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States Will No Longer Get Refunds For Repairing Federal Roads- Lai Mohammed

First Bank Nigeria

Lai Mohammed, the minister of information and culture, says states would no longer be refunded for construction or repair works carried out on federal roads.

Addressing state house correspondents after the third virtual meeting of the federal executive council (FEC), Mohammed said reconstruction works done on federal roads would be supervised by the ministry of works and housing.

“There is a caveat henceforth if any state takes on federal government road, it will not be paid, they will not get any refund,” he told journalists on Wednesday.

“Even if you want to pay from your own pocket, you will still need the permission of the federal government and it will be supervised by the federal ministry of works and housing.”

Mohammed explained that the council approved a refund of N148 billion spent on federal roads by Rivers, Cross River, Ondo, Bayelsa and Osun states.

The minister said the approval of the refund followed a memo presented by Babatunde Fashola, the minister of works and housing.

“You will recall that in 2016, 36 states of the federation sent a very huge bill to the federal government, asking for compensation for money that they have expended on federal roads,” he explained.

“This prompted Mr President to set up a committee to go and verify the claims of these 36 states, whether indeed these projects were actually constructed, were they completed, in line with the federal government standards.

“At the end of that exercise by an inter-ministerial committee, chaired by the minister of works and housing, but also had ministers of education, transportation, finance, minister of state for works, DG BPP and permanent secretary cabinet office as members.

“At the end of that exercise, 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, yes indeed, the projects were completed and they were federal government roads.

“The claims of five other states Cross River, Rivers, Ondo, Bayelsa and Osun failed on the grounds that they did not do proper documentation and the committee felt they needed proper documentation.

“So, the committee went back with new terms of reference to ensure that the claims of the five states were in order, that is why the BPP is on the committee.

“So, at the end of the exercise, the committee now 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 is to get a refund of N38,040,564,783.40 and Rivers with three roads and three flyovers bridges is to get a refund of N78,953,067,518.29.”

The minister said the committees confirmed the roads and the bridges, that not only were they completed, they were in substantial-good form, adding that some of the bridges and roads were built about 10 years ago.

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