The Nigerian Senate has set up an ad-hoc committee to investigate the 11,886 mega projects abandoned by the Federal Government since Nigeria’s independence in 1960.
Sponsored by Senator Jimoh Ibrahim (Ondo South), the committee will scrutinize the projects, separating them into sectors for thorough investigation.
Senator Jimoh in his presentation noted that 63% of all projects since independence have been abandoned, resulting in significant cost overruns and benefits shortfalls.
He cited examples like the National Library, Lagos – Badagry Express Road, and Calabar Power Plant, which remain abandoned.
The economic implications according to Senator Jimoh are evident in the decline of Foreign Direct Investment from $8.8 billion in 2011 to $3.3 billion in 2019, and a current account balance of -$17 billion in 2019.
He further stated that Public debt has also increased from 17% of GDP in 2011 to 29% in 2019.
The Senate expressed concern over the substantial project costs, which constitute a considerable part of the GDP, and the unknown total amount spent on public projects since independence.
The cost overrun and benefits shortfall of projects in Nigeria are alarming, with an investigation at the University of Cambridge revealing that 38 projects investigated cost Nigeria over $40 billion.
Lawmakers supported the motion, recommending the completion of the Ajaokuta Steel Company to aid industrialization in Nigeria.
They suggested that the government prioritize completing abandoned projects over new ones, ensuring the full functioning of abandoned companies.
The Senate therefore resolved to set up an ad-hoc committee to Investigate the number of important projects abandoned across Nigeria in all sectors.
(Editor: Ken Eseni)
