As NNPC delves into road construction

Rising from a recent Federal Executive Council (FEC) meeting, the Minister of Works and Housing, Babatunde Fashola, announced that approval had been given for the Nigerian National Petroleum Corporation (NNPC) to construct/rehabilitate 21 federal roads under the Federal Government Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme. The projects spreading across the six geopolitical […]

Rising from a recent Federal Executive Council (FEC) meeting, the Minister of Works and Housing, Babatunde Fashola, announced that approval had been given for the Nigerian National Petroleum Corporation (NNPC) to construct/rehabilitate 21 federal roads under the Federal Government Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.

The projects spreading across the six geopolitical zones of the country and spanning a total of 1,804.6km of roads will cost over N621 billion.

The approval for the NNPC to construct these roads is pursuant to Presidential Executive Order 007 of 2019 made by President Muhammadu Buhari.

The funds are expected to come from cumulative taxes owed by the NNPC.

Nigerians will welcome any meaningful initiative in fixing the roads in the country which are at present in a state of dilapidation. In fact roads across the country have not only become traps leading to avoidable deaths and severe injuries sustained by motorists and commuters; they have also become convenient points for kidnappers, armed robbers and bandits, who strike at will, taking advantage of their poor state.  We also welcome this development as indeed clamour for the rehabilitation of Nigerian roads has been on for  a long time and since that is the most popular means of moving from one place to another in the country, the decision is laudable.  It is hoped that the projects are actually started and concluded; not a half- measure job.

In making the Executive Order granting the approval for the NNPC to construct and rehabilitate some of the worst affected roads in the country, President Buhari certainly would have considered involving the NNPC as the most expedient source for funding the project. This is in view of the scarcity of funds to implement projects of this magnitude.

But this also raises some pertinent questions. Will the NNPC provide the funds only or will the corporation directly implement the project? If so, will the NNPC go  alone  in tendering and awarding the projects or will the Federal Ministry of Works, as the statutory institution responsible for implementation of such projects in the country be involved?  This is very important as there could be bottlenecks if the ministry tasked with such a job is not a critical part of its implementation. Also, will the projects suffer the usual delays associated with Nigerian projects or will they be delivered in time before the present administration leaves office by 2023? These are issues that require clarity as we move ahead.

Furthermore, absolute care must be taken in this enterprise as the NNPC has not been known to be good at rehabilitating or maintaining structures, and this conclusion is drawn from the state of refineries in the country. It is not news that for many years, refineries in the country have been comatose with billions of naira spent on turnaround maintenance which hardly yields any result. In March this year, the House of Representatives said the NNPC allegedly spent $ 25 billion  in turnaround maintenance of refineries in the last 25  years, yet nothing to show for that investment, which is why billions of naira are spent on importation of refined petroleum products monthly. Should such an entity be tasked with Nigeria’s road projects?

Of concern is also the fact that with the NNPC being unbundled under the provisions of the Petroleum Industry Act (PIA) which has now been returned to the National Assembly for amendment, saddling the corporation with such massive projects at this time will likely delay the implementation of the law.  These are issues that should be looked into and addressed immediately.

Since the approval for the projects came by way of an Executive Order from the presidency, it is safe to assume that there will be no delays in the National Assembly appropriation process. In some ways, this will help fast track the delivery of the projects. But it may also result in corrupt and shoddy implementation. Therefore, all those concerned must be vigilant.

While we welcome the move by government to rehabilitate the roads, the process must be transparent and accountable. Because of the huge amount involved and the importance of these projects to the country, Nigerians expect diligent implementation and not the opaque manner that projects of this nature are most often executed.

In this regard, government should move to ensure that all necessary procedures are observed on these projects. There should be strict monitoring and supervision of the process on the part of the presidency, which is the owner of the project.

It is about time roads across the country were made motorable and all hands must be on deck to achieve that.