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Reps decry N400bn debt owed by FG on road projects executed by States

BusinessDay
5 Min Read

The House of Representatives on Wednesday expressed concern over the standard of various road projects executed by State Governments on behalf Federal Government.

According to the legislative brief presented by Rimamnde Shawulu (PDP-Taraba), at the last count, the “state governments are owed over N400 billion by the Federal Government. Unfortunately, some of these projects executed by State Governments were below specified standard.”

The lawmakers including Leo Ogor, Minority Leader; Abdulrazak Namdas, chairman, House Committee on Media and Public Affairs, Aminu Shehu Shagari and Nkiruka Onyeojeocha, chairman, House Committee on Aviation expressed the concerns during the debate on the bill for an Act to regulate the execution of Federal Government projects by State Governments, provide for procedure to undertake such projects, financing, supervision/monitoring, refund/reimbursement of money spent thereto and for other related matters,” co-sponsored by Rimamnde Shawulu and Solomon Maren.

In his lead debate, Shawulu noted that Federal Government’s plan to fast-track provision of infrastructure across the country by engaging the State Governments has been defeated.

“Over the years, the Federal Government has been engaged in the provision of infrastructure across the country. Some of these infrastructure required constant maintenance, upgrading and sometime rec, but due to the enormous nature of the projects and the dwindling revenue available to government, the federal government has not been able to pay proper attention o some of these infrastructure, hence leaving them dilapidated and sometimes uncompleted in critical areas of the state.

“Many states had to intervene due to the importance of the projects to their respective states. For instance, some state governments in recent past had engaged in the execution of many federal roads across the country.

“At the count, the state governments are owed over N400 billion by the Federal Government. Unfortunately, some of these projects executed by the state governments were below specified standard, hence the need to regulate the sector by providing a guideline for the execution and reimbursement of same with a view to providing quality, standard and durable infrastructure,” the Taraba lawmaker urged.

According to him, the six sections of the bill, articulate on the gains by saving cost to Federal Government and building infrastructure that will stand the test of time.

Section 1 of the ‘Execution of federal projects bill, 2016’, provides that any tier of government that is interested in undertaking the execution of a federal project shall forward a letter signed by the State Governor specifying title of the project including its location, scope, estimated cost, reasons/justification for undertaking the project at that time.

“The letter to the President shall also be accompanied by resolution of the State House of Assembly for the state or any tier of government to execute the project on behalf of the Federal Government; the signed appropriation budget of the state containing the said project to be executed.”

It also provides that the President shall forward the request to response ministry and Bureau of Public Procurement to verify the costing and if satisfied, issue a Certificate of No Objection, while Debt Management Office shall verify whether the project is contained int he Medium Term Expenditure Framework of Federal Government for the period and the costs as submitted meet the standard requirements.

As stipulated in section 1(Va) however provides that after such projects is considered to have been verified and meet necessary requirements for immediate implementation, it shall be subjected to the approval of the National Assembly, while refunds of up to 80% shall be paid to State Government.

While ruling, Speaker Yakubu Dogara who presided over the plenary, referred the bill to the joint Committee on Finance and Public Procurement for further legislative action.

KEHINDE AKINTOLA, Abuja

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