Government owes states over N500bn for roads construction
– The federal government reportedly owes its states billions of naira for roads construction
– Ogun, Akwa Ibom and Zamfara states have the largest internal debt stock
The staggering sum of N580.5bn is the federal government indebtedness to 16 states for multiple roads construction projects around the country.
State officials have expressed their concern over the matter during a public hearing organised by the joint House of Representatives committee on works and finance on Wednesday in Abuja.
READ ALSO: Senate stops road construction in Jonathan’s home town
Among the states with the largest road fund debt are Ogun, Akwa Ibom and Zamfara states — being owed N222.977bn, N75.9bn and N57.92bn respectively.
Other lender-states are:
Anambra state with N43.427bn; Oyo state — N32.93bn
Enugu state — N25.930bn; Cross River state — N25.701bn
Ebonyi state — N21.85bn; Plateau state — N19bn
Sokoto State — N13.103bn; Kwara state — N12.855bn
Ekiti state — over N11bn; Abia state — N5.2bn
Adamawa state — N4bn; Gombe state — N3.851bn and Bauchi state — N1.9bn.
According to Engr. K. A. Ademolake, the permanent secretary in the state ministry of works and infrastructure, only in Ogun 38 contracts for the road construction were awarded from 2007 to date.
Since then the state government had paid only N123.7bn to the contractors with no reimbursement from the federal government. The affected states therefore urged the committee to force the federal government to repay the outstanding loans as soon as possible.
READ ALSO: Delta State Approves Over N5b For Road Construction
Last year, Mr. Solomon Ogunbusola, the Federation of Construction Industry President, raised the alarm: “It is distressing to observe that many construction firms are on the verge of collapse as a result of the huge debts owned by the federal, state and local governments.
Reliable sources confirm that over N500bn is owed by the Federal Government alone. This has led to loss of jobs within the industry.
We wish to bring to your (Buhari’s) notice that at present, the construction companies generally are working at 30 per cent capacity following the mass retrenchment of our workers due to the delay/non-payment of certified jobs by various arms of government.
FOCI is concerned that if the situation is not arrested in good time, it can lead to further loss of jobs and eventual collapse of the construction industries.”
The post Government owes states over N500bn for roads construction appeared first on Nigeria News today & Breaking news | Read on NAIJ.COM.