FEC APPROVES KEY DECISIONS AND POLICIES
The Federal Executive Council (FEC) recently concluded a two-day meeting chaired by President Bola Tinubu. The council approved a series of policies and projects aimed at boosting the economy, attracting investment, and improving the ease of doing business in Nigeria. Here’s a breakdown of the key decisions:
Infrastructure and Housing (Public-Private Partnerships):
- The FEC endorsed a series of initiatives leveraging Public-Private Partnerships (PPPs) to revolutionize Nigeria’s infrastructure and housing sectors.
- These initiatives, estimated to unlock N2 trillion, aim to:
- Transform the nation’s infrastructure and housing mortgage sectors.
- Address the urgent need for critical infrastructure and affordable homeownership.
- Foster job creation, inclusive growth, and long-term productivity gains.
- Inspired by the success of the 1970s, the government envisions facilitating access to 25-year mortgages at low-interest rates for Nigerians to achieve homeownership.
- Collaboration with private institutional investors aims to replicate past successes and address current challenges effectively.
Business Environment:
- Airport Tolls: The FEC mandated that all users of federal airports nationwide pay tolls upon entry. This includes the President and Vice President.
- Visa Policy Review: The council announced a four-week deadline for reviewing the visa policy to make it easier for tourists, businesspeople, and creative professionals to visit Nigeria.
- The review aims to streamline the visa application process, potentially allowing online applications with 48-hour approvals. Visa waivers for holders of visas from certain countries might also be considered.
- This initiative acknowledges the importance of a user-friendly visa process for attracting visitors and promoting business activity.
Transportation:
- Disabled Aircraft Recovery System: The FEC approved a N4.2 billion contract for the supply, installation, and operator training for a disabled aircraft recovery system at Murtala Muhammed Airport in Lagos. This follows a similar contract awarded in 2021 for Nnamdi Azikiwe International Airport.
- Bus Terminals and Facilities: The council approved a N51 billion contract for Planet Projects Nigeria Limited to build bus terminals and other transportation facilities within 15 months in Kugbo, Abuja Central Business District, and Mabushi.
Technology and Communication:
- National Fiber Optic Network: The FEC approved the creation of a Special Purpose Vehicle (SPV) on a PPP basis to develop 90,000 kilometers of fiber optic cable. This project, modeled after the NLNG model, aims to increase Nigeria’s internet connectivity by 60-70%.
- NITDA Remittances: The council authorized consultancy services for the reconciliation and expansion of remittances to the National Information Technology Development Agency (NITDA).
- Nigerian Digital Technology Exchange Programme Hub: The Ministry of Communications received approval to convert a Nigerian government property valued at close to $7 million on Jackson Street, San Francisco, USA, into a hub for the Nigerian Digital Technology Exchange Programme.
Construction:
- Kwaita-Yebu Road Upgrade: The FEC awarded a contract to Messrs El & Matt Nigeria Limited to upgrade the Kwaita-Yebu Road in Kuala Area Council of Abuja for N7.6 billion. The project is expected to be completed in 18 months.
Justice:
- Court of Appeal Building: The council approved a N37.2 billion contract for Messrs Visible Construction Limited to build the Court of Appeal Abuja Division.
These initiatives represent a comprehensive approach to address critical infrastructure needs, improve the business environment, and support technological advancement in Nigeria.
