Following the memorandum sent by the Ministry of Works and Housing to the Federal Executive Council, the Federal Government (FG) has approved the sum of N166 billion for the construction and rehabilitation of 14 roads across Nigeria.
The roads meant to be covered, according to the memorandum, are the Kotangora-Rijau road in Niger State, which will involve the construction of two bridges; Kano-Katsina roads, which involves the construction of additional lane from the airport roundabout to Dawanau roundabout in Kano State.
- the Kotangora-Bangi road in Niger State;
- the Outer Marina-Bonny Camp road and Eko Bridge through Apongbon Bridge with access ramp in Lagos State;
- Irrua-Edenu-Ibore-Udomi-Uwessan road in Edo State, which is slated for rehabilitation;
- Ilobu-Erinle road in Kwara/Osun states billed for construction;
- Wudil bridge to link Gaban Komi with Wudil bypass along Maiduguri road in Kano State;
- Wukari-Ibi road in Taraba State billed for rehabilitation; and
- construction of Baro-Port Gulu town road in Niger State.
The list also has Ajingi-Jahun-Kafin Hausa road in Jigawa State, slated for rehabilitation; Aba-Owerri road and NNPC Expressway in Abia State, for rehabilitation; Kaleyeri-Damaturu road in Yobe State billed for rehabilitation; two outstanding sections of Oba-Nnewi-Arondizuogu–Okigwe road in Imo and Anambra States, for reconstruction; and the construction of Yaba-Yangogi road in the Federal Capital Territory.
According to the Memorandum, the contract for the construction of two bridges, Lioji and Gulbin-Boka Bridges at Kotangora-Rijau road will be executed by Messrs Nael & Bin Harmal Hydro export Nigeria Limited at a contract cost of N1.13 billion, with a completion period of 12 months.
- The construction of additional lane on Kano-Katsina road in Kano will be executed by Messrs Zerock Construction Nigeria Limited within a period of 24 months at the cost of N9.5 billion.
- The reconstruction of Kotangora-Bangi road in Niger State will be executed by Messrs CBC Global Civil & Building Construction Nigeria Limited within 48 months at the cost of N20.4 billion.
- The rehabilitation of Outer Marina-Bonny Camp road and Eko Bridge through Apongbon Bridge with access ramps will be done by Messrs CCECC with a completion date of 12 months at the cost of N9.3 billion.
- The rehabilitation of Irrua-Edenu-Ibore-Udomi-Uwessan road in Edo State was awarded to Messrs Mikky-Tai Engineering & Construction Limited/Messrs Rodnab Construction JV at the contract cost of N4.6 billion, with a completion date of 12 months.
- Messrs IAC Allied Technical and Construction Company Limited will construct the Ilobu-Erinle Road in Kwara/Osun states within 36 months at a cost of N18.042 billion.
- Messrs Triacta Nigeria Limited will construct the Wudil Bridge along Maiduguri Road in Kano State within a period of 15 months at the cost of N2.6 billion.
- The rehabilitation of Wukari-Ibi Road in Taraba State will be done by China Worldwide Limited within a period of 18 months at the cost of N12.31 billion.
- Messrs GR Building & Construction Nigeria Limited will construct the Baro-Port-Gulu Town road in Niger State within a period of 24 months at N10.62 billion.
- The rehabilitation of Ajingi-Jahun-Kafin Hausa road in Jigawa will be done by Messrs H & M Nigeria Limited within a period of 24 months at the cost of N25.04 billion.
- Messrs Roudo Nigeria Limited is to rehabilitate the Aba-Owerri road, NNPC Expressway in Abia State within 18 months at the cost of N6.1 billion.
- Messrs JM & A’S/Lubell Nigeria Limited will construct Yaba-Yangogi Road in the FCT within 24 months at the cost of N17.31 billion.
- Messrs Rick Rock Construction Limited will complete the rehabilitation of the Kaleyeri-Damaturu road in Yobe State within 28 months at the cost of N17 billion.
- Messrs IIC Construction Company Limited/Wiz China Worldwide Engineering Limited who are to rehabilitate two outstanding sections of Oba-Nnewi-Arondizuogu–Okigwe road in Imo/Anambra states within a period of 18 months, will receive N12.8 billion as payment on completion of the project.
- In terms of job creation, the rehabilitation of two outstanding sections of the Oba-Nnewi-Arondizuogu–Okigwe Road in Imo/Anambra states will generate between 150 and 200 jobs, while the construction of Yaba-Yangogi road in the FCT will generate no less than 250 jobs, according to the Federal Ministry of Works and Housing.
The Memorandum showed that the rehabilitation of Kaleyeri-Damaturu road would generate employment for 200 to 250 persons, while the rehabilitation of Aba-Owerri Road, NNPC Depot Expressway in Abia State would provide employment for no less than 150 people.
- It said that the rehabilitation of Ajingi-Jahun-Kafin Hausa road was billed to generate between 250 and 300 jobs.
- The memorandum showed that the rehabilitation of Baro Port-Gulu Town road in Niger State would generate about 250 jobs.
- It said the rehabilitation of Wukari-Ibi road in Taraba State would provide jobs for no less than 500 people, adding that the construction of Wudil Bridge to link Gaban Komi with Wudil Bypass on Maiduguri road in Kano State would produce between 100 and 150 jobs.
- It further stated that no less than 500 people would be employed for the construction of Ilobu-Erinle road in Kwara/Osun states and between 100 and 120 workers for the rehabilitation of Irrua-Edenu-Ibore-Udomi-Uwassan road in Edo State.
- The ministry said the rehabilitation of the Outer Marina-Bonny Camp and Eko Bridge through Apongbon Bridge with access ramps would generate between 200 and 250 jobs.
- It said the construction of two bridges at the Kotangora-Rijau road would generate employment for about 100 people and the construction of additional lane from airport roundabout to Dawanau roundabout along Kano-Katsina road would provide jobs for between 250 to 300 people.
- The memorandum added that the reconstruction of Kotangora-Banji road in Niger State would provide jobs for between 300 and 350 people. It stated that the scope of works to be covered in each of the projects were clearly itemised.
It said the Minister also gave extensive details of the procurement processes which the participating companies went through that culminated in the certification and issuance of a due process certificate of “No Objection” for each of the 14 projects by the Bureau of Public Procurement.
Just In: CBN debits banks another N459.7 billion for failure to meet CRR target
Sadly, this move, in addition to similar policies by the CBN, has left many banks cash-strapped and unable to pursue various profitable ventures.
The Central Bank of Nigeria (CBN) has debited twenty-six banks, including merchant banks, to the tune of N459.7 billion for failure to meet their CRR (Cash Reserve Ratio) obligations. The fresh debit, which Nairametrics reliably gathered occurred yesterday, has left many stakeholders in the banking sector very upset.
The details: Among the banks that were most affected are United Bank for Africa Plc (N82.3 billion), First Bank of Nigeria Ltd (N59.3), Zenith Bank Plc (N50 billion), First City Monument Bank (FCMB) Limited (N45 billion), and Guaranty Trust Bank Plc (N40 billion). The rest of the affected banks can be seen in the table below.
Note that the latest CRR debits are coming barely one month after a lot of banks were collectively debited to the tune of N1.4 trillion for the same reason in April. Between then and now, a lot of other minor CRR debits have occurred. Nairametrics understands that the apex bank now debits banks on a weekly basis.
Some backstory: During the CBN’s Monetary Policy Committee (MPC) meeting that was held last month, committee members voted to retain CRR rate at 27.5%. The rate was increased in January this year from 5% to its current level after the apex bank cited inflationary pressure concerns. What this means, therefore, is that Nigerian banks are required to keep 27.5% of their deposits as CRR with the Central Bank of Nigeria.
But banks are silently upset: Sadly, this move, in addition to similar policies by the CBN, has left many banks cash-strapped and unable to pursue various profitable ventures. While reacting to the latest development, a banker who refused to be identified, said:
“What we’ve seen in recent times is that the CBN just indiscriminately debits banks, usually towards the stale-end of every week. They will look at your bank account and if your liquidity is plenty, they will debit you.
“You know the central bank also does what we call retail FX intervention, that is when they sell FX to corporates. Now, because they don’t want banks coming with huge demands, what they do is that a day before the FX sales, they debit the banks so that the naira you have available is small and you cannot put them under pressure because of your FX demands. That has really been the driver.
“We understand that the central bank had set up a special CRR team that is supposed to monitor banks’ CRR once a month. But now, the team monitors banks’ CRR on a weekly basis. This is why the central bank is effectively debiting banks on a weekly basis. Some weeks ago, they debited some banks about N1.4 trillion. That was one of many. Between that time and now, there have been more debits that have happened. But the debits that are huge/significant are what is troubling the banks. There was a N300 billion that happened about two weeks ago. and then yesterday that was this N459.7 billion that was also debited.
“These are huge amounts that are leaving the banking sector. It’s a squeeze on the banks. A bank like First Bank, for instance, has about N1.4 trillion in CRR with the Central Bank. And there is Zenith Bank with equally as much as N1.5 trillion. These are monies that banks can potentially put in loans at 52% at 30%, or even put in money market instruments at maybe 10%. So, for a shareholder of these banks, this CRR debits are impairing the banks’ ability to increase their earnings because now are not able to use the funds that are legitimately theirs to create money for their shareholders. And the question is that under what framework is the Central Bank choosing to take people’s money?”
Christiano Ronaldo emerges first billionaire footballer ahead of Lionel Messi
Cristiano Ronaldo ranks Number 4 on the 2020 Forbes Celebrity 100 and making him the first soccer player in history to earn $1 billion.
Cristiano Ronaldo has been crowned the first soccer billionaire ahead of his top rival in sport, Lionel Messi after earning a massive $105 million before tax and fees in 2019. This was announced by Forbes through its official website.
CR7 as he is popularly called, ranks Number 4 on the 2020 Forbes Celebrity 100, a spot above Lionel Messi, and making him the first soccer player in history to earn $1 billion.
The 35-year old Juventus attacker is the third athlete to hit the $1 billion mark while still playing following Tiger Woods, who did it in 2009 on the back of his long term endorsement deal with Nike and Floyd Mayweather in 2017, who’s made most of his income from a cut of pay-per-view sales for his boxing matches.
The Portuguese star joined Juventus in 2018 in a deal worth $117.34 million after spending nine years with Real Madrid and within 24 hours of release, Juventus sold 520,000 Ronaldo jerseys worth over $60 million.
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He has amassed an ever-growing following of fans over the years. In January he became the first person with 200 million followers on Instagram alongside massive presence on Twitter and Facebook making him the most popular athlete on the planet.
Recall that in 2016, Nike signed Ronaldo to a lifetime deal and pays him upwards of $20 million annually couple with other sources of income including Real Estate, Social media influencing, etc. His 2020 earnings include a salary of $60 million, a slight decline compared to his earnings in 2018 due to a 30% pay cut he agreed to take in April as a result of the COVID-19 pandemic.
Insurance: NAICOM revises recapitalisation guidelines
In our view, we think the decision to extend the deadline is reasonable under current circumstances. The coronavirus pandemic has ravaged global economic and financial systems thus making it more difficult for an already unattractive insurance sector to raise much-needed capital.
In a circular communicated to insurance providers in Nigeria, National Insurance Commission (NAICOM) has announced an extension to the deadline for insurance providers to meet up with the regulator’s new minimum capital requirement. In addition, NAICOM has broken the recapitalisation exercise into two phases. The first phase must be complied with by 31 December 2020.
To comply, insurance providers must meet 50% of the new minimum capital requirements while reinsurance providers are required to meet up to 60% of the new minimum capital requirement. The second phase which will end on the final deadline of 30 September 2021 would require 100% compliance with the minimum capital requirement from all insurance and reinsurance providers.
The revised guidelines requires Life insurance providers to have minimum capital of N4bn (existing minimum – N2bn) by 31 December 2020 and paid up capital of N8bn by 30 September 2021. General insurers are required to meet a minimum paid-up capital of N5bn (existing minimum – N3bn) and N10bn by 31 December 2020 and 30 September 2021 respectively. Composite insurers are expected to have a minimum of N9bn in paid up capital (existing minimum – N5bn) by 31 December 2020 and N18bn by 30 September 2021 while reinsurers should have N12bn (existing minimum – N10bn) in minimum paid up capital by 31 December 2020 and N20bn by 30 September 2021.
In our view, we think the decision to extend the deadline is reasonable under current circumstances. The coronavirus pandemic has ravaged global economic and financial systems thus making it more difficult for an already unattractive insurance sector to raise much-needed capital. We note that several players have initiated the process of raising the needed funds from their existing shareholder base via the right issues. However, we highlight that some of the players currently have a negative book value of equity and are trading below their par values. Hence, raising equity capital does not appear feasible. That said, we expect to see a flurry of mergers and acquisitions in the industry once conditions become more favorable.
CSL Stockbrokers Limited, Lagos (CSLS) is a wholly-owned subsidiary of FCMB Group Plc and is regulated by the Securities and Exchange Commission, Nigeria. CSLS is a member of the Nigerian Stock Exchange.