As part of its infrastructure development roadmap, the Federal Government, FG, on Wednesday said it has touched on 8,352 kilometres of roads in the last 7 and a half years across different parts of the country from the total contract value of N10. 4 trillion earmarked for road construction in its development plan.
Minister of Works and Housing, Babatunde Raji Fashola made the disclosure when he appeared before the Senate Committee on Works to defend the Ministry’s budget for 2023.
Enumerating the achievements of the Ministry under his watch, Fashola told the Senate Committee on Works that while some of the roads have been successfully executed and completed; others were in advance stages.
He however said that out of the contract value of N10. 4 trillion for the construction of roads, the Federal Government is still indebted to suppliers of contractors to the tune of N765 million.
The Minister is asking the Senate Committee members to make provision for the outstanding liabilities owed contractors’ suppliers for executed work in their final review of the Ministry’s budget for 2023, warning that the non-payment of the money could affect the livelihood of many families along the value chain.
“These are monies owed to contractors’ suppliers who supply building materials, cements etc. It is very important we find a solution otherwise we will have consequential social and economic effects”.
The Federal Government has a total of 36,000 kilometres of roads across the country
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Speaking further, the Minister said the Ministry intervened in the construction of 85 kilometres of roads in several Federal tertiary institutions as part of the Ministry’s investment in the education sector.
Fashola said the Ministry also initiated major repairs of bridges under its 2022 budget even as he announced that the bridge component of the Second Niger bridge is completed; pointing out that only the Onitsha and Asaba roads components of the project is left to be completed.
Fashola welcomed the Tax Credit arrangement initiated by the Federal Government in 2019 which has enabled government transfer the construction of some key roads to some private entities like the Dangote Group, MTN, PZ and subsidiaries of NNPC.
The total budget for the Ministry of Works and Housing for 2022 stood at N515 billion with N441.1 billion as capital for works.
In the projection for 2023, the budget for the Ministry is slashed to N198 billion out of which N45 billion is allocated to housing.
Fashola lamented the paucity of funds especially in the face of outstanding liabilities which he said will greatly hamper the Ministry’s ability to embark on new projects in 2023.
Editor: Ena Agbanoma
