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The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to direct the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, and the Accountant-General of the Federation, Oluwatoyin Sakirat Madein, to disclose the names of companies and contractors who received over ₦167 billion from 31 ministries, departments, and agencies (MDAs) without executing any projects.
In a letter dated November 30, 2024, signed by SERAP Deputy Director Kolawole Oluwadare, the organization called for transparency regarding the contractors, the projects they were assigned, their locations, and the amounts disbursed. SERAP also demanded the identities of shareholders or individuals with ownership stakes in the implicated companies.
Citing the 2021 audited report from the Office of the Auditor-General of the Federation, SERAP called for the prosecution of those responsible for misusing the funds and the recovery of the ₦167 billion to be reinvested in public projects.
The Nigerian Bulk Electricity Trading Plc. (NBET) was identified as a major contributor to the scandal, reportedly paying ₦100 billion for unexecuted contracts.
SERAP’s letter emphasized the need for publishing the names of the involved parties to prevent future misconduct and promote transparency in public fund management. The organization also accused intermediaries within MDAs of enabling these corrupt practices, which have eroded public trust and hindered socio-economic development.
The group warned that if the government does not act within seven days, it would pursue legal actions to enforce accountability.
SERAP also highlighted the wider consequences of corruption, such as increased inequality, poverty, and insufficient access to essential public services. They argued that unchecked corruption would continue to impede Nigeria’s progress and exacerbate the gap between the elites and the broader population.
Furthermore, SERAP reminded the government of its constitutional duties, anti-corruption laws, and international commitments under the UN Convention against Corruption.
The organization called for a transparent framework to ensure the effective use of public resources, urging the Tinubu administration to prioritize accountability and restore public confidence in governance.
Heritage Energy Operational Services Ltd (HEOSL), operators of the OML 30 assets, have empowered indigenous contractors with the knowledge and skills in procurement and contracting for the Oil & Gas industry.
The capacity building workshop for Indigenous contractors was held on behalf of the Joint Venture between Nigeria National Petroleum Company, E&P Limited (NEPL), and Shoreline Natural Resources Ltd (SNRL) at Ughelli, Delta State.
General Manager, Government, Joint Venture and External Relations, Sola Adebawo, HEOSL, in his address, told the contractors that the workshop was in recognition of their vital roles in the company’s operations.
Mr. Adebawo, who was represented by Mr. Felix Usiwo, Manager, Nigeria Content Department (HEOSL), said, “We value the contributions of our local community vendors in enhancing our operational excellence.”
According to him, “efforts in fostering peace, understanding, and development between the asset and communities have been instrumental to our collective successes.”
He said the workshop was designed to support and empower the indigenous contractors with the requisite knowledge and skills necessary to navigate the challenges in procurement and contracting for the Oil & Gas industry and leverage the opportunities ahead.
He emphasized that the workshop embodies the organiser’s “corporate beliefs and aligns with the Nigerian Oil and Gas Industry Content Development Act 2010 which mandates local content as an important element of project development and execution”.
Speaking in the same vein, Dr. Jeremiah Oharisi, HEOSL Manager, Community Relations, told the participants that the policy thrust of HEOSL is to encourage local contractors’ participation to create a process that encourages them to do business with the company.
He added that the strategy will go a long way in creating wealth and empowerment within the communities as well as encourage expertise and capacity.
In kicking off the resource delivery session, Engr. Mabel Obonin of the Nigeria Content Development and Monitoring Board (NCDMB), took the participants through the contracting and tendering process in line with the provisions of the Nigeria Oil and Gas Industry Content Development Act, 2010 (NOGICD) as well as the NCDMB mandate.
She took the vendors through different contractual stages, including opportunity, technical, and commercial phases, to award recommendations as well as tender administration.
Other areas she addressed included registration with the relevant regulatory agencies, monitoring & evaluation services, categorization, capacity building, and funding structure, among others.
Other resource persons at the session included Mr. Echerebor Solomon, the HEOSL Manager, Contract and Procurement (C&P), who spoke on vendor selection and tendering processes, CAC, and NIPEX registration.
Head of Heritage Energy Internal Audit and Control, Mrs. Ebehi Odejobi, expatiated on the company’s commitment to the highest integrity and the need for all stakeholders to comply with rules and regulations.
Also, Mr. Babatunde Yusuf and Mr. Ezekiel Oghenekaro, both from the HEOSL Finance Department, enlightened the participants on contractual payments and procedures, etc.
The event also featured goodwill messages from the OML 30 Joint Venture Partners, NEPL, delivered by Mr. Oghenero Omowara on behalf of the Manager, Community Relations Department, Alhaji Dahiru Abubakar, and SNRL conveyed by Barr. Abasiama Umohatah who represented the General Counsel/GM, External Communications, Mrs. Lara Coker.
There was also a message from the Management of the Nigeria Content Development and Monitoring Board (NCDMB).
Another highlight of the workshop, which drew registered contractors from all the clusters that make up OML 30, was the questions and answers session.
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The federal government has issued contractors handling the 260 emergency projects a three-month deadline to deliver or face termination.
The minister of works David Umahi gave the deadline during a meeting with the contractors yesterday in Abuja.
Umahi said the emergency road projects were appropriated in the 2023 supplementary budget to immediately intervene in the completely failed parts of critical federal roads nationwide and restore the serviceability level of the affected roads.
Umahi, in a statement by his special adviser, Barr Orji Uchenna Orji, listed about 37 contractors who have yet to achieve a milestone in project delivery since the contracts were awarded and warned that they must mobilise to the sites tomorrow or face contract termination.
He said, “If any contractor fails to comply after the deadline for mobilisation to the sites, the job shall be terminated by the expiration of time as the contract is for a three-month period.
He said, “Any contractor whose job has stayed for more than three months without completion after the issuance of an award letter must seek and obtain approval for extension of time from the Federal Ministry of Works.”.
The minister said most of the defaulting contractors handled emergency road projects in Yobe, Jigawa, Zamfara, Benue, Kogi, Abia, Anambra, Imo, Akwa Ibom, Bayelsa, Cross River and River States.
He warned that the projects awarded to them must be delivered in three months as no excuse of security challenges or lack of mobilisation funds would justify the suffering they are subjecting road users or shield them from being blacklisted as constituting a clog in the wheel of progress in the efforts of the Renewed Hope administration in revolutionising road infrastructure for Nigeria’s economic prosperity.
Umahi said, “The people are suffering, and the president is having sleepless nights in his efforts to fix our road infrastructure to help our economy. People will be given jobs, and they are telling us stories. There have been jobs awarded by this ministry in the past and money paid, and the contractors would hold the money, and they would say it’s a security problem. Didn’t you know about the security situation before you got the job?”
He directed federal controllers of works to ensure proper supervision of the projects in their sites and be abreast with the contract awarded, amount, date of award, time line, review date, extension of time, argumentation granted and whether the contractor is on site.
In his remarks, the permanent secretary, Yakubu Adam Kofarmata, stated that the period had gone when contractors were taking the country for granted, could afford to delay job delivery for years after collecting mobilization, and would keep feeding on the VOP.
He charged contractors to prepare for the new spirit of “Nigeria first,” introduced in the Federal Ministry of Works under the Renewed Hope administration of Mr. President.
The Federal Government has terminated the Obajana-Benin Road contracts with three companies, citing non-performance by the contractors.
The government ended contract numbers 6136, 6137 and 6138 with Mothercat Ltd, Dantata & Sawoe Construction Ltd, and RCC Ltd, respectively.
In a statement on Monday, the Federal Ministry of Works said the projects affected by the termination order were the dualisation of Obajana-Benin Road, section II (Okene-Auchi) in Kogi/Edo States; the dualisation of Obajana-Benin Road, section III (Auchi-Ehor) in Edo State and the dualisation of Obajana-Benin Road, section IV (Ehor-Benin) also in Edo State.
The Minister of Works, Engr. Dave Umahi, said: “the termination of the said contracts became neccessary in view of the inordinate delay of the affected companies in job performance.”
The statement signed by the minister’s spokesperson, Uchenna Orji, also cited the contractors’ “failure, neglect and or refusal to fulfill their contractual obligations as required by the Standard Conditions of Contract and this has affected the timely completion of the projects and thus resulted in the expiration of the contracts by effluxion of time.”
The minister said the projects awarded on December 3, 2012 were advertently abandoned by the contractors and no genuine commitment or good faith was shown towards executing the projects thereby exposing road users to untold hardship due to the deplorable condition of the projects.
Umahi consequently directed “the engineers in charge to take necessary steps to enter upon both the site and the works and take the same over from the affected companies”.
He directed the engineers concerned to, upon doing the needful, arrange with the affected companies for a joint measurement of work so far done by the said companies preparatory to taking over the sites from them.
He warned that the ministry under his watch won’t condone acts of unseriousnes and sabotage by contractors whose plan is to become a clog in the wheel of progress of the current administration.
He further warned that the government won’t hesitate in terminating all projects that are funded but are non-performing.
Minister of Housing and Urban Development, Arc Ahmed Musa Dangiwa has declared that the Renewed Hope Housing Agenda of President Bola Tinubu would not tolerate abandoned work.
Dangiwa warned that any contractor that collects government’s money for housing project must do the work, emphasising that the Ministry was desperate to give Nigerians value for money.
The minister sounded this warning on Saturday, June 29th, 2024 in Warri, Delta State, during the foundation laying of 250 Renewed Hope Housing Estate for the State.
Similarly, the minister charged the developers to adhere to the timeline and finish within the stipulated three-month timeline so that the process for indigenes to purchase the houses and move in can begin.
Delta State is the ninth state in the series so far to have the groundbreaking among the thirteenth states scheduled under Phase One of the Renewed Hope Housing Project, across the nation.
The Federal Government intends to deliver 50,000 houses under Phase One, and the funding comes from the N50 Billion 2023 Supplementary budget; the remaining States not captured under the supplementary budget would be covered under the 2024 budget of the Ministry, if they provided the land at no cost to ease affordability.
“I want to charge the developers of all the Renewed Hope Cities and Estates across the states to ensure that they build according to specifications. I want to emphasise in very strong terms that we will not tolerate substandard work from any developer, and we will explore all necessary legal means, including the EFCC, to ensure that they deliver as per the contract. If you collect government money, you must do the work,” he said.
Delta State Governor, Sheriff Oborevwori who was represented at the groundbreaking event by his deputy, Sir Monday Onyeme said, “Delta State is happy to partner with the Federal Government through the Federal Ministry of Housing and Urban Development in the Renewed Hope Housing Programme”.
Governor Oborevwori disclosed that the state government had granted waiver on Certificate of Occupancy and payment of ground rent to enhance affordability of the houses to the citizens.