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2016 NDDC SECOND QUATER REPORT PART 1

2016 NDDC SECOND QUATER REPORT PART 1


 EXECUTIVE SUMMARY

This report is sequel to the First Quarter Report covering the period 18th December, 2015 to 18th March, 2016 titled "The New Face of Progress". It represents an account of the Niger Delta Development Commission covering the period April to June, 2016.


The summary of the mandate given to the Ag MD/CEO was to use the period to reposition the Commission towards the realization of President Muhammadu Buhari’s vision for the Niger Delta Region.
Some of these strategies include, redeployment and repositioning of some key Directors to areas they are more proficient, routine and constant inspection of the Commission’s projects that are on-going, insistence on improvement in the quality of work and acceleration of the speed in delivering NDDC projects from contractors handling projects.
Copies of the audited account of the Commission for 2014 have been submitted to the Office of the Auditor General of the Federation and the Public Accounts Committee of the National Assembly.
The Financial Audit for 2015 as at the time of this report is 70% completed.




MANDATE OF THE Ag. MD/CEO

The appointment of the Acting Managing Director/CEO of the Niger Delta Development Commission (NDDC) came at the gracious discretion of President MuhammaduBuhari.

The mandate as Acting MD/CEO is contained in Part IV Section 12 of the NDDC Act of 2000, which spells out the duties of the Managing Director/CEO.

This mandate includes refocusing the Commission to support the Federal Government’s development agenda for the Niger Delta region under the leadership of Mr. President.

The mandate of the Office of the Acting MD/CEO outlined in a letter signed by the SGF is as summarized below:
1. To ensure the smooth running of the Commission

2. To fulfill President Muhammadu Buhari’s vision for the Niger Delta region.

3. To ensure that the Commission is able to meet its development agenda.

4. To settle all bills relating to the overhead costs of the Commission.

5. To verify and settle payment certificates relating to completed projects/contracts.
6. To verify and settle payment certificates relating to projects/contracts up to and above 85% completion to facilitate their total completion.


HIGHLIGHTS OF KEY ACHIEVEMENTS

We list below highlights of key achievements for the period under review:

Payments

i. The 2014 Financial Audit has been completed and signed by Management and the External Auditors. Copies have been submitted to the Office of the Auditor General of the Federation and the Public Accounts Committee of the National Assembly.

ii. The 2015 Financial Audit as at the time of this report is 70% completed.

iii. Consolidated the debt profile of the Commission by reconciling inconsistent figures.

iv. Built synergy and encouraged improved coordination among departments.

v. Payment of Interim Payment Certificates (IPCs) of value N10 million and below, earned on projects awarded between 2009 and 2013.

vi. Continued payment of Interim Payment Certificates (IPCs) of value between N10 million and N20 million, earned on projects awarded between 2009 and 2013.

vii. Consideration of projects awarded in 2014 for the above stated thresholds.


Staff Matters / Institutional strengthening

i. Prompt attention to staff welfare

ii. Manpower restructuring to encourage productivity

iii. Empowerment and refocusing of NDDC State Offices for effective project delivery

iv. Commencement of the repositioning of the Commission into a people-centric and result-drivenorganization.

Infrastructure Project Delivery

i. Commissioning of projects at Ifon, Igbotako and Ugbo-Nla Internal roads in Ondo State.

ii. Commissioning of Osian, Odeh, Umeri/Upper Ojekpolor and Cemetary streets in Ika South, Ika North East LGAs, Delta State.

iii. Thirty (30) project sites were handed over to contractors in Akwa Ibom, Cross River, Delta, Edo, Imo and Ondo States in Roads, Solar Water, Solar Powered Light, Building, dredging/desilting, concrete pavement and electrification sectors during the period under review.

iv. Advertorials in national dailies for expression of interest for desks and benches, science, Technical and Vocational textbooks as well as infrastructural designs.

v. Committee for review of rates was inaugurated.

vi. Management set up committees to categorize projects as follows:

a. Transformer Installations

b. Projects awarded from 2014 in the 2014 budget

c. Projects awarded from 2014 in the 2015 budget

d. Projects awarded from 2015 in the 2015 budget

e. Projects awarded from 2014 and 2015 budget above N250m

f. A total of 2,374 were awarded in 2014 and 2015 budgets respectively


Programme Delivery

i. 2nd Management/Staff Fitness Walk Exercise

ii. Concluded the 2016 NDDC Post-Graduate Foreign Scholarship computer based test

iii. Sponsorship of NDDC Professional Chair on Malaria Research in University of Port Harcourt

iv. The World Environment Day Celebration was marked with the theme, “Go Wild for Life”

v. Donation of medications to tackle cholera outbreaks in Imo and Rivers States

vi. Donation of Lassa protective equipments and kits in Akwa Ibom, Cross River, Delta, Imo, Rivers States


Stakeholders’ Engagement

i. Courtesy visit to the Executive Governor, Delta State

ii. Courtesy visit to the Executive Governor, Edo State

iii. Courtesy visit to the Executive Governor, Ondo State

iv. Courtesy visit to the Olu of Warri

v. Stakeholders meeting on the Nembe-Brass road project, Bayelsa State

vi. European Union courtesy call on the Ag MD/CEO

vii. Ford Foundation courtesy call on the Ag MD/CEO

viii. Hosted the National Coordinator, Servicom

ix. Hosted the Working Level Committee of the NDDC/OPTS forum

Madam with cross Rivers State Governor Ben Ayade


Madam with Gov Dickson of Bayelsa State


Mrs Ibim with Traditional rulers 


SITUATIONAL ANALYSIS

Situation Analysis of NDDC
Upon resumption, a routine situation analysis of the Commission was undertaken to ascertain its state of affairs as well as the challenges. These came under four broad headings viz: Administration, Policy & Corporate Governance, Finance and Project/Programme Administration

Administration
The following Administrative challenges were identified:
i. Ailing internal processes, procedures and control

ii. Non-adherence to policies, procedures and processes

iii. Top-heavy staffing patterns with staff spread across Management cadre, Senior and Junior staff cadre, respectively

iv. A preponderance of Directors without clearly defined roles

v. A disconnect between the State offices and the Head Office in terms of projects/programmes delivery and information flow, the decentralization exercise of the out-gone Board, notwithstanding

vi. Poor Organizational culture and weakened internal discipline, leading to lack of commitment and dedication to duty amongst staff

vii. Poor internal and external image, amongst others

viii. Delay in payment of bills to contractors and vendors



Policies & Corporate Governance

The enabling Act that set up the Commission empowers the Governing Board to formulate policies to guide the operations of the Commission. The first Governing Board developed Authorization and Job Description Manuals, which were approved for implementation by the first and second Boards. However, record has it that the third and last Boards operated with little recourse to the said documents. This resulted in the following policy lapses:

Poor leadership style. Processes were transactional and not transformational

Non-alignment of the activities of the Commission to the Niger Delta Regional Development Master Plan

Poor Budgeting Processes: the Boards solely took budgeting decisions with very minimal input from stakeholders

Weak ability to initiate and handle partnerships and collaborations


 Financial Challenges

Late passage of the budget likely to cause a relatively low budget performance

Zero inflow of funding from the Federal Government throughout the period under review

Withheld Quarterly Allocations

Non-compliance with the NDDC Act in funding the Commission

Zero funding from the Ecological Fund

Some Oil Companies are not paying up, notably the Nigerian Agip Oil Company

A lot of marginal field operators and the companies that acquired some assets of the Oil Majors have not been contributing

The Nigeria Liquefied Natural Gas (NLNG) which happens to be the biggest Gas Company in Nigeria has also not complied with remittance in line with the provisions of the NDDC Act

Delayed Payment to Contractors

The funding constraints have also made it difficult for the Commission to meet its obligations of servicing contractors and service providers. A good number of Interim Payment Certificates (IPCs) have been earned by NDDC contractors for work done and could not be paid as at when due. This has led to variation in project costs most of the time.





Poor Coordination of the Niger Delta Development processes

Due to the plethora of development actors in the Niger Delta, there is need for effective coordination of development efforts in order to avoid duplication of projects and programmes that could lead to wastage of resources.


Terrain and Climatic conditions

Due to the deltaic nature of the Niger Delta region, the construction of roads is very expensive compared with the upland areas of the country. The region presents the most difficult logistics challenges in the country and has made NDDC projects expensive.


Security/Youth Restiveness  

The prolonged agitation has created an entitlement mentality among youths who see and treat the NDDC as their only source of financial relief.

The Commission has continued to deal with persistent and undue pressures arising from these expectations.

This situation has heightened insecurity in the region and affected the peaceful conduct of business and development action by stakeholders.


Strategies Adopted to mitigate the challenges met

Having undertaken a situation analysis of the Commission upon arrival, the Ag MD/CEO, working in concert with members of the Commission’s staff carried out the following strategies:

Engage staff in regular meetings

Regular inspection of Projects/Programmme

Engagement of the Senate

Meeting with key Stakeholders

Effect some transfer of staff to State Offices for proper engagement of staff who were hitherto idle


SUMMARY OF POLICY FOR THE PERIOD


During the period under review, the activities of the Commission were guided by policies of the Federal Government in the various sectors, particularly the NDDC Act of 2000; the Procurement Act of 2007; the Public Service Rules; the Financial Regulations and the Niger Delta Regional Development Master Plan.

Specifically, some of the guiding policies included:

i. Enabling conditions for enhancement of micro and small enterprises as part of the Rural Development Service Programme of Intervention. These include but not limited to training in relevant skills and providing business support services linked with micro credit facilities

ii. Identify and take inventory of oil spill sites

iii. Provision of schemes and solution mechanisms for flood control, erosion and reclamation issues in the Niger Delta

iv. Ensure an efficient and effective management of Commission’s financial resources

v. Pursue and insist on the extant policies specified in the Public Procurement Act, 2007; ensure openness, transparency, competitiveness, fairness and value for money in all the procurement processes and procurement activities embarked upon by the Commission

vi. Provide resources and empowerment that will promote socio-economic advancement of rural women; Enable them participate in educational and income generating exercise as well as active involvement in local, regional and national development.

vii. Establishment of youth and women development programmes that would improve socio-economic status. These include literacy or job training/apprenticeship programmes. These are skills/technology required to enable them achieve some measure of self-actualization with a start-off grant