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Nigeria: Legislature raises Ministry of Works budget by 56.7%

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Nigeria’s National Assembly increased the budgetary allocation to the Ministry of Works by 56.7% from N657.3 billion in the proposed budget to N1.03 trillion.

This is an increase of N373 billion over the amount originally stated in the appropriations bill. In comparison to the amount authorised in the 2023 budget, it also signifies a 65.4% increase.

More than 33,000 km of federal government highways nationwide are under the ministry’s care and upkeep. According to a copy of the approved budget, the rise resulted from a capital budget increase from N617.9 billion to N987.3 billion.

The document stated that N94.83 billion had been approved for the construction of the Lafia road, the dualization of the 9th Mile (Enugu) Otukpo-Makurdi (Keffi Phase Ii) road project, N15 billion for the construction of the Ota-Idiroko road, N4 billion for the construction of the Iyin-Ilawe Ekiti road, and N13.5 billion for the rehabilitation of the Enugu-Port Harcourt road, sections two and four.

The Minister of Works, David Umahi, requested during the budget defence that the National Assembly raise the ministry’s 2024 budget to around N1.5 trillion in order to allow it to finish building at least ten strategically important roads and bridges in each of Nigeria’s six geopolitical zones.

In a meeting last week, Umahi assigned contractors the task of finishing 150 km of roads across the 36 states and the Federal Capital Territory by the year 2024.

“Can we have about 150km of road completed in 2024 in each state? What does that mean? If we have five contractors working together in the same state, then 150km divided by five is 30km, so it’s achievable.

“Nigerians will want to see if we can complete 150km in each of the 36 states and the FCT, and you will see the total number of roads completed, and that will be a good way to start,” he said.

Nigeria has had a slight improvement in infrastructure development over the course of five years (2016–2020), albeit slowly, in a few key areas, including transportation, power, ICT, water, and sanitation. Even with clear progress, the nation still lags behind 23 African nations.

Nigeria’s infrastructure deficit, which represents 30% of its GDP, is below the global standard of 70% established by the World Bank, according to the United States Department of Commerce’s International Trade Office.

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South Africa: President Ramaphosa insists pause in power cuts not linked to election

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South African President, Cyril Ramaphosa, denied on Monday that a recent halt in the country’s long-running energy disruptions was due to the May 29 election.

Rolling power outages enforced by state utility Eskom reached record levels in 2023 and continued into the first quarter of this year, but there has now been no load-shedding, as South Africans refer to the cuts, for 48 straight days, the longest period in more than two years.

According to statistics collected by The Outlier, an independent South African publication specializing in public service data visualisations, power outages occurred every day over the same 48-day period last year.

The rapid improvement in power supply has become a talking point in South African media, prompting opposition charges that the timing was intended to boost voter contentment with the ruling African National Congress.

The ANC is expected to lose its legislative majority for the first time in 30 years, facing its most challenging election ever. According to Ramaphosa’s weekly communication, Eskom’s increased performance demonstrates the success of the government’s 2022 energy plan.

“Yet, against all the available evidence, some people have claimed that the reduced load-shedding is a political ploy ahead of the elections,” he said. “This is not borne out by the facts.”

Ramaphosa credited the improvement to Eskom’s renewed focus on maintenance, additional generation capacity from renewable energy projects, and increasing demand for rooftop solar panels, aided by tax breaks.

Last Monday, the Democratic Alliance, the largest opposition party, ascribed the improved power supply to “political interference” by the ANC, accusing it of exerting pressure on Eskom to keep the lights on.

“South Africans should not be fooled by this brazen abuse of power and they must act to decisively vote out the manipulators on the 29th of May,” it said in a statement on its website.

A key point of contention was whether Eskom was burning more diesel to enhance supplies, as claimed last week by the utility’s former CEO, Andre de Ruyter, who is openly hostile to the ANC.

“If the lights are on, well done, but they’re on because we are pouring money into diesel at a rate of knots,” de Ruyter, who stepped down in February 2023, told a conference in South Africa, in comments widely reported by local media.

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Niger’s Prime Minister claims Benin’s oil export blockage breaches accords

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Niger’s Prime Minister, Ali Mahaman Lamine Zeine, has claimed that Benin’s suspension of Niger’s oil shipments, imposed in reaction to a border shutdown, breached bilateral trade agreements as well as those with Niger’s Chinese partners.

Niger’s Prime Minister Ali Mahaman Lamine Zeine said on Saturday that Benin’s blockade of Niger’s oil exports, imposed in response to a border closure, violated trade agreements between the two countries and with Niger’s Chinese partners.

Speaking at a press conference in the capital Niamey, Zeine said Niger could not fully reopen its border with Benin for security reasons, in comments that escalate a dispute that saw Benin this week block supplies of Niger’s crude oil to ships in its port.

The blockade threatens Niger’s plan to begin crude exports under a $400 million deal with China National Petroleum Corp (CNPET.UL). This is significant because Niger plans to use the funds from the export deal to cover missed bond payments due to regional sanctions.

Zeine claimed that the embargo breached over a dozen agreements signed by Benin, Niger, and China about a recently launched, PetroChina-backed pipeline connecting Niger’s Agadem oil field to Benin’s port of Cotonou.

However, Benin has stated that it will only back down if Niger reopens its border to Benin-produced goods and normalizes relations. According to Zeine, one of the oil export treaties stated that Benin could not unilaterally amend or limit the agreements without the assent of the other parties.

 

“This means that the country agreed not to take any decision that would stop the flow of Niger’s crude oil to the international market. This is serious. This is a violation of an agreement,” he said at a press conference.

 

The relationship between the two countries has been strained since July 2023, when a coup in Niger prompted ECOWAS to impose tight sanctions for over six months. What comes next is unclear. Zeine stated that Niger will not cooperate with Benin’s desire to reopen its border fully.

“In Benin’s territory, there are bases where in some, terrorists are trained to come and destabilise our country. So, it is for simple security reasons that we decided to maintain the border closure,” Zeine said, without further detailing the allegations.

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