FG seeks improved NDDC funding with regional bank’s flotation

Faced with intractable funding challenges for infrastructures development in the oil rich Niger Delta, Federal government said it set to float the Niger Delta Development Bank (NDDB) to ease project funding in the region.

BusinessDay gathered from Chairman of the Niger Delta Development Commission (NDDC) Victor Ndoma-Egba at the Presidential Villa, after leading the NDDC board to meet with Vice President Yemi Osinbajo, weekend.

The NDDC was created as an intervention agency in response to the developments challenges in the Niger Delta region, which contributes bulk of the nation’s foreign exchange earning from its rich oil resource

Several projects embarked upon by the federal government including the Presidential Amnesty Programme, the Ogoni Clean Up project, estimated to cost over $10b and the  East-West Road, have either been abandoned or encountered slow pace of implementation

President Muhammadu Buhari had while presenting the 2018 budget to the National Assembly said government was partnering with the Nigeria LNG Limited to construct the Bonny-Bodo road project that had remained abandoned for several years now.

The non- implementation of the Itakpe-Ajaokuta-Warri rail line, has also frustrated efforts to  link with the region with rail transportation system, having been abandoned, for over 17 years

The sum of N53.89 billion was allocated to Niger Delta Ministry , while N71.20billion was allocated to the Niger Delta Development Commission, NDDC, in the 2018 budget, representing about 50 percent and 18 percent increase, respectively over the 2017 budget

Government had allocated N34.20b and N61b to Niger Delta Ministry and the NDDC , in 2017, respectively.

Ndoma-Egba who noted that funding of NDDC projects had always been problematic due to shortfalls, especially from the federal government’s contribution, said the Board was looking beyond such sources of funding to enhance infrastructure development in the region.

“For once, the federal government and the NDDC are sitting together to reconcile what is due and what is outstanding.

“So, we believe that from the shortfalls, we would be better off funded. But we are also looking beyond the traditional methods of funding the federal governments budget and the NDDC budget.  As you know we are already working with the Niger Delta Development Bank that will take over the issue of funding beyond the oil and beyond particular boards”

Speaking on the bank take off, Ndoma-Egba posited that the bank will come on stream before the end of December, 2018.

“We have timelines and we are strictly adhering to the timelines.  We believe that by the end of this year, we should take off the ground”

Managing Director of the NDDC, Nsima Ekere, also made a presentation of planned initiative to introduce digital learning in primary and secondary schools in the Niger Delta, at the meeting with the Vice President.

“We had interface with the state governors because as you very well know the schools belong to the state governors with the exception of the private schools.  So, they bought into the programme.

Following the approval of the project, an implementation committee involving the nine states of the Niger Delta, the NDDC, the Ministry of Education and the Ministry of Science and Technology, was set up.

“Basically, what we are doing is to try and digitalize learning.  All of the traditional textbooks that are used in primary and schools will be put into digital formats, into tablets that will be distributed to pupils and students in the Niger Delta Region.

“We are determined to change the narrative. In NDDC today, contractors no longer abandon projects. Before now a lot of contractors would receive mobilization for projects. You would pay a contractor maybe 15% or 20& mobilization, and he knows that if he executives it he will  make the same amount as profit, some of them would rather take the money and walk away.

He disclosed that the NDDC has tightened the noose on its contractors as part of its anti- corruption policies which allows zero tolerance for corrupt practices.

“So, right now we are not giving mobilization to any contractor any more. That helps us to prune down the list of contractors and deal only with contractors that have both technical and financial capacity to do our projects.  That has helped us to deliver on the projects and change the story for the better.

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