CBN’s N8.83trn interventions: Need for project monitoring, evaluation

IN public policy design and analysis, Project monitoring and evaluation are key components. They help to identify and mitigate issues that may impact the project scope, quality, timeline, or budget.

The insights are used to optimise processes for future projects.

Armed with the above information, the Director of Development Finance Mr Philip Yila Yusuf, the Director of Banking Supervision Department Mr Mustapha Haruna, the Director, Trade and Exchange Department, Ms Ozoemena Nnaji, Director of Risk Management, the Director of Strategic Project Monitoring and Evaluation exercise, the Head, Legal Services Department Mr Kofo Salam-Alada, all of the Central Bank of Nigeria (CBN) in company of other top executives of the bank last week embarked on a two-day on-site monitoring exercise.

The team beamed searchlight on some projects funded under CBN’s Real Sector Support Facility-Discretionary Cash Reserve Ratio (RSSF- DCRR) intervention projects.

On Thursday May 26,2022, the team visited: Ikeja Electricity Distribution Company (IKEDC), Eko Electricity Distribution Company, Lagos Redline Rail Project and Lagos Blue Line Rail Project.

They also visited selected project sites on Friday, May 27, 2022 at the Lagos Free Trade Zone, Epe-Lekki, Lagos. They are: Candel Company Limited, manufacturer of high quality crop protection and crop enhancement products; Pinnacle Oil & Gas; Sana Group, a building materials fabrication company and Tolarams Group.

Commenting on the strategic monitoring exercise, Yusuf Yila said, “I’m here with some of my colleagues to do some project monitoring and evaluation. It is one thing to disburse funds through the bank to the various sectors of the economy, but most importantly, we do monitor and evaluate how those funds are utilised.”

IKEDC phase one metering project

At the Ikeja Electricity Distribution Company (IKEDC) where the tour commenced, Yusuf assured that CBN would provide more funding for the Phase One of IKEDC’s metering project.

Ikeja Electricity is very innovative, he commended.

“I look at all the performance numbers, month by month and you have done excellently well, to be honest compared to the others.

“We will continue to task you as you go to Phase One from the Phase Zero metering.

“And we look forward to providing the requisite funding for that intervention. We believe it will go a long way in ensuring that the market is not only liquid but electricity gets to consumers,” he said.

He noted that the CBN, as part of its development finance effort, has disbursed the sum of N8.83 trillion to different sectors, adding that 24 per cent of the funds went to the energy sector.

CBN said it has disbursed N40 billion through its Real Sector Support Facility Discretionary Cash Reserve Ratio (RSSF- DCRR) to Ikeja IKEDC to aide its mass metering projects and other developmental projects to enhance electricity distribution and productivity.

Responding, the Chief Executive Officer of Ikeja Disco, Mrs Folake Soetan, urged the CBN team to fast tract more intervention for the company.

“The projects that we have executed so far were for 2021, and we are already in Q2 2022. So, in order to effectively execute the projects that we planned for 2022, we once again require your support as we have always done.

“For the National mass Metering Initiative, Phase Zero, for Ikeja Electric, we executed on time. We completed the number of metering that was required of us and we are very eager to start Phase One.

“So, I’m appealing once again for your support in helping us fast track that process. Opex (Operational Expenditure) is very key at this time,” Soetan said.

LAMATA’s redline, blueline rail project.

Similarly, Yusuf and his team were impressed with the level of work at the Lagos State government red line project.

“We’ve disbursed most of the funds, and from the briefings we’ve gotten, by the first quarter of 2023 this line will be running.

“Most of the work is already done; quite impressive. It’s a signature project and I look forward to riding on the line come Q1 2023.

“We look forward to that promise, because we know the enormous impact this would have on transportation in the state,” Yusuf stated.

Yila who observed that the state is under enormous pressure in the area of transportation, said the infrastructure is already over-burdened and a lot of relief could be brought to bear if the train service is delivered.

“Lagos is like a mini Nigeria and the economic nerve centre of the nation. We can all see how people are just moving into the state and the insecurity in the Northeast and North-west is not helping matters.

“So, this will go a long way in bringing relief to residents living in the state and assist Lagos in managing traffic in the metropolis,” he said.

Also speaking on the blue and red rail projects which they financed with N60 billion, he noted that the rail station has the capacity to convey 750,000 to one million people daily which would have a vast multiplier effect on the economy of Lagos.

Giving technical details of the Red Line, the Managing Director, Lagos Metropolitan Area Transport Authority, Mrs Abimbola Akinajo, said, “This is one of the eight stations that LAMATA is building on the Redline and for now. We are well advanced, we are expecting all infrastructure to be completed by the end of the year.

“That programme is set in stone and we don’t have a challenge at meeting that deadline. In terms of operation, we are expected to start testing the line by the end of the year but by the first quarter of 2023, we will have operations starting as promised by the Governor of Lagos State, Mr Babajide Sanwo-Olu.”

To reduce human impact on the tracks, she said one million metres flyover, made up of 700 metres from the track alignment and another 300 metres into the Ikeja inner road were being constructed to take traffic from the Simbiat Abiola Way right over the tracks to land at Ikeja Along.

Eko Electricity Distribution Company (EKEDC)

The apex bank intervened in EKEDC by funding the procurement, installation, rehabilitation, and replacement of some electricity distribution infrastructure such as 11kv and 33kv feeders, switchgear, and many more to assist the Discos’ capacity in the delivery of adequate and reliable power supply to Nigerians.

In addition to this, the CBN commenced phase zero of the National Mass Metering Programme (NMMP) in 2020 to address the problem of metering. As a result, the CBN monitoring and evaluation team visited the Disco for progress reports on these projects

Reacting to the progress reports delivered by EKEDC, Phillp Yila commended the Disco for its sheer effort towards the achievement of the objectives of Federal Government/CBN intervention schemes.

In her address, the MD/CEO of Eko Disco, Dr Tinuade Sanda expressed her appreciation to CBN for its effort in improving the power sector, pointing out that CBN-funded Capex projects have aided the Disco in improving its supply to meet the high demand for electricity in its network. The projects she added, have brought about the rehabilitation and replacement of obsolete equipments

Dr Sanda further explained how EKEDC is diligently working to ensure that these projects are contributing to the company’s growth via the establishment of a market review committee that evaluates the performance of the company monthly as well as a prepaid meter monitoring team that ensures meters installed are not bypassed.

Pinnacle Oil &Gas’ 45,000metric tones facility

On Friday May 27, 2022 the team visited Pinnacle Oil & Gas which has 45,000metric tones capacity. The facility can supply 400 to 600 trucks daily.

Pinnacle was funded by CBN through Fidelity Bank. The inspection team went there to monitor progress, know if there are challenges and evaluate the project going forward.

Pinnacle is an Indigenous Oil and Gas Company active across the entire downstream value chain, with emphasis on the petroleum trading, marketing, distribution and retail segments of the Nigerian Oil and Gas Sector.

It has developed one of Africa’s largest offshore Petroleum intake/offtake and storage terminals to provide compelling Logistic advantages to the entire oil and gas value chain.

The facility comprises a world class Single Point Mooring (SPM) and Conventional Buoy Mooring (CBM). These facilities can receive up to 150,000 DWT vessels, with the ability to discharge up to 100,000 MT of petroleum products within 48hours. The facilities have full terminal automation and radar gauging systems, built with the highest safety standards.

Lagos Free Zone promoted by Singapore based Tolaram

Promoted by Singapore based Tolaram, Lagos Free Zone is the first private free trade Zone in Nigeria. The project monitoring team also visited the facility located in Lagos State, the commercial centre of West-Africa’s largest economy.

The zone covers an area of 830 hectares. It is fully equipped with world-class infrastructure, a single clearance window for ease of doing business, and integrated with the 90 hectares Lekki deep seaport, which will allow for access to regional and international markets.

With a focus on the ease of doing business, Lagos Free Zone is at the forefront of serving businesses in Nigeria.

Candel Company’s product development

Candel Company Limited is a manufacturer of high quality crop protection and crop enhancement products.

During a visit to the company, the founder & Chairman, Candel Company Limited Mr. Charles Anudu said Candel has 34 outlets and this shows that the CBN Anchor Borrowers Program  (ABP) is not only for farmers but entire agricultural value chain.

According to him, the CBN support “has helped our company in terms of expansion of product offering and quantity.

“Candle has already diversified its operations into seed production and marketing, thus fortifying its position in the crop value chain.”

According to him, the CBN’s intervention was a God-sent as he had exhausted his working capital and the company was struggling to stay afloat when the apex bank facilitated the intervention facility, which he said, has enabled him to open several outlets and employ many young Nigerians.

Speaki ng on the sidelines after the assessment tours of the company, Haruna said: “There is a clear validation of the strategic wisdom behind the various interventions of the Central Bank of Nigeria particularly to support the real sector.”Candel stands at two critical junctures. One is the manufacturing outfit, as you recall recently, the central bank introduced the RTX 200 policy designed to boost the non-oil sector and what Candel is doing here is quite complementary to that policy.”

On his part, the Head, Legal Services Department of CBN, Mr Kofo Salam-Alada, called on banks to support Nigerian companies to grow production in the country.

“With what the company is doing, I believe that bankers should actually start coming for them; it’s not just the Central Bank’s Intervention Funds, Nigerian banks should actually seek them to see how they can partner with them to drive it forward.

“The key thing that Nigerians must also know is that we need to support our own, not just in terms of employment generation. The CBN is interested in increasing foreign exchange and it is something that needs to be supported,” he said.

The building materials fabrication plant of Sana Group

At the company’s factory, President Sana Building Systems (SBS), Mr Ken Krieger praised the CBN for intervening in the company at a time it needed funding most, as well as the real sector of the Nigerian economy.

“This factory is the result of the funding that we’ve received and without that support, honestly, we could not have made it happen. So, we’re very grateful that the CBN is diligent in building the economy. We are now exporting into Cameroon, currently. We have products loaded for Ghana and the Ivory Coast also.”

Other stakeholders and some media men who accompanied the team were unanimous in their belief that CBN’s intervention in the real sector of the Nigerian economy is actually creating more jobs for the unemployed.

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