FG may repay states with bond for repairs on federal roads

• Pledges prompt payment of contractors
• Buhari is fulfilling his change promises, says Fashola

The Federal Government is considering repaying state governments for the rehabilitation of federal roads in their domains through bond. Minister for Power, Works and Housing, Babatunde Raji Fashola disclosed this at the weekend when he visited Lagos State Governor Akinwumi Ambode at Government House, Ikeja.

Fashola paid a visit to Lagos as part of a nationwide project monitoring exercise to inspect Federal Government projects. According to him, the ministry had presented this proposal to the Federal Executive Council on how to pay debts owed state governments including Lagos, for work done on federal roads over the years. He said the debts would be paid through bond instrument.

Ambode, who lauded the minister for his achievements during his tenure as the state governor, pledged to improve on the existing partnership with the Federal Government. Meanwhile, the Federal Government has pledged prompt payment of contractors handling projects across the county.

Fashola, in Ibadan at the weekend, disclosed that the Federal Government would now pay contractors every quarter to avoid backlog of debts for services rendered. The minister who spoke while paying a courtesy call on Oyo State Governor Abiola Ajimobi, after inspecting some Federal Government roads and housing projects in the state, added that the past administration owed contractors for more than three years. He said this caused the delay in completion of some of the projects.

“As far as money issue is concerned, the former story is that the contractors have been owed for up to three, four years. We will try to pay them at least every quarter and we have not defaulted. The President has also increased the budget for infrastructure from about N422 billion last year to over N500 billion this year,” he said.

Still on the tour of federal projects, Fashola commended President Buhari’s change agenda. While commissioning the Ministerial Pilot Housing Scheme at Ilorin-Ogbomoso expressway he said: “President Buhari is changing the nation. In the past, money was hidden in the garages, but today the money is being made available to build projects. For the first time in about 20 years the Federal Mortage Bank is returning a surplus of about N2.7billion. That is a change.

“The people of Oyo State say they need more houses and they are getting them now. The secret for more houses is in the National Housing Fund. The artisans used in building these houses are trained locally who have been given the opportunity to showcase their skills and build their country. That is another change. Besides, about 100 families will live in these houses. That is another change.”