2021Budget: Our Focus Remains Completion of Priority Projects – Fashola

Works and Housing Minister ,Babatunde Raji Fashola, SAN has restated that the focus of his ministry in the 2021 budget is completion of some priority road projects, especially those on routes A1-A9.

Mr. Fashola spoke during the 2021 budget defense of his ministry before the House Committee on Works, Thursday, November 5, 2020.
” The focus of the 2021 Budget Proposal of the Ministry remains the completion of some priority road projects, especially those on routes A1-A9″ he said.

The Minister explained to the committee that the disparity between the liabilities in unpaid certificates and the budgetary provisions over the years, compels the ministry to prioritize it’s 2021 Capital Proposals in order to make appreciable impact. 

” Given the wide disparity between the liabilities in unpaid certificates in the total sum of N 392, 019, 827, 093.87k and the budgetary provisions over the years , it has become imperative that the Ministry prioritized it’s 2021 Capital Proposals in order to make appreciable impact within  the period 2021-2023, that can be physically experienced by road users” he said . 

Accordingly, the Minister said  ” Mr President had during the presentation of the 2021 budget proposals repeatedly emphasized the necessity to focus the budget on completion of projects. Therefore , the Ministry has given priority first to eighteen (18) roads/bridges projects that have already attained some appreciable physical achievement for completion within a 12-15 months period by (December, 2021)” 

Explaining further , Fashola  stated that, among the prioritized road projects are roads and bridges that lead to ports and major agricultural hubs across the six (6) geo-political zones, pointing out that focus was also made on roads that attained seventy (70%) completion in order to achieve substantial completion levels. 

In the same vein, the Minister told the Committee that his Ministry has categorized the total of the 711 highway projects currently being undertaken  over the six geo-political zones of the country according to funding mechanism.

He listed the funding mechanism as:projects financed with Presidential Infrastructure Development Fund (PIDF), Highway Projects financed with Sovereign Sukuk Fund, Highway Projects financed under Tax Credit and Highway Projects funded from Multilateral Loans.

 Speaking on the other targets for 2021, the Minister said ” The Ministry has selected two (2) roads and a bridge per zone for enhanced funding in the 2021 budget to achieve appreciable progress on the projects. Also targeted for adequate funding is the Federal Government of Nigeria (FGN) Counterpart Fund for the projects financed by the China Exim Bank “

 Speaking on the challenges, Fashola said ” The major challenge to the ministry’s efforts towards the timely completion of projects is inadequate budgetary provision and releases for projects to sustain annual cash-flow requirement levels ” 

The Minister added that the additional funding from the PIDF and SUKUK Bond has helped to bring some form of funding relief in addition to the Tax Credit Scheme. 

He, However,said that  the Ministry’s exposure continues to expand as the roads age and deteriorate and require attention.
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