The Federal Executive Council (FEC) on Wednesday approved the construction and installation of 10 rice milling and six cassava processing plants at the estimated cost of N13 billion, to be sited in strategic locations in the country.
The weekly meeting presided over by President Goodluck Jonathan, also approved the sum of N568,663,533.21 for the award of contract for the additional construction of 1 x60 MVA, 132/33KV Transformer to Maiduguri 1x150MVA, 330/132KV substation for the Transmission Company of Nigeria (TCN) Plc.
Briefing State House correspondents at the end of the meeting, the ministers of Information, Labaran Maku; Agriculture, Dr. Akinwunmi Adesina; Works, Mike Onolememen; Health, Prof. Onyebuchi Chukwu and Minister of state for Power, Mohammed Wakil, said the agriculture sector dominated the discussions at council.
Adesina explained that the each of the integrated rice mills has 36,000 metric tons capacity with a total capacity of 360,000 metric tons, and would be cited in Kebbi, Zamfara, Kaduna, Niger, Benue, Kogi, Bauchi, Ogun, Anambra and Bayelsa states.
According to the minister of Agriculture, the six cassava processing plants with a total capacity of 180,000 metric tons, would to be sited in Ondo, Ogun, Abia, Delta, Cross River, and Abia states.
He said even though the rice mills and the cassava processing plants are to be owned and operated by the private sector, the government was spearheading it to encourage farmers and boast local processing of the products.
Adesina explained that the initiative was taken having found that though there are abundant production of rice and cassava but there is no enough means of processing the products which could not be handled by the private sector alone.
Briefing on the power project, Wakil explained that following a memorandum brought before the Council’s meeting, approval was given for the award of contract for the additional construction of 1 x60 MVA, 132/33KV Transformer to Maiduguri 1x150MVA, 330/132KV substation for the Transmission Company of Nigeria (TCN) Plc.
He said the award of contract in favour of Merssrs Best Crompton Engineering (Africa) Limited will cost the sum of $2,250,446.72 payable at the prevailing exchange rate at the time of payments plus N208,592,058.01 and completion period of 12 months.
“The projection is one of the key projects designed by the TCN to strengthen the national grid for effective power wheeling and to enhance socio economic development of the state. It is to be financed under the Eurobond of N800,000,000.00 loan while the balance would be provided for in the 2015 budget,” he stated.
On the Abidjan-Lagos corridor, the minister of Works, Onolememen said the council ratified the treaty on the establishment of Abidjan-Lagos corridor among the government’s of the Republics of Benin, Cote D’ivoire, Ghana, Togo and the Federal Republic of Nigeria.
“The objective of the Treaty is to facilitate safe and efficient movement of persons and goods, regional and international trade and transport by improving on the road infrastructure and simplifying and harmonising the requirements and controls that govern the movement of goods and persons with a view to reducing transportation costs and transist times.
“Council approved the ratification of the treaty on the establishment of Abidjan-Lagos corridor among the government’s of the Republics of Benin, Cote D’ivoire, Ghana, Togo and the Federal Republic of Nigeria and directed the Attorney-General of the Federation and Minister of Justice to prepare the instrument of ratification to the treaty,” he said.
According to the Minister, the project will be of immense benefit to Nigeria as the largest economy in the West African, 60 per cent of population in West Africa were Nigerians.
He said Nigeria will be able to boost her trade in the sector, it will take over commending share of the ECOWAS market.
He said the project study of the corridor has been launched, and with this approval it will give legal backing to the funding of the project.
He said the funding of the project is to be handled by the five participating countries in line with the agreed ratio within the treaty. As well as funding from the Chinese Nexim Bank and Bank of Kuwait.
