at its potential for the development of the nation’s economy.
She said, “This Workshop, thankfully, will serve to provide the platform for effective deliberations on the matters hindering and stifling the development of the Nigerian DCM, which will proffer practical and actionable solutions to these issues with the ideal project management to drive the reforms.”