Community leaders shield contractors and facilitators of multi-million projects.
Jamiu Folarin
The federal government expended the sum of N97 billion on various intervention projects between January 2019 and November 2023 in Ogun State.
Despite this massive investment in different projects including road infrastructure, dilapidated roads litter the state. In continuation of our Special Investigative Journalism Series, Rockcity F.M. in collaboration with BudgIT (a Nigerian civic tech organization) tracked projects on which contractors received over N100 million but expended only N47 million.
Agbelekale: A Model Community for Government Interventions in Ogun, But…
The road project under investigation is a 520-meter single carriage road at Agbelekale near Salamu Kaola in Abeokuta South Local Government Area of Ogun State.
The community, with roughly 50 houses and about 1,000 inhabitants, has consistently benefited from government intervention projects for three years.
From 2021 to 2023, Agbelekale community benefited from different projects of the federal government which included road, solar-powered light, and transformer projects.
Checks on the GovSpend Portal developed by BudgIT using the data sourced from Nigeria’s Open Treasury portal indicated that the federal government paid the sum of N96 million to A3 Interbiz Link Services Limited in three tranches to construct a 520 meters road in the community.
The contract which was awarded by the Border Community Development Agency (BCDA) has a description of “construction of a road in Agbelekale road, Salamu Kaola, Abeokuta, Ogun State, LOT B76”.
The road project first appeared as the Economic Recovery and Growth Plan (ERGP) in the 2021 budget with N40.6 million allocated.
According to the data on the GovSpend portal, the contractor, A3 Interbiz Link Services Limited, was paid N33.7 million on December 1st, 2021.
By the time the 2021 financial year ended on December 31st, 2021, the contractor had yet to embark on the execution of the project.
In the 2022 budget, the 520 metres road project received N78.5 million.
Surprisingly, the same road project resurfaced as a new project of the federal government in the 2022 budget.
It was re-awarded to the same contractor in the 2022 budget for N78.5 million.
Again, the contractor was paid N32.7 million on the 27th of February 2022 by the federal government agency, Border Community Development Agency (BCDA).
Following the receipt of another N32.7 million, the contractor started the construction of the road which it completed before the end of the 2022 financial year.
Infographic of Budgetary allocations, Amount Received by Contractors, and Value of Projects Executed at Agbelekale Community
Curiously, the federal government in its 2023 budget allocated N34.3 million for the same road project under the Office of the Secretary to the Government of the Federation (OSGF).
Again, the contractor was paid N29.4 million on 20th September 2023 for the project it had completed in 2022.
Payment made in respect of Agbelekale Road Project on GovSpend
This indicated that in the 2021, 2022, and 2023 budgets, the federal government voted a total of N153 million for a 520-meter-long road project which first appeared in the 2021 budget for N40.6 million.
In the course of the investigation conducted by Rockcity FM, Jamiu Folarin visited the community and discovered that although the road project was awarded to A3 Interbiz Link Services Limited and the sum of N96 million was paid to the company, it was executed by two different contractors.
The signpost of another contractor, All Season Infotech Nigeria Limited, whose name did not feature on federal government documentation on the project was found at the site.
Two project signposts of Road, Transformers, and Street light at Agelekale Community, Abeokuta, Ogun State
Project signpost indicating Completion of Road at Agelekale Community, Abeokuta, Ogun State
It is however not clear whether All Season Infotech Nigeria Limited received a different contract sum for the project.
Further investigation revealed that the two companies belong to the same contractor whose directors are Abdulraheem Abdulsalam Ayotunde, Abdulraheem Abdulqadir Ayomide, Abdulraheem Muinat Olokuta, and Adeyemo Ismaheel Olasunkanmi.
When a Rockcity F.M. reporter visited the community to track the road project, there were also discoveries of the provision of a transformer, solar-powered street lights, and a water supply network by the government to the same community.
Water Metre at Agbelekale Community, Abeokuta, Ogun State
It was observed, through another signpost in the community, that A3 Interbiz Link Services Limited was also awarded a contract by the Border Communities Development Agency (BCDA) for the “provision and installation of transformer, provision of community solar-powered electrification”.
Transformer funded by BCDA at Agbelekale community at Lantoro road in Abeokuta, Ogun State
Though these projects were traced to the 2021 budget with the allocation of N19 million, there is no evidence that the contract was awarded and money released to the contractor, A3 Interbiz Link Services Limited, for the executed projects.
Rockcity FM through BudgIT sent FOI requests to the BCDA to provide details of the contracts awarded to A3 Interbiz Link Services Limited and All Season Infotech Nigeria Limited.
Rockcity F.M. received the responses to the FOI requests sent to BCDA a few hours before the publication of this report.
Aside from the discrepancies observed in the award of the road project at the Agelekale community, this investigation also sought to find out why All Season Infotech Nigeria Limited was awarded a contract and paid without following the procedure spelled out in the Public Procurement Act 2007.
Agbelekale Community lights up at night through the solar-powered street light project funded by BCDA
This investigation also wants to know whether the provision and installation of transformers as well as the provision of community solar-powered electrification was diverted to the community.
The same directors owned two companies that received FG projects at Agbelekale
Rockcity FM conducted background checks on the companies that received road, solar-powered street lights, and transformer projects from the Border Communities Development Agency (BCDA).
Though the Corporate Affairs Commission (CAC) is yet to respond to Freedom of Information (FOI) requests to give details of the companies who received federal government contracts, we adopted Open Source Investigative Techniques through the digital resources provided by CAC to access some of the details of the companies.
Findings from this investigation exposed that the same directors owned the two companies – A3 Interbiz Link Services Limited and All Season Infotech Nigeria Limited.
All Season Infotech Nigeria Limited was registered on 12th March 2014 with registration number 1177383 and office address located at Block 2, National Maritime Quarters, Phase 2, Site 1, Abuja.
About one month later, A3 Interbiz Link Services Limited was established on 14th April 2014 with registration number 118460 and with the company’s registered office address at Block 1, National Maritime Authority Quarters, Phase 2, Abuja.
Screenshot of Selected Payment made to A3 Interbiz Link Services Limited for Contracts Awarded by the Federal Government
Since their establishment in 2014, A3 Interbiz Link Services Limited and All Season Infotech Nigeria Limited have jointly received projects worth N3 billion between January 2019 and October 2023 from different federal government agencies to execute various projects across Nigeria.
Screenshot of Payment made to All Season Infotech Nigeria Limited for contracts awarded by the Federal Government
The directors of the two companies are Abdulraheem Abdulsalam, Abdulraheem Abdulqadir, Abdulraheem Muinat Olokuta, and Adeyemo Ismaheel Olasunkanmi. They are all listed as Persons with Substantial Control (PSC) for both companies.
This indicated that the two companies that received contracts for the execution of a 520 meters road project of N153 million appropriation as well as N19 million budgetary allocation for the provision and installation of transformers, and solar-powered street lights at Agbelekale are owned by the same directors.
It has not been established whether the link to the same directors of the two companies was responsible for the discrepancies in the labeling of the names of contractors to projects not listed on the Open Treasury portal of the federal government.
This investigation is also yet to establish a link between the directors with the Border Communities Development Agency (BCDA) and the Office of the Secretary to the Government of the Federation (OSGF).
Contractors Get Over N100 Million, Spent N47 Million to Execute Projects
To ascertain the true value of the road project executed at Agbelekale community, Rockcity FM contracted Estate Surveyor and Valuer Tairu Olarenwaju, the Managing Partner of Tohir Olarenwaju Properties,
Tairu is a member of the Nigeria Institution of Estate Surveyors and Valuers (NIESV) and a registered member of the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON).
The valuer visited the community on the 22nd of November 2023 to evaluate the road, transformer, and solar-powered street lights projects in the community.
According to the valuer, the road project which he measured as 0.52 KM (520 metres) is valued at N41.5 million.
According to Tairu, “The road project at Agelekale is about 520 meters with a width of 6 meters, a bridge constructed, and one foot to 1.2 feet’s drainage partly constructed, and 1.2 inches of asphalt thickness.”
He valued the road project at N41.5 million, stating, “It was constructed with asphalt not up to standard inches for the street road projects. Using the cost of materials in 2022 when the road project was executed, and putting into consideration the quality of work carried out by the contractor, what was spent on the project was approximately N41,560,000.”
Tairu emphasized, “This figure was arrived at using the cost of materials in 2022 when the road project was executed and putting into consideration the quality of work carried out by the contractor. That is, the total distance of the road which was not up to 1km with bridge and drainages was valued at N41,560,000 using cost-approach.”
Highlighting a significant concern, he noted, “Since the contractor received the sum of N96 million for the road project, it shows that the sum of N54.5 million is yet to be spent by the contractor.”
Project signpost of Road Completion at Agelekale Community, Abeokuta, Ogun State
“In addition to this,” Tairu added, “the total number of solar-powered street lights in the community is 25 in number, and each cost about N40,000, which means that N1 million was expended on the provision of community solar-powered electrification.”
One of the 25 Solar Powered street lights and stretch of the road funded by BCDA at Agbelekale Community in Abeokuta, Ogun State
Concerning the transformer, Tairu estimated, “For the transformer at the community, the cost ranges from N4 million if it is 350 KVA to N5 million if it is 500 KVA.”
It was gathered that the road project at Agbelekale community was completed in 2022 and despite this, the contractor, A3 Interbiz Link Services Limited, received the sum of N29.5 million on 20th September 2023.
The officials of the Border Communities Development Agency (BCDA) are yet to clarify why the agency decided to execute projects in Agbelekale and other parts of Ogun State.
The officials of the Border Communities Development Agency (BCDA) are yet to clarify why the agency decided to execute projects in Agbelekale and other communities in Ogun state that are not qualified as border communities.
Nigeria shares a land border with the Republic of Benin to the west and Ogun State provides the gateway to this border.
Many communities in Ogun State bordering neighboring countries have repeatedly called for government interventions in the provision of basic amenities.
One of such community that has been neglected over the years is Tongeji Island in the Ipokia Local Government area of Ogun State.
Ogun State Governor, Prince Dapo Abiodun recently said that Tongeji Island belongs to Nigeria and not the Benin Republic, acknowledging the need for government intervention in terms of infrastructural projects and other services on the Island.
He stated, “If we are claiming that it is our territory, they must see us providing some services for our people and this has been brought to the fore a few times that our people there are complaining that we are not looking after them. We will immediately begin to provide them with those services.”
But out of over N4 billion worth of projects executed by BDCA in Ogun State in four years, only N58.5 million was allocated to the Island by the Agency for the construction of a staff residential quarter for health workers, teachers, and corpers.
Meanwhile, other communities that are not bordering neighboring countries such as Agbelekale (which received over N90 million worth of projects) received more interventions from BDCA than communities designated as such.
After perusing the Ogun State approved budgets, its implementations, and audited statements, it was however discovered that the Ogun State Government has not also executed any project on the Tongojeji Island in the Ipokia Local Government area in the last four years.
What is the function of the Border Communities Development Agency?
The Border Communities Development Agency (BCDA) is a Federal Government interventionist Agency established by an Act of Parliament to develop all Border Communities’ amenities through the implementation of planned and sustainable projects.
It came into being by its establishment Act of 2003 which was amended in 2006. Border Communities are Nigerian settlements that are close to or on Nigeria’s borders with neighboring countries. Such communities are mostly located in remote areas.
According to the Border Communities Development Agency (Establishment, etc.) Act, 2003, the Vice President is the chairman of the Governing Board which provides the general policy guidelines for the day-to-day administration of the Agency.
Professor Yemi Osinbajo who is an indigene of Ogun State was the Vice President when the contract contract sum of N96 million in three tranches (2021, 2022, and 2023) was released to the contractors to execute the projects.
Meanwhile, the Agency is however directly under the supervision of the Office of the Secretary to the Government of the Federal (OSGF) with Boss Gida Mustapha in the saddle between October 2017 and May 2023.
Other members of the governing board of the agency include the Attorney-General of the Federation; the Ministers of Foreign Affairs; Works and Housing; Internal Affairs; Finance; Defence; Water Resources; Health and Human Resources; and Education; Power and Steel; Science and Technology; Environment; Agriculture and Rural Development; and Police Affairs; Inspector-General of Police;
Others are the Chief Economic Adviser, of the National Planning Commission; the Director-General of, the National Boundary Commission; the Director-General, of the National Intelligence Agency; the Permanent Secretary, of the State and Local Government Affairs Office; the Surveyor-General of the Federation; and six other persons to represent each of the six geo-political zones.
The Act provided for the Executive Secretary of the Agency who shall serve as Secretary to the Board.
The Executive Secretary of BCDA is Captain Junaid Abdullahi, a son-in-law of former President Muhammadu Buhari, and was appointed on September 22, 2018.
The Border communities are located in 21 states spread across 105 local government areas of the federation with close to 3,000 communities as of 2013.
According to the BCDA Act, “The headquarters of the Agency shall be in the Federal Capital Territory, Abuja, and may have offices in the border States specified in the First Schedule to this Act. 2”
The First Schedule of the Act listed 21 border states and Ogun state is one of the states considered a border community in Nigeria.
The data on the GovSpend portal shows that the agency has executed projects worth N63.3 billion across Nigerian states, including the Federal Capital Territory, Abuja between 2019 and 2023.
In Ogun State, the agency carried out different intervention projects worth over N4 billion in four years. The various projects are in the areas of education, health, commerce, security, water, roads, and electricity, among others.
Community members demand the use of N54 million excess for palliatives as leaders shield contractors, facilitators
All efforts to get more information about the execution of the different projects at Agbelekale from the executive members of the Community Development Association in the area were frustrated.
A Rockcity FM reporter visited the Agbelekale community on three different occasions but community leaders said they preferred not to speak on the projects.
One of the community leaders who initially granted an interview with a Rockcity FM reporter later pleaded off-record after consulting with other executive members of the Community Development Association (CDA).
Though it was gathered that the project was facilitated by an influential government official or politician whose relatives reside in the community, it was not however clear why the CDA leadership continuously evaded interviews.
It was not also clear whether they took the decision to protect the identity of contractors and facilitators of the projects to the community out of fear of being witch-hunted or because they did not want to ‘blow the whistle’ on their ‘benefactors’.
Meanwhile, some members of the community (not executives of Agbelekale CDA) have appealed to the federal government to retrieve the excess contract sum of N54.5 million from the contractors and use it for palliatives.
The members of the community ask the government to monitor the projects executed by contractors to ensure value for money.
Qadir Orisunibare, a 28-year-old resident of the community, offered a firsthand account of the Agbelekale road project: “I can confirm that the road at Agbelekale was constructed, but for my assessment, it is evidence that the contractor spent far less than the contract sum.”
In detailing the areas in need of attention, Qadir highlighted, “We want them to do more as there are parts of our roads that need attention, especially at Salamu Kaola and such as Agbelekale Street, Sonola Street, Olaiya Street, and the street after Salamu Kaola.”
“With N96 million, all the above-mentioned roads will be constructed. We appeal to the government and the contractor to consider residents of Oke Lantoro generally and execute the projects in our community to specifications,” he emphasized.
A resident of Agbelekale community speaking on the provision of infrastructure by the federal government
The members of Agbelekale community also called for sustained government interventions in other areas of need in their community.
In expressing gratitude for the government’s initiative, a 54-year-old resident of Agbelekale community, Adisa Folamolu, who is a carpenter, shared, “We thank God for the initiative of the government. Our other area of needs, which is security, is being taken care of by the community.”
A resident of Agbelekale community, Adisa Folamolu using water metre at Agbelekale
Reflecting on the changes over the past five to six years, Adisa, with his carpentry background, noted, “The situation was not like this five to six years ago.” Looking ahead, he said, “We will be expecting the government to further come to our rescue in other areas of needs in this community.”
Sharing his concerns, 40-year-old Akinbode Olwasegun, a Welder, expressed, “My concerns…I don’t have anything to say other than to say I want them to do better. If they are doing the right thing, the whole youth would support them.”
Acknowledging the government’s efforts, Akinbode stated, “They are trying; we have seen many of the projects. Even if they have spent that amount since it is still usable, it means it is up to standard, otherwise, we will not be able to use the road.”
Calling for continued government intervention, he urged, “The government should do more, especially in those areas where we still need their intervention. We would be happy with it and will guarantee our support for them.”
A Rockcity reporter asked some members of Agbelekale community about the federal government road project in their community, while some commended the initiative, many of them were quick to emphasize the negative impact of the high cost of food in the country.
Engineer Ademolade Jekede, a 40-year-old, shared his view on the road project at Agbelekale community: “What the government did in our community is good. They provided roads, gave us electricity supply, and addressed our water supply needs. But another essential aspect that concerns all of us, including you interviewing me, is access to food. Nigerians are hungry ooo. There are only a few that can afford to eat nowadays.”
“We appeal to the government to further intensify efforts in the distribution of palliatives. The palliative is mostly cornered by the politicians, but we thank the government for providing roads for us, electricity, and water supply. We are grateful for that. Though it is not long since I moved to this community, I can confirm that the contractors have done the road, and we can see it” ” he appealed.
Upon learning that the sum of N96 million was allocated to the 520-meter road in the community, Engineer Jekede commented, “If they gave the contractors money and they spent it on the projects, it is okay; they must be commended. Some contractors would spend N500 million, and we would not see the traces, but for the contractor who executed the project in our community, we got value for money. And, of course, remember the contractors must profit from the fruit of their labour. We understand that the government cannot execute all projects, but they should intensify efforts.”
A resident at Agbelekale community confirmed the construction of road in the community
Another resident of Agebekale community, Mutiu Mutairu, expressed his satisfaction, stating, “I am really happy with the intervention. We are truly grateful. The government constructed roads and provided streetlights. The projects are genuinely beneficial, especially considering the improvement from when the road was not motorable.”
While further expressing his appreciation for the federal government’s intervention, Mutiu added, “We are appreciative of the intervention of the federal government. We thank them for their intervention. They executed road and solar-powered streetlight projects and provided a transformer. We enjoyed it so much. It is now better compared to when it was yet to be done. We pray for them.”
Most of the community members interviewed expressed frustration over the exponential increase in the prices of foodstuff and other essential commodities in Nigeria and called on the government not to pay lip service to ameliorate their suffering due to economic hardship in the country.
Some of the residents asked the government to in the interim prioritise the provision of palliatives to members of the community and address the high cost of living rather than allowing contractors to inflate the road project in their community.
Mrs Nafisat Adegbite, a trader, shared her thoughts, stating, “The walkway was not well constructed, serving as a death trap for people in the Lantoro area. The government’s intervention is commendable, especially with the road construction and the provision of functional and portable water for us. However, the road constructed in our community has defects. Many people have fallen into the drainage as the walkway constructed in some parts of the road was not well executed. We appeal to the government to rectify the observed defects.”
Iya Afin Balogun who lives close to the Agbelekale community voiced her concerns, stating, “The facilitator of this road at Agbelekale has a relative in our community. In short, my major concern is that we can’t eat the road constructed, nor the streetlights. Though we commend the efforts of the government, when we speak, Nigerians are hungry. The poor are suffering. Gas is now N1200, rice is N1700, N1600 per measurement of Congo. Since I was born, I have never witnessed this alarming increase in foodstuff. Garri is now N600, the cheapest staple food in the country.”
Expressing empathy for those facing hardships, she shared, “Many Nigerians can no longer afford three square meals. I pity one woman I met a few moments ago over there, lamenting how she and her child did not eat last night. Is that a good experience in a country that has a government? We voted for them ooo.”
While expressing concerns about the distribution of food palliatives, Iya Afin Balogun mentioned, “The palliative they claim that they distributed, we did not see anything ooo, and at the same time we see it. We have four zones in this community; they gave us one and a half bags of rice.”
“They divided it into four and used a congo to measure it. That could not even get to 20 people in the community. And they claim to have distributed the food palliative. I don’t even need it. What would I do with that small measurement of rice? Nigerians are hungry. Please, you journalists, help us appeal to the government to heed our call and consider us in the delivery of dividends of democracy. We are human beings and not animals.”
They also used the opportunity to appeal to the state government to complete the placement of slabs on the drainage system along the Lantoro road linked to the community.
Trader, Mrs. Mujidat Bankole, expressed her gratitude to Governor Dapo Abiodun for the construction of Lantoro Road but highlighted concerns, stating, “We appreciate Governor Dapo Abiodun for the construction of this road (Lantoro Road), but the work is half done. The road is narrow, and there is no cover on the drainage. It is difficult for pedestrians on this road. We appeal to the government to summon the contractor to complete the road construction because it was not completed.”
Emphasizing the safety issues, she added, “Cars and motorcycles have fallen into the drainages on many occasions. After this, we don’t want any other thing aside from a challenge with access to food. The situation is really bad and terrible. We voted for them, and they should resolve this exponential increase in the prices of food items. If it is the high cost of petrol that is causing it, they should crash the price. They should find a lasting solution to this. We all know that whatever happens to the price of petrol will have a multiplier effect on all other things in the country.”
This story is published under the GovSpend Media Fellowship, supported by BudgIT, ICIR, and MacArthur Foundation
This investigation received the input and support of:
- Dr Niran Malaolu – Mentor/Editor (Rockcity 101.9 FM)
- Tokunbo Oloruntola – Manager/Editor (Rockcity 101.9 FM)
- Femi Osinuga – Narrator/HOP (Rockcity 101.9 FM)
- Precious Ighalo Chima – Co-host (Rockcity 101.9 FM)
- Joshua Godspower Chidiebere – ICT/Graphics (Rockcity 101.9 FM)
- Wale Ogunbiyi – Audio editor (Rockcity 101.9 FM)
- Paschal Chiedozie – Mentor (ICIR)
- Iyanu Bolarinwa – Managing Editor/Coordinator (BudgIT)
- Michael Daramola – Contributor (BudgIT)
- Michael Pabiekun- Infographics (BudgIT)
- Oluwatimilehin Olugbemi – FOI request/Infographics coordination (BudgIT)
- Tairu Olarenwaju – Expert Valuer (Tohir Olarenwaju Properties)
