FG Requires N6.26 Trillion To Complete 711 Roads Projects Nationwide- Fashola
By Kassim Omomia
- Works and Housing Minister , Raji Fashola has disclosed that about N6.26 trillion is required to complete about 711 roads projects across the county
Works and Housing Minister , Raji Fashola has disclosed that about N6.26 trillion is required to complete about 711 roads projects across the county
He said at the Budget defence of the Ministry of Works and Housing, that the cost of roads construction was increasing especially when the projects are abandoned, adding that such colossal amount of no less than N6.26 trillion was required in spite of the Sukuk funding and loans from multilateral agencies.
The Minister who lamented the poor funding of roads infrastructure in the country, noted that it would be wise this time around to use the works budget in 2021 estimates to fix priority roads, especially those in the A1- A9 that have economic benefits for Nigerians
He however called on the lawmakers who he said are also part of the Federal government to dedicate the 2021 budget into completion of existing roads with a ratio of two roads and one bridge per geo-political zone
Out of the total sum of N227.964 billion capital allocation appropriated in the 2020 Appropriation Act, for the Ministry, N152.150 billion has so far been released. This represents 66.74%, leaving a balance of N75.814;
He said “The sum of N77.955 billion was released to the highway (Works sector) from the budget aside the sum of N162.559 billion for the Sukuk issuance. The Sukuk is to be drawn down for works certified only in respect of 44 roads and bridges and the Ministry is still awaiting the payment of the first tranche of N54.8 billion is for work done as at 16/10/2020.
“The ministry is currently administering 711 number of contracts nationwide and as of 1st October, 2020 the ministry has a cumulative unpaid certificates in the sum of N392.020 on ongoing highway construction projects,” he added.
On the 2021 budget estimates, the Minister disclosed that the sum of N435.319 billion was proposed for capital, personnel and overhead cost of the Ministry of Works and Housing in addition to six other parastatals
According to him , the overhead component of the estimates amounting to N15.886 billion is insufficient due to inflation, new fuel pump price and other economic variables which are challenges for now
He spoke on the Presidential Infrastructure Development Fund (PIDF), saying that the three national priority highway projects are being financed from the sovereign wealth fund, namely: rehabilitation, reconstruction and expansion of Lagos-Shagamu-Ibadan dual carriageway; construction of 2nd Niger Bridge and rehabilitation if Abuja-Kaduna-Kano dual carriageway.
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