By Jeph Ajobaju, Chief Copy Editor
Contracts worth N309.91 billion have been approved by the Federal Executive Council (FEC) to build new or repair old roads in four states – Borno, Kaduna, Lagos, and Ogun – among a slew of authorisations which also benefited health care.
A Public Private Partnership (PPP) for a Specialised Police Service Scheme (SPSS) was approved to enable the police improve revenue and operational efficiency.
Other approvals the FEC gave at its meeting on Wednesday include:
· N754.04 million for the Economic and Financial Crimes Commission (EFCC)
· N8.6 billion (vaccine laboratory, text kits for HIV/AIDS and medical equipment)
· $170,504.9 (N70.07 million) plus N1.08 billion (four power projects in Abia, Kogi, and Cross River)
· N1.5 billion (roads at Federal Ocean Terminal at Onne Port in Rivers)
· N161.8 million (consultancy fee for Biu Mega Water Supply Project in Borno)
The N754 million approved for the EFCC is for the construction of a command and control centre and communication gadgets to support its fight against insecurity, cybercrime, and financial fraud.
This was disclosed by Presidential Media and Publicity Assistant, Garba Shehu, after the FEC meeting which was chaired by President Muhammadu Buhari in Aso Rock, according to the News Agency of Nigeria (NAN).
“The Economic and Financial Crimes Commission (EFCC) got approval for capital projects worth N754, 048, 161.25 and these are mainly for the supply of communication gadgets and a command and control centre.
“This is to enable the EFCC to comply with modern-day investigative techniques and improve its operational efficiency and support the administration of the criminal justice system in the country,” Shehu said.
Specialised Police Service Scheme
The SPSS will be managed by a PPP with revenue generated shared between the federal government, police, and the consultant.
Shehu explained that “there will be an introduction of tariffs and billing schemes. This will be using PPP (Public Private Partnership arrangement).
“The police projected the use of consultant that will help them to manage this. Part of the revenue will go to federal government. Part of it will go to the police, part of it will go into police allowances and part will go to consultants as their own fees.
“This is a new system that will formalise the existing relationship between the Nigeria Police and banks or corporations, whereby the police gives them cover or escort.”
Shehu said the tariffs and billing schemes will be managed by a private consultant to ensure accountability and transparency.
“This is something that has been going on for many years in some parts of the world.”
Importance of PPP
Vice President Yemi Osinbajo explained at a webinar in Abuja on Wednesday that the PPP model of infrastructure development is a result of successful tax credit initiatives by the government, per Nairametrics.
The webinar, titled “Investment Opportunities in Nigeria’s Privatisation and Economic Reform Programme” was organised by the Bureau of Public Enterprises (BPE) in collaboration with the Nigerian Investment Promotion Commission (NIPC) and the Nigerian Exchange Group (NGX).
“Today several road projects that may have presented funding difficulties for the government have been done under a scheme that allows private entities, especially corporate organisations in Nigeria to build, while government forbears on taxes they pay to the extent of their financial obligations on infrastructure,” Osinbajo said.
“This has proven to be very successful. For example, today the Nigeria Liquefied Natural Gas project is building the Bodo-Bonny bridge and road.
“This is a huge project that is costing almost N200 billion and it is building it on that tax credit basis.
“Also, Dangote built the Obajana-Kabba Road in Kogi State on that basis, and is currently doing the Apapa-Oworoshonki Road in Lagos also on this tax credit basis.”
Osinbajo enthused that the Infrastructure Corporation of Nigeria (INFRACO), a N15 trillion fund for infrastructural development, would also enable the country to close its infrastructure deficit and facilitate more PPP projects.
The BPE announced on Tuesday that 36 projects across diverse sectors of the economy have been selected for sale, concession, or privatisation.
Central Bank of Nigeria (CBN Governor, Godwin Emiefiele, said the infrastructure fund is expected to begin full operation by the third quarter of 2021.