Politics

Nigerian Government Defends Contract Awards and Addresses Borrowing Concerns as Administration Nears End


The Federal government has responded to critics questioning the continuous awarding of contracts and external borrowing, just days before President Muhammadu Buhari’s administration comes to a close. Minister of Works and Housing, Babatunde Fashola, announced that contracts will be awarded by midnight on May 28 during the inauguration of the N90 billion dualisation project for the dilapidated Akure/Ado-Ekiti highway in Akure, Ondo state.

Addressing the skepticism surrounding the timing of contract awards, Fashola dismissed the notion that the government should halt ongoing projects due to the impending transition of power. He emphasized that the administration’s term concludes at midnight on May 28 and stated that such concerns were part of a misguided and juvenile conversation.

Fashola highlighted the complexity of governance, road development, and public debt, noting that decisions regarding road projects have wide-ranging consequences. He dismissed rumors and falsehoods circulating about his alleged biases against Ekiti and Ondo states, affirming his commitment to executing his duties to the best of his ability.

Explaining the intricacies of the Akure/Ado-Ekiti highway project, Fashola clarified that the road would undergo dualization and reconstruction instead of mere rehabilitation, a decision that required extensive design work. He acknowledged the lack of awareness regarding these processes and emphasized the challenges involved in executing infrastructure projects.
Regarding financing, Fashola stressed that infrastructure development necessitates borrowing or taxation. The N90 billion project will be financed through the tax credit policy of the federal government, with the Nigerian National Petroleum Corporation Limited (NNPCL) overseeing its implementation. Samchase Nigeria Ltd. and Kopeck Construction Company were awarded the project, which is slated for completion within the next 24 months.
Fashola also called for amendments to the Procurement Act, expressing concerns that the law’s processes hinder the country’s development. He urged the 10th National Assembly to review and revise the act, acknowledging its good intentions but highlighting the need for more efficient procedures to expedite national progress.

In conclusion, Fashola emphasized the necessity of open and mature conversations regarding Nigeria’s development, emphasizing that infrastructure projects come at a cost. He highlighted the importance of borrowing or taxation as means to fund these initiatives, both domestically and internationally. The minister reassured the public that the Akure/Ado-Ekiti dualization project would be completed regardless of the administration’s tenure, emphasizing its significance for regional commerce and connectivity.

The event saw commendations from Minister of State for Transport, Ademola Adegoroye, and representatives of Governor Rotimi Akeredolu and Governor Biodun Oyebanji, who acknowledged the project’s importance for the people of Ondo and Ekiti states. The contract has been divided into two sections, with one awarded to construction companies for the Ondo side and the other for the Ekiti State border section.
1 year ago
Adeyinka Arutu

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