FEDERAL ROADS MAINTENANCE AGENCY

(FERMA)

ANNUAL REPORT FOR THE YEAR 2007

1
 OUR VISION

To become the most efficient road maintenance management

organization that will enhance the economic well being of Nigerians
and promote their interests locally and internationally.

OUR MISSION

To efficiently administer road maintenance with the objective of

keeping all Federal roads in good, safe and comfortable condition for
the best value in road transport

2
 REVIEW OF THE ACTIVITIES OF THE AGENCY FOR THE YEAR ENDING 31ST
DECEMBER, 2007

REVIEW BY THE MANAGING DIRECTOR

Once again, I have the pleasure to present the Annual report and
financial statement of the Federal Roads Maintenance Agency for the
year ending 31st December, 2007.

The year would not have been successful without the unflinching
support of the Honourable Minister of Transportation and the objective
commitment of the Governing Board and members of the
Management team.

The Federal Roads Maintenance Agency recorded a quantum leap in

2007 which was evident in a number of organizational changes and
policy shifts as enumerated below.

Consistent with the vision of FERMA to become the most efficient road
maintenance management organization, a major policy initiative was
birthed in 2007 with the formulation of the medium term strategy for
road sector maintenance management. This initiative is expected to
result in the emergence of improved roads infrastructure for best value
in road transportation. Thus, this medium term strategy, as developed,
consist of the concept of gradual recovery and re-procession principle
under a regime of systemic strengthening of about 32,000km of the
Federal Road network over a period of 8-10years, while at the same
time embarking on an all-encompassing roll-on, roll-off maintenance
management that will promote the national objective for good, safe
and efficient road network.

The medium term strategy for road sector maintenance management

initiative is expected to achieve the following:
 Reduction in vehicle operating cost by 30%
 Reduction in accident rate due to road failure by 70%
 Improvement of the overall turnaround travel times for return trips
by 25%
 Reduction in the loss/decay of perishable goods in transit by 48%
 Increased annual growth rate for the non-oil sector of the
economy by 2-3%
 Reduction on the effect that road transport bares on the cost of
Goods and Services by about 5-6%, thereby having a long term

3
 impact on inflation and a medium and long term effect on
poverty reduction
 And ultimately, a friendly road environment for attracting and
encouraging tourism.

Three initiatives were deployed simultaneously to improve the Agency’s

work processes: Regular, retainership and direct labour initiatives. The
bulk of the Agency’s activities were realized through the award of
regular contract and a more efficient and effective use of retainership.
However, the reinforcement of the bimonthly direct labour initiative
went a long way to complement the regular and retainership in no
small measure.

The Agency re-launched its website in 2007 and the benefit of this is to
refocus the Agency on its core mandate, reduce operational costs,
achieve a sound and least-cost supervisory and regulatory framework.
Our overall goal is for the Agency to be a world class road
maintenance management organization. In pursuit of this goal for
excellence, the Agency initiated moves and engaged management
consultants to put in place a well articulated operational and
accounting manual for the Agency that could stand the test of time.

A milestone achievement of the Agency in 2007 was the passage of

the FERMA Amendment Act by the National Assembly which was
signed by the former President, Chief Olusegun Obasanjo. The Act
provides among other things, an additional source of funding for the
Agency through 5% user’s charge on the pump prices of petrol and
diesel. The Agency is optimistic that the law will be implemented soon
as it has been established all over the world that no country has been
able to attain a standard road network from budgetary appropriation
alone taking cognizance of the capital intensive nature of road
maintenance. The need for a steady and regular source of fund for
road maintenance cannot be over-emphasized.

One of the factors which militated against the smooth running of the
Agency was the huge debt profile of about 23 Billion Naira. I wish to use
this medium to express the Agency’s profound gratitude to Mr.
President, Alh. Umaru Musa Yar’Adua for considering and approving
the said sum in the 2007 supplementary budget as this has placed the
Agency on a sound footing towards discharging its mandate to
Nigerians. The Agency expeditiously paid off all its creditors and
terminated all unexecuted contracts as at 31st December, 2007 so as to
dispose of incompetence.

4
Consistent with the Agency’s commitment to deliver quality service to
its stakeholders, it reviewed its contract award procedure to rid the
system of incompetent contractors and develop/enhance the
capacity building of professionals in the civil engineering field who may
be willing to embark on road maintenance as their main business
function.

Finally, I wish to express my immense gratitude to the Honourable

Minister and Permanent Secretary of the Federal Ministry of
Transportation, the Governing Board, Management and Staff of FERMA
for their unalloyed support and dedication to the growth of the Agency
even in turbulent times. We should sustain the unalloyed loyalty, team
spirit and support for one another with a strong commitment to
individual growth and corporate excellence. We shall continuously
improve on the discharge of our mandate to all Nigerians. I also wish to
thank Mr. President, all members of the National Assembly and all
stakeholders for their unending support during the year.

Engr. O.O.Peters
Managing Director

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COMPOSITION OF THE GOVERNING BOARD
The constitution of the Governing Board as at 2007 is as follows:
i) Engr. (Dr.) E.C. Iwuanyanwu, MFR - Chairman
ii) Alh. Lawal Isa (Rep, NARTO) - Member
iii) Engr. Charles Mbanefo(Rep, NSE) - “
iv) Engr. Bala Danshehu (Rep, FMW) - “
v) Chief Sonny Iroche - “
vi) Chief Samson Ekhabafe - “
vii) Mr. A.K.Browne (Rep, FRSC) - “
viii) Arc. Chris Offor - “
ix) Chief (Mrs.) Remi Fadipe - “
x) Arc. Moh’d Sule Obaito - “
xi) Dr. Tunji.A. Bolade (Rep, FMT) - “
xii) Chief Sunday Ogunlade - “
xiii) Chief Adeyemi Adedipe - “
xiv) Mr. Edem Ubeng - “
xv) Mal. Haruna Maigishiri - “
xvi) Alh. Badamasi Kabir Usman - “
xvii) Mal. B.B. Molta - “
xviii) Mrs. Aishat Indo Gwani - “
xix) Mr. U.C.Opara (Rep, FMF) - “
xx) Engr. O.O.Peters (MD, FERMA) - “
xxi) Mrs. Stella Anukam - Secretary

3. The Board Committees and its members were as follows:

A) FINANCE AND GENERAL PURPOSE COMMITTEE
i) Engr. (Dr.) E.C. Iwuanyanwu, MFR - Chairman
ii) Chief Sonny Iroche - Member

6
iii) Dr. Tunji.A. Bolade - “
iv) Mr. U.C.Opara - “
v) Mrs. Aishat Indo Gwani - “
vi) Mal. Haruna Maigishiri - “
vii) Chief Sunday Ogunlade - “
viii) Chief Adeyemi Adedipe - “
ix) Mr. A.K. Browne - “
x) Engr. O.O.Peters (MD, FERMA) - “
xi) Mrs. Stella Anukam - Secretary

B) PROGRAMMES AND PROJECTS MONITORING COMIITTEE

i) Engr. Charles A. Mbanefo - Chairman
ii) Chief Mrs. Remi Fadipe (JP) - Member
iii) Engr. Bala Danshehu - “
iv) Alh. Lawal Isa - ”
v) Hon. B. B. Molta (JP) - “
vi) Arc. Moh’d Sule Obaito - ”
vii) Mr.A.K. Browne - ”
viii) Barr. Samson Ekhabafe - “
ix) Chief Sonny Iroche - “
x) Mrs. Aishat Indo Gwani - “
xi) Engr. O.O.Peters (MD, FERMA) - “
xii) Mrs. Stella Anukam - Secretary

C) ESTABLISHMENT AND STAFF MATTERS COMMITTEE

i) Alh. Lawal Isa Chairman
ii) Arc. Chris Offor Member
iii) Engr. Charles Mbanefo “

7
iv) Arc. Mohammed Sule Obaito “
v) Dr. Tunji A. Bolade “
vi) Mr. U.C. Opara “
vii) Engr. O.O.Peters (MD, FERMA) “
viii) Mrs. Stella Anukam Secretary

D) TENDERS COMMITTEE

i) Barr. Samson Ekhabafe Chairman

ii) Arc. Chris Offor Member
iii) Mr. Edem Ubeng “
iv) Hon. B.B. Molta (JP) “
v) Chief (Mrs.) Remi Fadipe (JP) “
vi) Alh. Badamasi Kabir Usman “
vii) Engr. O.O.Peters (MD, FERMA) “
viii) Mrs. Stella Anukam Secretary

E) CONTACT COMMITTEE

i) Chief Adeyemi Adedipe Chairman

ii) Mr. Edem Ubeng Member
iii) Mal. Zayyanu Maigishiri “
iv) Chief Sunday Ogunlade “
v) Alh. Badamasi Kabir Usman “
vi) Engr. Bala Danshehu “
vii) Engr. O.O.Peters (MD, FERMA) “
viii) Mrs. Stella Anukam Secretary

MANAGEMENT TEAM

1. Engr. O.O. Peters Managing Director

2. Engr. E.Otote Executive Director (Engr. Services)
3. Engr. P.A. Bello Executive Director (RMMS)
4. Engr. D.Oti Executive Director (East Ops.)
5. Engr.K.Abdullahi Executive Director (West Ops)
6. Mrs.Stella Anukam Secretary/Legal Adviser
7. Mr. Aminu Bisalla Executive Director (F &A)
8. Mr. Victor Ogunkanmi Executive Director (A&HRD)
9. Engr.S.I. Obi Director (Special Duties
10. Engr. A.Y.A. Abdulwabah General Manager (Electrical)
11. Mr. A. Wamyil General Manager (RSSC)

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12. Mr. M.O. Oluwa Head of Internal Audit
13. Mr. D.A. Abubakar Facilities Manager
14. Mal. A.G. Bukar Head of Protocol
15. Mrs. Mariam Sanusi Chief Press Secretary

ZONAL CO-ORDINATORS AS AT 31ST DECEMBER, 2007

Engr. A.S.A Adeniji - North Central Zone

Engr. R.O.C. Agusiobo - North East Zone
Engr. Mgbemena - North West Zone
Engr. M.C. Oji - South- South Zone
Engr. O.O.Obikoya - South East Zone
Engr. M.A. Fowler - South West Zone
Engr. (Mrs) Ilemore - Lagos Zone

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ACTIVITIES OF THE FEDERAL ROADS MAINTENANCE AGENCY IN 2007

1.0 Corporate Activities of FERMA

1.1 Administration
1.1.1 Governing Board and Other Committees

There were changes in the composition of the Governing Board in 2007.

Mr.A.K.Browne was appointed by the Federal Roads Safety Corp to
replace its former representative, Mr. Yakubu Attah. There were also
changes in the constitution of the Management team. The Executive
Director (East Operations), Engr. G.O.Nsonwu was redeployed to the
Federal Ministry of Transportation and was replaced by Engr.D.Oti.
Following the circular issued by the Secretary to the Government of the
Federation, the Governing Board was dissolved and the policy making
responsibility shifted to the Honourable Ministry of Transportation who
delegated the Managing Director to act in her place.

2.00 EAST OPERATIONS

2.01 PROGRESS REPORT

In the year 2007 under review, the Operations embarked on
repairs critical failed section on the carriageway by Regular
Contracts and Retainership Contracts across all the States
covered by the East Operations which comprises Abia,
Adamawa, Akwa Ibom, Anambra, Bauchi, Bayelsa, Borno, Cross
River, Delta, Ebonyi, Edo, Enugu, Gombe, Imo, Rivers, Taraba and
Yobe States.

2.02 REGULAR CONTRACTS

So far a total of five hundred (500) Regular Contracts were
awarded across the States in the Total sum of N4,919,559,466.35.
The sum of N2,396,817,176.48 were certified for payment. The
details are contained in annexure (I) of this report. The brief on
the schedule of contract per State is indicated below:

A. ABIA STATE

i. Total Number of Contracts: 51

ii. Total Contract Amount: N 642,580,590.25
iii. Number of Completed Contracts: 15
iv. Number of On-going Contracts: Nil
v. Number of Terminated Contracts: 36

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 vi. Total Amount Certified to date: N 188,108,603.35
vii. Total Amount paid to date: N 148,145,791.27
viii. Total Amount Outstanding: N 39,962,812.08

B. ADAMAWA STATE

i. Total Number of Contracts: 18

ii. Total Contract Amount: N 118,883,745.08
iii. Number of Completed Contracts: 13
iv. Number of On-going Contracts: Nil
v. Number of Terminated Contracts: 5
vi. Total Amount Certified to date: N 52,636,756.41
vii. Total Amount paid to date: N 34,490,833.70
viii. Total Amount Outstanding: N 18,145,922.71

C. AKWA IBOM STATE

i. Total Number of Contracts: 33
ii. Total Contract Amount: N 272,993,726.32
iii. Number of Completed Contracts: 17
iv. Number of On-going Contracts: Nil
v. Number of Terminated Contracts: 16
vi. Total Amount Certified to date: N 168,522,536.25
vii. Total Amount paid to date: N 87,841,513.20
viii. Total Amount Outstanding: N 80,681,023.05

D. ANAMBRA STATE
i. Total Number of Contracts: 34
ii. Total Contract Amount: N 334,773,509.30
iii. Number of Completed Contracts: 24
iv. Number of On-going Contracts: Nil
v. Number of Terminated Contracts: 10
vi. Total Amount Certified to date: N 198,485,727.89
vii. Total Amount paid to date: N149,072,818.81
viii. Total Amount Outstanding: N 49,412,909.08

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E. BAUCHI STATE

i. Total Number of Contracts: 26

ii. Total Contract Amount: N 247,798,430.20
iii. Number of Completed Contracts: 13
iv. Number of On-going Contracts: Nil
v. Number of Terminated Contracts: 13
vi. Total Amount Certified to date: N 134,871,997.48
vii. Total Amount paid to date: N 134,871,997.48
viii. Total Amount Outstanding: Nil

F. BAYELSA STATE

i. Total Number of Contracts: 21

ii. Total Contract Amount: N 120,834,374.50
iii. Number of Completed Contracts: 6
iv. Number of On-going Contracts: Nil
v. Number of Terminated Contracts: 15
vi. Total Amount Certified to date: N 40,705,277.64
vii. Total Amount paid to date: N 13,190,382.33
viii. Total Amount Outstanding: N 27,514,895.31

G. BORNO STATE

i. Total Number of Contracts: 21

ii. Total Contract Amount: N 174,936,038.85
iii. Number of Completed Contracts: 14
iv. Number of On-going Contracts: Nil
v. Number of Terminated Contracts: 7
vi. Total Amount Certified to date: N 114,047,999.94
vii. Total Amount paid to date: N98,262,378.04
viii. Total Amount Outstanding: N 15,785,621.90

H. CROSS RIVER STATE

i. Total Number of Contracts: 38

ii. Total Contract Amount: N 316,035,053.80

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 iii. Number of Completed Contracts: 26
iv. Number of On-going Contracts: Nil
v. Number of Terminated Contracts: 12
vi. Total Amount Certified to date: N 228,266,779.50
vii. Total Amount paid to date: N137,121,227.41
viii. Total Amount Outstanding: N 91,145,552.09

I. DELTA STATE

i. Total Number of Contracts: 13

ii. Total Contract Amount: N 89,135,823.00
iii. Number of Completed Contracts: 5
iv. Number of On-going Contracts: Nil
v. Number of Terminated Contracts: 8
vi. Total Amount Certified to date: N 53,589,807.40
vii. Total Amount paid to date: N47,935,850.75
viii. Total Amount Outstanding: N 5,653,956.65

J. EBONYI STATE

i. Total Number of Contracts: 23

ii. Total Contract Amount: N 156,059,209.60
iii. Number of Completed Contracts: 16
iv. Number of On-going Contracts: Nil
v. Number of Terminated Contracts: 7
vi. Total Amount Certified to date: N 114,672,129.58
vii. Total Amount paid to date: N58,723,737.75
viii. Total Amount Outstanding: N 56,723,071.83

K. EDO STATE

i. Total Number of Contracts: 46

ii. Total Contract Amount: N 559,194,803.05
iii. Number of Completed Contracts: 31
iv. Number of On-going Contracts: Nil
v. Number of Terminated Contracts: 15

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 vi. Total Amount Certified to date: N 396,848,925.60
vii. Total Amount paid to date: N230,928,656.82
viii. Total Amount Outstanding: N 165,920,268.78

L. ENUGU STATE

i. Total Number of Contracts: 37

ii. Total Contract Amount: N 500,274,563.54
iii. Number of Completed Contracts: 15
iv. Number of On-going Contracts: Nil
v. Number of Terminated Contracts: 22
vi. Total Amount Certified to date: N 196,166,253.02
vii. Total Amount paid to date: N145,903,022.70
viii. Total Amount Outstanding: N 50,263,230.32

M. GOMBE STATE

i. Total Number of Contracts: 20

ii. Total Contract Amount: N 172,364,418.55
iii. Number of Completed Contracts: 5
iv. Number of On-going Contracts: Nil
v. Number of Terminated Contracts: 15
vi. Total Amount Certified to date: N 56,683,677.96
vii. Total Amount paid to date: N48,652,606.59
viii. Total Amount Outstanding: N 8,031,071.37

N. IMO STATE

i. Total Number of Contracts: 45

ii. Total Contract Amount: N 480,224,066.15
iii. Number of Completed Contracts: 14
iv. Number of On-going Contracts: Nil
v. Number of Terminated Contracts: 31
vi. Total Amount Certified to date: N 118,469,554.51
vii. Total Amount paid to date: N89,629,519.51
viii. Total Amount Outstanding: N 28,840,035.00

O. RIVERS STATE

i. Total Number of Contracts: 32

ii. Total Contract Amount: N 330,743,774.41

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 iii. Number of Completed Contracts: 11
iv. Number of On-going Contracts: Nil
v. Number of Terminated Contracts: 21
vi. Total Amount Certified to date: N 83,887,763.09
vii. Total Amount paid to date: N
43,408,050.00
viii. Total Amount Outstanding: N
40,479,713.09

P. TARABA STATE

a. Total Number of Contracts: 25

b. Total Contract Amount: N 253,794,126.25
c. Number of Completed Contracts: 12
d. Number of On-going Contracts: Nil
e. Number of Terminated Contracts: 13
f. Total Amount Certified to date: N 150,534,762.65
g. Total Amount paid to date: N 104,266,837.50
h. Total Amount Outstanding: N 46,267,925.15

Q. YOBE STATE

a. Total Number of Contracts: 17

b. Total Contract Amount: N 148,933,213.50
c. Number of Completed Contracts: 10
d. Number of On-going Contracts: Nil
e. Number of Terminated Contracts: 7
f. Total Amount Certified to date: N 94,214,449.21
g. Total Amount paid to date: N 69,964,202.50
h. Total Amount Outstanding: N 38,506,621.71

2.2 RETAINERSHIP CONTRACTS

37 Number Contracts were awarded for maintenance repairs by
Retainership on some selected stretches of roads in the East
Operations with a Budgetary Provision of N3,930,000,000.00 (Both
Dry & Rainy Season). However, work was only carried out on
seventeen (17) of the contracts which were certified in the total
sum of N989,800,042.56. The Retainership was for one (1) year
duration. The details are contained in annexure (II) of this report.

WEST OPERATIONS DEPARTMENT

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INTRODUCTION
The West Operations Department carried out its duties in the year in line
with the Agency’s functions, which is to ensure the efficient and
effective maintenance of all existing Federal Trunk Roads. The duties of
the department include checking submissions from the fields,
processing contracts for award, monitoring progress of works and
processing Interim Statements for payment.

PROGRESS REPORT
In the year 2007, the Department monitored progress of Regular
contracts, Retainership contracts and Direct Labour works spread
across all the states covered by West Operational Department which
comprises Ekiti, Lagos, Ogun, Ondo, Osun and Oyo of South West Zone;
Benue, FCT, Kogi, Kwara, Nasarawa, Niger and Plateau of North Central
Zone as well as Jigawa, Kaduna, Kano, Katsina, Kebbi, Sokoto and
Zamfara of North West Zone.

SOUTH WEST ZONE

The Regular contracts under the south west zone totalling 145 were
awarded in the year under review in the total contract sum of
N1,142,917,470.91. The total amount certified in the zone was
N879,997,592.66 with N262,919,878.25 as outstanding commitment. This
represents about 70% project completion. The details are contained in
annexure (III) of this report.

NORTH CENTRAL ZONE

The regular contracts awarded in the zone within the year under review
were 178 in number, in the total sum of N1,579,712,230.26 By the end of
the year, a total of N1,103,002,679.73 had been certified with
N476,709,550.53 as outstanding commitment. This represents about 80%
project completion. The details are contained in annexure (IV) of this
report.

NORTH WEST ZONE

The Regular contracts under the North West zone totalling 152 were
awarded in the year under review in the total contract sum of
N1,275,467,531.72 The total amount certified in the zone was
N982,008,569.99 with N293,458,961.73 as outstanding commitment. This
represents about 76% project completion. The details are contained
in annexure (V) of this report.

RETAINERSHIP CONTRACTS

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 37 contracts were awarded on one-year retainership basis on selected
stretches of roads in a total sum of N4,527,071,381.37. The details are
contained in annexure (VI) of this report.

LEGAL UNIT

STATUS REPORT ON CASE PENDING AGAINST FERMA AS AT 8TH FEBRUARY

2008
S/N PARTIES COURT STATUS OF RELIEFS
THE MATTER SOUGHT YEAR REMARKS
1 Suru Federa The N60 million 2007 Out of
Oshibowa VS. l High Agency court
FERMA & Court, has settlement
A.Y.A. Lagos entered is highly
Abdulwahab. conditional recommen
appearanc ded
e.
2 Adonai High The matter N11,395,125.0 2007 The Motion
Novelty Co. Court , was struck 0 on Notice
Limited VS. Abuja out on the has not
FERMA 24th been
October, heard due
2007. to the
However ongoing
the plaintiff strike.
filed a
Notice
urging the
court to
relist
matter.
3 Agro Base High The plaintiff N10,000.00 2007
Investment Court is yet to damages
ltd VS. FERMA Ilesha, apply that and
Osun the matter perpetual

17
 State.be set injunction
down for
hearing.
4 Zybash High The matter N10,521,000.0 2007
Ventures ltd Court has not 0
VS. FERMA Abuja been
mentioned.
The Hon.
Justice has
been
involved in
Election
Tribunal
matters.
5 BPS Federa The matter N131,911,339. 2007
Engineering & l High was slated 01
Construction Court, for hearing
co. Ltd VS. Abuja on the 5th
FERMA Feb. 2008
but could
not go on
because of
the
ongoing
strike

TENDERS AWARDS FOR 2007

Regular contract awards

East operations 263
West operations 303
Retainerhip 1
Vegetation control 326
Non-roads projects are as follows:
S/No Name of Scope of Works Amount Duration
contractor/Consultant Quoted (N)
with Address
1 M/s Catamaran Nig. (i) Analysis of the current 19,950,000.00 6 months
Ltd. technical and financial
386/394, Ikorodu Road, operations of FERMA.
Ojota, Lagos (ii) Review of the
information gathered
18
 on the technical and
financial operations of
FERMA.
(iii) Redesign and
Document FERMA Fund
Management System.
(iv) Redesign and
Document FERMA
Road Maintenance
Technical Operations.
(v) Conduct Capacity
Building Training on the
Operations Master
Plan.
2 M/s Sanol Engineering (i) Database
in partnership with XDS development and 19,950,000.00 6 months
Solutions licensing
Plot 470, Aminu Kano (ii) GIS design: Road
Crescent, Wuse II, mapping
Abuja. (iii) Networking
(iv) Internet access
(v) IT training
(vi) Website Design
3 M/s Phillips Consulting (i) Redesign financial 14,700,000.00 3 months
Ltd. reporting System
4th Floor, UBA House, 57 Document operational
Marina, Lagos. procedures
4. M/s Headwood (i) Conduct a study of
Integrated Ltd internal communication 14,700,000.00 3 months
No. 156, Monrovia and feedback
Crescent, Wuse II, processes within the
Abuja organization to fashion
out an ideal structure,
capable of taking
FERMA, to the next
level.
(ii) Design strategies that
would enhance
capacity building in
readiness for the
change that the
organization will
experience.

19
 (iii) Design internal
awareness strategies
which will ensure that
members of staff can,
and will confidently
promote a good image
of FERMA.
(iv) Design public
awareness strategies
that would portray
FERMA, as a progressive
corporate entity.
(v) Design partnership
deals with interested
and functional
corporate entities such
that the overall
objectives of FERMA
are achieved.
(vi) Design strategies
that would ensure
additional sources of
funding for FERMA.
(vii) Design collaboration
scheme with NARTO,
NURTW, RTEAN, FRSC,
and other stockholders
with a view to ensuring
responsible road usage.
(viii) Set up hotlines to
FERMA for road
maintenance.
(ix)Design road safety
schemes in
collaboration with
FRSC.

5. Configural Nig. Ltd. supply of spare parts, 2,500,000.00 NA

servicing and
maintenance of 4-9 TPH
FERMA Asphalt Plants
6. Direct procurement (i) 1 No. Coaster Bus (30 NA NA

20
 Seater)

(ii) 1 No. additional

Hiace Bus (16 Seater)
(iii) 1 No. Toyota Prado
(iv) 2 No Toyota Camry
(v) 7 No. 4 x 4 Toyota
Hillux
7 Cofedec Nig. Ltd. road marking along the 450,000.00/km
Plot 286, Okigwe Road, Federal Highways in the 36 for continuous
Ugwu Orji, Owerri, States and FCT lines and
Imo State, Nigeria 430,000.00/km
for
discontinuous
lines
8 M/s First Solar Ltd. repairs and routine 11,350,187.10
maintenance of
streetlighting installations
at Lagos-Ibadan
Expressway, Lagos
9 M/s Wolbab & Co. repairs and routine 11,933,813.78 12
maintenance of months
streetlighting installations
PGH – 3rd Mainland Bridge,
Lagos
10 M/s Brastem Sterr Nig. repairs and routine 9,603,798.75 12
Ltd. maintenance of 4km months
Streetlighting Installations
at Oworo-3rd Mainland
Bridge
11 M/s Dewol Nig. Ltd. repairs and routine 14,576,523.42 12
maintenance of 4km months
Streetlighting Installations
at Ilaje – 3rd Mainland
Bridge, Lagos
12 M/S EMI SYSTEMS LTD Improvement/Installation N18,150,585.00 10
of Security System at weeks
Federal Roads
maintenance Agency
(FERMA) Headquarters,
Abuja

21
13 M/S EMI SYSTEMS LTD Provision/Installation of N17,576,975.00 10
CCTV and Electric Fence weeks
at Federal Roads
Maintenance Agency
(FERMA) Headquarters,
Abuja
14 MESSRS TOMARK NIG. Production of a package N19,943,300.00 8 weeks
LTD documentary for public
enlightenment on
activities, challenges and
aspirations of Federal
Roads Maintenance
Agency (FERMA) over the
Federal Radio Corporation
(FRCN)
15 Messrs First Solar Ltd Provision of solar powered 18,074,899.50 12
Plot 230, Yankari Str., lights on Murtala weeks
Parakou Cres. Cad. Mohammed Bridget along
Zone A7 Off Aminu Lokoja-Abuja Road,
Kano Crest. Wuse 2, Kotonkarfe in Kogi State
Abuja (Section I)
16 Messrs Coudano D- Provision of solar powered 18,233,827.50 12
Tech. Ltd lights on Murtala weeks
19 Thomas Sankara St. Mohammed Bridget along
Asokoro, Abuja Lokoja-Abuja Road,
Kotonkarfe in Kogi State
(Section II)
17 Messrs Kristofferson Provision of solar powered 19,692,172.50 12
International Ltd lights on Murtala weeks
Suite II, 3 Zigninchor Mohammed Bridget along
Street, Wuse Zone 4, Lokoja-Abuja Road,
Abuja. Kotonkarfe in Kogi State
(Section III)
18 Messrs Donex Technical Procurement of platform 28,802,981.88 N/A
Services Ltd Altec L37M Over-Centre
Suite B101, Mambilla Material Handling Aerial
Plaza, Plot 1269 Authur Device for street lighting
Unuigbe Str, Area II, maintenance
Garki, Abuja
19 M/s S. Bello Nig. Ltd. Construction of inter 4,185,178.00 14
Plot 746 Alexander locking tiles car park weeks
Cres., Wuse 2, Abuja. facility at FERMA
Headquarters, Wise II,

22
 Abuja.
20 M/s Eskay Ventures 1 no. Mega Executive
(Nig) table with return 1,365,000.00 2 weeks
Plot 21 Cadastral Zone 1 no. Mega Executive
A6, Maitama, Abuja (Swivel) chair
1 No. paper shredder
machine
1 no. long 3 seater visitor’s
chair
1 no. 21” colour flat screen
TV set
3 nos. Executive visitors
chairs
1 no. Glass television stand
(Executive)
1 no. polish table file shelf
1 no. standard shelf with
glass door
21 Imagination Tools Ltd 9 Nos. HP Personal 2,382,450.00 2 weeks
Suite 203, His Glory Computer
Plaza, Plot 1187, 1 No. USB Hard Drive
Adetokunbo Ademola
Crescent, Wuse 2, 1 No. KVA UPS
Abuja. 1 No. Epson DFX 9000
Printer
1No. Toshiba Laptop

22 M/s Mead Westvaco 1 No. container load (80 6,674,241.60 N/A

Corporation, USA drums) of PAVE 192
11013, West Broad concentrate.
Street, Glen Allen,
Virginia 23060
Tel (804) 327-5200
23 Direct procurement 80 Nos. KIA K2700 single N/A
cabin operational trucks
for the use of the Agency
24 Direct procurement 2 Nos. Toyota Camry S/L N/A
(and 8 Nos. Toyota Hilux (2

23
 x 4) Disc Pick-up
25 Xenium Networks Ltd Direct procurement of 6 146,151,052.80
AL 17, Abuja Road P. nos. pothole patchers
O. Box 7166 Zip 800-001
Kaduna

BOARD AND BOARD COMMITTEE’S MEETINGS

COMMITTEE NO. OF MEETING IN 2007

Board 3
Estab./staff Matters 5
Tenders 4
Finance &General Purpose 4
Prog. &Projects Monitoring 3
Contact 1

ACTIVITIES OF RESEARCH AND DEVELOPMENT UNIT IN 2007.

PUBLICATION OF THE READOP SERIES:

The Research and Development Unit of the Federal Roads
Maintenance Agency publishes a quarterly, first-of-its-kind International
Journal on Road maintenance in Nigeria called READOP (Research
and Development Opinion) SERIES. The magazine is internationally
acknowledged with the identification number ISSN 0952988. The
READOP series 1-10 were produced on a monthly basis but in January
2007, the journal was redesigned to be produced on a quarterly basis.
The 11th edition (January- March, 2007) was released with the title:
“TOLL ROAD CONCESSION ….. The Malaysian Experience”. This was
later followed by the 12th edition (April-June, 2007) which was titled:
“ASPHALT 100% RECYCLABLE ….. American Experience”. In the former,
FERMA R&D used Malaysian road concession experience to advocate
for a road concession policy in Nigeria as a means of improving our
road infrastructures by optimum application of available resources and
opportunities. In the 12th edition, FERMA R&D brought to fore, the need
for Nigeria to embrace asphalt recycling techniques to save some of
the money being spent on road rehabilitation and maintenance by
using the America experience as a case study.

24
C.) PRODUCTION AND USAGE OF FERMA COLD ASPHALT
Cold-Asphalt is a high-quality, polymer-modified cold mix asphalt
available in batch orders to builders and road maintenance workers.
Road users are familiar with the usual dry season road construction and
rehabilitation activities (paving, repaving and patching) when highway
men bring out heavy equipment and pour hot asphalt on the street,
roll it out and smooth over a newly paved section of road. Until recently
when cold asphalt was produced, that was the only way to repair
potholes and damaged roads.

Quite a number of suppliers and manufactures have introduced their

own brands of cold asphalt to FERMA. Some of them have been found
to be useful on the basis of comparative application and cost analysis
with hot-mix asphalt. Some other brands are very much more expensive
than hot-mix asphalt.

FERMA R&D was encouraged by the management to carry out a

research into the possibility of making our own brand locally. Our efforts
have yielded result and in 2007, FERMA R&D produced some quantities
of the materials which were tested on the Sheraton Hotel Wuse Market
Road in Abuja. The Managing Director of the Agency, Engr. O.O. Peters
personally visited the application site with R&D staff. What he saw
excited and prompted him to order the production of more quantity of
the cold asphalt which is now being distributed to FERMA Field
Headquarters across the country. The feedback we are getting on the
performance is indeed encouraging.

“FERMA Cold Asphalt” is produced using our local binder or wearing

course specification with the advantage that it could be bagged,
stockpiled and conveniently used for prompt pothole patching in the
dry or wet season. It is applied right from the container without heating
or requiring any special applications as it can be shoveled or poured
into a pothole and tramped down with a hand tool.

D.) ASPHALT RECYCLING:

In 2003, during the tenure of the Head of Research and Development
Unit of FERMA, Engr. T.B. Eyo, as the first CME in Yobe state, he made an
attempt at asphalt recycling by converting a tar boiler he got from the
Yobe State Ministry of Works into a mini asphalt plant. With this, he
produced recycled asphalt using scarified, discarded asphalt
concrete. In the same vein, FERMA R&D has continued to look at the
possible ways by which asphalt recycling can be incorporated into

25
Nigeria’s road maintenance and rehabilitation culture. In 2006 and
2007, FERMA registered its presence in the Asphalt Recycling and
Reclaiming Association (ARRA) - an organization we joined in 2005, in
order to continue to explore the options available to us for the transfer
of asphalt recycling technology to Nigeria..
Although, asphalt recycling could require heavy equipment at the very
advanced level, it could also be done at a very primary level. In 2007,
FERMA R&D carried out asphalt recycling without the use of heavy
machinery. We have also produced recycled cold asphalt using from
scarified asphalt pavement. However, plans are on the drawing board
to take the exercise to the Field Headquarters where our engineers and
technical officers will be trained to use the mobile asphalt plant at their
disposal.

F.) RESEARCH COLLABORATIONS:

Apart from the research relationship between FERMA R&D and the
Federal University of Technology, Akure, the Agency has a research
agreement with the Nigerian Building and Road Research Institute
(NBRRI) – Abuja and Ota, Ogun State on the soil classification in Nigeria
on a state by state basis with the South-Eastern states as their initial
focus. However, this has not shut the line of communication which
FERMA R&D earlier opened with the Ahmadu Bello University (ABU),
Zaria; University of Maiduguri (UNIMAID), Maiduguri; Obafemi Awolowo
University (OAU), Ile-Ife; and the University of Nigeria Nsukka to carry out
the same survey in states in the regions they are located. The
universities were contacted in 2006 and the FERMA R&D team, led by
the Head of the Unit, Engineer Eyo, T.B. visited them in 2007. They have
submitted research proposals in this regard.

FERMA R&D had however suggested that since NBRRI is carrying out the
survey in the South Eastern states for Twenty Five Million, Eight Hundred
And Sixty Seven Thousand, Five Hundred Naira (N25,867,500.00) only
giving an average of about Five Million, One Hundred and Seventy
Three Thousand, Five Hundred Naira (#5,173,500.00) only, ABU,
UNIMAID, OAU, University of Nigeria, Nsukka and Federal University of
Agriculture, Makurdi should be made to undertake the same exercise in
the North-West, North-East, South-West, South-East and North-Central
respectively for the same amount and within the same period, to save
time.

The polymer emulsion which FERMA R&D is using for producing the cold
asphalt is being imported from the United States of America. This is the
only content of the product that is being imported and we are very

26
passionate about obtaining a locally sourced alternative. We have
therefore entered into research relationships with the Chemical
Engineering Department of Obafemi Awolowo University, Ile-Ife;
Chemistry Department of University of Ibadan and the National
Research Institute of Chemical Technology (NARICT), Zaria in Kaduna
State in attempts to solve the riddle about the chemical and synthesize
a local alternative. We have also agreed to work with NARICT on a
locally-made dust suppressant (or soil stabilizer) which the institute is
developing.

The fabrication of the FERMA Road patching Mat and the production
of the cold asphalt was done in conjunction with Adibex Engineering
ventured.

At this juncture, it should be noted that most of our laboratory works

have been carried out in private laboratories FERMA R&D has always
advocated for its own modern highway research laboratory with state-
of-the-art equipment which will assist us in maintaining our relationships
with other research institutions but from a more privileged position. The
management can consolidate on the encouragement it has given
FERMA R&D so far by favourably considering our submission on the
need for a laboratory.

G.) TRAINING:
A crucial part of FERMA R&D mission is to invest in people to maintain
the flow of excellent new minds, give support for career advances,
flexibility and change which will sustain the momentum of advances in
the highway sector. For this purpose FERMA R&D periodically organizes
both local and foreign training programmes for FERMA staff as well as
provides the opportunities for attendance of workshops, seminars and
conferences. Some of the conferences and training facilitated or
conducted by FERMA R&D in 2007 are as follows:
a. The 31st Annual Meeting and Seminar of the Asphalt Recycling and
Reclaiming Association (ARRA) which took place in Bonita Springs,
Florida, USA between 14th – 17th February, 2007 - Three officers
attended.

b. World of Asphalt Show and Conference which took place at

Georgia International Convention Center, Atlanta, Georgia
between 19th – 22nd March, 2007 - Four officers attended.

27
c. International Seminar on the Introduction of Asphalt-Rubber Binder
Technology to Nigeria which Ronnie Renshaw, an invited
Professional Engineer from South Africa was the resource person. It
took place in Borno/Adamawa/CrossRiver Meeting Room of
Transcorp Hilton Hotel, Abuja on the 12 th of July, 2007 – about 50
Engineers and Technical Officers from the 39 Field Headquarters and
Head Offices attended.

d. A 3-Day Training of FERMA Engineers on the Fabrication of Road

Mats which took place at the Head office in Abuja between 8 th –
10th August 2007 – 66 Engineers and Technical Officers from Field
Headquarters as well as 28 officers from the Head office attended.
The management subsequently approved the sum of Seven
Hundred Thousand Naira (N700,000.00) only to each Field
Headquarter for the fabrication of 700 mats each.

I). HIGHWAY DATA BASE:

On the 13th of December, 2007, the Managing Director of the Agency

granted approval to the proposal of the R&D Unit to work in
collaboration with the staff in the field offices to gather information for
the Agency’s Highway Database. For a start, the information which the
field offices were directed to obtain include the following:
i) Tonnage of asphalt produced in each state per year.
ii) Quantity of asphalt used in each state per year.
iii) Locations of asphalt plants in each state.
iv) Fuel consumption rate for the production of 1 ton of asphalt.
v) Quantity, sources and types of bitumen used in each state per
year.
vi) History, total length and types of roads (Asphaltic Concrete,
Surface Dressing, Earth Roads) in the state. (i.e. state roads).
vii) History, total length and types of roads (Asphaltic Concrete,
Surface Dressing & Earth Roads) in each local government.
viii) Amount of money spent for road construction and
maintenance of the state and local government roads.

28
 The collation of information from the 39 field headquarters is still
ongoing.
Please note that the importance of highway database of a country
cannot be overemphasized. Its availability can be useful for planning
and is also consulted when international organizations like the UNO,
ADB and World Bank are considering countries of the world for grants
on road maintenance and road maintenance research activities.

MECHANICAL DIVISION

YEAR OPERATIONAL VEHICLES REMARKS

2007  Processed and procured 57No 14No Kia K2700 Mini
operational vehicles ranging in models Truck out of 80No
from Toyota Camry 2.4, 2WD D/C and approved has been
4WD D/C Hilux, Toyota Coaster staff procured so far. The
Buses and Kia K2700 Mini Truck. Kia Trucks are to be
 Handled the painting of all operational used by Road
vehicles to FERMA colour. Engineers in the
 Handled the installation of various field offices.
Security/Tracking devices in all FERMA
vehicles. Comprehensive
 Maintenance of all H/Q vehicles Insurance, Licensing,
and FG plate No, for
all vehicles were
completed. Also
renewals of Licenses
were carried out.

ASPHALT PLANT CLEARING/INSTALLATION

 Completed the clearing of 14No out of

15No containers of the Asphalt Plant
component at Apapa Port
 Completed the installation of Asphalt
Plant in 2 zones, Kuje and Lagos
 Completed the training of plant
operators in the remaining states

29
2007 MAINTENANCE OF 4/9 TPH MINI ASPHALT
PLANTS

 Contract for the maintenance of 37No The contractor up to

Mini Asphalt Plant was signed. the time of reporting
 Maintenance was phased in three has executed
quarters beginning from April 2007 to April completely the 1st
2008 and was to be executed by quarter of the
Configural Nigeria Limited at a total contract. The
contract sum of N92 Million. contract is to end by
April 2008
* Only N15,626,397.25
had been paid to
date.

HIRING OF SUNDRY EQUIPMENT

The balance of
 Worked with the committee on Sundry 22Nos. remaining
equipment and completed the hiring out Sundry equipment
of 44No sundry equipment to Borini Prono, are yet to be hired
Hapel Nig. Ltd. and Roads Nig. Plc. out.

PROCUREMENT OF POTHOLE PATCHER

 Completed the due Process requirement

for the procurement of 6nos. pothole Have placed the
Patchers. order for the
procurement of 1No
30
 sample pot-hole
RETRAINING OF PLANT OPERATORS patcher.

 Completed the proposal for the retraining

of 72 No plant operators from field
officers. Awaiting, approval

ELECTRICAL DIVISION

S/n Location Distance Job description Remarks

1.0 Lagos 2 Direct labour repairs Job
1.01 Kingsway Road, and maintenance executed
Ikoyi for 12 months was satisfactorily
approved at a sum
of N9,478,000.00
1.02 Osborne Road, 3 Direct labour repairs Job
Ikoyi and maintenance executed
for 12 months was satisfactorily
approved at a sum
of N13,000,000.00
1.03 Simpson Road, 1.5 Minor repairs were BEME for total
Ikoyi done during the year repair is being
included in
2008 proposal
1.04 Adeniji Adele 2 Minor repairs were BEME for total
along 3rd carried out during repair is being
Mainland bridge the period included in
2008 proposal
1.05 PGH- 3rd 4.5 Retainership Installation is
Mainland bridge contract was working
awarded to M/s satisfactorily
Wolbab & Co in the

31
 sum of N11,
933,813.78 for a
period of 12 months.
The contractor is still
on site under the
supervision of the
division
1.06 Ilaje-3rd 4 Retainership Installation is
Mainland bridge contract was working
awarded to M/s satisfactorily
Dewol Nig. Ltd in the
sum of
N14,576,532.42 for a
period of 12 months.
The contractor is still
on site as at the time
of this report
1.07 Oworonshoki- 3rd 2 Retainership Installation is
Mainland bridge contract was working
awarded to M/s satisfactorily
Brastem Sterr Nig. Ltd
in the sum of
N11,449,376.70 for a
period of 12 months.
The contractor is still
on site as at the time
of filing this report
1.08 Ogudu along 2.5 Site inspection was BEME for total
Ojota road carried out. BEME for repair is being
rehabilitation is been included in
prepared as at the 2008 proposal
time of this report
1.09 Alapere 3 Few lamps were
BEME for total
replaced during the repair is being
period included in
2008 proposal
1.10 Lagos- Ibadan 4 Retainership The
expressway contract was installation is
awarded to M/s First working
Solar ltd in the sum of satisfactorily
N11,350,187.10 for a
period of 12 months.

32
1.11 Herbert 2 Minor repairs and
Macaulay relamping were
carried out
effectively
1.12 Murtala 4 Minor repairs and
Mohammed int’l relamping were
Airport access carried out
road
2.0 KOGI STATE 1.8 The contract for the Only M/s First
Murtala installation of solar Solar Ltd is on
Mohammed lights on the bridge site. The other
bridge, was awarded to 3 2 contractors
Kotonkarfe contractors viz; M/s have not
First Solar Ltd at the mobilized to
sum of site and legal
N18,074,899.50, M/s action is
Kristofferson Int’l Ltd deployed to
at the sum of withdraw the
N19,692,172.50 and letter of
M/s Coudano D- award
Tech Ltd at the sum
of N18,233,827.50
3.0 YOBE STATE 3 BEME for total BEME for total
Damaturu- rehabilitation was repair is being
Maiduguri road prepared early in the included in
year 2008 proposal
4.0 PHCN The sum of All forwarded
ELECTRICITY N14,759,557.92 was bills were
PAYMENT paid for the energy paid
bills as at January, accordingly
2007
TRAFFIC ENGINEERING AND SAFETY DIVISION

S/N Detailed report Remark

1 Desilting of concrete lined drain along The concrete lined
Benin Bypass road CH 8+500-CH 38 +850 drain has been
RHS & LHS successfully and
satisfactorily
completed
2 Provision of traffic alert and illumination The work is fully
of Ilesha-Ife road roundabout in Osun accomplished and
State. completed
Installation of the following materials

33
 were done at the roundabout:
Roundabout signs, speed bumps
(reflective), stop signs, speed limit signs,
wall flex signs and installation of traffic
calming devices (studs)
3 Provision of illumination of black spots on The work was
Owo-Okaako-Epinmi Isua road. The satisfactorily
following safety materials were installed: completed
Danger signs, High grade signs, stop
signs, speed limit signs, advance curve
signs and calming device by the use of
reflective studs (cat eyes)
4 Supervision and certifying of work done Work is still ongoing in
on road marking by retainership along some States as at the
Federal Highways in the 36 Stated and time of this report
FCT while some States
have been
completed.
5 Provision and installation of road signs, The work is in progress
kilometre posts and bridge illumination as at the time of this
of the following Federal Roads; report
a)Ilorin –Jebba road in Kwara State
b) Benin-Auchi-Okpella-Kogi State
border road in Edo State
c) Ifon-Uzebba-Irruekpen road in Edo
State
d) Oluko-Sobe-Ondo State border in Edo
State
e) Jos-Bauchi road in Plateau State
f) Bauchi-Gombe road in Bauchi State
g) Jebba-Mokwa-Kotagora road in
Niger State
h) Oshogbo-Okuku-Ajase road in Osun
State
i) Ado-Ilumobe-Ondo State road in Ekiti
State
j) Itoikin-Epe road in Lagos State

MEDIA/PUBLIC RELATIONS UNIT

The Media and Public Relations unit embarked on proactive media

and public relations activities to gauge public opinion and through that
strategy, develop necessary advisory information and data for

34
management information and decision making. Below are the key
activities and achievement of the unit in the period under review:

Press Monitoring, Releases and Advisory Activities

As part of its routine activities, the unit procured newspapers and
magazines, reviewed and monitored coverage of the Agency, the
road sector and related establishment news, features and editorials in
the print media every day of the year. It also mentioned news and
other editorial coverage of the subjects on radio and television within
the period. The specified activities involved procurement of
newspapers and magazines, reviewing, summarizing and indexing
relevant items and drawing management’s attention to important
information therein.

Press Coverage of activities of interest to the public

Invitations for coverage of activities and events considered of interest
to members of the public and stakeholders were issued to all media
organizations to enable them report such events and activities from
sourced first-hand information of the events. Among key events and
activities were opening of Tenders, Press conferences and briefings by
Chairman of the Board and Managing Director. A number of
interactive sessions were held by Management with segments of the
media. Among these were accredited correspondents to the Agency,
City Bureau Chiefs and Property Editors.

Production and airing of TV and radio documentaries and jingles

Radio and television public enlightenment and awareness creation
jingles were produced and aired severally on NTA, AIT, Radio Nigeria
and Aso Radio. A radio documentary was also produced and aired on
radio Nigeria and independent radio station based in the 6 geo-
political zones.

Featuring on recorded/live TV and Radio Programmes

The activities, achievements and challenges of the Agency were
featured on a number of serial recorded and live radio and television
programmes in the period under review. They include:
a) Appearance on the NTA 2-hour live programme “One-on-One”
by MD/CEO
b) Appearance on the AIT 1-hour live programme “Kakaki- the
African Voice” by MD/CEO
c) Appearance on Channels TV 1-hour recorded programme by
MD/CEO

35
d) Running of 13-episode dedicated live programme “FERMA and
YOU” on Aso Radio, Abuja.

Supplements, Advertorials and Features

To reach some identified key publics with information on specific
activities, achievements and challenges, advertisements, advertorials,
supplements and features articles were placed or run in the Tell, Broad
Street Journal Kakaaki and New Transportant Magazines and Financial
Standard, Daily Independent and the Punch Newspaper.

Coverage of Field Inspection tour of maintenance activities

As part of its responsibility of remaining transparent and accountable to
the public in the discharge of its mandate, the unit organized and
conducted media coverage of field inspection of facilities and projects
undertaken by Engineers, Executive Directors and other technical staff.

Among major tours undertaken are the MD/CEO’s tour of the North
West, Lagos and South West zones during which he handed advocacy
materials to the Governors of Lagos and Ogun States. In a similar
development, the MD/CEO paid courtesy and advocacy calls on the
Senate President and Speaker of the House of Representatives where
he briefed them on the Agency’s activities and challenges being
faced while also soliciting their support for its programme.

STORES UNIT
The Stores unit is principally responsible for the control and
management of all moveable property in the Agency. In 2007, the
Stores performed the following roles:
a) Identification of material needs of the Agency
b) Receipt of materials from contractors
c) Storage and distribution of materials
d) Record keeping
In addition, the Stores unit conducted regular market price survey
for items being procured in the Agency. This serves as a guide for
all material pricing in the Agency.

36
REPORT ON STOCK VERIFICATION UNIT

7.01 RESPONSIBILITIES

The stock verification unit, which is directly responsible to the

accounting officer (Managing Director) for a comprehensive
verification of all stocks and purchases of the Agency as stated in
the FR 2020 of January,2000 and FR 2802 of December, 2007. The
stock verification unit provided internal check in the procurement
and management of stores from the point of delivery to
consumption or disposal, according to the nature of item as the
case may be, and advised management on areas where short
coming are found. These include:
(i) Pre – Verification of supplies to ensure that the goods
supplied are in accordance with the specification, quality
and quantity on the awarding instrument i.e. L.P.O or letter
of award etc
(ii) Stock count of items kept in the store FR 3504 (ii) (b)
(iii) Inventory taking and updating records of expendable and
non –expendable stores i.e. Furniture, plant and equipment
etc in offices and fields, FR 3618
(iv) Management of unserviceable stores,
(v) Stock survey of vehicles, plants equipment vessels etc.
FR3611
(vi) Scrutinizing various books, forms and vouchers used in
making stores accounting entries and evaluating storage
conditions/facilities FR 3504 (ii) (f) and (g), fire precautions
and security measures available for government properties
FR 2510 and FR 2512

37
 ROAD MAINTENANCE MANAGEMENT SERVICES DEPARTMENT
(RMMS)
Project Coordination & Progress [PCP] Division

- Consultancy Services in the Field Headquarters

- Other Consultancy Services [Managed by RMMS]

Consultancy Services in the Field Headquarters

In the year 2007, 35 consultants were appointed to assist the Agency in
the supervision of contracts in the field headquarters. The consultants
were required to worked with the Chief Maintenance Engineers in
preparation of proposals and supervised the execution of the awarded
contracts.

The consultants were remunerated in the sum of N420,000.00 per month

as "Responsibility Fee". The total amount committed by the Agency in
2007 was N146,717,199.96. This amount was also fully disbursed to the
various consultants in the fiscal year.

Details of financial commitment are in Annexure

(ii) Other Consultancy Services [Managed by RMMS]

Other Consultancy Services contracts awarded in the Agency in the
2007 fiscal year included:-

- Establishment of Public Partnership and Funding renewal

Development Programme for the Agency
- Establishment of Information Technology Development
Programme for FERMA

38
- Capacity Enhancement Programme for FERMA
- Design and Installation of Local Area Network [LAN] and Wide
Area Network [WAN] Vis-À-Vis Internet Connectivity at Lagos,
Federal Capital Territory and the Provision of LAN/WAN
Infrastructure in 18 States
- Establishment and Development of Procedural Accounting,
Auditing and Operational Manuals

In 2007 year, a total of N88,971,000.00 was committed in "Other

Consultancy Services" managed in RMMS, while N66,186.000.00 were
certified and paid to the various consultants. Details are documented
in Annexure of this report.

Project Budget Implementation [PBI] Division

- Regular Contracts
- Retainership Contracts
- Direct Labour Works
- Development and coordination of alternative sources of Funding
for Road Maintenance Programmes
- Sundry Equipment
- Development and Coordination of Road Concessionairing
Programme
- Settlement of Indebtedness/Liabilities
- Budget Performance

PROGRESS REPORT

ANNUAL PROGRESS REPORT FOR 2007 (EAST & WEST OPERATIONS)

39
In the year 2007 under review, the Operational arms embarked on
repairs of critical failed sections on the carriage way by Regular
Contracts, Retainership Contracts and Direct Labour works across all
the states covered by the East and West Operations.

REGULAR CONTRACTS:
A total of One Thousand and Thirty Six (1036) Regular Contracts were
awarded across the states at the total sum of N9,628,971,236.30. The
sum of N6,944,991,735.36 was certified for payment while the total
amount paid to contractors was N6,849,456,382.17. 798 nos. of the
Contracts were completed and 238 nos. were terminated. The brief on
the schedule of Contract per state is given in the Operations detailed
submission.

RETAINERSHIP CONTRACTS:
75 Number Contracts was awarded for maintenance repairs by
Retainership on some selected stretches of roads in the East and West
Operations and they are still ongoing with a total amount certified of
N6,181,151,769.08 (Both Dry & Rainy Season). While the total amount
paid to Contractors was N5,588,989,597.53. The details are contained in
submission of East and West Operations.

DIRECT LABOUR WORKS

In 2007 a total sum of N2,591,422,035.91 was released to the Chief
Maintenance Engineers under the division for Direct Labour Works. The
scope of work executed under this programme includes
carriageway/shoulders repairs, reconstruction and Improvement of
drainage structures and pot hole/crack sealing works.

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DEVELOPMENT AND CO-ORDINATION OF ALTERNATIVE SOURCES OF
FUNDING FOR ROAD MAINTENANCE PROGRAMME

The Division was involved in the Development and Co-ordination of the

implementation modules of accessing the % user charge on pump
price of petrol and diesel in the year 2007.
Determination of the modalities of accessing the international vehicle
transit charge in the year 2007. Determination of a totalling format for
revenue Estimation for Traffic count projection at the border. For three
categories of vehicle:

NO VEHICLE REVENUE
CATEGORY CHARGE
(i) Cars N50
(ii) Buses N100
(iii) Trucks N200

The above objectives are being achieved through the following ways:
Consultation with the Federal Road Safety Commission (FRSC).
Ascertaining FERMA Consultants in each of the states adjoining
neighbouring countries.
Consultation with the Nigeria Custom Service and the Nigeria
Immigration Service with a view to determining the border posts to
access.
Leasing from the Ghanaian experience in accessing the international
vehicle transit charge.
Liaison with Relevant Agencies of Government like:
The Petroleum Products Pricing and Regulatory Agency (PPPRA).
The Raw Materials, Research and Development Council (RMRDC)

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The Pipeline Products Marketing Company (PPMC)
Nigeria National Petroleum Corporation (NNPC)
Federal Ministry of Finance (FMF)
Office of the Accountant General of the Federation (OAGF)
The Central Bank of Nigeria (CBN).

SUNDRY EQUIPMENT
The Committee on Sundry Equipment was inaugurated by the
Managing Director/CEO of the Agency, with the primary objective to
superintend the hiring/leasing of the Sundry Construction Equipment
owned by the Agency.
Formulate guidelines for proper and efficient monitoring of these
equipment under all forms/hire/lease arrangement, and
Regulate the operations of and the earnings from such hiring/lease
arrangement.
So far, 44 No. Equipment has been given out on lease/hire while 22 No.
are on the verge of being given out.
The Table below clearly indicates the receivables for the construction
equipment hired out to the different Construction Firms.
BORINI ROADS NIG. HAPEL NIG.
PRONO PLC. LTD TOTAL
Number of 22 14 8 44
Equipment

Amount 85,000,000.00 55,000,000.00 37,700,000.00 177,700,000.00

(N)

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DEVELOPMENT AND CO-ORDINATION OF ROAD CONCESSIONAIRING
PROGRAMME
In consonance with an increasing popular and contemporary practice
in Public – Private Partnership in Road Maintenance Management, the
Division is charged with co-ordination of interested Contractors,
Entrepreneurs, Investors and/or Consortium(s) to who would partner
with the Agency in the delivery of quality Road Maintenance Service
under the Road Strengthening/Overlay Programme. Presently
prospective concessionaires are submitting preliminary Technical and
Commercial proposals to that effect.

SETTLEMENT OF INDEBTEDNESS/LIABILITIES
The sum of N20,199,167,398.20 released as supplementary
appropriation in 2007 was used for debt payment of outstanding
certified works of previous years covering N23,229,042,507.90 less 15%
(Presidential Directive).
Details of the captured indebtedness is in Annexure RMMS/2007 AR-03

BUDGET PERFORMANCE
Below is an attached Annexure RMMS/2007 AR-04 of prepared Capital
Recurrent and Revenue Budgets for 2007.

Information & Communication Technology [ICT] Unit

- 2007 Consultancy Services in ICT
- 2007 direct purchases

2007 Consultancy Services in ICT

Consultancy services carried out in ICT is tabulated below:

S/N Consultants Scope of Works Amount (N) Duration

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 1 New Vital Contract to facilitate 387,000,00 8 Days
Network and effect payment
Solutions Ltd. for FERMA’s 512/256
Kbps Dedicated
Internet Bandwidth for
a period of 12 months.
2 Gilat Satcom Payment of 512/256 5,207,730.00 12
Ltd Kbps Dedicated Months
Internet Bandwidth for
a period of 12 months.
3 Imagination Supply and Installation 2,382,450.00 2 Weeks
Tools Ltd. of Accounting
Hardware- Pliny E with
(9 Nos. Desktop PC, 1
No. 120 GB USB HDD, I
No. 1 KVA UPS, 1 No.
Epson printer and 1
No. Toshiba Laptop).
4 Imagination Supply, Installation and 8,756,750.00 12
Tools Ltd. Integration of months
Accounting Software
(Pliny E) for use in the
Finance and Accounts
Department of the
Agency.
Total 16,733,930

2007 Direct Purchases

In 2007 direct purchases of computer facilities and services in the ICT

are in the table below:

S/N Description of Works Amount

(N)
1 Touring advance for inspection of LAN/WAN 245,000
facility at 6 No states field headquarters of
South West Zone
2 Purchase of Desktop printer, External 88,000
speakers, Extra ink cartridges, external hard
drive 200GB
3 Purchase of a laptop and repair of existing 365,000
ones

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 4 VSAT Internet Reactivation with 5 watts BUC 675,000
5 Requirements to boost wireless signal 675,000
(Wireless Routers:

51-Piece Screw driver and driver set

Networking Tool Box
Electric hand blower
A roll of Cat 5e Network Cable
Electric Drilling machine (hand)
Software Tools
RJ-45 connectors
Piece precision Screw Driver 60 Set
6 Procurement of Switches, and PCI Wireless 430,000
Adapter
7 Procurement of 22 no desktop Computers 4,047,500
Total 7,722,513

2007 Staff Training Programmes

In 2007 year, a total of 76 staff has been given adequate training
internationally in the sum of N83,733,903.00.
Details of the training programme are in Annexure RMMS 2007/AR-005

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