Market News

•Approves major road projects, allocates billions of naira for construction

BY  Deji Elumoye in Abuja

The Federal Executive Council (FEC), yesterday approved the Economic Stabilization Bill, aimed at enhancing Nigeria’s economic stability and growth.

The bill, which will soon be transmitted to the National Assembly, contains key provisions to amend the Foreign Exchange Act, encouraging electronic transactions over cash to increase liquidity.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who disclosed this to reporters at the State House, Abuja, after the FEC meeting, which was presided over by President Bola Tinubu, the bill empowers the Central Bank to attract international funds, facilitating foreign exchange transactions and remittances to Nigeria.

Additionally, the bill proposes reforms to the Companies Income Tax Act, enabling Nigerians to provide services to foreign companies without requiring them to register in Nigeria. This move is expected to create new employment, income, and entrepreneurship opportunities.

According to Edun: “The Federal Executive Council did pass for onward transmission to National Assembly, Economic Stabilization Bill. It contains, for example, items that change the Foreign Exchange Act to give greater liquidity and encourage the use of electronic rather than cash means, for example.

“It gives the Central Bank even greater ability to bring in and attract funds such as the money from international money transfer organizations and others that want to transact foreign exchange business and in fact, remit funds to Nigeria.

“There’s also a proposal to amend the Companies Income Tax Act basically to allow Nigerians with the skills, the expertise and the relevant relationships to be able to stay in Nigeria, and provide services to foreign companies at home, without those companies having to come and register in Nigeria, thereby opening up a whole vista of employment opportunities, income opportunities, and entrepreneurship opportunities. So those are the types of measures that are contained in bill”.

Edun also revealed that the Fiscal Responsibility Act will be overhauled, guiding government-owned enterprises in sharing surpluses and building reserve funds from their revenues.

“There are changes to Fiscal Responsibility Act as well that affect in particular government-owned enterprises and how they are to share their surpluses and how they are to put in place reserve funds for building surpluses from their revenues”, the Minister said.

FEC also approved the construction of toad projects across the Federal Capital Territory (FCT).

FCT Minister,  Nyesom Wike told newsmen listed the approved road projects to include construction of an access road from Artillery Road N11 from Mabuchi to the judges’ quarters. Development of all internal roads within the judges’ quarters.

Others, he said, are construction of an access road from Ring Road 1-N16 Shehu Shagari Way to the judges’ quarters and development of roads connecting to the Court of Appeal Abuja division.

He said these approvals are part of a larger infrastructure push in the FCT, which includes the development of over 75 kilometers of roads in satellite towns across Kwali, Gwagwalada, and Bwari area councils.

The Minister said the government aims to complete these projects by December, 2024.

Wike also announced the termination of a previous contract for the development of Maitama 2, citing delays and lack of progress.

He said a new procurement process will be initiated to ensure the area’s development, potentially addressing housing deficits in the capital.

FEC also approved several major road projects across the country, allocating billions of naira for construction.

Minister of Works, Dave Umahi, announced that the Abuja/Kano Road project, handled by Julius Berger, received approval for N740 billion.

The project, initially valued at N155 billion, was revised to N797 billion by the previous administration and further increased to N1.5 trillion.

Other approved projects include the rehabilitation of Maraban-Kankara/Funtua Road in Katsina State, construction of the Sokoto/Badagry Super-highway Section 2, Phase 2A in Kebbi State, and dualization of Afikpo-Uturu-Okigwe Road in Ebonyi, Abia, and Imo states.

Additionally, FEC approved N80 billion to complete the Bodo-Bonny Road in Rivers State, bringing the total cost to N280 billion.

The Third Mainland Bridge in Lagos, previously executed under emergency work, has been upgraded with solar lights and CCTV cameras, enhancing security and reducing road blockages.

Umahi also mentioned 14 road projects and bridges affected by floods, including Ado-Ekiti/Afe Babalola in Ekiti State and Lafia/Shendam Road in Plateau State approved for rehabilitation.