Connect with us

NEWS

Senate summons finance, works ministers, others over road projects

Published

on

SENATE Committee on Finance has invited the Minister of Finance, Zainab Ahmed, Minister of Works and Housing, Babatunde Fashola, Accountant General of the Federation, Ahmed Idris, and the Managing Director of the Nigeria Sovereign Investment Authority (NSIA), Uche Orji.

The directive was given by the chairman of the panel, Solomon Olamilekan on Tuesday in an interactive session with the NSIA director.

The Finance Minister was invited over the funding status of three federal government legacy road projects estimated to cost N2.7 trillion.

The legacy projects were the Abuja-Kano Road, Lagos-Ibadan expressway and the Second Niger Bridge, Onitsha.  They are funded and implemented through a tripartite agreement between the Ministries of Finance, Works and the NSIA.

Orji, who was invited for the same reason, told the lawmakers that the federal government established the Presidential Infrastructure Development Fund (PIDF) in February 2018, to accelerate the execution of “certain critical, strategic infrastructure projects essential to the rapid growth and modernisation of the nation’s economy,” noted that the PIDF is being managed by the NSIA to develop the Lagos-Ibadan Expressway, Second Niger Bridge Project, Abuja-Kaduna-Zaria-Kano road, Mambilla Hydro-Power Project and the East -West Road. He said the total cost of the projects is estimated to be N2.7 trillion.

“Sources of funds for the projects included federal government’s initial seed funding of $650 million transferred to PIDF in 2018; N90 billion transferred by the Ministry of Finance to PIDF in 2019 and $311 million recovered funds transferred to the PIDF in 2020.

“The NSIA is to provide $300 million, China Exim N1.423 billion, second seed funding $650 million and other sources (local and international financial institutions), $770 million. We have so far expended the sum of N231.8 billion on the three projects as follows: Lagos-Ibadan (N60.9 billion), 2nd Niger Bridge (N100.6 billion) and the Abuja-Kano Road (N70.1 billon).

According to Mr. Orji, sequel to the current status of funds, the PIDF balance as of June 2020 stood at N181.4 billion. This balance incorporates recovered assets of $311 million.

He noted that the funds are expected to be depleted by the beginning of  the third quarter of 2021.

“Under the PIDF mandate, NSIA is to receive two transfers of $650million. Thus far, NSIA received one of the transfers. Once the funding in Q3 2021 is expended, NSIA will either need the additional transfer or raise funding from other sources,” he maintained.

The lawmakers, however, disagreed and sought to know why he claimed that the projects are being managed by the NSIA but yet refused to inherit the assets and liabilities of the projects.

The chairman of the committee, Olamilekan noted that some issues, particularly funding of the road projects and cost variation require proper explanation.

According to the chairman, “as of today, two years down the line, only $300 million is in the books as having been spent on the projects, this gives cause for concern. We believe that funding is critical to these projects. If the funding is not there, there is no way we can achieve those time frames that you have set out for the completion of the projects.”

In his response, the NSIA boss told the panel that the requested information should be sought from the highlighted ministries particularly “because the questions are largely from situations that occurred before he assumed office”.

The panel thereafter, directed that the invited parties appear before the committee alongside Orji in two weeks’ time to explain the status of funding for the projects and the issue of legacy debts.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending