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Cabinet officials

Nigeria's Council Approves N987 Billion for Aviation Infrastructure, N175 Billion for East-West Road Revamp

Strategic Insights

— 1 min read

President Bola Tinubu's administration has made significant strides in revitalizing Nigeria's economy through targeted capital investments, with the latest being the approval of N987 billion for modernizing Nigeria's aviation infrastructure and safety systems, and N175.08 billion for revamping the East-West Road. The initiatives aim to improve mobility, logistics, and economic opportunities across several southern states.

Key Takeaways:

  • The Council approved N987 billion to modernize Nigeria's aviation infrastructure and safety systems, with a focus on upgrading Terminal B at the Nnamdi Azikiwe International Airport, Abuja, and establishing command and control centers at major airports.
  • The East-West Road revamp, allocated N175.08 billion, aims to improve mobility and logistics in the oil-rich Niger Delta region.
  • The government has approved the concession of the 6-megawatt Ikere Gorge Hydro Power Plant in Iseyin, Oyo State, to Quent Power Infrastructure Nigeria Limited, with a concessional fee of about N291.6 million and an annual concession fee of N66.3 million.
  • A new 2x60 MVA, 132/33 kV substation in Ibadan, Oyo State, was approved, with a contract sum of $18.3 million and N9.9 billion, inclusive of 7.5% VAT, for construction and installation.
  • The procurement of three operational vehicles for the FGN Power Company, valued at an undisclosed amount, is aimed at enhancing project execution.
  • The Council also approved multiple approvals exceeding N40 billion in the energy sector, including the replacement of the preferred bidder for the 6-megawatt Ikere Gorge Hydro Power Plant concession.

Statistics:

  • The total allocation for the East-West Road revamp is N175 billion.
  • The concession fee for the 6-megawatt Ikere Gorge Hydro Power Plant is about N291.6 million.
  • The annual concession fee for the Ikere Gorge Hydro Power Plant is N66.3 million.
  • The contract sum for the construction and installation of the 2x60 MVA, 132/33 kV substation in Ibadan, Oyo State, is $18.3 million and N9.9 billion, inclusive of 7.5% VAT.
  • The government has allocated multiple approvals exceeding N40 billion in the energy sector.

Sources:

  • Minister of Works, Dave Umahi
  • Minister of Power, Adebayo Adelabu
  • Minister of Aviation and Aerospace Development, Festus Keyamo
  • State House in Abuja
  • Federal Government of Nigeria (FGN) Power Company
  • Quent Power Infrastructure Nigeria Limited
  • Indra of Norway

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