….Approves refunds of N148bn to Rivers, C’River, Ondo, Bayelsa, Osun
…Says COVID-19 has attacked all its revenue sources
TRACKING____The Federal Government, on Wednesday, declared that states would no longer be refunded for construction or repair works carried out on federal roads.
Minister of Information and Culture, Alhaji Lai Mohammed, made the disclosure while addressing State House correspondents after the third virtual meeting of the Federal Executive Council (FEC), noting that reconstruction works done on federal roads would be supervised by the Ministry of Works and Housing.
He said: “There is a caveat henceforth if any state takes on Federal Government road, it will not be paid, they will not get any refund.
“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 the Minister of Works and Housing, Mr. Babatunde Fashola, SAN.
“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.
“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,” Mohammed stated.
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.
Mohammed also said the Coronavirus pandemic has attacked all revenue sources of the Federal Government, noting that the development has affected ministries, department and agencies (MDAs).
He said: “We are not just Nigerians, we are all witnessing what is going on in the world today. When the budget was passed in December last year, we all celebrated that the budget was passed for the first time in a good time to allow for us to plan. We were very hopeful that this year we will be able to achieve a lot.
“I remember that the benchmark for crude oil was $57 but from nowhere today we have COVID-19, which has brought every economy in the world to its knees. Nigeria cannot be an exception. As a matter of fact, we are praying that the crude will go to $30 per barrel. All sources of revenue has been attacked by COVID-19, when we locked our borders how will goods come in? How will customs make money for the country?
“Abuja, Lagos and Ogun have been on lockdown for more than four weeks. It was only yesterday that we were easing the lockdown. How will they make money to pay taxes? So if we say there is no money it is not because we are seeking for lame excuses.
“The entire world, not just Nigeria is facing serious fiscal challenges. Forty million people in the US today have filed for unemployment, the aviation industry alone has lost about $1 trillion.
“So please look at this in context, if you budgeted for $57 a barrel and we sold at $18 a barrel two weeks ago. This is why the minister of Finance at the last council meeting, informed all of us that they will slash every ministry’s budget by 20 percent capital and 16 percent overhead. So where will the money come from? So when we complain there is no money, it is genuine.
“If you know what is being spent on COVID-19 alone and what it is costing the whole world, you will be able to appreciate this better.”
