N458m Bribe Scandal:Full report by IMHA special ad-hoc committee
1. BACKGROUND
Sequel to a report by the Hon Member, representing Orsu State Constituency and Chairman Joint State/Local Governments Projects in the plenary sitting of the House on Wednesday, 20th February 2013 on the progress or otherwise, made so far on the execution of road contracts awarded to some contractors in the state.
He reported on the slow pace of work by both Messrs JPROS International Nig Ltd and Timik construction Coy in Owerri and Orlu Municipalities respectively. In his view the underlisted roads can be deemed as being abandoned by the contractors after collecting over 100% payment.
(a) Ware-house Orlu Road junction
(b) Odunze Aba Road
(c) Amaigbo Street to old Nekede Road
(d) Dualization of Orlu Main Town
Consequent upon this, the Rt. Hon. Speaker constituted a six-man special Ad-hoc Committee comprising the following Hon. Members to investigate the matter and report back on Tuesday 24th February, 2013.
1. MEMBERSHIP
(1) Hon, Simeon Iwunze - Chairman
(2) Hon, Ikenna Emeh - Member
(3) Hon. Greg Okemili - Member
(4) Hon. Innocent Ekeh - Member
(5) Hon. Kingsley Dimaku - Member
(6) Hon. Samuel Anyanwu - Member
2. TERMS OF REFERENCE
To obtain the following
a. Award letters/approval
b. Certificate of work done
c. The total contract sum
d. The amount paid so far, and who made approvals for the payments.e. The extent of the physical job done with pictures/evaluations
f. The possibility of the contractor fulfilling his contractual agreement or otherwise.
3. IN COMMITTEE
The committee immediately got inaugurated and set modalities for the investigation, it invited the following persons/ representatives of companies in these road projects to appear before it on Friday 22nd February, 2013 with the necessary documents relation to the contracts.
The persons invited were:
(a) His Excellency, the deputy Governor of the State/Former Commissioner for works and Transport.
(b) The Principal secretary to the Governor
(c) The current Commissioner for Works
(d) The Commissioner for Finance
(e) The Permanent Secretary Ministry of Works and Transport and his Directors/line officers
(f) The Accountant-General of the State
(g) The representative of JPROS International Nig Ltd.
(h) The representative of Timik construction Coy. Ltd.
All those invited to appear before the Committee did so on several invitations and were interrogated except the representative of Timik Construction Coy. Ltd. Who claimed on phone that he was deadly sick and receiving treatment in an hospital in Lagos with a promise to meet the Committee once he recovered.
The permanent Secretary Ministry of Works and Transport, Mr. Alex Nlebedum in his evidence before the Committee turned mountain of document relating to the award and execution of the contracts under investigation but most relevant to this Committee are:
(a) A letter captioned award of contract for the construction of 3 No. Roads – Warehouse Orlu Road Junction –Odunze Street and Amaigbo Street Old Nekede Road. Ref: MOW/COMM/18/S.1/V1/57 dated 1st February, 2012 addressed to His Excellency. The Executive Governor of Imo State. Signed by Alex Nlebedum Permanent Secretary.
The letter reads the above road contracts being handled by JPROS International Nig. Ltd have been re-negotiated downwards from N1,312,106,874.00 (One Billion, Three Hundred and Twelve Million, One Hundred and Six Thousand, Eight Hundred and Seventy-Four Naira only to N1,150,000,000.00 (One Billion, One Hundred and Fifty, One Hundred and Six Thousand Eight Hundred Seventy four Naira) but the contract was re-negotiated downwards after Two Hundred Million Naira first advance payment had been made owing to the fact that some aspects of the job were removed, this brought the total sum of the contract to One Billion One Hundred and Fifty Million Naira (N1,150,000,000), the first advance payment of two hundred million inclusive of this total sum.
Your Excellency may wish to consider the above and direct further please.
(b) A copy of the contract agreement between Ministry of Works and Transport, for State Government on one hand and JPROS International Nig Ltd. On the other hand.
(c) A letter captioned, award of contract for the construction of 3 No. Road – Warehouse Orlu Road Junction – Odunze Street and Amaigbo street Old Nekede Road. Dated 3rd February, 2012 signed by Dr. Pascal C. Obi (Ksm) Principal Secretary to the Governor addressed to the Hon. Commissioner Ministry of Finance Imo State.
The letter reads:
I am directed to refer to your letter Ref: MOW/COMM/18/S.1/V1/57 dated 1st February, 2012 on the above mentioned subject matter (copy attached) and to convey His Excellency, the Governor’s approval for the release of the sum of N1,150,000,000.00 (One Billion, One Hundred and Fifty Million Naira) only to the Ministry of Works for the execution of the aforementioned projects.
2. Copies of this letter are being endorsed to His Excellency, the Deputy Governor/Hon. Commissioner, Ministry of Works and the Account-General, Imo State for their information and necessary action.
3. Take necessary steps to implement His Excellency, the Governor’s directive.
d. A cope of the evaluated works of JPROS International Nig Ltd so far amounting to N195,276,870, signed by the Director of Planning Research and Statistics Ministry of Works and Transport Mr. Ike Maduabuchi was presented to the Committee.
NB: The oral interviews arguments and interrogations, that ensured between the Committee and its invitees does not worth the acre of this report.
The Committee in the cause of its investigation found out that JPROS International Nig Ltd had earlier expressed interest for this job at the sum of N1,312,106,874,00 (One Billion three Hundred and twelve million ……….
The contractor accepted it in writing.
When the permanent Secretary Ministry of Works and Transport was asked whether the reply to his letter of Governor seeking approval for the contract to be executed at a total sum of One Billion One Hundred and fifty Million only, was what he got in a letter dated 3rd February addressed to the Commissioner Ministry of Finance?
He said no, that he expected an approval only and not release of fund.
Mr. Nick Oparadudu current Commissioner for Works in his own interview with the Committee said that he was yet to take over from the former Commissioner for Works, His Excellency the Deputy Governor therefore was not in a position to interview Committee on the subject matter.
Deacon Chike Okafor the Commissioner for Finance in his interview with the Committee was asked why he paid JPROS International Nig Ltd sum of One Billion One Hundred and Fifty Million only when the letter addressed to him dated 3rd February, 2012 signed by Dr. Pascal Obi (Ksm) expressly stated that the money be paid to Ministry of Works and Transport.
He replied that because of issues arising from the management of funds, close to One Billion Naira by the Ministry of Works and Transport for the resurfacing of Owerri Municipal roads on the advent of this administration, His Excellency, directed orally in an exco meeting that payment for road contracts be made direct to contractors by the Ministry of finance.
George Eche the Accountant-General; in his interview with the Committee was asked why he released the sum of One Billion One Hundred and Fifty Million Naira only directly to JPROS International Nig Ltd contrary to the directive on the letter endorsed to him, dated 3rd February, 2012 signed by Dr. Pascal Obi (Ksm) expressly stating that the money be released to Ministry of Works and Transport.
In his reply he said that the office of Accountant-General is one and also the only office authorized by law to make payments on behalf of the State Government and that the purpose of mentioning the Ministry in the letter was to charge the expenditure to the budgetary provision of the concerned Ministry.
He was equally asked by the Committee why he paid JPROS International Nig Ltd. Without certificate as they are conditions precedent for raising of payment vouchers by MDA’S before the apply for the approval of payment and release of money the contract from the Governor’s office. He submitted that the Accountant-General duty arises only after Governor’s approval. In the instant case he received Governor’s approval through the office of Principal Secretary to the Governor’s dated 3rd February, 2012. It is the duty of the concerned MDA’S vouchers for purposes applying for Governor’s approval and release of Money to the Contractor.
Dr. Pascal Obi (Ksm), the Principal Secretary to the Governor, in his interview with the Committee, was asked why he conveyed the authority for release of fund to Commissioner Ministry of Finance while the letter he was replying only asked for approval of the Governor for the Ministry of Works and Transport to contract the job at the new re-negotiated sum of One Billion One Hundred and Fifty Million only.
In his reply, he said that the Governor’s approval also means the release of the complete money earmarked for the project, to avoid abandonment of projects in line with the Rescue Mission Agenda.
Joseph Dina of JPROS International Nig Ltd, in his first interview with the Committee was asked to tell his story.
He informed the committed that he did not apply for the payment but he was nevertheless, not surprised because the Governor has always assured him to continue work that he will pay him 100%. When confronted as to why he will stated that compared to work he has was not overpaid. He promised to show the committee, at the committee’s readiness such works. As to why he abandoned the contract in question, he stated that he did not abandoned the job but agreed that work is slow due to the fact that he is sure of funds. The committee was embarrassed at this juncture considering the amount of money he admitted being paid by the state.
Mr. Joseph shocked the committee by telling the committee that after paying his suppliers he was owing before the payment and paying a total sum of N458.000.000.00 between February and June 2012 at the request and directive of Deputy Governor Sir Jude Agbaso he had no money left to continue the work at the expected pace.
As to the reason behind the payment to Sir Jude Agbaso, he replied that it was in consideration of Sir Jude Agbaso promise to award more contracts of 15 kilometer of Sir Jude Agbaso promise to award more contracts of 15 kilometer roads in two local Government Areas in Imo State. However, Sir Jude Agbaso was for reasons unknown to him unable to award him the promised 15kilometer roads in 2 Local Governments. This led his company into financial crises and inability to deliver the contract in question.
He asserted that he is willing and ready to deliver on the contract if he can get the N458.000.000.00 he gave to His Excellency, Sir Jude Agbaso since he could not award the 15 kilometers roads in the two Local Government which was the reason for giving him the money. But till now he has refused to return the N458.000.000.00.
Mr. Joseph Dina went on to provide the committee with his bank statement from Diamond Bank indicating the transfer of both the first and second money. The photocopies of the cheques he issued to Diamond Bank Plc in order to make the e-payment to the accounts sent to him through short message service (SMS) from His Excellency, Sir Jude Agbaso’s phone No. 0803xxxx421 and a copy of a hand written statement detailing how he used the money to the committee.
The committee further asked him how much he gave to any of these people
1. His Excellency the Governor
2. Her Excellency the wife of the Governor
3. The Speaker Imo House of Assembly
4. Deacon Chike Okafor
5. Mr. George Eche
6. Mr. Paschal C. Obi (KSM)
7. The Chairman House Committee on Works
He said he did not give any of them any money. The committee also asked him how much he gave to Permanent Secretary Mr. Alex Nlebedum, Mr. Joseph Dina murmured and finally said nothing was given to him.
His Excellency, Sir Jude Agbaso in his submission before the committeeinformed the committee that the contractor was appraised and appointed by the Ministry though did not emerge through tender. However that the contractor was selected because he showed capacity by mobilizing equipment to the state at short notice which were publicly displaced at the premises of old Imo Hotel and ready to commence work without mobilization which was in tandem with the style of the Rescue Mission Administration at inception.
On the payment in question relating to the road His Excellency averred that the payment was made by the Office of the Commissioner of Finance and Accountant –General who refused to send the money to the Ministry of Works as contained in the approval as conveyed by Dr. Paschal Obi Principal Secretary to the Governor for reasons known to the two officers.
He contended that, had the money been sent to the Ministry of Works and Transport, the over payment and unearned sum would have been noticed and avoided. Besides, there would have been need to observe compliance with due process by ensuring that payments are based on milestones achieved by the contractor.
On what steps he took when he got approval for release of money to his Ministry when looking at the ordinary meaning of the Permanent Secretary’s request, which was only requesting for Governor’s authorization to contact with Mr. JPROS at the re-negotiated rate of one billion one hundred and fifty million naira, His Excellency the Deputy Governor submitted that he only minuted to his Permanent Secretary “to deal accordingly” and he was not surprised, as the Permanent Secretary’s letter also meant request for release of money.
The committee disagreed with him and put it to him that in believing as he did that the letter dated 3rd February, 2012 meant approval and release of money for the contractor and knowing that the contractor have not earned the requisite certificates, did he not believe that he failed in his duty by not taking steps to stop the payment by advising the Accountant-General’s office as earlier payment including the N200.000.000 (Two Hundred Million Naira) only already paid to the contractor was paid directly by the Accountant-General to the contractor.
His Excellency informed the committee that from January to June he had no dealings with the contractor until June when he learnt that the contractor had been paid. He started calling him but the contractor refused to pick his calls.
His Excellency in answer to the Committee Chairman’s question as to whether he has not been in telephone communication from 1st February to 28th 2012, denied speaking with Mr. Joseph Dina in any form in the month of February 2012 and only remembered occasional former calls in the early days of the award and execution of the contract and visiting the contractors on site. He informed the committee that the contractor has not been to his house before.
However, on Sunday 3rd March 2013, the Rt. Hon. Speaker called the Committee Chairman, Hon Barr. Simeon Iwunze that the Governor wants to see the committee members in the Government House, the committee members were ushered into the governor’s dining area where we met with the elders/advisers of this administration and His Excellency the Deputy Governor with the Governor presiding.
The Governor, informed the audience that he was embarrassed by the Deputy Governor when the Deputy Governor informed him that the House will impeach him on Tuesday being 5th of March. And that the rumour making the rounds is that he collected N450.000.000.00 (Four Hundred and Fifty Million Naira) only from JPROS International Nig Ltd and His Excellency the Governor is travelling so that the Deputy Governor will be impeached in his absence. The governor said that this information jolted him that he had to cancel his proposed medical trip abroad and headed back to Owerri from Abuja. The governor informed the committee members and the elders/advisers that the essence of the gathering was for him to confirm what the problem was between the House of Assembly and the Deputy Governor.
His Excellency the Deputy Governor said that what the governor said was true as to his information to the governor and that he hereby restate that the House of Assembly wants to impeach him and that it was also rumoured that His Excellency the Governor was aware of the plot.
At this juncture, the Committee Chairman who spoke on behalf of the committee informed the audience that the committee is oblivious of any attempt to impeach the Deputy Governor and felt scandalized by the Deputy Governor’s allegation of payment to members by the Governor or any person to impeach the Deputy Governor but informed the audience that the committee is a special committee of the House set up to investigate the remote causes of abandonment of construction of some signature roads of the administration in Owerri, Orlu and Okigwe municipalities.
However, the chairman sought permission of the governor to cross examine the Deputy Governor on the issue of money he personally raised suo moto as the committee was about inviting him the next day being Monday 4th March to answer to some questions relating to exchange of money between the Deputy governor and Mr. Joseph Dina of JPROS international Nig ltd which Mr. Joseph Dina raised when he appeared before the committee. The Governor granted the chairman’s request and it was agreed that if the Deputy Governor elected to answer that the cross-examination, it shall be deemed as an evidence before the committee.
TRANSCRIPT
Chairman: Your Excellency now that you have raised the issue of money, Mr. Joseph Dine told the committee that you sent SMS to him containing two account numbers into which he paid.
1. N325,000,000.00 (Three hundred and twenty five million naira) only in February, shortly after he got the alert of payment.
2. Another N133,000,000.00 (One hundred and thirty three million naira) only in June.
3. So, Your Excellency, did you get the money as you directed Mr. Joseph Dina directly?
Deputy Governor: Meeee eeh? I did not give him any text message. I did not demand for any money from him or receive any money directly or indirectly from Joseph Chairman Your Excellency Sir, Mr. Joseph Dina equally told the committee that he was in your House at MCC road in February 2012
Deputy Governor: He has never been to my house at MCC road whether in February or any other day.
At this juncture the Governor interjected and asked the Deputy Governor “You are my son tell me the truth …. “Did you receive anything so that we can end this matter.
Deputy Governor: Your Excellency I did not receive anything any money from the contractor.
Governor Okorocha: Ok gentlemen…now that this contractor wants to put shit on the face of the executive the State is interested in the matter.
At this juncture His Excellency the Governor set up a committee of all Elders/Advisers of the administration led by Prof Dike SAN to assist the Executive and resolve any face off between the Deputy Governor and the House of assembly if any, but the committee should continue with their assignment and if any body is found guilty he should pay for it including me, the Governor.
The committee reminded the Deputy Governor of his appointment with the committee the following day being Monday at 10am and graciously agreed to oblige the committee.
On Monday 5th of March 2012 at about 10am, His Excellency the Deputy Governor appeared before the committee facing Mr. Joseph Dina of JPROS International Nig. Ltd in the interface with the committee and the following dialogue ensued:
Committee: Mr. Joseph Dina, do you know the person sitting opposite you?
Joseph Dina: Yes I know. He is the Deputy Governor. He is commissioner of works
Committee: What is his name?
Joseph Dina: Sir, Jude Agbaso
Committee: your Excellency, do you know the man sitting opposite you?
Deputy Governor: Yes I know him. He is JPROS
Committee: He said you gave him account numbers via your telephone number 0803xxxx421 directing him to pay a total sum of N458,000,000.00 (four hundred and fifty eight million naira) to those accounts? And that he actually paid in February, 2012 on the receipt of the N1.035,000,000.00 (one billion, thirty five million naira) only the sum of N325,000,000.00 (three and twenty five million naira) in favour of Three Brothers concept Ltd account no, 0045630151 with GT Bank Plc Lagos. Sort code 058266511 drawn on cheque no 30794812 of Diamond bank, account no, 0015810435 belonging to JPROS INT. NIG. LTD and another N133.000.000.00 (one hundred and thirty three million) paid in June to IHSAN BDC LTD account No, 10,5334698. Sort code 033153351 UBA PLC 27 wharf road Apapa Lagos drawn via Diamond Bank Plc cheque no; 42613519 account no 0015810435 belonging to JPROS INT NIG. LTD. Do you have any thing to say?
Deputy Governor: I say before this committee that I did not text JPROS to transfer any money to any A/C and this is the truth. JPROS is telling lies against me. Never did I at any point in time requested JPROS either oral or written to do do. He went on to say,…. “the God that guides Imo State the land of Owerri will punish you and those using you”. The creator of human being knows that you are not saying the truth”.
Committee: Mr. Joseph Dina can you tell the committee the phone number of the Deputy Governor which he used in sending to you the account numbers
Mr. Joseph Dina: Yes I have the number in my phone. (He searches his phone). The number is 0803xxxx421.
Committee: Your Excellency is this your number?
Deputy Governor: Yes it is my number
Committee: Mr. Joseph are these documents the same documents you gave the committee? (Bank documents including his bank statements shown to Mr. Joseph Dina)
Joseph Dina: Yes, Sir, they are.
Committee: Your Excellency Sir, you can you please go through these documents.
Deputy Governor: (after glancing through the documents) well I have no need for these documents. They are his and have nothing to do with me.
Committee: Did His Excellency confirm these monies you said you paid into those accounts you said he tested to you?
Mr. Joseph Dina: Yes , he confirmed them.
Committee: How?
Mr. Joseph: During phone conversations
Committee: Have you been to His Excellency’s house before?
Mr. Joseph: Yes, I have been to his MCC road private House
Deputy Governor: (Interjects) No He has not been to my house
Committee: Mr. Joseph can you describe the type of House where you met him at his MCC road House?
Joseph Dina: Is bungalow. He told me is a factory for garments before.
Deputy Governor: Noo o! Not true
Mr. Joseph: You don’t remember? You told your security to wait for me outside and give me direction because I did not know the place before.
Deputy Governor: Okaaay.. Yes I now recollect
Committee: Your Excellency Sir, are you now retracting your earlier statement that Mr. Joseph Dina have never been to your House at MCC Road?
Deputy Governor: I said I recollect now. So I withdraw my earlier statement.
Committee: Mr. Joseph What side of the house did you sit with His Excellency, the parlour, the bedroom?
Mr. Joseph: His parlour
Committee: can you tell us the sitting arrangement
Joseph Dina: I can’t remember is long time.
Committee: What happened when you got to His Excellency’s House at MCC road did he offer you anything?
Mr. Joseph Dina: No, he did not offer me anything, rather I gave him a bottle of Blue Label (Porsche design) from Mr. Joseph Dina?
Deputy Governor: Yes, I can remember receiving a bottle of Blue Label (Porsche design). You know he came back from abroad and brought me a drink.
Committee: when did this happen, Your Excellency?
Deputy Governor: it was in February 2012.
Committee: that was the same February that the said one billion one hundred and fifty million naira were wired into JPROS International Nig. Ltd account?
Deputy Governor: Y e e e s s!!
Committee: Your Excellency Sir, are you saying in the natural course of events a contractor who was awarded a contract and was suddenly paid without application by him by the state will come back from abroad and did not show ordinary courtesy of informing you. The commissioner that gave him the job in our Nigerian planet, that he has been paid and say thank you?
Deputy Governor: He never told me he had been paid
Joseph Dina: (Interjects) I told you. You said you give me text message
Deputy Governor: You are evil. You are evil. Is this the kind of creature you are?
Committee: Your Excellency Sir, if you are right this contractor must be the worst specie of ingrates
Committee: Mr. Joseph Dina do you have any other thing to tell this committee?
Joseph Dina: Yes, I equally met him once at his elder brother’s country home in his village. He was in company of the manager of Diamond bank plc Douglas Road branch Owerri – a woman.
Deputy Governor: This man is something else. You have never met me in my village.
Joseph Dina: You don’t remember. We walked outside towards the golf course area. Oh Your Excellency you don’t remember. You know Engr. Tim?
Deputy Governor: Yes I know Engr. Tim. Is my Chief of staff.
Joseph Dina: you remember you sent him to me to negotiate 10%for the job at the beginning of the job.
Deputy Governor: Is not true
Joseph Dina: You don’t remember? In your office. You showed me big files Ohakim files. You tell me help bring expert go through Ohakim files. You give jobs when I tell you that I gave Ohakim money he did not give contract. You said now is my turn to punish him back. I bring expert to help you look Ohakim files and you give me jobs and I give you 10% you remember?
Deputy Governor: Well I have told you this man is evil. He is from Hell.
Joseph Dina: Ok, you say I lie tell MTN give you call log. No no give you date data to show text message. I apply my own we compare.
Findings:
1. A total sum of N1,235,000,000 (one billion two hundred and fifty billion naira paid to JPROS International Nig. Ltd
2. Not withstanding that the permanent secretary ministry of works and transport only applied for His Excellency’s approval to enter into a contract for the construction of 3 non of roads namely warehouse –Orlu road junction Odunze street –Aba road Amaigbo street to old Nekede road a re-negotiated price of N1.150,000,000.00 (one billion, one hundred and fifty million naira) the principal secretary to the Governor conveyed approval and release of funds at the same time to the ministry of Finance and endorsed same to His Excellency the deputy governor/commissioner for works and transport and Accountant-General for their information and necessary action for the contract which is the pattern of this administration to ensure consistent flow of funds earmarked for the execution of the project as a guarantee against abandonment of projects.
3. The Accountant-General made the payment directly to the contractor JPROS International Nig. Ltd without first sending the money to the ministry of works and Transport in line with approval of His Excellency because as that time, consistent with exco memo to that effect, payment of contracts were being affected directly from the office of the accountant-General on behalf of the concerned MDA’S that have projects covered under State of Emergency declared in area of Infrastructure especially roads, at the inception of the administration.
4. The committee found laxity and lack of sense of duty in the hierarchy of the ministry of works and transport in taking appropriate steps as directed by the Governor to achieve objectives of the Rescue mission administration with regard to the contract in question. The committee frowned at the fact that it took ministry of works four months in their own words (February –June when approval was endorsed to them and when the overpayment was discovered) preparing contract papers.
5. The committee holds the view that the evidence before it consistent with facts that Mr. Joseph Dina of JPROS International Nig. Ltd transfer the total sum of N458,000,000.00 (four hundred and fifty eight million naira only) in two installments to accounts nominated by the Deputy Governor, His Excellency Sir Jude Agbaso.
6. The committee holds the view that the payment N458,000,000.00 (four hundred and fifty eight million by JPROS INTER NIG LTD out of the N1,035,000.000.00 (One Billion. Thirty Five Million Naira) only received by the contractor was the sole cause of abandonment of work on the project in question.
7. The Committee holds that the defenses put forward by the Deputy Governor, His Excellency Sir Jude Agbaos were totally inconsistent with the facts and documentary evidence brought before the committee. He lied over matters within his personal knowledge and thereby put his credibility in doubt in the eye of the committee.
8. The Committee was of the view that the Deputy Governor His Excellency, Sir Jude Agbaso for personal/proprietary interests (vide admitted receipt of Blue Label Porsche Design) decided to turn a blind eye to loss of public funds by the state and tried to hide under the cover of not making the payment directly whereas corruptly enriching himself there from and thereby abused his office as Deputy Governor and Commissioner for Works and Transport.
9. It is the opinion of the committee that his denial that he only knew that JPROS was paid N1,035,000.000.00 (One Billion Thirty Five Million Naira) only 4 months after the payment, was pre-mediated, and was intended to cover any behind the scene transaction with the contractor arising out of the payment to the contractor.
10. The committee also observed that the contractor was willing to continue with the job.
Recommendation:
The committee having weighed the evidence before it hereby recommends:
1. That a vote of no confidence be passed on the Deputy Governor, His Excellency Sir Jude Agbaso for acts unbecoming of his person and office.
2. The Head of Service should immediately commence disciplinary action in accordance with Civil Service rules against the Permanent Secretary Mr. Alex Nlebedum, Director of Planning, Research and Statistics and Resident Engineer attached to the contract for criminal negligence in the performance of their duties and report to the House of Assembly within fourteen days.
3. The State and Local Governments of Imo should blacklist Messrs JPROS International Nig Ltd from doing business with them in future after completion of the existing contracts.
4. That the Attorney-General/ Commissioner for Justice should take measures to ensure immediate recovery of the sum of N200,000.000.00 (Two Hundred Million Naira) being over payment to Messrs JPROS International Nig Ltd on the said contract.
5. The Attorney-General/Commissioner for Justice and Commissioner for Works do take immediate steps to ensure completion of the contract or recover the amount presently unearned as per certified work done by the contractor under the contract. In event of inability of the contractor to complete the contract under terms of Contract Agreement.
Conclusion
The Committee is grateful to the Rt. Hon Speaker and the House for the opportunity to be of service
Hon. Barr Simeon Iwunze - Chairman
Hon. Innocent Ekeh - Member
Hon. Barr Greg Okemili - Member
Hon Kingsley Dimaku - Member
Hon. Samuel Anyanwu - Member
Hon. Barr. Ikenna Emeh
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Lagos State Governor Babajide Sanwo-Olu has reportedly asked the Managing Director and Chief Executive Officer of the Lagos Waste Management Authority (LAWMA), Dr Muyiwa Gbadegesin, to resign amid growing concerns over the accumulation of refuse across the state.
The reported move follows mounting complaints about waste collection, with heaps of garbage littering roads, residential areas and drainage channels in several communities.
An unnamed source within the agency disclosed that the governor had become dissatisfied with the pace of waste evacuation and the implementation of his directives to address the situation.
According to the source, the governor's frustration reportedly intensified following his visit to the Olusosun Dumpsite in Ojota about a month ago, where he assessed operations and called for urgent measures to improve waste management.
Despite the directive and the subsequent declaration of a state of emergency on waste management, the source claimed that the governor remained concerned about the limited visible progress.
The source further alleged that Sanwo-Olu asked Gbadegesin to resign over the weekend, adding that the LAWMA chief had reportedly been seeking the intervention of influential figures in Lagos to retain his position.
Refuse Accumulation Raises Sanitation Concerns
Residents in several parts of Lagos have continued to experience waste collection challenges, with refuse reportedly accumulating along major roads, medians, residential streets and drainage channels.
Affected areas include Mushin, Egbeda, Surulere, Ajegunle, Ikorodu, Ojo, Obalende, Apapa and Mile 2.
The situation has raised concerns about environmental sanitation, public health risks and the potential impact on businesses and daily activities.
The state government had earlier announced emergency measures to tackle the problem and improve waste collection across the metropolis.
In September, Sanwo-Olu declared a state of emergency on waste management following an inspection of the Olusosun Dumpsite. The visit was attended by Deputy Governor Dr Obafemi Hamzat and other stakeholders in the waste management sector.
During the inspection, the governor acknowledged delays in waste evacuation and attributed some of the challenges to the failure of Private Sector Participation (PSP) operators to meet their obligations in recent weeks.
He also identified fires at dumpsites and ongoing waste-compaction projects as factors affecting operational efficiency.
According to the governor, the completion of projects at the Olusosun and Solous 3 dumpsites would increase their capacity, allowing each facility to receive approximately 450 trucks of municipal waste daily.
The planned improvements are expected to strengthen disposal operations and support more efficient waste collection by PSP operators.
LAWMA Reports Progress in Clearance Operations
Amid growing concerns over the waste situation, Gbadegesin announced on Saturday that clearance operations had recorded progress in several locations across Lagos.
In an update shared on his X account, the LAWMA chief said Mile 2 had been cleared, while three additional trucks had been deployed to Doyin-Orile and surrounding communities.
He also reported continued daily waste collection along Ijesha Road and Itire–Ikate, clearance operations at Bucknor–Ijegun, and ongoing collection activities in Ogolonto and Igbokusu.
According to the update, Okeira and Oluodo had been placed under interim LAWMA services following the termination of their PSP arrangements, while clearance operations continued at Iraye.
However, the agency was still awaiting field updates from four routes: Apapa, Abesan Estate, Idimu–Ejigbo Road and the Isheri–Igando corridor.
Gbadegesin said the agency's objective was to move beyond emergency clearance operations and establish consistent waste collection to prevent refuse from accumulating again in areas that had already been cleared.
Government Yet to Confirm Reported Resignation Request
As of the time of reporting, there had been no official confirmation of the alleged resignation request.
Efforts to obtain a response from Lagos State Commissioner for Information, Gbenga Omotosho, were unsuccessful, as an aide said the commissioner was attending a meeting and advised that contact be made later.
Gbadegesin was reappointed as LAWMA managing director by Sanwo-Olu following the governor's re-election.
The reported development comes as the state government faces continued pressure to address waste collection challenges and improve environmental sanitation.
Whether the alleged resignation request will result in a leadership change remains unclear, while residents continue to await sustained improvements in refuse evacuation across Lagos.
News
Ayobami Oyalowo, Executive Director of Finance and Administration at the Ogun-Oshun River Basin Authority, has said reforms implemented under Central Bank of Nigeria (CBN) Governor Olayemi Cardoso have improved the foreign exchange market, strengthened external reserves and enhanced the resilience of the banking sector.
Assessing Cardoso’s three-year tenure, Oyalowo said the apex bank had shifted towards a more orthodox monetary policy framework, prioritising price stability, market discipline and stronger financial sector supervision.
Cardoso assumed office in September 2023 amid significant economic challenges, including foreign exchange market distortions, declining external buffers and rising inflation. Headline inflation stood at 25.80 per cent in August 2023, while multiple exchange rates, foreign currency shortages and accumulated foreign exchange obligations weakened business confidence.
According to Oyalowo, the reforms marked a departure from the CBN’s extensive involvement in intervention programmes across sectors such as agriculture, aviation and power.
He recalled that Cardoso disclosed at the November 2023 Annual Bankers’ Dinner that the CBN had injected more than ₦10 trillion into the economy through various intervention programmes.
Oyalowo said the scale of the interventions raised concerns about excess liquidity, policy effectiveness and the central bank’s involvement in activities that could be better handled by fiscal authorities and development finance institutions.
“The economic significance of this shift lies in restoring consistency between the CBN’s objectives and its policy instruments,” he said.
Forex Market Reforms and Reserve Growth
Oyalowo identified the foreign exchange market as one of the major areas affected by the reforms, following years of multiple exchange rates, restricted access to foreign currency and accumulated obligations.
He said the CBN’s measures were designed to improve price discovery, enhance liquidity and rebuild confidence in the official market.
Among the key initiatives, he highlighted the Electronic Foreign Exchange Matching System, introduced in December 2024, and the Nigerian Foreign Exchange Code, launched in January 2025. Both measures were aimed at improving transparency, accountability and market conduct.
He also pointed to the settlement of verified foreign exchange obligations from an inherited backlog estimated at $7 billion, noting that the move helped address concerns among international investors, airlines and multinational companies over capital repatriation and legitimate financial claims.
However, Oyalowo acknowledged that the adjustment came at a significant economic cost, including sharp naira depreciation, higher import costs, increased production expenses for manufacturers and mounting pressure on household purchasing power.
On external reserves, he said Nigeria’s gross foreign exchange reserves increased from approximately $33 billion when Cardoso assumed office to about $55 billion in October 2026.
He added that net external reserves had risen to approximately $46 billion, compared with $34.80 billion at the end of 2025 and $3.99 billion at the end of 2023, citing figures disclosed by the CBN.
Oyalowo also referenced the CBN’s 2025 Annual Report, which showed that aggregate foreign exchange inflows rose by 13.81 per cent to $109.86 billion in 2025, from $96.53 billion in 2024.
Net foreign exchange inflows stood at $60.81 billion, while autonomous sources accounted for approximately 64 per cent of total inflows.
He described the growing contribution of autonomous sources as significant, explaining that private-sector inflows, export earnings and remittances could provide a more sustainable supply of foreign exchange than administrative allocation.
Improved Credit Outlook and Investor Confidence
Oyalowo further cited improvements in Nigeria’s international credit assessments as evidence of renewed confidence in the country’s economic direction.
He noted that S&P Global upgraded Nigeria’s sovereign credit rating from ‘B−’ to ‘B’ with a Stable Outlook in May 2026. Fitch Ratings also affirmed Nigeria’s ‘B’ rating in October 2026 and revised its outlook from Stable to Positive.
He said Nigeria’s return to the FTSE Russell Frontier Market classification in September 2026 reflected improvements in foreign exchange market accessibility and capital repatriation.
Despite these developments, Oyalowo acknowledged that Nigeria’s sovereign credit ratings remained below investment grade.
He also cited National Bureau of Statistics data showing that capital importation increased to $23.22 billion in 2025, compared with $12.32 billion in 2024.
Portfolio investment accounted for approximately $19.74 billion, representing 85 per cent of total capital importation, while foreign direct investment stood at about $923 million.
According to him, the figures indicated renewed investor interest but underscored the need to attract more long-term capital into manufacturing, infrastructure, energy and technology.
Inflation, Interest Rates and Household Pressures
On inflation, Oyalowo said the CBN had maintained a restrictive monetary policy stance through higher interest rates and liquidity management measures.
He noted that headline inflation moderated to 15.39 per cent in August 2026, from 15.43 per cent in July and 25.80 per cent in August 2023.
However, he cautioned that the rebasing of the Consumer Price Index in 2025 meant historical inflation comparisons needed to be interpreted carefully.
“Moreover, lower inflation does not mean prices have returned to previous levels,” he said, stressing that households continued to bear the cumulative effects of earlier price increases.
He added that while tighter monetary policy could help contain inflationary pressures, high borrowing costs had made it more expensive for businesses to access credit, potentially constraining investment and economic expansion.
Bank Recapitalisation Strengthens Financial Sector
Oyalowo also highlighted the CBN’s banking sector recapitalisation programme, introduced in March 2024, as a major component of the reforms.
The programme raised minimum capital requirements to ₦500 billion for commercial banks with international authorisation, ₦200 billion for national banks and ₦50 billion for regional banks.
By March 2026, he said, 33 banks had met the revised requirements, collectively raising ₦4.65 trillion in fresh capital.
Domestic investors contributed 72.55 per cent of the capital raised, while international investors accounted for 27.45 per cent.
According to Oyalowo, the recapitalisation exercise had strengthened banks’ capacity to absorb financial shocks and finance larger transactions.
However, he emphasised that increased capital must be supported by sound governance, effective risk management and responsible lending practices.
“Stronger balance sheets must be accompanied by sound governance, effective risk management and responsible lending,” he said.
He noted that the challenge for policymakers was to balance financial sector resilience with affordable access to credit, particularly for businesses operating under restrictive monetary conditions.
CBN, Finance Ministry Deepen Policy Coordination
Oyalowo identified the September 18, 2026, Memorandum of Understanding between the CBN and the Federal Ministry of Finance as another important development.
He said the agreement established a framework for closer coordination between fiscal and monetary authorities, covering government cash management, debt issuance planning, liquidity forecasting and macroeconomic analysis.
According to him, the arrangement could reduce the risk of fiscal and monetary policies working at cross-purposes, particularly where government borrowing and spending influence inflation, liquidity conditions and access to credit.
He added that the framework recognised the structural factors driving inflation in Nigeria, including food supply constraints, energy costs, transportation and logistics expenses.
Consolidating the Gains of Reform
Three years into Cardoso’s tenure, Oyalowo said the CBN had recorded measurable changes in foreign exchange market accessibility, external reserves, banking sector capitalisation and investor participation.
He maintained that the governor’s emphasis on monetary orthodoxy had provided the apex bank with a clearer institutional direction, while acknowledging the economic costs associated with the adjustment process.
He stressed, however, that sustaining the gains would require consistent policies, stronger productive investment and measures to ease the pressure on households and businesses.
“The next responsibility is to consolidate these reforms, preserve the gains in macroeconomic stability and create conditions for stronger productive investment, more affordable credit and improved living standards,” Oyalowo said.
Business
In The Spotlight
While delivering the 2026 edition of the Annual Omolayole Management Lecture, President, Chartered Institute of Directors and immediate past Managing Director of 11 PLC, formerly Mobil Oil Nigeria Plc, Adetunji Oyebanji, presented President Bola Tinubu with something to think about.
He declared, “Based on a 2025 normal Gross Domestic Product baseline of approximately US$290.79bn, Nigeria would need to sustain a compound growth rate of approximately 28.02 per cent over the five-year period from 2026 to 2030” to achieve the $1tn economy.
He added, “This rate far exceeds Nigeria’s historical performance and underscores the scale of economic expansion required,” and “Rather than serving as a forecast, this calculation establishes the benchmark against which future economic performance may be assessed.”
As if the priest spoke and thunder rumbled, Nigeria’s National Bureau of Statistics reported that Nigeria’s year-on-year GDP growth rate for the second quarter of 2026 was 4.43 per cent, while the World Bank projected 4.3 per cent growth rate for Nigeria in 2026, up from nearly 4.0 per cent recorded for 2025.
As Oyebanji observed, Nigeria’s economy experienced low growth rates and reversals in the last decade: from 2.65 per cent in 2015, to -1.62 per cent contraction in 2016, a modest 2 per cent rebound in 2017, another reversal, of -1.79 per cent occasioned by Covid-19 in 2020, to a positive rebound of 3.87, or nearly 4, per cent in 2025.
If anyone says President Tinubu has a yeoman’s job ahead of him, they’re spot on. And if he merely coveted the $1tn economy by faith and not with data, it would appear that the President is planning to fail.
And somebody should tell the Comptroller-General of the Nigeria Customs Service, Adewale Adeniyi, who pledged to support the President’s ambition to build the $1tn economy, not to confuse government revenue with a country’s economy.
Oyebanji recognised “governance as the central determinant of success” in the $1tn economy quest, and identified oil, gas and energy; agriculture and agro-processing; manufacturing and industrial development; technology, digital economy and innovation; infrastructure; solid minerals; and services and the creative industry as the sectoral drivers.
But it appears that only the digital, mineral resources mining, service and creative sectors can thrive in the current Nigerian economic environment, and the real sector, agriculture and manufacturing, that produce the strategic consumer goods that are mostly imported at the moment, cannot thrive yet.
The governance structures that Oyebanji suggests for the takeoff of the $1tn economy are macroeconomic stability through disciplined fiscal and monetary policies, consistency of policies, rapid investment in infrastructure and nifty tinkering with the economic environment.
These are the direct opposites of the current negatives: power supply deficit, infrastructure gap, inefficiency in the oil sector, an unstable foreign exchange rate, a low tax-to-GDP rate, insecurity, policy inconsistencies and a huge human capital deficit that compromise the capacity of the real sector and even the service industry.
If the President really wants the $1tn economy to become a reality in 2030, he should review Oyebanji’s perspectives, data and prescriptions and seek competent economists, management and financial planning experts to help him articulate a clear path to achieving this laudable economic prosperity.
Some experts, convinced he may not achieve his objective within the period he has earmarked, think he could at least set himself on the way by making ambitious efforts in electricity, security and logistics, including extensive road, railway, water and air travel networks.
Nigeria’s current electricity generating capacity is somewhere between 4,500 and 5,400 megawatts, whereas it is projected that Nigeria probably needs to generate anywhere between 20,000 and 28,000 megawatts for its 230 million population.
Some even argue that 28,000 megawatts of electricity won’t service the population of Nigeria that is projected to increase to 262 or 270 million by the magical 2030 that the President has set as a deadline for the $1tn economy.
If the electricity infrastructure is not addressed pointedly by the Federal and the state governments that have now been enabled by the transfer of electricity from the Exclusive Federal List to the Concurrent List of the Nigerian Constitution, the economy will not lift off as expected.
The declaration by the Nigerian Constitution that security and the welfare of the people of Nigeria is Job Number One of government confirms the nexus or relationship between public security, public order and the nation’s economic wellbeing.
The classic definition of the state, which is the final, supreme, absolute coercive power within a political realm, speaks to the place of the state, whose public face is the government, as both the arbiter and safeguard of the lives and economic livelihoods of the citizens of a country.
The current inability of the state or the government, which is supposed to have a monopoly on police and military force within the country, is consistently having a negative impact on the security and the economies of the North-East, North-West, North-Central and some corridors of Southern Nigeria.
The rural areas, where insurgency, terrorism, banditry, herder-farmer clashes, and kidnapping have become rampant, are unsafe for lives and unconducive for the farmers who produce the food consumed by the citizens and the cash crops that provide the raw materials for the growth of agro-allied and chemical industries.
Maybe it bears repeating that in addition to preventing harvests from the farms, insecurity is disrupting the transportation of food to the dining tables of Nigerian homes, as well as the cash crops that provide the raw materials for Nigerian industries.
The third basic aspect of the Nigerian economy that the President must take a long, hard look at, if he really wants to make the $1tn economy a reality, is logistics, which is already taking a beating from the insecurity running through most of Nigeria.
The Federal Government must find the funds and speed up the completion of Lagos-Calabar Coastal Road, the Sokoto-Badagry Expressway, the Calabar-Abuja Superhighway and additional longitudinal and lateral highways to link Nigerian farms, industries and homes.
No one can deny that roads encourage the founding and development of modern communities that later become metropolises. Look at the organic growth of urban communities from the Berger end of the Lagos-Ibadan Expressway to the Shagamu Interchange.
To prepare for the heavy lifting necessary to realise the $1tn economy, President Tinubu needs to study and take the best of the railway systems of America, which has the longest rail network in the world; China, with the largest high-speed rail network; Russia, the leader in heavy freight; and India, with the highest passenger rail network.
Cargo airports are more than necessary for quick evacuation of fresh agricultural produce from the farm gates to the urban centres where they will be consumed fresh or converted into raw materials for the agro-allied industries.
The President must find a way to harness the strength of Nigeria’s inland rivers not only to generate hydroelectric power, but also as an integral part of a transportation network that will include roads, railways and airports.
If electricity, security and logistics are taken care of, it shouldn’t be too difficult for the $1tn economy to take off organically.
By Lekan Sote
In The Spotlight
There is a question President Bola Ahmed Tinubu must answer before the 2027 presidential election: if he wants another four years in Aso Rock, why should Nigerians not expect him to stand before them, state by state, and defend his record?
His decision not to accompany his campaign team to every state has ignited a political storm, drawing criticism from opposition leaders, activists and ordinary citizens, while others insist that governance must not grind to a halt because of electioneering. The President argues that Nigeria’s pressing needs demand his attention and that members of the All Progressives Congress (APC) Presidential Campaign Council can carry his message to voters nationwide.
That argument is not entirely without merit. A sitting president has constitutional responsibilities that do not disappear during an election campaign. Government must function, security must be addressed, and the business of the nation must continue.
But there is a dangerous flaw in the President’s position: governance is not an escape route from accountability, and a campaign surrogate is no substitute for the candidate whose record is on trial.
Tinubu is not seeking a ceremonial extension of his stay in office. He is asking Nigerians to entrust him with another four years of power. That request demands more than carefully choreographed rallies, rehearsed speeches and party loyalists singing his praises. It demands answers.
What has happened to the promises made in 2023? What tangible relief have millions of struggling households received? How should Nigerians assess the consequences of petrol subsidy removal and naira reforms? What is the administration’s scorecard on electricity, food prices, employment, insecurity and the cost of living?
These are not questions that can be wished away by delegating campaign appearances to governors and party leaders. They are questions that belong to the President.
THE PEOPLE ARE NOT FOOLS
Across the country, the mood is unmistakable: Nigerians want to be heard. From the trader counting the dwindling contents of her purse to the worker whose salary struggles to survive the month, from the farmer threatened by insecurity to the young graduate searching desperately for employment, the public is entitled to demand a reckoning.
For many citizens, the election will not be an abstract contest of political slogans. It will be a verdict on their lived experience.
That is why Tinubu’s proposed absence from some campaign stops has struck such a sensitive nerve. To his critics, it suggests an unwillingness to confront public anger. Some have questioned his physical fitness; others believe he may be reluctant to defend his administration’s performance. These are allegations, not established facts. The President’s decision alone does not prove that he is unwell or afraid of voters.
Nevertheless, he should understand the political consequences of leaving such questions unanswered. In politics, a vacuum rarely remains empty. Suspicion rushes in where explanation is absent.
If the President is physically capable of discharging his duties, he should have no reason to leave Nigerians guessing about his willingness to engage them. If health or other legitimate considerations constrain his campaign schedule, he should communicate his plans clearly. Nigerians deserve honesty, not speculation.
Silence may be convenient, but it is a poor campaign strategy.
GOVERNANCE IS NOT A SHIELD
The argument that the President must remain focused on governance sounds reasonable. Indeed, Nigeria cannot afford a government that abandons its responsibilities whenever politicians hit the campaign trail.
But the same argument raises another question: what exactly is the President doing with the time he saves by skipping campaign stops, and how will Nigerians see the benefits?
If governance is the priority, then the evidence should be visible in improved security, greater economic stability, reliable electricity, better access to essential services and a meaningful reduction in the hardship confronting ordinary families.
The President cannot invoke the demands of governance as a shield against political scrutiny while asking the same citizens to renew his mandate. The two responsibilities are not mutually exclusive. A president can govern and explain his governance. He can attend to national business and still make himself available to voters.
Nor should the APC confuse the ability to organise rallies with the ability to win public confidence. Party machinery can mobilise crowds. Governors can deliver speeches. Spokespersons can defend policy. But none of them can erase the consequences of decisions taken by the President.
The mandate belongs to Tinubu. So does the responsibility to defend it.
THE OPPOSITION MUST DO MORE THAN SHOUT
Opposition figures, including former Vice President Atiku Abubakar and Peter Obi, have seized on the President’s position to question his commitment to accountability. The Labour Party and the Makinde/Daura Presidential Campaign Organisation have also criticised the plan.
Their central argument—that a president seeking re-election should personally defend his record—is persuasive. But criticism alone is not a credible alternative to leadership.
The opposition must do more than exploit public frustration. It must present workable policies, credible economic proposals, a serious security strategy and a clear plan for restoring public confidence. Nigerians deserve alternatives, not merely louder accusations.
Claims about poverty, economic failure, insecurity and government performance should be supported by verifiable evidence, not inflated for political effect. A campaign that demands accountability from the incumbent must be prepared to practise it itself.
Democracy suffers when the ruling party evades scrutiny. It suffers equally when opposition parties substitute rhetoric for substance.
THE PRESIDENCY IS NOT A PARTY HEADQUARTERS
There is another troubling issue in this controversy: the use of the Presidential Villa for the inauguration of the APC Presidential Campaign Council.
The Presidency is a public institution, not the private property of a political party. The President is entitled to lead his party and campaign for re-election, but the distinction between official state functions and partisan political activities must remain clear.
Public institutions must not be made to appear subordinate to party interests. The symbolism matters, particularly in a democracy where public trust is already under pressure. The appropriate rules governing the use of official premises and public resources must be respected without exception.
The President should set the standard, not leave Nigerians wondering whether the lines between state and party have become dangerously blurred.
FACE THE PEOPLE
Tinubu is under no obligation to conduct an exhausting, state-by-state campaign simply to satisfy political theatrics. Campaign schedules must accommodate legitimate security, administrative and personal considerations. No responsible editorial judgment should demand that a president jeopardise his health or neglect urgent national duties for the sake of appearances.
But there is a difference between not visiting every state and refusing to account for one's stewardship.
The President can publish a transparent record of his administration’s achievements and failures. He can hold substantive town halls, grant unscripted interviews, answer questions from citizens and journalists, and ensure that his campaign team presents verifiable evidence rather than political slogans. He can also visit a representative cross-section of states while explaining clearly why other stops may not be possible.
What he cannot reasonably expect is that Nigerians will accept delegation as a substitute for accountability.
Ultimately, the 2027 election must be about more than who can draw the biggest crowd or deliver the most electrifying speech. It must be about performance, policy, integrity and the willingness to answer difficult questions.
Tinubu has the right to seek another term. Nigerians have an even more fundamental right to scrutinise that ambition.
A second-term mandate is not a gift to be collected. It is a verdict to be earned.
The President should therefore face the nation with candour, defend his record with evidence and explain why he deserves another four years. If his achievements speak for themselves, let him present them. If his policies have delivered the promised gains, let him demonstrate them. If mistakes have been made, let him acknowledge them and explain what he intends to do differently.
No surrogate can do this convincingly on his behalf.
In the final analysis, the campaign may belong to the APC, but the verdict belongs to Nigerians. Their hardship cannot be delegated. Their questions cannot be outsourced. And their votes cannot be commanded.
Tinubu must face the people—not because every campaign rally is sacred, but because accountability is.