The Federal Executive Council (FEC) has approved the reimbursement of funds expended on federal roads by some state governments.
The total sum to be reimbursed to five states is N148,141,987,161.25.
The beneficiary states are Cross River N18,394,737,608.85, Ondo N7,822,147,577.08, Osun N2,468,938,876.78, Bayelsa N38,040,564,783.40 and Rivers N78,953,067,518.29.
The memo was presented by the Minister of Works and Housing Babatunde Fashola at the third virtual council meeting, presided over by President Muhammadu Buhari inside the Council Chambers of the State House.
Information and Culture minister Lai Mohammed, who briefed State House Correspondents on behalf of Fashola, said council has also warned that there will be no reimbursement in future, should any state government venture into such projects without the approval of the Federal Government.
Mohammed said it will be recalled that in 2016, 36 states of the federation sent a very huge bill to the federal government, asking for compensation for money that they had expended on federal roads.
This prompted the President to set up a committee to go and verify the claims of these 36 states, whether indeed the projects were actually constructed, and if completed, in line with the federal government standards.
At the end of the exercise by an inter-ministerial committee, chaired by the honorable minister of works and housing and ministers of education, transportation, finance, minister of state for works, DG BPP and permanent secretary cabinet office as members.
The committee recommended that the federal government should refund N550,364,297.31 billion to 31 of the 36 states, after they were convinced that the projects were completed and they were federal government roads.
However the claims of five other states Cross River, Rivers, Ondo, Bayelsa and Osun failed on the grounds that they did not do proper documentations and the committee felt they needed such.
The committee went back with a new terms of reference to ensure that the claims of the five states were in order, that was why the BPP was on the committee.
So at the end of the exercise, the committee reported that the five states – Cross River with 20 roads and one bridge will get a refund of N18,394,737,608.85, Ondo with six roads to get a refund of N7,822,147,577.08, and Osun with two roads and one bridge to get a refund of N2,468,938,876.78.
Others are Bayelsa with five roads and one bridge to get a refund of N38,040,564,783.40 and Rivers with three roads and three flyovers bridges will to get a refund of N78,953,067,518.29.
Mohammed said the committees confirmed the roads and the bridges, that not only were they completed, they are in substantial good form, adding that some of the bridges and roads were built about 10 years ago.
Also Read: FG provides relief materials for victims of Delta market fire
He however said, there was a caveat, the federal government will pay the states but henceforth any state that works on federal government road, will not be paid, except they get the permission of the federal government and it will be supervised by the federal ministry of works and housing.
Lai Mohammed said the modalities for refund is being worked out and such payment will be made over a period of time. The minister said 31 states were earlier paid the sum of over N500 billion.
(Editor :Paul Akhagbemhe)
