For adverts Placement only email: [email protected]

Tuesday, 21 November 2023 00:07

Press Statement on Lagos State Public Procurement Agency’s Reaction to the Open Letter by Mr. Funso Doherty

Our attention has been drawn to recent concerns regarding certain information posted on the Lagos State Public Procurement Agency's website. Acknowledging the misunderstandings arising from a lack of clarity, we recognize the unintended misinterpretations of this information.

The Agency is committed to ensuring transparency, accuracy, and accountability in all government transactions, as mandated by the Lagos State Public Procurement Law. We regret that specific details, particularly concerning the descriptions of government dealings, may have inadvertently led to confusion, impacting both governmental entities and corporate partners providing services to the State. This arose largely from the lack of detailed descriptions in the project information, which has inadvertently led to contusion in the public space.

We empathize with public concerns and extend our sincere apologies for any distress caused. It's never our intent to cast doubt or cause misunderstandings that might tarnish the reputation of respected individuals and organizations involved in these transactions.

To address these concerns thoroughly, the Agency has taken immediate steps. Line-by-line explanations of the contracts in question are attached herewith, aiming to provide absolute clarity and dispel any lingering misconceptions.

The Agency will continue to improve its internal processes and communication methods as our commitment as a government is to offer clearer and more accessible information to the public. It is pivotal to stress that the Agency's autonomy exists to ensure fairness and transparency, not to cause confusion or discredit any involved parties. We therefore assure the public of our unwavering dedication to upholding the highest standards of integrity in all our operations. Looking ahead, we pledge our continued commitment to consistently and accurately report all government transactions in the State.

Our unwavering commitment remains to elevate the standard of living and enhancing the quality of life for the people of Lagos. Rest assured, this commitment will always take precedence. 

Mr Fatal idowu Onafowote

The Director-General

Lagos State Public Procurement Agency 

 

LAGOS STATE PUBLIC PROCUREMENT AGENCY’S  REACTION TO THE OPEN LETTER BY MR FUNSO DOHERTY 

STATING THE FACTS AND FIGURES

SN 

MDA 

DESCRIPTION OF  AWARD

NAIRA  

AMOUNT

DATE 

VENDOR 

COMMENTS 

RESPONSE FROM LAGOS STATE  

GOVERNMENT

1. 

Lagos  

Metropolitan  Area  

Transport   

Authority  

(LAMATA)

Construction,  

Supply  &  Installation  of  Operation  and  Maintenance (0&M) 

Infrastructure  of  LRMT  Blue  Line  Phase 1 from Marina  to Mile 2

40,188.644,336 

Apr-23 

China  Civil  Engineering  

Construction  Company  

(CCECC) 

Nigeria  

Limited

The  Blue  Line  was  planned  to  be  operated  and  maintained  by  a  qualiRied and competent operator on a  PPP basis. This arrangement is not in  place,  but  train  operations  have  started. 

Who  is  performing  that  function  presently  and  who  will  manage,  operate and maintain this Operations  and  Maintenance  (0&M)  Infrastructure  that  is  now  being  procured  by  LASG  from  the  main  contractor  (CCECC)  at  a  cost  of  N40bn?  Is  it  LAMATA?  If  so,  does  it  have  the  capacity?  How  are  safety,  efRiciency, accountability and Rinancial  results being assured, monitored and reported?

The  Blue  Line  Rail  Project's  design  and  construction  were  entrusted  to  Messr  CCECC  Nigeria  Limited.  Subsequently,  upon  Rinalizing  the  Rixed  infrastructure,  a  two-year  partial  operation  contract  was  executed  with  the  contractor for the following purposes: 

▪ bolster  the  technical  and  operational  expertise of LAMATA’s teams, fostering their  capacity. 

▪ meticulously gather scientiRic  Rinancial and  revenue  data  essential  for  informed  decision-making processes. 

▪ equip  pertinent  practitioners  with  the  necessary  information  crucial  for  forthcoming concessioning procedures. 

▪ empower  the  contractor  to  promptly  address  any  defects  identiRied  during  the  operational phase of the project.

2. 

Construction  of  Lagos  Rail  Mass  Transit (LRMT) blue  line  Mile  2  to  Okokomaiko  

(section 2)

218,071,301,485 

Jul-23 

China Civil 

Engineering  

Construction 

Company  

(CCECC) 

Nigeria  

Limited

In 2008, N70bn was approved for the  Blue  line  and  it  was  expected  to  be  completed  by  2011.  Phase  1  of  the  project,  Marina  to  Mile  2,  which  is  approximately  half  of  the  total  proposed  length,  has  just  recently  commenced  limited  operations  in  2023. The overall cost incurred so far  has  not  been  disclosed.  With  this  award of Phase 2 by LASG to the same  contractor,  at  a  cost  of  N218n,  what 

Phase  1  faced  signiRicant  delays  due  to  insufRicient funds. The current administration's  strategy successfully realized the Blue Line Rail  Project.  The  Governor  remains  dedicated  to  completing  section  2  during  this  term,  employing the same approach used for phase 1.  Section 2 has already been entrusted  to Messr  CCECC  Nigeria  Limited,  seamlessly  continuing  the  project  with  ongoing  execution.  In  a  commendable  move,  the  Lagos  State  Government  compensated  veriRied  property 



           

safeguards  are  in  place  to  prevent  a  repeat occurrence?

owners  and  tenants,  following  a  globally  accepted  standard—a  practice  that  will  continue as needed.

3. 

Consultancy  Service  for the update of the  strategic 

Transport  and  Mobility 

Master  Plan  for  Lagos 

Mega City Area

5,380,695,140 

Sep-23 

Advanced 

Engineering 

Consultants  

(AEC)  /  ROM  Transportation Engineering

Advanced  Engineering  Consultants  (AEC) and ROM 

Transportation have been engaged  to  update  the  Strategic  Transport  and  Mobility Master Plan (STMP) at a cost  of  approximately  N5.5bn.  However, 

the  same  company,  AEC  is  also  engaged  by  LASG  in  implementing  multiple  aspects  of  the  STMP.  They  have  been  awarded  contracts  for  the  Bus Corridors (see below), as well as  the  design  of  the  fourth  Mainland  Bridge. It is not good practice and is a  conRlict  of  interest  to  engage  a  participating contractor with a vested  interest  in  speciRic  design  or  implementation  contracts  to  develop  or update the master plan

The  Consultancy  Service  for  updating  the  Strategic  Transport  and  Mobility  Master  Plan  for  the  Lagos  Mega  City  Area  was  awarded  to  Messrs. ROM Transportation Engineering Ltd in  collaboration  with  Advanced  Engineering  Consultants  (AEC)  after  a  rigorous  15-month  competitive  procurement  process  led  by  LAMATA, AFD, and PPA. The awarded contract,  valued  at  ₦1,167,451,900.54  plus  €4,213,243.24, spans 24 months. 

While  ROM  Transportation  Engineering  Ltd  serves as  the principal consultant, AEC, as  the  local  partner,  facilitates  engagement  with  various stakeholders and facilitates knowledge  transfer.  It's  essential  to  differentiate  between  the  STMMP  and  EPCS  contracts:  the  former  involves upgrading  the existing STMP  to guide  the Lagos State Government on  transportation  infrastructure development, whereas the latter  pertains  to  implementing  recommendations  from the current STMP and is Rinanced by AFD.

4. 

Consultancy  Service  for  the  detailed  engineering  design  and  supervision  of  construction  of  quality  bus  corridor  package 1 

(Ketu/Alapere,  

Yaba-Lawanson- 

Cele), Package 2 (lju  Ishaga-Abule Egba) and  Package  3  (lyana-Iba-Igando)

7,361,406,710 

May-23 

Advanced 

Engineering 

Consultants  

(AEC) / 

GPO Group SA

See  above.  AEC  appears  to  be  a  recurring  feature across a  number  of  very  substantial  LASG/LAMATA  contract  awards.  It  is  not  apparent  from  evidence  in  the  public  domain  that  projects  AEC  has  undertaken,  outside  of  LASG  projects,  justify  the  prominence  accorded  it  by  LASG.  Remarkably, recently, in Sept 2023, the  current  Federal  Minister  of  Works  announced  a  proposed  Lagos-Abuja  "Super-Highway" intended  to operate  on  a  concessioned,  PPP  basis  and 

The  Detailed  Engineering  Design  and  Construction  Supervision  procurement  for  Quality  Bus  Corridor  Package  1,  2  &  3  commenced in December 2019, culminating in  the award to AEC/GPO S.A. in September 2021.  Subsequently, the contract underwent revision  to  incorporate  an  Intelligent  Transportation  System  (ITS)  component.  After  Rinalizing  this  process, a revised award was ofRicially issued in  April 2023, following thorough certiRication by  AFD.



   

Including design and  supervision  of  ITS  for  4  Nos  of  quality  bus corridors.

     

presented  AEC  as  the  entity  that  would lead the consortium to partner  with the FGN

 

5. 

Consultancy  

Services  for  the  engagement of Loan  Facilitator  and  Adviser on 

LRMT  blue  line  project

2,101,321,622 

May-23 

Iroko Capital 

This  award  should  be  scrutinized  for  Value-for-Money.  LASG  should  not  be  engaging consultants for this purpose  at  a  high  Rixed  cost.  If  deemed  necessary,  a  modest  engagement  retainer  (a  fraction  of  this  amount)  combined with a more substantive fee  that  is  contingent  and  payable  upon  successful  fundraising,  commercial  and  Rinancial  close  should  be  negotiated  through  a  competitive  selection process.

The  consultant  played  a  key  role  in  securing  funding for the Blue and Red Lines through local  Nigerian  banks, a  shift  from  the initial  plan  of  acquiring  a  USD  loan  from  the  international  community.  This  strategic  move  mitigated  the  State's  exposure  to  exchange  rate  risks.  Negotiating the fee down from 5% to 2.5% was  another achievement. The operational Blue Line  stands  as  a  testament  to  the  successful  completion of the project within the stipulated  timeframe, showcasing its numerous associated  beneRits.  The decision  averted  the  risks  associated  with  Rluctuating  exchange  rates,  ensuring  stability  and  fostering  favorable  outcomes from the investment.

6. 

Consultancy  

Services  for  the  engagement of Loan  transaction arranger  and  Financial  Adviser to 

LASG/LAMATA  on  the Red line project

3,141,666,667 

May-23 

Iroko Capital 

Ditto 

The  consultant  played  a  key  role  in  securing  funding for the Blue and Red Lines through local  Nigerian  banks, a  shift  from  the initial  plan  of  acquiring  a  USD  loan  from  the  international  community.  This  strategic  move  mitigated  the  State's  exposure  to  exchange  rate  risks.  Negotiating the fee down from 5% to 2.5% was  another achievement. The operational Blue Line  stands  as  a  testament  to  the  successful  completion of the project within the stipulated  timeframe, showcasing its numerous associated  beneRits.  The decision  averted  the  risks  associated  with  Rluctuating  exchange  rates,  ensuring  stability  and  fostering  favorable  outcomes from the investment.

7. 

Ministry  of  Works  and  Infrastructure

Rehabilitation / 

Reconstruction/  

upgrade of 

Eti-Osa / Lekki / Epe

69,936,201,915 

Aug-23 

Craneburg 

Construction

This  single  award  for  the  repair  and  upgrade  of  a  section  of  an  already  existing  road  amounts  to  approximately half of the entire 2023 

The  contractor  who  has  previously  been  prequaliRied  was  already  engaged  in  on-site  operations,  speciRically  focusing  on  the  road  infrastructure  starting  from  the  T  junction  in 



   

Expressway  (Phase  2b)  from  Greensprings  to  Abraham  Adesanya  in Eti-Osa and Ibeju- 

Lekki 

LGA

     

budget  for the Ministry of Works and  Infrastructure. 

A  comprehensive  and  preferably  independent,  value-for-money  assessment  should  be  done  for  this  contract. Also see additional comment  below.

the  Epe  axis.  Notably,  the  road  structure  is  primarily  concrete-based,  and  the  contractor  has  initiated  the  project  using  its  internal  Rinancial  resources  for  up  to  50%  of  cost.  Subsequent disbursement of funds by the LASG  is  planned  to  span  across  over  24months  utilizing an  ISPO. Moreover,  the BOQ pertinent  to  this  project  has  undergone  thorough  assessment  and  scrutiny  by  the  OfRice  of  Infrastructure  to  ensure  accuracy  and  appropriateness in line with the project's scope  and speciRications.

8. 

Construction  of  identiRied  strategic  roads  across  the  state  in  Alimosho  LGA (2 

Roads), Ikeja LGA (3 Roads),  Ifako  ljaiye  LGA (6 

Roads)  and  Kosofe  LGA (4 

Roads) (Lot 3)

6,047,509,151 

Sep-23 

LagField  

Construction 

Limited

This is one of 3 large contract awards  to  3  contractors  with  multiple  roads  per local  Government in  each  award.  Based  on  our  experience  in  Lagos,  apart  from  quality  and  value-for- 

money  considerations,  commuter  experience  during  construction  must  be  considered  and  prioritized.  Work  should  be  properly  phased  having  regard  to  LASG's  funding  capacity.  Contractor plans to mitigate hardship  and disruption must  form part of  the  contract  and  must  be  jointly  agreed,  monitored and enforced. 

LASG  should  also,  even  as  it  awards  additional road contracts, address the  several  unRinished  and  dilapidated  roads  and  road  projects  on  key  arteries  across  the  State  that  are  contributing to trafRic gridlock, crime,  health conditions and reduced quality  of life

The BOQ underwent comprehensive evaluation  conducted by OfRice of Infrastructure, ensuring  meticulous  scrutiny  and  validation  of  the  project's  quantitative  aspects.  Simultaneously,  the Ministry of Transportation remains actively  engaged in project oversight. This involvement  facilitates  the  implementation  of  necessary  trafRic diversions, supported by the deployment  of  trafRic  ofRicers  at  strategic  locations  to  guarantee  uninterrupted  trafRic  Rlow  during  project execution. 

Payment disbursement for projects adheres to a  certiRied measured works framework, ensuring  that the total allocated sum is not released in a  single  transaction.  Instead,  payments  are  processed  incrementally  based  on  certiRied  progress, with an initial advance payment set at  40% of the total project cost. 

Regarding the restoration of deteriorated roads,  the  Lagos  State  Government's  Public  Works  Corporation  shoulders  the  responsibility  of  rectifying such infrastructural deRiciencies. The  Corporation  is  well-equipped  and  proRiciently  positioned  to  execute  this  mandate,  ensuring 



             

the  effective  rehabilitation  of  dilapidated  road  networks across the state.

9. 

Ministry  of  Energy  and  Mineral  

Resources

Procurement and 

Construction  and  Design,  Build  Operate  and  Maintain PPP Model  for the Blueline Rail

9,714,179,610 

Sep-23 

Lamp  Turnkey  Project  /  Viathan  

Engineering 

Limited

This relates to an Independent Power  Plant proposed to power the Blue Line  Rail  on  a  Design,  Build,  Operate  and  Maintain  PPP  Model.  This  was  originally intended  to  be  Rinanced  by  the concessionaire. From this award, it  now  appears  that  the  setup  cost  is  being  borne  by  LASG.  The  award  makes reference to a PPP, but it is not  evident  that  a  PPP  process  has  been  advertised,  undertaken  or  disclosed  by the LASG PPP OfRice. It is therefore  not  clear  on  what  basis  this  N9.7  bn  contract  was  awarded,  whether  a  concession is involved and what terms  are provided for.

During  the  initial  stages  of  project  conceptualization,  the  contractor  was  tasked  with  executing  the  project  under  a  Public Private Partnership (PPP) framework entailing  the  Build,  Operate,  Maintain,  and  Transfer  model.  Following  due  process,  the  contractor  successfully secured the project bid. However, it  became imperative to develop a comprehensive  and  detailed  design  to accurately estimate  the  project cost. Design considerations constitute a  substantial  segment,  accounting  for  approximately  15%  of  the  overall  project  expenditure. 

In  the  pursuit  of  facilitating  the  PPP  arrangement,  Rinancial  backers  stipulated  the  requirement  for  a  Fiscally  Backed  Irrevocable  Standing  Payment  Order  (ISPO)  supported  by  the  Federation  Account  Allocation  Committee  (FAAC).  Regrettably,  the  Lagos  State  Government (LASG) was unable to comply with  this  condition.  Given  the  critical  timing  and  signiRicance  of  the  project,  LASG  made  a  strategic decision to independently Rinance the  Engineering,  Procurement,  and  Construction  (EPC) component of the project. 

This intervention proved pivotal, expediting the  project's  progress  signiRicantly,  particularly  in  advancing  the power plant construction phase  to an advanced stage. Notably, while the entirety  of  the  project  remains  under  the  PPP  framework, this speciRic segment was funded by  the State owing to the exigencies of the project  timeline and its strategic importance.



10. 

Lagos  State  Residents 

Registration 

Agency

Provision of Support Services for the 

Multi-biometric  

search  service  (MBSS) platform  for  the  deployment  of  disaster  recovery  site  and  upgrade  of  Database  

infrastructure  from  10M  to  20M  to  the  agency.

7,991,930,559 

Jul-23 

Identiko  

Integrated 

Solution  

Limited

This single award of approximately N8  billion  is  to  a  single  vendor.  In  comparison,  the  entire  2023  expenditure  budget  for  this  agency,  LASRRA, is about N3.2bn. This award  alone is about two and a half times the  entire 2023 LASRRA budget and calls  for greater scrutiny.

The Project extends across a duration of  three  years, necessitating funds to be allocated across  multiple  budget  cycles  rather  than  sourced  from  a  single  Riscal  period.  Notably,  this  initiative serves as a continuation of an ongoing  contract,  encompassing  the  augmentation  of  services  to  integrate  a  disaster  recovery  site  within its scope.

11. 

Special  

Committee on  Rehabilitatio n  of  Public  Schools

Various 

5,813,169,527 

Various 

Various 

These  relate  to  various  awards  over  the  six-month  period,  by  the  Special  Committee  on  Rehabilitation  of  Schools (SCRPS). 

Conceived  as  an  intervention  mechanism,  it is  not  clear  what  the  current legal framework for SCRPS is.  It  is  listed  under  the  Ministry  of  Education,  but  has  a  distinct  budget  and  appears  to  operate  with  semi 

autonomous  MDA-like  status,  awarding  and  overseeing  substantial  contracts.  It  is  important that  its  activities  be  subjected  to  review,  oversight and periodic audit.

SCRPS was re-established by Mr Governor with  an  Executive  Order  on  the  4th  of  Nov  2019.  Having  existed  and  operated  by  previous  Administrations,  it  was  re-introduced  as  a  committee with  the  primary  mandate  to  address the decay in the physical infrastructure  in public schools. They work with the Ministry  of  Education  for  proper  project  identiRication  and justiRication.  SCRPS is subject to both State  audit  and  external  audit  and  other  internal  monitoring Agencies. They follow the State PPA  laws on contract award up to project close out.  All  payments  are  executed  from  the  State  Treasury OfRice, after due certiRication by other  monitoring State Agencies.

12. 

Lagos State 

Infrastructur e  Asset  Management Agency

Various 

4,289,471,036 

Various 

Various 

The  existing  model  where  facility  management  contracts  are  awarded  and  managed  by  LASIAMA  while  individual,  geographically  dispersed  MDAs  occupy  and  use  the  facilities  requires  careful  design  and  diligent  implementation  of  incentives,  feedback  mechanisms,  risk  and  consequence  management  to  ensure  satisfactory,  safe  and  efRicient  operations.  Both  LASIAMA  and  the 

LASIAMA,  operating  within  the  mandate  of  managing Lagos State assets and infrastructure plays  a pivotal  role  in  streamlining  facility  management  across  the  state.  The  prevailing  model,  wherein  LASIAMA  administers  facility  management  contracts  while  various  MDAs  occupy and utilize these facilities, is a strategic  approach  designed  to  centralize  and  optimize  resource  utilization.  This  model  facilitates  a  cohesive  and  standardized  management 



           

third-party  facility  managers  are  service  providers  to  the  MDAs  and  must deliver or bear consequences. If  it  is  to  be  retained,  this  operating  structure  should  be  reviewed  across  the  board  and  must  include  an  effective  performance  management  framework for LASIAMA.

framework,  ensuring  uniform  standards  of  maintenance and efRicient resource allocation. 

13. 

OfRice  of  the  Chief of Staff

Supply  and  distribution of 2,000  Noiler  Chicken  across  the  local  government  areas  and  wards  in  the  state

18,468,000 

May-23 

Seed  and  Seedlings 

Agricultural  

Enterprises

It  is  not  clear  why  the  OfRice  of  the  Chief  of  Staff  should  be  engaged  in  supplying  and  distributing  Chickens  across the state.

This  falls  under  the  socio-political  responsibilities  of  government  to  cater  for  its  citizens

14. 

Procurement  of  a  brand new Lexus LX  600  Bullet  Proof  Sport  Utility  Vehicle  for use in the Pool of  OfRice  of  Chief  of  Staff

440,750,000 

Jun-23 

Lakeside  

Investment 

Limited

This  appears  excessive  and is  out-of tune  with  both  the  prevailing  economic circumstances and mood of  the people. It should be scrutinized as  to the need and justiRication for such a  vehicle  purchase  and  also  value  for  money

This  is  in  tandem  with  current  economic  realities.

15. 

Replacement  of  the  liquid  fragrance  in  the  OfRice  of  Mr  Governor,  Lagos  House, Ikeja.

7,475,000 

Jun-23 

ARC44 Global Enterprises

On the face of it, and especially in the  present  economic  circumstances,  the  amount  of  this  award  appears  excessive  in  relation  to  the  item  procured.

This covers the entire 2023 period of one year.  It is also not limited to Mr Governor’s ofRice but  extends to several ofRices and state houses.

16. 

Decoration of Venue  for  Political  Delegates 

Congress

20,804,550 

Jun-23 

Equally  

Diverse 

Solutions

OfRicial Government Funds should not  be used for political expenses.

This  was  a  strategic  programme  aimed  at  fostering interaction and collaboration between  elected  legislators  and  members  of  the  State  Executive Council. Its objective was to provide a  conducive  environment  that  encouraged  dialogue,  exchange  of  ideas,  and  cohesive  engagement among these stakeholders. 

17. 

Flying  Hour  Expenses on Ad-hoc 

400,000,000 

Jul-23 

Caverton  

Helicopters

This  should  be  scrutinized  as  to  the  need  and  justiRication  for  such 

This  payment  accounts  for  past  services  rendered,  wherein  outstanding  debts  owed  to 



   

Charter  Plane  by  Lagos  State  Government

     

substantial cost at taxpayer's expense  and also value-for-money.

the contractor is being reconciled and offset by  this speciRic Rigure. 

18. 

Flying  Hour  Expenses on Ad-hoc  Charter  Plane  by  Lagos  State  Government

112,500,000 

Aug-23 

Caverton  

Helicopters

This  should  be  scrutinized  as  to  the  need  and  justiRication  for  such  substantial cost at taxpayer's expense  and also value-for-money.

This  payment  accounts  for  past  services  rendered,  wherein  outstanding  debts  owed  to  the contractor is being reconciled and offset by  this speciRic Rigure.

19. 

Procurement of TEN  (10) 

UNITS  brand  new  Hyundai  County  Buses  for  use in  the  Pool  of  the OfRice  of  the Chief of Staff

600,000,006 

Aug-23 

VON  

Automobile 

Nigeria  

Limited

it is not evident why there is a need to  purchase  30  brand  new  buses  at  a  total cost of N2.2 billion for use in the  pool of the OfRice of the Chief of Staff

The  Chief  of  Staff  holds  oversight  responsibilities  across  multiple  MDAs  within  the State. However, it's important  to  note  that  these buses are designated for the use of other  MDAs within the State and are not allocated for  the personal use of the Chief of Staff.

20. 

Procurement  of  TWENTY 

(20)  UNITS  brand  new  Ashok  Leyland  Falcon 

Buses  for  use in  the  Pool  of  the OfRice  of  the Chief of Staff

1,599,999,986 

Aug-23 

VON  

Automobile 

Nigeria  

Limited

Ditto 

The  Chief  of  Staff  holds  oversight  responsibilities  across  multiple  MDAs  within  the State. However, it's important  to  note  that  these buses are designated for the use of other  MDAs within the State and are not allocated for  the personal use of the Chief of Staff.

21. 

OfRice of the 

Deputy  

Governor

Monthly outreach of indigent  citizens  by  wife  of  the  Deputy  Governor

30,000,000 

Jul-23 

Rodies  

Logistics

Though the intention may be laudable,  these  should  not  be  funded  from  the  budget  of  the  OfRice  of  the  Deputy  Governor

This amount represents an annual sum, with a  monthly expenditure of N2.5 million.

22. 

Monthly  

empowerment  

programmes  of  the  wife  of  the  deputy  governor

30,000,000 

Jul-23 

Rodies  

Logistics

Ditto 

This amount represents an annual sum, with a  monthly expenditure of N2.5 million.

23. 

Provision  of  Supply  items (Rechargeable  fans,  rechargeable  lights  and  fridge  in 

2,017,840.00 

Jul-23 

Judkom  

Enterprises

This  award,  which  is  listed  here  as  published  by  the  PPA,  very obviously  deserves further scrutiny.

This  is  not  the  case.  The  contract  is  for  N2,017,840.00 and this is what is contained on  the Agency’s website and the registered Letter  of Award. 



   

the  ofRice  of  the  deputy governor.

         

24. 

Ministry  of  Finance

Collation of Revenue  Data and the Review  of the current Lagos  State 

Revenue  Allocation  Indices in  Line  with  Revenue  

Mobilization  

Allocation and Fiscal  Commission Call 

Circular

778,000,000 

May-23 

DYA  Lorte  Limited

Maintenance  and  reporting  of  State  revenue  and  expenditure  data  is  a  fundamental,  long-standing  and  core  responsibility  of  the  Ministries  of  Finance  and  Economic  Planning  and  Budget. 

Why  there  is  a  need  for  additional  expenditure of this magnitude to meet  reporting requirements is not clear. It  requires further justiRication as it may  be  indicative  of  other  capacity  gaps  that may need to be addressed.

The core objective of this project is to conduct a  comprehensive  reassessment  of  Lagos  State,  aligning it with  the  standards  set  forth  by  the  Revenue  Mobilization  Allocation  and  Fiscal  Commission.  This  initiative  necessitates  extensive  data  collection  conducted  by  local  government  ofRicials  at  their  respective  levels.  As  a  result  of  the  time constraints  faced  by  LASG,  a  consultant  was  engaged.  The  project  entails  training,  meticulous  data  analysis,  and  oversight  by  the  commission  to  evaluate  the  ongoing efforts.

25. 

Ministry  of  Agriculture

Commission  and  Operation  Start-Off  support of Lagos 

Rice Mill Imota.

300,000,000 

May-23 

Messrs WACOT  Agro Ventures  Limited

LASG announced in October 2022 that  it signed an agreement  for WACOT  to  manage the Imota Rice Mill which was  built  at  substantial  cost  to  the  taxpayer.  The  terms  of  this  arrangement have not been disclosed,  but  LASG  continues  to  also  directly  bear costs associated with running the  Mill.  It  should  be  clear  and  unambiguous  who  bears  what  responsibilities  and  there  should  be  monitoring  and  reporting  to  ensure  accountability,  operating  efRiciency  and Rinancial sustainability. Further, if  the  terms  of  the  agreement  bring  it  within the ambit of the PPP law, then  the arrangement should be disclosed,  regulated, monitored and reported on  by the OfRice of PPP

The collaboration with WACOT is not a Public Private  Partnership  (PPP)  but  a  technical  service  arrangement  intended  to  bolster  the  Imota  Rice  Mill.  This  partnership  involves  the  provision of expertise from both expatriate and  local staff, leveraging their experience in similar  machinery and processes from Argungu, Kebbi State.  It's crucial  to note  that  the mill  remains  the  property  of  LASG;  the  collaboration  primarily  focuses  on  training.  WACOT  has  deployed 7 expatriates and 16 support staff to  facilitate  the  initial  operations  and  eventual  self-sufRiciency of the mill. The initial allocation  of  300  million  Naira  was  intended  for  disbursement at 50 million Naira monthly over  a  six-month  period.  However,  due  to  an  expanded scope, this Rigure has been revised to  540  million  Naira,  allowing  for  a  monthly  disbursement of 60 million Naira  for further 9  months totalling 15 months.

26. 

Renewal/Extension  of 

Technical  Support  Services  for  the 

540,000,000 

Jul-23 

Messrs WACOT  Agro 

Ventures  

Limited

Ditto 

The collaboration with WACOT is not a Public Private  Partnership  (PPP)  but  a  technical  service  arrangement  intended  to  bolster  the  Imota  Rice  Mill.  This  partnership  involves  the 



   

Management  of  Operations  of  Lagos  Rice Mill Imota

       

provision of expertise from both expatriate and  local staff, leveraging their experience in similar  machinery and processes from Argungu, Kebbi State.  It's crucial  to note  that  the mill  remains  the  property  of  LASG;  the  collaboration  primarily  focuses  on  training.  WACOT  has  deployed 7 expatriates and 16 support staff to  facilitate  the  initial  operations  and  eventual  self-sufRiciency of the mill. The initial allocation  of  300  million  Naira  was  intended  for  disbursement at 50 million Naira monthly over  a  six-month  period.  However,  due  to  an  expanded scope, this Rigure has been revised to  540  million  Naira,  allowing  for  a  monthly  disbursement of 60 million Naira  for further 9  months totalling 15 months.

27. 

Procurement of 

Consumables  like  Threads,  Charcoal,  Wood,  Sand,  Personal protective 

equipment, hiring of  trucks and servicing  of  generator  plants  for  the  second  quarter operation of  Lagos  Rice  Mill  Imota.

24,721,650 

Jun-23 

Lamin  Global  Ventures  

Limited

Ditto 

The contractor's proven expertise in supplying  these consumables led to the establishment of a  framework agreement, enabling the consistent  provision  of  these  items  over  an  extended  period.

28. 

Fire Service 

Procure Fuel  for  the  State  Fire  and  Rescue Service's 

Operational  

Activities

850,755,000 

Jun-23 

Deoban  3  Plus  Ltd

Procurement  of  Fuel  by  the  State  should  be  rationalized.  The  State  should  negotiate  directly  for  bulk  product  purchases  from  the  major  petroleum  product  marketing  companies.  It  may  then  use  smaller  contractors  for  the  related  logistical  services,  fulRillment  and  for  limited  supplementary  product  purchases,  if  and when required. LASG should also 

Procuring  fuel  for  Fire  Service in  this manner  aligns with the state's public procurement goals  which includes encouraging SME involvement.  Involving  smaller  contractors  supports  SME  participation  and  ensures  operational  Rlexibility. The  contract  is  payable  monthly  at  N70million and covers 20 Rire stations.



           

maintain  appropriate  levels  of  strategic reserve

 

29. 

Lagos  State  Lotteries and Gaming  

Authority

Implementation  of  Feasibility  Study  for  Lekki-Epe  

International 

Airport

195,000,000 

Apr-23 

Amion Projects  Limited

Substantial  costs  are  being  incurred  by  the  Lagos  State  Lotteries  and  Gaming  Authority  far  above  the  revenues  it  is  generating  for  wide 

ranging and disparate purposes. As at  September,  the  Authority’s  2023  revenues  were  reported  at  approximately  N3.3bn  and 

expenditure  at  approximately  N11.4bn.  This  contradicts  the  rationale  for  the  existence  of  the  Authority and should be examined.

The dwindling revenue cannot be substantiated  and  does  not  reRlect  the  true  position  at  Lotteries Board. The enabling law creating  the  Board  empowers  it  to  allocate  funds  for  expenditure  relating  to  certain  objectives  including  educational,  infrastructural,  health  care and environmental objectives.

30. 

Restoration of Water Supply at  Iduganran  Palace

152,116,326 

Sep-23 

PEEC  

Transational 

Limited

Ditto 

The dwindling revenue cannot be substantiated  and  does  not  reRlect  the  true  position  at  Lotteries Board. The enabling law creating  the  Board  empowers  it  to  allocate  funds  for  expenditure  relating  to  certain  objectives  including  educational,  infrastructural,  health  care and environmental objectives.

31. 

Proposed  Adesalu  Health 

Care Center at Onasa  Community  Ibeju Lekki

159,314,907 

Sep-23 

PEEC  

Transational  

Limited

Ditto 

The dwindling revenue cannot be substantiated  and  does  not  reRlect  the  true  position  at  Lotteries Board. The enabling law creating  the  Board  empowers  it  to  allocate  funds  for  expenditure  relating  to  certain  objectives  including  educational,  infrastructural,  health  care and environmental objectives.

32. 

Lagos State 

Parking  

Authority

Procurement  of  40  Nos  of  Vehicle  Tyre  Clamps Ist 

Batch for the Agency

9,589,000 

Jun-23 

Baldwin  

Investment 

Limited

Some  of  the  reported  actions  of  this  agency  are  suggestive  of  an  agency  that  is  under  pressure  to  generate  revenues, whose revenue model is not  fully  thought  through  and  whose  enforcement tactics may be predatory.  This  could  be  further  fuelled  by  the  fact that it is operating at a substantial  deRicit.  For  the  year  to  September 

The  Rigures  provided  lack  substantiation  and  the  source  is  unreliable.  Without  veriRied  Rinancial  data,  making  assumptions  about  the  agency's  revenue  generation,  operational  model,  or  enforcement  strategies  leads  to  Rlawed conclusions



           

2023, it had revenues of N450million  and had incurred costs of N2.4 billion.

 

33. 

Engagement  of  the  consultancy  on  operations  

management  

monitoring  and  customer  tools  for  Lagos  State  parking  authority

405,456,363 

Jul-23 

Automata 

Technologies  System 

Limited

Ditto 

The  Rigures  provided  lack  substantiation  and  the  source  is  unreliable.  Without  veriRied  Rinancial  data,  making  assumptions  about  the  agency's  revenue  generation,  operational  model,  or  enforcement  strategies  leads  to  Rlawed conclusions

34. 

Lagos State 

Electricity  

Board

Supply  of  Transformers  and  Electricity  

Accessories

36,367,366 

Jun-23 

Omron  Nigeria  Limited

As  at  September,  the  Lagos  State  Electricity  Board  had  a  large  deRicit  with  revenues  reported  for  2023  of  N34  million  and  expenditure  for  the  same  period  of  N19  billion  of  which  N5.8bn  was  for  capital  expenditure  and  N13.3bn  for  overheads.  It  acquires,  operates  and  maintains  generation  and  distribution  assets  to  power mostly public and underserved  facilities. 

Government  has  historically  been  shown  to  be  inefRicient  in  the  management  of  such  operations  and  where possible,  transition  to efRicient  private  operators  on  commercial,  competitive terms should be pursued.  Where  there  are  compelling  reasons  for Government to continue to operate  these  services,  the  related  activities,  costs, efRiciency metrics and results of  operations  must  be  tracked,  benchmarked  and  transparently  reported.

The Lagos State Electricity Board functions as a  pivotal  agency  overseeing  various  aspects  of  electricity  provision and  regulation within  the  state.  Its  primary  responsibilities  encompass  power  distribution  oversight,  infrastructure  development,  policy  formulation,  and  implementation  related  to  electricity  generation,  transmission,  and  distribution.  Additionally,  the  board  addresses  consumer  services,  handling  complaints,  ensuring  affordable  access  to  reliable  electricity,  and  conducting  consumer  education  programs.  It  plays a regulatory role in tariffs, licensing, and  quality standards  for electricity services while  promoting the integration of renewable energy  sources  into  the  state's  electricity  supply.  The  importance of LSEB can therefore not be over emphasized. In addition, the overhead of LSEB  is expended on streetlights, diesel, payment for  IPPs etc.

35. 

Rehabilitation and reconnection  of  IPP  high  voltage  distribution 

599,980,515 

Sep-23 

Mainland  

Power 

Limited

Ditto 

The Lagos State Electricity Board functions as a  pivotal  agency  overseeing  various  aspects  of  electricity  provision and  regulation within  the  state.  Its  primary  responsibilities  encompass 



   

network from ile zik  to oshodi

       

power  distribution  oversight,  infrastructure  development,  policy  formulation,  and  implementation  related  to  electricity  generation,  transmission,  and  distribution.  Additionally,  the  board  addresses  consumer  services,  handling  complaints,  ensuring  affordable  access  to  reliable  electricity,  and  conducting  consumer  education  programs.  It  plays a regulatory role in tariffs, licensing, and  quality standards  for electricity services while  promoting the integration of renewable energy  sources  into  the  state's  electricity  supply.  The  importance of LSEB can therefore not be over emphasized. In addition, the overhead of LSEB  is expended on streetlights, diesel, payment for  IPPs etc.

36. 

Ministry  of  Home Affairs

Renovation of Saint Andrews  Anglican  Church,  Oke-Popo,  Lagos

531,553,559 

Aug-23 

VicJone  

Nigeria 

Limited

Why is LASG spending N531 million of  taxpayer money to renovate a Church?

The Church was founded in 1889 and stands as  a signiRicant historical landmark in Lagos State. The  need  for  the  State  to  preserve  such  landmark can therefore not be overemphasized. The  contract  amount  encompasses  funds  allocated  for  both  the  refurbishment  of  the  Church and  compensation given  to  the  church  for  the  necessary  demolition  of  sections  of its  property due to road expansion.

37. 

Center  for  Rural  

Development

Construction  of  Erelu  Way  /  Dayo  Eluk  Community  Link 

Road,  in  Amikanle  Community  the  Agbado-Oke  Odo  LCDA

511,539,758 

Sep-23 

People's  

Choice 

Properties Ltd

The Center for Rural Development was  conceived  to  focus  on  research,  programmatic  and  policy  interventions  to  help  catalyze  rural  development  across  the  state.  CERUD's  entire  budget  for  2023  is  N1.3  billion.  By  comparison,  this  single  award  is  for  N551  million.  CERUD should not be directly engaged  in the building of roads.

CERUD's  mandate  encompasses  providing  essential  amenities  to  rural  areas,  and  the  project spans across multiple budget cycles.

38. 

Lagos  State  Public 

Procurement

On-boarding  of  four  MDAs  and  Twenty nine  Hospitals  unto 

379,500,000 

Jul-23 

Kehinde  

Kassim & Co.

There  should  be  an  additional  oversight  and  control mechanism  for  signiRicant procurement awards of the 

the  Lagos  State  Public  Procurement  Agency  operates  under  a  governance  framework  that  ensures  rigorous  oversight  and  control 



 

Agency 

the  E-procurement  system  of  Lagos  State 

Public  Procurement  Agency

     

Public  Procurement  Agency,  as  the  procurement police should not be left  alone to police itself.

mechanisms  beyond  its  internal  procurement  policies.  The  agency's  activities  are  subject  to  meticulous  scrutiny  and  audit  processes  conducted  by  both  the  Lagos  State  House  of  Assembly and the OfRice of the Auditor General. 

39. 

Ministry of 

Economic  

Planning  and  Budget

Consultancy  

Services  for  the  engagement  of  monitoring  and  evaluation specialist  for NG-CARES 

Implementation  in  Lagos 

State

315,600,000 

Jul-23 

Duke Advisory Service

The  wisdom  in  spending  a  sum  as  signiRicant  as  this  in  2023  for  monitoring and evaluation of a COVID 19  recovery  programme  is  suspect  especially  in  light  of  the  prevailing  economic hardship. M&E should have  been  part  of  the  original  implementation  of  NG-CARES. This  award should be scrutinized for value  for  money  and/or  better  alternative  uses at the present time.

This is a world bank project under the Program for-Results (PforR)  Rinancing  instrument.  Its unique features include linking disbursement of  

funds to the achievement of speciRic program results and supporting clients in enhancing the  effectiveness  and efRiciency  of  their  development programs to achieve tangible and sustainable  results.  The  project  is  currently  ongoing in all 36 States of the federation.

40. 

Ministry  of  Physical 

Planning and Urban  

Development

Public Relations and  Whistleblower  

strategy  for  the  ministry  of  physical  planning  and  urban  development

269,000,000 

Jul-23 

6334 Business Services

This should be reviewed and assessed  to ensure Value-for-money.

The  project  involved  a  comprehensive  nine month enumeration and sensitization campaign  conducted by the consultant throughout Lagos  State.  This  initiative  also  involved  the  engagement of diverse stakeholders within the  informal  sector,  with  a  primary  focus on  augmenting  data  collection,  fostering  community  awareness,  and  promoting  regulatory compliance.

41. 

OfRice  of  Internal 

Audit

Transformation  

Agenda  for Of Rice  of  Internal Audit

100,000,000 

Jul-23 

Marina  

Consulting 

Limited

This  is  quite  vague.  It  should  be  reviewed  and  assessed  to  provide  assurance of Value-for-money

This  was  an  extensive  capacity  building  programme  for  all  Auditors  statewide  and  a  process re-engineering drive.

42. 

Capacity  building  and  Competency  Framework for 

Of Rice  of  Internal  Audit

100,000,000 

Jun-23 

Dayclar Global Ventures

This  contract,  for  capacity  building  and a competency  framework  for  the  OfRice of Internal Audit, is recorded by  the  PPA as  being awarded  to Dayclar  Global  Ventures,  which  deRines  itself  as a real estate company.

The consultant, with a wealth of experience in  works  projects,  was  enlisted  to  conduct  statewide  training  for auditors.  The  focus was  on  imparting  prepayment  inspection  protocol  expertise  alongside  comprehensive  project  management skills.



43. 

OfRice  of  the  Head  of  Service

Procurement  of  5  (Five) 

Brand  New  2023  Mikano 

Changan  Dynamic  Saloon Vehicles for 5  lucky winners in the  senior  category  during  the  recently  concluded  Y2023  Public Service Week.

83,796,250 

Aug-23 

Mikano  

International 

Limited

It  is  ill-advised  to  do  a  rafRle  draw  where  5  new  vehicles  are  given  out  free  with  public  funds.  One  vehicle  would  sufRice  for  this  purpose.  LASG  should  instead  focus  on  ensuring  public servants are well compensated  and then held accountable for efRicient  service delivery

The distribution of 5 vehicles during the Public  Service  Week  aimed  to  recognize  senior  civil  servants' dedication and boost morale. The goal  of this gesture, is to  foster productivity among  public servants.

44. 

Lagos  State  Emergency  

Management Agency

Procurement of Fuel  for  Lagos  State  Emergency  

Management  

Agency 

Operational  

Activities  for  the  Month of April

74,524,650 

Apr-23 

Messrs  

Aderinola 

Oyindamola 

Aboyade-Cole  & Co.

Procurement  of  Fuel  by  the  State  should  be  rationalized.  The  State  should  negotiate  directly  for  bulk  product  purchases  from  the  major  petroleum  product  marketing  companies.  It  may  then  use  smaller  contractors  for  the  related  logistical  services,  fulRillment  and  for  limited  supplementary  product  purchases,  if  and when required. LASG should also  maintain  appropriate  levels  of  strategic reserve.

Procuring  fuel  for  LASEMA  in  this  manner  aligns with the state's public procurement goals  which includes encouraging SME involvement.  Involving  smaller  contractors  supports  SME  participation  and  ensures  operational  Rlexibility.

45. 

Ibile  Oil  and  Gas 

Corporation

Renovation  of  IOGC's 

Retail  Fuel  Station  Located  at  Km  44  Lekki-Epe 

Expressway  Ikota Lekki, 

Lagos

68,000,000 

Jul-23 

Elsatech  

Nigeria 

Limited

IOGC  continues  to  operate  with  a  substantial  budget  deRicit  though  its  detailed  Rinancial  results  are  not  published. It is unlikely to be efRicient  and  competitive  in  retail  fuel  distribution  and  LASG  is  in  effect  engaging  in  competition  with  businesses,  including  small  businesses,  that  it  should  instead  be  supporting. The State should focus on  doing  what  a  government should  do.  The IOGC station at Ikota is not a busy  station  and  has  changed  hands  a  couple of times in the last 5 years with  IOGC being the latest acquirer. Yet, not 

The  renovation  of  IOGC's  retail  fuel  station  aligns with LASG's role as a major shareholder  in the organization. It's a contribution towards  improving infrastructure within the state, not a  competition  with  private  businesses.  LASG  is  committed to enhancing services for the public  and  addressing  separate  challenges  like  road  works and trafRic through other initiatives.



           

far down the road from the same IOGC  Station  are  dilapidated  and  abandoned road works causing severe  trafRic daily on this critical and rapidly  growing axis

 

 

254 times


Join us on Whatsapp Channel Subscribe to Telegram Channel