Nigerian Government Directs MDAs to Finalize Procurement by September 2025, Approves Major Projects and N13bn Compensation for Right-of-Way Acquisitions

Strategic Insights -

The Nigerian Government has instructed Ministries, Departments, and Agencies (MDAs) engaged in procurement activities for projects under the 2024 Appropriation to finalize these processes by the end of September 2025. This directive was made by the Minister of Information and National Orientation, Mohammed Idris, to State House Correspondents while speaking on the brief the Director-General of the Bureau of Public Procurement (BPP) to President Bola Tinubu for the Federal Executive Council (FEC) meeting. Over 70 MDAs are yet to conclude procurement activities for 2024 projects, despite the fact that the budgetary year should have lapsed in December 2024.

The Minister further stated that the BPP recommended that President Tinubu obtain a comprehensive overview of all projects awarded by Ministers and their respective Ministries. He also reiterated the "Nigeria First" policy, urging MDAs to prioritize the use of locally made goods and services in all projects. The BPP, working with the Central Results Delivery Coordination Unit, will monitor compliance, with details to be sent to the Presidency for further action.

Measures were also taken to address the rising cases of crime, road traffic accidents, and the proliferation of arms and ammunition on the nation's highways due to the absence of purpose-built bus terminals. Minister of Transportation, Senator Sa'idu Ahmed Alkali, said the Federal Executive Council (FEC) granted approval for the construction of modern bus terminals in each of Nigeria's six geo-political zones at a total cost of ?142,028,576,008.17.

Furthermore, the FEC approved a combined target of ?493 billion for the upgrade of the Kano-Katsina Road and the planned construction of a new Carter Bridge in Lagos. The cases of the Kano-Katsina Road and Carter Bridge highlight the evident deterioration of the nation's infrastructure, with the Carter Bridge's substructure causing severe deterioration due to illegal sand mining, erosion, and corrosion of piles and piers.

In another development, the Minister of Power, Adebayo Adelabu, announced that the Nigerian government has approved four major proposals to strengthen the nation's national grid. These proposals include the release of ?13 billion for compensation on right-of-way acquisitions under the Lagos Industrial Transmission Project, funded through a $238 million development loan from the Japan International Cooperation Agency (JICA). The project is designed to boost supply to key industrial clusters in Lagos, contributing significantly to Nigeria's manufacturing output.

Additionally, three more approvals were given for the procurement and installation of high-capacity transformers to replace weak, overloaded, and obsolete units on the national grid. The equipment procurement is valued at $34 million, with an additional ?5.2 billion for associated costs. These transformers will be deployed strategically across the grid to relieve overloaded facilities, improve voltage stability, and accommodate the increased transmission capacity.

Key Takeaways:

  • The Nigerian Government has instructed MDAs to finalize procurement activities for projects under the 2024 Appropriation by the end of September 2025.
  • Over 70 MDAs are yet to conclude procurement activities for 2024 projects, despite the fact that the budgetary year should have lapsed in December 2024.
  • The BPP recommended that President Tinubu obtain a comprehensive overview of all projects awarded by Ministers and their respective Ministries.
  • The BPP urged MDAs to prioritize the use of locally made goods and services in all projects under the "Nigeria First" policy.
  • The Federal Executive Council (FEC) granted approval for the construction of modern bus terminals in each of Nigeria's six geo-political zones at a total cost of ?142,028,576,008.17.
  • The FEC approved a combined target of ?493 billion for the upgrade of the Kano-Katsina Road and the planned construction of a new Carter Bridge in Lagos.
  • The Nigerian government has approved four major proposals to strengthen the nation's national grid, including the release of ?13 billion for compensation on right-of-way acquisitions and the procurement of high-capacity transformers.
  • The equipment procurement for the high-capacity transformers is valued at $34 million, with an additional ?5.2 billion for associated costs.

Statistics:

  • Total cost for the construction of modern bus terminals: ?142,028,576,008.17
  • Combined target for the upgrade of the Kano-Katsina Road and the planned construction of a new Carter Bridge: ?493 billion
  • Release for compensation on right-of-way acquisitions: ?13 billion
  • Equipment procurement value for high-capacity transformers: $34 million
  • Additional costs for associated procurement: ?5.2 billion

Sources:

  • Voice of Nigeria, 13 August 2025
  • State House Correspondents
  • Minister of Information and National Orientation, Mohammed Idris
  • Director-General of the Bureau of Public Procurement (BPP)
  • President Bola Tinubu
  • Federal Executive Council (FEC)
  • Minister of Transportation, Senator Sa'idu Ahmed Alkali
  • Minister of Power, Adebayo Adelabu
  • Japan International Cooperation Agency (JICA)